Finding 1150232 (2024-004)

Material Weakness
Requirement
AB
Questioned Costs
-
Year
2024
Accepted
2025-08-18

AI Summary

  • Core Issue: The School Board failed to maintain timely attendance documentation and proper payroll reviews, leading to non-compliance with federal requirements.
  • Impacted Requirements: Expenditures must align with federal budgets, time certifications must be timely, and competitive quotes are required for purchases over $10,000.
  • Recommended Follow-Up: Strengthen policies for timely time certifications, ensure accurate payroll processing, and implement a consistent process for obtaining and documenting quotes.

Finding Text

Reference # and title: 2024-004 Controls and Compliance over Disbursements Federal program and specific federal award identification: AL Number Award Year FEDERAL GRANTER/ PASS THROUGH GRANTOR/PROGRAM NAME United States Department of Education; passed through Louisiana Department of Education Title I 84.010A 2024 COVID-19 Education Stabilization Funds: Education Stabilization (ESSER II) 84.425D 2021 Education Stabilization (ESSER III) 84.425U 2021 United States Department of Agriculture; passed through Louisiana Department of Education Child Nutrition Cluster: School Breakfast Program 10.553 2024 National School Lunch Program 10.555 2024 Criteria or specific requirement: Sound internal controls over federal program require that expenditures be made in accordance with the federal program budgets, properly documented and recorded. Additionally, 2 CFR section 200 requires nonpayroll expenditures over the micro purchase threshold be adequately vetted with a competitive process such as quotes or bids. Additionally, for an employee who works in part on a federal program whose administrative funds have not been consolidated or on activities funded from other revenue sources, the School Board must maintain time and effort distribution records in accordance with 2 CFR section 200.430(i)(1)(vii) that support the portion of time and effort dedicated to (a) the consolidated cost objective, and (b) each program or other cost objective supported by non-consolidated Federal funds or other revenue sources. Employee pay should be reviewed to ensure that payment amount is correct. Employee attendance should be documented on a consistent basis. Condition found: In testing expenditures over federal programs, the following exceptions were noted: Title I: In testing 19 payroll transactions for the Title I program, there were 4 exceptions noted where the time certifications were completed, but not in a timely manner. Child Nutrition: In testing 17 payroll transactions for the Child Nutrition program, the following exceptions were noted:  3 exceptions noted where the time certifications were completed, but not in a timely manner.  3 exceptions noted where the timesheet for the employee was not reviewed by a Supervisor.  5 exceptions noted where the employee was not paid in accordance with the salary schedule. This related to 3 employees in which the employees were underpaid. In testing 23 vendor disbursements, it was noted that travel reimbursements are paid annually and not on a timely basis. Education Stabilization: In testing 17 payroll transactions for the ESSER programs, the following exceptions were noted:  2 exceptions noted where the employee was not paid in accordance with the salary schedule. This related to 1 employee in which the employees were underpaid. In testing 23 vendor disbursements for the ESSER programs, the following exceptions were noted:  1 exception noted in which the purchase could not be traced to the approved budget.  9 exceptions noted in which the School Board could not provide any support reflecting quotes were obtained before the purchase was made. Possible asserted effect (cause effect): Cause: Attendance documentation and semi-annual certifications were not maintained throughout the year by the School Board. The salaries are not being properly reviewed to determine computations are correct. Additionally, the School Board does not have a consistent process to ensure quotes are obtained and maintained for purchases in excess of $10,000. Effect: The School Board did not comply with all requirements related to allowable costs and cost principles. Recommendations to prevent future occurrences: The School Board should strengthen policies and procedures to ensure that semi-annual time certifications are signed by all employees in a timely manner, employee pay is correct and employee attendance and leave is adequately documented throughout the year which should include signature or initials, written or electronic, by the employee and supervisor. Origination date and prior year reference (if applicable): This finding originated fiscal year ended June 30, 2024. View of responsible official: The School Board implementing guidelines to correct this immediately. Also, the certifications will be required to submitted monthly with the employee’s timesheets. These certifications will be kept in a binder for the year.

