Finding Text
2023-003: Activities Allowed or Unallowed / Allowable Costs / Cost Principles (84.425)
Criteria
A system of internal controls requires approval of employee wages, and employee
timecards.
Condition:
During our review of transactions, we noted four employee contracts and one employee
timecard that did not have the proper approvals.
Cause:
Management oversight
Effects:
There is an increased possibility of unallowed expenditures being charged to the program.
Questioned Costs:
None
Context:
Of ten employee contracts tested, four were missing school board signatures. Additionally,
the District was unable to locate one of the five timecards selected for testing.
Repeat Finding:
No
Recommendation:
The District should implement policies and procedures to ensure all grant expenditures are
approved.
Management Response:
The District currently does have processes and controls in place to ensure grant
expenditures have been approved. Specific to this audit finding of employee contracts and
employee timecards missing proper approvals, the Business Manager will meet with the
Human Resource Manager to review the current control and approval processes for
employee contracts and timecards and make changes as appropriate.