Finding 1084748 (2024-003)

Education Stabilization Fund (AL 84.425) 2024-003 Finding – Significant Deficiency Internal Control Federal Program Education Stabilization Fund (AL 84.425) Activities Allowed or Unallowed & Allowable Costs/Cost Principles Criteria The District has an internal control policy that requires all hourly wage rates to be approved by those in charge of governance. Condition We noted during payroll testing that certain hourly rates were not approved by the board. Questioned Costs None Context A sample of 6 nonpayroll transactions and 15 employee’s payrolls were tested for the single audit. We noted that 7 employees had wages paid based on lead and student hourly rates. These lead and student hourly rates were not approved by the school board. Cause Management oversight Effect There is an increased risk of having unallowed costs/activities being charged to this program. Repeat Finding No Recommendation The board should approve all wage rates paid to employees as required by District policy. Views of Responsible Officials and Planned Corrective Actions The District will ensure all payroll rates are approved by the board