Categories

Procurement, Suspension & Debarment School Nutrition Programs

Other Findings in this Audit

  • 573784 2024-004
    Material Weakness
  • 573785 2024-005
    Material Weakness
  • 573786 2024-004
    Material Weakness
  • 573787 2024-005
    Material Weakness
  • 573788 2024-004
    Material Weakness
  • 573789 2024-005
    Material Weakness
  • 573790 2024-004
    Material Weakness
  • 573791 2024-005
    Material Weakness
  • 573792 2024-003
    Significant Deficiency
  • 573793 2024-004
    Material Weakness
  • 573794 2024-005
    Material Weakness
  • 573795 2024-003
    Significant Deficiency
  • 573796 2024-004
    Material Weakness
  • 573797 2024-005
    Material Weakness
  • 573798 2024-003
    Significant Deficiency
  • 573799 2024-004
    Material Weakness
  • 573800 2024-005
    Material Weakness
  • 573801 2024-004
    Material Weakness
  • 573802 2024-005
    Material Weakness Repeat
  • 573803 2024-004
    Material Weakness
  • 573804 2024-005
    Material Weakness Repeat
  • 573805 2024-004
    Material Weakness
  • 573806 2024-005
    Material Weakness Repeat
  • 573807 2024-004
    Material Weakness
  • 573808 2024-005
    Material Weakness Repeat
  • 573809 2024-004
    Material Weakness
  • 573810 2024-005
    Material Weakness Repeat
  • 1150226 2024-004
    Material Weakness
  • 1150227 2024-005
    Material Weakness
  • 1150228 2024-004
    Material Weakness
  • 1150229 2024-005
    Material Weakness
  • 1150230 2024-004
    Material Weakness
  • 1150231 2024-005
    Material Weakness
  • 1150233 2024-005
    Material Weakness
  • 1150234 2024-003
    Significant Deficiency
  • 1150235 2024-004
    Material Weakness
  • 1150236 2024-005
    Material Weakness
  • 1150237 2024-003
    Significant Deficiency
  • 1150238 2024-004
    Material Weakness
  • 1150239 2024-005
    Material Weakness
  • 1150240 2024-003
    Significant Deficiency
  • 1150241 2024-004
    Material Weakness
  • 1150242 2024-005
    Material Weakness
  • 1150243 2024-004
    Material Weakness
  • 1150244 2024-005
    Material Weakness Repeat
  • 1150245 2024-004
    Material Weakness
  • 1150246 2024-005
    Material Weakness Repeat
  • 1150247 2024-004
    Material Weakness
  • 1150248 2024-005
    Material Weakness Repeat
  • 1150249 2024-004
    Material Weakness
  • 1150250 2024-005
    Material Weakness Repeat
  • 1150251 2024-004
    Material Weakness
  • 1150252 2024-005
    Material Weakness Repeat

Programs in Audit

ALN Program Name Expenditures
84.425 Education Stabilization (esserf III Formula) $973,552
10.555 National School Lunch Program $404,745
84.027 Grants to States (part B) $233,291
10.553 School Breakfast Program $169,635
84.371 Striving Readers Comprehensive Literacy $155,770
84.425 Education Stabilization (esserf II Incentive) $134,868
84.425 Education Stabilization (esser III Eb Interventions) $128,020
93.323 Covid-19 Epidemiology and Laboratory Capacity for Infections Diseases (elc) $112,500
84.367 Title II Supporting Effective Instruction State Grant $95,550
84.010 Title I Grants to Local Educational Agencies $89,169
84.421 Swd Transition Disability Innovation Fund (dif) $50,000
10.555 Covid-19 Supply Chain Assistance $37,498
84.358 Title V - Rural Education Achieve Program $24,906
84.425 Education Stabilization (esserf III Incentive) $19,533
84.048 Career and Technical Education -- Basic Grants to States $17,394
84.425 Education Stabilization (esserf II Formula) $12,820
10.649 Covid-19 Pandemic Ebt Administrative Costs $3,256
93.596 Child Care Mandatory and Matching Funds of the Child Care and Development Fund $3,079
84.173 Special Education Preschool Grants $1,710