Finding 10656 (2023-001)

Significant Deficiency

Requirement

Questioned Costs

Year

2023

Accepted

2024-01-30

Audit: 14327

Organization: Marshall Public Schools (MI)

Auditor: Rehmann Robson LLC

AI Summary

Core Issue: Two out of forty payroll disbursements lacked required employee signatures and supervisor approvals, indicating a failure to follow payroll policies.
Impacted Requirements: The District did not meet the Uniform Guidance documentation standards for federal payroll charges, increasing the risk of unallowable costs.
Recommended Follow-Up: Review and reinforce payroll policies to ensure all timesheets are properly documented and approved before payments are made, with a target completion by June 30, 2024.

Finding Text

2023-001 – Allowable Costs/Cost Principles – Timesheets Finding Type. Immaterial noncompliance; Significant Deficiency in Internal Controls over Compliance Federal program(s) U.S. Department of Education -  COVID-19 - Education Stabilization Fund (ALN 84.425D and 84.425U); 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, which require timesheets include signature by the individual and evidence of approval by the individual's supervisor. Condition. Two out of forty disbursements selected for testing did not include the required documentation by the employee and approvals by their supervisor. Cause. Management did not consistently follow its documented payroll policies related to timesheet documentation during the year. Effect. As a result of this condition, the District was exposed to increased risk that payroll charges of federal awards could be made for unallowable costs. Questioned Costs. No costs have been questioned as a result of this finding. Recommendation. We recommend that the District review its written policies and procedures over federal awards to ensure that all timesheets have the appropriate documentation and evidence of review and approval prior to payment. View of Responsible Officials. The business office will be reviewing that all timesheets are signed by employees and approved by their supervisor prior to payment. Responsible Official. Superintendent and Business Manager Estimated Completion Date. June 30, 2024

Corrective Action Plan

Finding: 2023-001 – Allowable Costs/Cost Principles – Timesheets U.S. Department of Education – COVID-19 - Education Stabilization Fund (ALN 84.425D and 84.425U); Passed through the Michigan Department of Education; All project numbers. Auditor Description of Condition and Effect: Two out of forty disbursements selected for testing did not include the required documentation by the employee and approvals by their supervisor. As a result of this condition, the District was exposed to increased risk that payroll charges of federal awards could be made for unallowable costs. Auditor Recommendation: We recommend that the District review its written policies and procedures over federal awards to ensure that all timesheets have the appropriate documentation and evidence of review and approval prior to payment. Corrective Action: The business office will be reviewing that all timesheets are signed by employees and approved by their supervisor prior to payment. Responsible Person: Rebecca Jones, Superintendent and Tara Newman, Business Manager Anticipated Completion Date: June 30, 2024

Other Findings in this Audit

10657 2023-001

Significant Deficiency
10658 2023-001

Significant Deficiency
10659 2023-002

Material Weakness
10660 2023-002

Material Weakness
10661 2023-002

Material Weakness
587098 2023-001

Significant Deficiency
587099 2023-001

Significant Deficiency
587100 2023-001

Significant Deficiency
587101 2023-002

Material Weakness
587102 2023-002

Material Weakness
587103 2023-002

Material Weakness

Programs in Audit

ALN	Program Name	Expenditures
84.010	Title I Grants to Local Educational Agencies	$1.29M
84.425	Education Stabilization Fund	$676,164
10.553	School Breakfast Program	$301,381
32.009	Emergency Connectivity Fund Program	$184,826
84.424	Student Support and Academic Enrichment Program	$82,590
84.367	Improving Teacher Quality State Grants	$75,574
10.559	Summer Food Service Program for Children	$43,950
10.555	National School Lunch Program	$28,622
10.582	Fresh Fruit and Vegetable Program	$13,995
10.185	Local Food for Schools	$11,786
10.649	Pandemic Ebt Administrative Costs	$3,135
10.558	Child and Adult Care Food Program	$666