Finding 1075799 (2023-003)

Federal Program Affected: U.S. Department of Education’s 21st Century Community Learning Centers (CFDA #84.287) Compliance Requirement: Allowable Costs/Cost Principles Questioned Costs: None – amounts were below reporting threshold. Condition and Cause: During our testing of 16 payroll transactions, we noted one instance in which a timecard did not match the amount paid per the payroll register. As a result, the employee’s time was improperly overcharged to the 21st Century grant. The over charge was $25 out of a sample of $8,074. Payroll expenses charged to the grant for 2024 totaled $296,055. Criteria and Effect: Uniform Guidance requires adequate documentation, including support for all payments made. Lack of adequate documentation could result in questioned costs. Repeat Finding from Prior Year: Yes - Finding No. 2022-002 (revised and repeated). Recommendation: Management made significant improvements in the payroll process in 2023. We recommend continued diligence and training to ensure all internal control processes are followed. Response/Corrective Action Plan: The Organization agrees with the above finding. See Corrective Action Plan.