2022-003 - Allowable Costs/Cost Principles - Disbursements Finding Type. Material Noncompliance; Material Weakness in Internal Control over Compliance Federal program(s) U.S. Department of Education: Education Stabilization Fund (ALN 84.425); Passed through MDE; All project numbers Criteria. The Uniform Guidance requires the District to establish internal controls over disbursements related to the compliance requirements applicable to allowable costs/cost provisions. The District's policies require an independent review of expenditures. Condition. The District was unable to provide evidence of allowable costs/cost principles and internal controls compliance as follows: Evidence of an independent review was not documented for 16 out of 40 disbursements selected for testing. The District could not provide any supporting documentation for costs charged on three out of 40 disbursements selected for testing. Cause. This condition appears to be the result of the District not adhering to established internal control policies and procedures. Effect. As a result of this condition, the District is at increased risk of unallowable costs being charged to federal programs without being detected by its internal controls. Questioned Costs. The total charges included in our sample that were not supported by allowable documentation amounted to $72,393. Recommendation. We recommend the District follow its internal control policies and procedures that require independent review of all disbursement transactions. View of Responsible Officials. Management Concurs Responsible Official. Director of Finance and Business Operations Estimated Completion Date. June 30, 2023
2022-004 - Allowable Costs/Cost Principles - Payroll Documentation Finding Type. Material Noncompliance; Material Weakness in Internal Control over Compliance Federal program(s) U.S. Department of Education: Education Stabilization Fund (ALN 84.425); Passed through MDE; All project numbers Criteria. The Uniform Guidance requires the District to support payroll charged to federal cost objectives with adequate documentation in accordance with the District's payroll policies. Per the District's federal policies, the District is required to support payroll charges to federal cost objectives with adequate documentation including personnel activity reports or timesheets for those who split their time between multiple cost objectives. Condition. The District was unable to provide evidence of allowable costs/cost principles and internal controls compliance as follows: Of the 21 payroll transactions selected for testing, the District was unable to provide documentation for eight of those charges. Of the 21 payroll transactions selected for testing, the District identified that one individual had been charged to the grant in excess of their actual payroll for the year. Cause. This condition appears to be the result of the District charging costs to federal programs that were not properly supported using allowable methods. Effect. As a result of this condition, the District does not have appropriate payroll support for nine of the transactions tested which were charged to the grant. Questioned Costs. The total charges included in our sample that were not supported by allowable documentation amounted to $129,160. Recommendation. We recommend the District limit payroll charged to federal programs to costs that are supported by documentation that is allowable under federal cost principles and its own policies and procedures. View of Responsible Officials. Management concurs Responsible Official. Director of Finance and Business Operations Estimated Completion Date. June 30, 2023
2022-003 - Allowable Costs/Cost Principles - Disbursements Finding Type. Material Noncompliance; Material Weakness in Internal Control over Compliance Federal program(s) U.S. Department of Education: Education Stabilization Fund (ALN 84.425); Passed through MDE; All project numbers Criteria. The Uniform Guidance requires the District to establish internal controls over disbursements related to the compliance requirements applicable to allowable costs/cost provisions. The District's policies require an independent review of expenditures. Condition. The District was unable to provide evidence of allowable costs/cost principles and internal controls compliance as follows: Evidence of an independent review was not documented for 16 out of 40 disbursements selected for testing. The District could not provide any supporting documentation for costs charged on three out of 40 disbursements selected for testing. Cause. This condition appears to be the result of the District not adhering to established internal control policies and procedures. Effect. As a result of this condition, the District is at increased risk of unallowable costs being charged to federal programs without being detected by its internal controls. Questioned Costs. The total charges included in our sample that were not supported by allowable documentation amounted to $72,393. Recommendation. We recommend the District follow its internal control policies and procedures that require independent review of all disbursement transactions. View of Responsible Officials. Management Concurs Responsible Official. Director of Finance and Business Operations Estimated Completion Date. June 30, 2023
2022-004 - Allowable Costs/Cost Principles - Payroll Documentation Finding Type. Material Noncompliance; Material Weakness in Internal Control over Compliance Federal program(s) U.S. Department of Education: Education Stabilization Fund (ALN 84.425); Passed through MDE; All project numbers Criteria. The Uniform Guidance requires the District to support payroll charged to federal cost objectives with adequate documentation in accordance with the District's payroll policies. Per the District's federal policies, the District is required to support payroll charges to federal cost objectives with adequate documentation including personnel activity reports or timesheets for those who split their time between multiple cost objectives. Condition. The District was unable to provide evidence of allowable costs/cost principles and internal controls compliance as follows: Of the 21 payroll transactions selected for testing, the District was unable to provide documentation for eight of those charges. Of the 21 payroll transactions selected for testing, the District identified that one individual had been charged to the grant in excess of their actual payroll for the year. Cause. This condition appears to be the result of the District charging costs to federal programs that were not properly supported using allowable methods. Effect. As a result of this condition, the District does not have appropriate payroll support for nine of the transactions tested which were charged to the grant. Questioned Costs. The total charges included in our sample that were not supported by allowable documentation amounted to $129,160. Recommendation. We recommend the District limit payroll charged to federal programs to costs that are supported by documentation that is allowable under federal cost principles and its own policies and procedures. View of Responsible Officials. Management concurs Responsible Official. Director of Finance and Business Operations Estimated Completion Date. June 30, 2023
