Finding 1079693 (2024-003)

Significant Deficiency
Requirement
AB
Questioned Costs
-
Year
2024
Accepted
2024-10-21
Audit: 325307
Organization: Sebeka Public Schools (MN)

AI Summary

  • Core Issue: Seven timecards lacked proper approval before payroll processing.
  • Impacted Requirements: Internal controls mandate that all timecards must be reviewed and approved.
  • Recommended Follow-Up: The District should establish policies to ensure all timecards receive approval before payroll is processed.

Finding Text

2024-003 FINDING Federal Program COVID-19 Education Stabilization Fund Under The Coronavirus Aid, Relief, and Economic Security Act (AL 84.425 U/D) Activities Allowed or Unallowed; Allowable Costs/Cost Principles Criteria A system of internal controls requires all timecards to be reviewed and approved before payroll is processed. Condition During our transaction testing, we noted 7 timecards that did not have proper approval. Questioned costs None. Cause Management oversight. Context In a population over 250, 40 transactions were selected. 37 of these transactions were payroll related transactions with 29 requiring approvals for a timecard. We noted that 7 of these did not have proper approval. Effect There is an increased risk of charging an unallowable activity or cost to the federal program. Repeat Finding No. Recommendation The District should implement policies and procedures to ensure all timecards are approved before payroll is processed. Views of Responsible Officials and Planned Corrective Actions The District is in agreement with the recommendation and will approve all timecards prior to payroll being processed.

Categories

Allowable Costs / Cost Principles Internal Control / Segregation of Duties

Other Findings in this Audit

  • 503251 2024-003
    Significant Deficiency
  • 503252 2024-003
    Significant Deficiency
  • 503253 2024-004
    Significant Deficiency
  • 503254 2024-004
    Significant Deficiency
  • 503255 2024-004
    Significant Deficiency
  • 503256 2024-004
    Significant Deficiency
  • 503257 2024-004
    Significant Deficiency
  • 1079694 2024-003
    Significant Deficiency
  • 1079695 2024-004
    Significant Deficiency
  • 1079696 2024-004
    Significant Deficiency
  • 1079697 2024-004
    Significant Deficiency
  • 1079698 2024-004
    Significant Deficiency
  • 1079699 2024-004
    Significant Deficiency

Programs in Audit

ALN Program Name Expenditures
84.010 Title I Grants to Local Educational Agencies $196,499
10.553 School Breakfast Program $72,061
84.027 Special Education Grants to States $56,598
10.555 National School Lunch Program $40,118
84.048 Career and Technical Education -- Basic Grants to States $28,511
84.358 Rural Education $26,250
84.367 Supporting Effective Instruction State Grants (formerly Improving Teacher Quality State Grants) $21,692
84.424 Student Support and Academic Enrichment Program $12,912
10.559 Summer Food Service Program for Children $12,602
84.425 Education Stabilization Fund $9,857
10.558 Child and Adult Care Food Program $4,193
10.649 Pandemic Ebt Administrative Costs $653
10.556 Special Milk Program for Children $42