Identifying Number: 2024-001:
Audit Finding:
Per relevant statutory and regulatory provisions, costs must be allowable as specified in the references indicated for each program. Criteria must be met to determine if costs, such as separation leave costs (2 CFR section 200.431(b)), severance costs (...
Identifying Number: 2024-001:
Audit Finding:
Per relevant statutory and regulatory provisions, costs must be allowable as specified in the references indicated for each program. Criteria must be met to determine if costs, such as separation leave costs (2 CFR section 200.431(b)), severance costs (2 CFR section 200.431(i), and post-retirement health benefits (PRHB) costs (2 CFR section 200.431(h)) are allowable.
The District must demonstrate that costs incurred are allowable. The Auditor noted overpayment of various payroll after the time of employee resignation in the Special Education Cluster (IDEA) 84.027/84.173. The District did not follow internal control processes / procedures as outlined per the Employee Handbook related to the employee resignation process for payroll financed by federal assistance. Employees no longer employed for the District were paid with federal assistance that were unallowable. There were questioned costs of $26,857.
Corrective Actions Taken or Planned:
The District agrees with the finding. KCPS will strengthen and/or implement the following internal controls by June 30,2025 to ensure separating staff members are promptly offboarded, mitigating overpayments of wages:
a. Training: Human Resources will review/train all supervisors on the employee separation process and provide ongoing technical assistance.
Person responsible for implementation: Micah Enders Executive Director of Human Resources
b. SOP: Human Resources will create a central repository using a dedicated email, streamlining the notification process and reducing the lag time between supervisors and Human Resources.
Person responsible for implementation: Jordan Gordon Chief Operating Officer
c. Monitoring: Human Resources will conduct monthly reviews with budget holders aimed to verify and confirm active employee listing. Human Resources will maintain this record with certification of accuracy via signature from the Budget Holder.
Person responsible for implementation: Micah Enders Executive Director of Human Resources
d. Reporting: As part of progress monitoring, separations will be included in the HR weekly quality assurance review. As discrepancies are identified, technical assistance will be scheduled and documented with the appropriate supervisor. In addition, Finance, Human Resources and Information Technology departments will identify and source a digital tool to automate exception reporting.
Person responsible for implementation: Jordan Gordon Chief Operating Officer