Finding Text
2025-011 IDEA-B PAYROLL CONTROLS Federal Program: Special Education Cluster Federal Agency: U.S. Department of Education Pass-Through Agency: New Mexico Public Education Department Assistance Listing Number: 84.027,84.173 Type of Finding: Significant Deficiency, Other Non-Compliance Compliance Area: Allowable costs/cost principles Federal Award Year: 2025 Questioned Costs: None Condition There were 40 payroll disbursements related to teachers who received payroll coded to IDEA-B for which we were unable to obtain contract amounts / payrates for seven disbursements (6 teachers). Criteria The Codification of Statements on Auditing Standards (SAS AU) paragraph 110.03 states that the financial statements are Management’s responsibility. Management is responsible for adopting sound accounting policies, and for establishing and maintaining internal control that will, among other things, initiate, authorize, record, process, and report transactions (as well as events and conditions) consistent with Management’s assertions embodied in the financial statements. Effect Without complete and accurate supporting documentation and evidence of approval, the District cannot demonstrate the Special Education Cluster claims were accurate and compliant with federal requirements. This increases the risk of questioned costs, repayment of funds, and increased oversight by the pass-through agency. Cause The District did not have adequate processes in place to ensure documentation retention for all transactions.