Finding Text
2023-4 – Activities Allowed Education Stabilization Fund - AL #84.425 U.S. Department of Education Pass-Through Entity - Pennsylvania Department of Education Criteria: In accordance with 2 CFR part 200.303, the District is required to establish and maintain effective internal control over the Federal award that provides reasonable assurance that they are in compliance with Federal statutes, regulations, and the terms and conditions of the Federal award. Condition: During our testing, we noted that 3 of the 60 payroll transactions selected for testing did not have sufficient audit evidence to demonstrate the District was following their internal control processes. Cause: Due to an oversight by the staff, there was one instance of a supervisor not providing appropriate approval on a timecard. Additionally, there was one instance of a clerical error made by the Business Office that resulted in a variance in the hours paid compared to the hours worked. The third exception was due to the District not being able to provide sufficient documentation/timecard to support the wages charged to the grant. Effect: The internal controls implemented by the District were not operating effectively. Questioned Costs: None Recommendation: We recommend that the District strengthen internal controls over payroll charged to Federal awards by ensuring required approvals are obtained and review processes occur. Additionally, the District should review their record retention policy to ensure sufficient supporting documentation is retained to demonstrate compliance with Federal requirements. Views of Responsible Officials: Management is in agreement with the finding.