2022-003 - Allowable Costs/Cost Principles - Disbursements Finding Type. Material Noncompliance; Material Weakness in Internal Control over Compliance Federal program(s) U.S. Department of Education: Education Stabilization Fund (ALN 84.425); Passed through MDE; All project numbers Criteria. The Uniform Guidance requires the District to establish internal controls over disbursements related to the compliance requirements applicable to allowable costs/cost provisions. The District's policies require an independent review of expenditures. Condition. The District was unable to provide evidence of allowable costs/cost principles and internal controls compliance as follows: Evidence of an independent review was not documented for 16 out of 40 disbursements selected for testing. The District could not provide any supporting documentation for costs charged on three out of 40 disbursements selected for testing. Cause. This condition appears to be the result of the District not adhering to established internal control policies and procedures. Effect. As a result of this condition, the District is at increased risk of unallowable costs being charged to federal programs without being detected by its internal controls. Questioned Costs. The total charges included in our sample that were not supported by allowable documentation amounted to $72,393. Recommendation. We recommend the District follow its internal control policies and procedures that require independent review of all disbursement transactions. View of Responsible Officials. Management Concurs Responsible Official. Director of Finance and Business Operations Estimated Completion Date. June 30, 2023
2022-004 - Allowable Costs/Cost Principles - Payroll Documentation Finding Type. Material Noncompliance; Material Weakness in Internal Control over Compliance Federal program(s) U.S. Department of Education: Education Stabilization Fund (ALN 84.425); Passed through MDE; All project numbers Criteria. The Uniform Guidance requires the District to support payroll charged to federal cost objectives with adequate documentation in accordance with the District's payroll policies. Per the District's federal policies, the District is required to support payroll charges to federal cost objectives with adequate documentation including personnel activity reports or timesheets for those who split their time between multiple cost objectives. Condition. The District was unable to provide evidence of allowable costs/cost principles and internal controls compliance as follows: Of the 21 payroll transactions selected for testing, the District was unable to provide documentation for eight of those charges. Of the 21 payroll transactions selected for testing, the District identified that one individual had been charged to the grant in excess of their actual payroll for the year. Cause. This condition appears to be the result of the District charging costs to federal programs that were not properly supported using allowable methods. Effect. As a result of this condition, the District does not have appropriate payroll support for nine of the transactions tested which were charged to the grant. Questioned Costs. The total charges included in our sample that were not supported by allowable documentation amounted to $129,160. Recommendation. We recommend the District limit payroll charged to federal programs to costs that are supported by documentation that is allowable under federal cost principles and its own policies and procedures. View of Responsible Officials. Management concurs Responsible Official. Director of Finance and Business Operations Estimated Completion Date. June 30, 2023
2022-003 - Allowable Costs/Cost Principles - Disbursements Finding Type. Material Noncompliance; Material Weakness in Internal Control over Compliance Federal program(s) U.S. Department of Education: Education Stabilization Fund (ALN 84.425); Passed through MDE; All project numbers Criteria. The Uniform Guidance requires the District to establish internal controls over disbursements related to the compliance requirements applicable to allowable costs/cost provisions. The District's policies require an independent review of expenditures. Condition. The District was unable to provide evidence of allowable costs/cost principles and internal controls compliance as follows: Evidence of an independent review was not documented for 16 out of 40 disbursements selected for testing. The District could not provide any supporting documentation for costs charged on three out of 40 disbursements selected for testing. Cause. This condition appears to be the result of the District not adhering to established internal control policies and procedures. Effect. As a result of this condition, the District is at increased risk of unallowable costs being charged to federal programs without being detected by its internal controls. Questioned Costs. The total charges included in our sample that were not supported by allowable documentation amounted to $72,393. Recommendation. We recommend the District follow its internal control policies and procedures that require independent review of all disbursement transactions. View of Responsible Officials. Management Concurs Responsible Official. Director of Finance and Business Operations Estimated Completion Date. June 30, 2023
2022-004 - Allowable Costs/Cost Principles - Payroll Documentation Finding Type. Material Noncompliance; Material Weakness in Internal Control over Compliance Federal program(s) U.S. Department of Education: Education Stabilization Fund (ALN 84.425); Passed through MDE; All project numbers Criteria. The Uniform Guidance requires the District to support payroll charged to federal cost objectives with adequate documentation in accordance with the District's payroll policies. Per the District's federal policies, the District is required to support payroll charges to federal cost objectives with adequate documentation including personnel activity reports or timesheets for those who split their time between multiple cost objectives. Condition. The District was unable to provide evidence of allowable costs/cost principles and internal controls compliance as follows: Of the 21 payroll transactions selected for testing, the District was unable to provide documentation for eight of those charges. Of the 21 payroll transactions selected for testing, the District identified that one individual had been charged to the grant in excess of their actual payroll for the year. Cause. This condition appears to be the result of the District charging costs to federal programs that were not properly supported using allowable methods. Effect. As a result of this condition, the District does not have appropriate payroll support for nine of the transactions tested which were charged to the grant. Questioned Costs. The total charges included in our sample that were not supported by allowable documentation amounted to $129,160. Recommendation. We recommend the District limit payroll charged to federal programs to costs that are supported by documentation that is allowable under federal cost principles and its own policies and procedures. View of Responsible Officials. Management concurs Responsible Official. Director of Finance and Business Operations Estimated Completion Date. June 30, 2023