Finding 1215716 (2024-002)

Material Weakness Repeat Finding
Requirement
A
Questioned Costs
-
Year
2024
Accepted
2026-05-28
Audit: 402373
Organization: Forest Municipal School Distrct (MS)

AI Summary

  • Core Issue: An administrator recommended her child for a position funded by a federal program, leading to a potential conflict of interest.
  • Impacted Requirements: The district did not conduct an independent review of the hiring process and failed to disclose the conflict of interest to the Mississippi Department of Education as required by federal regulations.
  • Recommended Follow-Up: Implement a formal review process for hiring recommendations and ensure compliance with disclosure requirements to prevent future conflicts of interest.

Finding Text

During our audit of payroll expenditures charged to the federal program, we identified that an administrator had recommended her child for employment whose salary and benefits were charged to the same federal award in which she was the administrator. Payroll expenditures totaling $17,083 were recorded in the District’s governmental funds for salary and benefits paid to the related employee. An independent review of the hiring recommendation or the board approval did not identify or prevent the non-compliance The district further failed to disclose the potential conflict of interest in writing to the Mississippi Department of Education as required by 2 CFR §200.112.

Corrective Action Plan

The district will strengthen internal controls by implementing additional training beginning with next monthly administrator meeting and future professional development sessions to keep in the forefront the importance of preventing conflicts of interest as well as possible nepotism as defined by Miss. Code 1972 Ann. § 25-1-53 and Miss. Code 1972 Ann. § 25-4-105(1) and also ensure compliance with 2 CFR § 200.303 internal controls and 2 CFR § 200.403 Factors affecting allowability of costs. Additional training will also be provided to ensure compliance with 2 CFR § 200.112 Conflict of interest requiring proper disclosure. New hires will be required to disclose possible conflicts of interest during the application process. Department heads making recommendations for hire will be required to disclose if they are related to the person they are recommending for hire.

Categories

Procurement, Suspension & Debarment

Other Findings in this Audit

  • 1215713 2024-002
    Material Weakness Repeat
  • 1215714 2024-002
    Material Weakness Repeat
  • 1215715 2024-002
    Material Weakness Repeat

Programs in Audit

ALN Program Name Expenditures
84.425 EDUCATION STABILIZATION FUND $2.17M
84.010 TITLE I GRANTS TO LOCAL EDUCATIONAL AGENCIES $780,769
84.027 SPECIAL EDUCATION GRANTS TO STATES $603,722
16.710 PUBLIC SAFETY PARTNERSHIP AND COMMUNITY POLICING GRANTS $443,231
10.553 SCHOOL BREAKFAST PROGRAM $406,419
10.555 NATIONAL SCHOOL LUNCH PROGRAM $65,751
84.367 SUPPORTING EFFECTIVE INSTRUCTION STATE GRANTS (FORMERLY IMPROVING TEACHER QUALITY STATE GRANTS) $63,071
84.358 RURAL EDUCATION $48,842
84.424 STUDENT SUPPORT AND ACADEMIC ENRICHMENT PROGRAM $45,906
84.173 SPECIAL EDUCATION PRESCHOOL GRANTS $23,901
84.365 ENGLISH LANGUAGE ACQUISITION STATE GRANTS $17,794
93.778 GRANTS TO STATES FOR MEDICAID $8,963
10.559 SUMMER FOOD SERVICE PROGRAM FOR CHILDREN $4,213
96.001 SOCIAL SECURITY DISABILITY INSURANCE $210