Finding Text
Activities Allowed or Unallowed / Allowable Costs / Cost Principles (84.425)
Criteria
A system of internal controls requires approval of employee wages.
Condition:
The District was not able to provide approved salary authorization forms for two employees.
Cause:
The District did not have proper controls in place to ensure approval of employee wages.
Effects:
There is an increased possibility of unallowed payroll expenditures being charged to the program.
Questioned Costs:
None
Context:
The District was unable to provide two out of twelve salary authorization forms requested for testing.
Repeat Finding:
Yes
Recommendation:
The District should implement policies and procedures to ensure all employee wages are approved and the proper documentation is maintained.
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 missing salary authorization forms, the Business Manager will meet with the Human Resource Manager to review the current control and approval processes for employee salaries and make changes as appropriate.