Finding 1131409 (2024-004)

Material Weakness
Requirement
B
Questioned Costs
-
Year
2024
Accepted
2025-04-14
Audit: 353584
Organization: Herron High School, Inc. (IN)
Auditor: Donovan PC

AI Summary

  • Core Issue: The Organization lacks proper documentation to support how employee salary expenses are allocated to the federal grant.
  • Impacted Requirements: This finding violates federal guidelines requiring accurate records for salary charges (2 CFR 200.430(i)).
  • Recommended Follow-Up: Implement internal controls to ensure documentation for payroll allocation is consistently maintained.

Finding Text

FINDING 2024-004 – PAYROLL ALLOCATION SUPPORT Significant Deficiency Federal Programs: Education Stabilization Fund – Assistance Listing Number 84.425 Criteria Charges for Federal awards for salaries and wages must be based on records that accurately reflect work performed (2 CFR 200.430(i)). Condition The Organization applied employee salary expenses to the program. While employees were applied to the grant in line with the approved budget in total, documentation was not maintained to support how amounts applied each pay period were determined. Cause and Effect In the transition of accounting staff, this information was not maintained. The Organization is unable to document how amounts were determined and applied to the grant. Recommendation We recommend the Organization develop internal controls to ensure proper documentation to support the allocation of payroll is maintained. Views of Responsible Officials and Planned Corrective Actions The Organization’s Corrective Action Plan is included on pages 42 through 44.

Categories

Allowable Costs / Cost Principles Significant Deficiency

Other Findings in this Audit

  • 554964 2024-001
    Material Weakness Repeat
  • 554965 2024-002
    Significant Deficiency Repeat
  • 554966 2024-003
    Significant Deficiency Repeat
  • 554967 2024-004
    Material Weakness
  • 1131406 2024-001
    Material Weakness Repeat
  • 1131407 2024-002
    Significant Deficiency Repeat
  • 1131408 2024-003
    Significant Deficiency Repeat

Programs in Audit

ALN Program Name Expenditures
84.425 Education Stabilization Fund $1.86M
10.555 National School Lunch Program $663,800
84.282 Charter Schools $477,738
10.553 School Breakfast Program $159,421
10.559 Summer Food Service Program for Children $46,320
84.010 Title I Grants to Local Educational Agencies $34,275
84.027 Special Education_grants to States $20,409
84.367 Improving Teacher Quality State Grants $681
84.424 Student Support and Academic Enrichment Program $577