Finding 1090556 (2023-004)

Material Weakness Internal Control over Compliance Federal Programs Impacted: Education Stabilization Funds (84.425D, 84.425U) and Supporting Effective Instruction State Grant (84.367) 2023-004 Condition: Wages and benefits charged to federal grant programs were not properly supported with documentation of the employee’s job functions and allowability for the program. Discrepancies were identified between employee contracts, employee time and effort documentation, and actual coding of wages and benefits. The wages and benefits that lacked supporting documentation were determined to be allowable to the programs tested. Criteria: A strong system of internal control includes proper maintenance of all payroll amendments and addendums for all periods in which employees are paid. Documentation of employee wage agreements and time and effort reporting should be maintained and updated as staffing assignments are revised. Cause: The District had a significant turnover in Business Office and Human Resources personnel. Effect: Employees may be paid in a manner that is not consistent with wage agreements and time and effort documentation. In addition to possible questioned costs for federal programs. Repeat of Prior Year Finding: Yes, a similar finding was reported for the year ending June 30, 2021. Auditor’s Recommendation: We recommend that management implement a process to ensure that all employees have current wage agreements. In addition, the wage agreements, time and effort reporting, and actual recording of wages and benefits should be reviewed periodically to confirm agreement of documentation. View of Management: Management agrees with the finding. A response can be found in the Corrective Action Plan