Audit 50599

CONDITION: Supporting documentation for one (1) out of fifteen (15) transactions sampled did not include documentation of a supervisor?s approval prior to paying the bill and charging it to the Federal Program. CRITERIA: Internal controls over expense approvals should be in place to ensure that all expenses charged to a program are supported with appropriate documentation and approved by a member of management to ensure that the expenditure is for services provided during the fiscal year and permitted by the program. CAUSE: Informal procedures and inconsistent application of the procedures resulted in the control deficiency. EFFECT: A lack of proper approval processes related to expenses of a federal program could result in material noncompliance with federal cost principles. CONTEXT: One (1) of fifteen (15) transactions sampled resulted in a control deficiency. Further examination of additional transactions occurring within the same period did not result in any additional instances of control deficiencies. RECOMMENDATION: The School Board should implement formal and consistent processes of expense approvals. Additionally, the School Board should consider providing training to personnel of functions related to Title I reimbursements and remind them of the importance of following established procedures to ensure proper internal controls and to avoid noncompliance. MANAGEMENT?S CORRECTIVE ACTION PLAN: Once policies and procedures for individual procedures for the mentioned operations in 2022-01 above are implemented, the procedures for approval of payment should flow with more accuracy. These procedures will help to ensure proper internal controls over expense approval and help to avoid noncompliance. Detailed policies for expense approval relating to federal programs will be updated. Policies for the mentioned procedures should be completed during the fiscal year ending June 30, 2023.

CONDITION: Supporting documentation for one (1) out of fifteen (15) transactions sampled did not include documentation of a supervisor?s approval prior to paying the bill and charging it to the Federal Program. CRITERIA: Internal controls over expense approvals should be in place to ensure that all expenses charged to a program are supported with appropriate documentation and approved by a member of management to ensure that the expenditure is for services provided during the fiscal year and permitted by the program. CAUSE: Informal procedures and inconsistent application of the procedures resulted in the control deficiency. EFFECT: A lack of proper approval processes related to expenses of a federal program could result in material noncompliance with federal cost principles. CONTEXT: One (1) of fifteen (15) transactions sampled resulted in a control deficiency. Further examination of additional transactions occurring within the same period did not result in any additional instances of control deficiencies. RECOMMENDATION: The School Board should implement formal and consistent processes of expense approvals. Additionally, the School Board should consider providing training to personnel of functions related to Title I reimbursements and remind them of the importance of following established procedures to ensure proper internal controls and to avoid noncompliance. MANAGEMENT?S CORRECTIVE ACTION PLAN: Once policies and procedures for individual procedures for the mentioned operations in 2022-01 above are implemented, the procedures for approval of payment should flow with more accuracy. These procedures will help to ensure proper internal controls over expense approval and help to avoid noncompliance. Detailed policies for expense approval relating to federal programs will be updated. Policies for the mentioned procedures should be completed during the fiscal year ending June 30, 2023.

CONDITION: Supporting documentation for one (1) out of fifteen (15) transactions sampled did not include documentation of a supervisor?s approval prior to paying the bill and charging it to the Federal Program. CRITERIA: Internal controls over expense approvals should be in place to ensure that all expenses charged to a program are supported with appropriate documentation and approved by a member of management to ensure that the expenditure is for services provided during the fiscal year and permitted by the program. CAUSE: Informal procedures and inconsistent application of the procedures resulted in the control deficiency. EFFECT: A lack of proper approval processes related to expenses of a federal program could result in material noncompliance with federal cost principles. CONTEXT: One (1) of fifteen (15) transactions sampled resulted in a control deficiency. Further examination of additional transactions occurring within the same period did not result in any additional instances of control deficiencies. RECOMMENDATION: The School Board should implement formal and consistent processes of expense approvals. Additionally, the School Board should consider providing training to personnel of functions related to Title I reimbursements and remind them of the importance of following established procedures to ensure proper internal controls and to avoid noncompliance. MANAGEMENT?S CORRECTIVE ACTION PLAN: Once policies and procedures for individual procedures for the mentioned operations in 2022-01 above are implemented, the procedures for approval of payment should flow with more accuracy. These procedures will help to ensure proper internal controls over expense approval and help to avoid noncompliance. Detailed policies for expense approval relating to federal programs will be updated. Policies for the mentioned procedures should be completed during the fiscal year ending June 30, 2023.

CONDITION: Supporting documentation for one (1) out of fifteen (15) transactions sampled did not include documentation of a supervisor?s approval prior to paying the bill and charging it to the Federal Program. CRITERIA: Internal controls over expense approvals should be in place to ensure that all expenses charged to a program are supported with appropriate documentation and approved by a member of management to ensure that the expenditure is for services provided during the fiscal year and permitted by the program. CAUSE: Informal procedures and inconsistent application of the procedures resulted in the control deficiency. EFFECT: A lack of proper approval processes related to expenses of a federal program could result in material noncompliance with federal cost principles. CONTEXT: One (1) of fifteen (15) transactions sampled resulted in a control deficiency. Further examination of additional transactions occurring within the same period did not result in any additional instances of control deficiencies. RECOMMENDATION: The School Board should implement formal and consistent processes of expense approvals. Additionally, the School Board should consider providing training to personnel of functions related to Title I reimbursements and remind them of the importance of following established procedures to ensure proper internal controls and to avoid noncompliance. MANAGEMENT?S CORRECTIVE ACTION PLAN: Once policies and procedures for individual procedures for the mentioned operations in 2022-01 above are implemented, the procedures for approval of payment should flow with more accuracy. These procedures will help to ensure proper internal controls over expense approval and help to avoid noncompliance. Detailed policies for expense approval relating to federal programs will be updated. Policies for the mentioned procedures should be completed during the fiscal year ending June 30, 2023.