Finding #2025-001 – Significant Deficiency and Other Noncompliance. Condition and context: Of the sample of 25 payroll transactions tested (pay amount for an employee for a pay period) for the Special Education Cluster (IDEA), seven transactions were under-charged to the grant as compared to the tim...
Finding #2025-001 – Significant Deficiency and Other Noncompliance. Condition and context: Of the sample of 25 payroll transactions tested (pay amount for an employee for a pay period) for the Special Education Cluster (IDEA), seven transactions were under-charged to the grant as compared to the timesheet, for a total of $1,001, and two transactions were over-charged for a total of $1,559. The net amount over-charged to the grant of the sample tested was $558. Recommendation: SWWF should establish written policies and procedures and provide training to its employees on the policies and procedures for allocating salaries in accordance with Uniform Administrative Requirements, Cost Principles, and Audit Requirements for Federal Awards, §200.430. Planned corrective action: Policy and procedures for the allocation of payroll costs to the appropriate program in accordance with Uniform Administrative Requirements, Cost Principles, and Audit Requirements for Federal Awards, §200.430 will be drafted within the next 15 days. Training of all employees affected will be completed within 15 days of that. Monthly monitoring will be conducted by the Associate Superintendent of Federal Programs, and quarterly by the Chief Financial Officer, to ensure the plan is effective. The Director of Human Resources will ensure all parties are notified of new hires. Our corrective action plan includes: 1) Coverage Plan: We currently have a policy and procedure in place, and have the Associate Superintendent of Federal Grants and the HR Director overseeing the submission of required documents. PARs are submitted semiannually by single-funded personnel and monthly by multi-funded personnel. Once the Associate Superintendent of Federal Programs reviews PARs, WebSmart should be notified, via the ticketing system, if there is a need to update allocations. Note: During the final months of the fiscal year, the Director of the SE Co-op resigned, resulting in a brief lapse in review while training was underway. During the fiscal year, we had a Desk Review where the allocations did not necessarily match what was paid out. The auditor said that so long as the program did not overcharge the federal fund (which it did not), we could allocate to the other non-federal fund. The issue was not to overcharge the federal fund, which we did not. 2) Process Improvement: The notification to Websmart to update allocations will be added to the SWWF procedures. Training is completed within 10 days of the procedure updates. Training will occur before their first payroll, for new employees, by the Associate Superintendent of Federal Programs. 3) Monitoring & Review: In addition to the Associate Superintendent of Federal Programs’ monthly review, the Chief Financial Officer will review allocations quarterly to ensure accuracy. 4) Communication Plan: All employees involved in Time and Effort reporting will be provided with the updated procedures by the Associate Superintendent of Federal Programs. The Director of Human Resources will ensure all appropriate personnel are notified when a new employee begins. Responsible officer: Judyjane Witte, Chief Financial Officer. Estimated completion date: January 31, 2026.