Audit 53307

Reference Number: 2022-006 Compliance Requirement: Allowable Costs/Cost Principles Type of Finding: Internal Control Internal Control Impact: Significant Deficiency Compliance Impact: None AL Number(s) and Title(s): 84.425C ? COVID-19 ? Governor?s Emergency Education Relief (GEER) Fund Federal Awarding Agency: U.S. Department of Education Federal Award Number: None Pass-through Entity: Alabama State Department of Education Pass-through Award Number: None Questioned Costs: None The Institute did not design and implement internal controls to ensure that employees paid with Federal funds were paid at the rate contained in the approved budget. Title 2 of the Code of Federal Regulations, Section 200.303, requires that a non-Federal entity establish and maintain effective internal control over the Federal award that provides reasonable assurance that the non-Federal entity is managing the Federal award in compliance with Federal statutes, regulations, and the terms and conditions of the Federal award. Effective internal controls would include controls that ensure compliance with approved budget amounts. The Institute?s budget for the GEER program included approved hourly wages for employees who would be conducting a summer camp. Three employees from a population of seventeen were selected for review, and it was determined that the pay rates paid to the summer camp employees were not in accordance with the approved budget. All three employees held other positions at the Institute, and due to a lack of properly designed and implemented internal controls, these employees were paid at the rate of pay for the other position. As a result, all three employees were overpaid for the duties performed under the summer camp position. Recommendation: The Institute should design and implement internal controls to ensure that employees paid with Federal funds are paid in accordance with approved budgets.

Reference Number: 2022-006 Compliance Requirement: Allowable Costs/Cost Principles Type of Finding: Internal Control Internal Control Impact: Significant Deficiency Compliance Impact: None AL Number(s) and Title(s): 84.425C ? COVID-19 ? Governor?s Emergency Education Relief (GEER) Fund Federal Awarding Agency: U.S. Department of Education Federal Award Number: None Pass-through Entity: Alabama State Department of Education Pass-through Award Number: None Questioned Costs: None The Institute did not design and implement internal controls to ensure that employees paid with Federal funds were paid at the rate contained in the approved budget. Title 2 of the Code of Federal Regulations, Section 200.303, requires that a non-Federal entity establish and maintain effective internal control over the Federal award that provides reasonable assurance that the non-Federal entity is managing the Federal award in compliance with Federal statutes, regulations, and the terms and conditions of the Federal award. Effective internal controls would include controls that ensure compliance with approved budget amounts. The Institute?s budget for the GEER program included approved hourly wages for employees who would be conducting a summer camp. Three employees from a population of seventeen were selected for review, and it was determined that the pay rates paid to the summer camp employees were not in accordance with the approved budget. All three employees held other positions at the Institute, and due to a lack of properly designed and implemented internal controls, these employees were paid at the rate of pay for the other position. As a result, all three employees were overpaid for the duties performed under the summer camp position. Recommendation: The Institute should design and implement internal controls to ensure that employees paid with Federal funds are paid in accordance with approved budgets.