Finding Text
2025-003: Activities Allowed or Unallowed / Allowable Costs / Cost Principles (15.042) Criteria A system of internal controls requires approval of employee wages. Condition: The District was unable to provide documentation supporting approval of hourly pay rates. 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: Out of 29 payroll transactions tested, we were unable to verify approval of an employee’s hourly pay rate for one transaction. Repeat Finding: No Recommendation: The District should implement policies and procedures to ensure all employee wages are approved and the proper documentation is maintained. Management Response: Management agrees with this audit finding as one of the salary authorization forms sampled did not include documentation in support of one employee’s approved hourly rate.