Finding Text
#2025-005 FINDING: Payroll Testing Federal Program Affected: Substance Abuse and Mental Health Projects of Regional and National Significance (ALN 93.243), Indian School Equalization Program (ALN 15.042) Compliance Requirement: Allowable Costs/Activities Allowed Questioned Costs: None exceeding $25,000 Condition and Cause: The School did not have an internal control process in place to identify errors in payroll prior to being paid, resulting in one Project Aware employee being paid $600 over the approved contract and one ISEP employee underpaid due to an incorrect daily pay rate used to calculate the employee’s leave without pay deduction. The total Project Aware payroll tested was $49,953 and total payroll charged to the program was $870,515. Criteria and Effect: Employee payroll charged to federal programs must agree to employee contracts and approved timesheets. Repeat Finding from Prior Year: Yes, #2024-005 Recommendation: We recommend the School begin reconciling payroll reports to the employee contracts to ensure proper payment of payroll each period. Response/Corrective Action Plan: See Corrective Action Plan.