FAC Explorer

Finding 25211 (2022-003)

Significant Deficiency
Requirement
B
Questioned Costs
-
Year
2022
Accepted
2022-10-27
Audit: 25507
Organization: East China School District (MI)
Auditor: McBride-Manley & Company PC

AI Summary

  • Core Issue: Payroll allocations for one employee were incorrectly calculated by the third-party servicer.
  • Impacted Requirements: Salaries and wages must align with timecards to ensure correct federal program charges.
  • Recommended Follow-Up: The District should enhance oversight of the payroll process and verify servicer calculations.

Finding Text

Program Name: Child Nutrition Cluster - CFDA# 10.553/10.555/10.559 Pass-Through Entity: Michigan Department of Education. Finding Type: Significant Deficiency Condition: Instances were noted where payroll allocations were not properly calculated by third party servicer. Perspective/Context: One out of a total of 30 employees had time allocated incorrectly. Questioned Cost: None. Criteria: Salaries and wages should be posted consistent with timecards and other records to assure allowable expenditures are charged to the correct federal program. Cause: The District does not have appropriate oversight over payroll servicer and relies on the servicer to properly calculate and record payroll without verification or review. Effect: Payroll related to other programs or functions could be allocated incorrectly to federal programs. Recommendation: The District should review the payroll process and procedures and consider making adjustments to the process to provide additional oversight over payroll servicer. Management's Response: Management has initiated a review of the payroll process and procedures and will make necessary adjustments to include verification and review of payroll servicer calculations.

Categories

Subrecipient Monitoring Allowable Costs / Cost Principles School Nutrition Programs Significant Deficiency Internal Control / Segregation of Duties

Other Findings in this Audit

  • 25203 2022-003
    Significant Deficiency
  • 25204 2022-004
    -
  • 25205 2022-003
    Significant Deficiency
  • 25206 2022-004
    -
  • 25207 2022-003
    Significant Deficiency
  • 25208 2022-004
    -
  • 25209 2022-003
    Significant Deficiency
  • 25210 2022-004
    -
  • 25212 2022-004
    -
  • 25213 2022-003
    Significant Deficiency
  • 25214 2022-004
    -
  • 25215 2022-003
    Significant Deficiency
  • 25216 2022-004
    -
  • 25217 2022-003
    Significant Deficiency
  • 25218 2022-004
    -
  • 25219 2022-003
    Significant Deficiency
  • 25220 2022-004
    -
  • 25221 2022-003
    Significant Deficiency
  • 25222 2022-004
    -
  • 601645 2022-003
    Significant Deficiency
  • 601646 2022-004
    -
  • 601647 2022-003
    Significant Deficiency
  • 601648 2022-004
    -
  • 601649 2022-003
    Significant Deficiency
  • 601650 2022-004
    -
  • 601651 2022-003
    Significant Deficiency
  • 601652 2022-004
    -
  • 601653 2022-003
    Significant Deficiency
  • 601654 2022-004
    -
  • 601655 2022-003
    Significant Deficiency
  • 601656 2022-004
    -
  • 601657 2022-003
    Significant Deficiency
  • 601658 2022-004
    -
  • 601659 2022-003
    Significant Deficiency
  • 601660 2022-004
    -
  • 601661 2022-003
    Significant Deficiency
  • 601662 2022-004
    -
  • 601663 2022-003
    Significant Deficiency
  • 601664 2022-004
    -

Programs in Audit

ALN Program Name Expenditures
84.010 Title I Grants to Local Educational Agencies $453,922
10.553 Covid-19 - School Breakfast Program $388,095
32.009 Covid-19 - Emergency Connectivity Fund Program $266,848
10.555 National School Lunch Program $115,825
84.367 Improving Teacher Quality State Grants $80,110
10.555 Covid-19 - National School Lunch Program $73,793
84.425 Covid-19 - Education Stabilization Fund $32,500
84.424 Student Support and Academic Enrichment Program $29,360
93.778 Medical Assistance Program $29,265
84.027 Special Education_grants to States $13,812
21.019 Covid-19 - Coronavirus Relief Fund $6,065
10.649 Covid-19 - Pandemic Ebt Administrative Costs $3,063
84.173 Special Education_preschool Grants $2,428
10.559 Covid-19 - Summer Food Service Program for Children $1,502
84.365 English Language Acquisition State Grants $495
10.559 Summer Food Service Program for Children $-11,926