Finding Text
Finding 2024-005 – Material Weakness and Material Noncompliance – Allowable Activities – Documentation of Payroll Distribution
Program Name: Head Start Cluster – 93.600
Awarding Agency: U.S. Department of Health and Human Services, passed through Washtenaw Intermediate School District
Finding Type: Material Weakness on Internal Controls over Compliance and Material Noncompliance
Questioned Cost Amount: $234,972
Context / Criteria: The School District should maintain internal controls to document salaries and wages that accurately reflect the
work performed based on 2CF200.430(g). The internal controls should provide reasonable assurance that the
charges are accurate, allowable and properly allocated as to account and period.
Condition: The School District provided direct certifications as support for salaries and wages charged to the Head Start
Cluster. The amounts charged to the Head Start Cluster did not agree with the direct certifications provided:
there were 9 payroll charges that were not supported by a direct certification and 3 payroll charges where the
provided direct certification percentage did not recalculate to the amount charged to the Head Start Cluster.
Additionally, all direct certifications provided were signed June 7, 2024.
Cause / Effect: Management has not developed or implemented a control to sufficiently accumulate and document the time
spent on the Head Start Cluster. The lack of timely and accurate direct certifications could cause inaccuracies
in financial reporting and overcharging of the Head Start Cluster. Employees could have potentially been
charged to the Head Start Cluster that did not work on the grant and/or an inaccurate amount of their time could
have been charged to the grant.
Recommendation: We recommend management implement procedures to ensure direct certifications are completed in a timely
manner for all employees working on the Head Start Cluster.
Views of Responsible Officials and Corrective Actions: Management is in agreement with the finding. See accompanying corrective action plan.