Finding Text
2022-003 ? Internal Controls over Compliance ? (Significant Deficiency) Federal Program Information: Funding Agency: Department Education Title: Title I Assistance Listing Number: 84.010 Compliance Requirement: Allowable Activities/Allowable Costs Award Year: July 1, 2021 to June 30, 2022 Condition: During our audit, we noted the following circumstances in our testwork over disbursements for the Title I program: ? During our examination of payroll records, there were three employees out of 25 tested that were incorrectly paid for hours paid with Title I funds for a special event, each were paid $15 more than they should have been paid. Criteria: The District must establish internal controls over compliance with allowable activities, allowable costs (2 CFR 200.303). Effect: The District overpaid employees with Title I funds which meant the District had expenditures that were not in compliance with the allowable activities/allowable costs requirements for the Title I program. Questioned Costs: $45 Cause: The District did not have a proper review of these payments to ensure that the correct amounts were paid for this special event. The District had a new staff in payroll and was unaware that benefits for these events were paid for by the operational fund as opposed to Title I funds. This was only done for a few pay periods for a limited amount of hours paid before it was subsequently corrected going forward. Auditors? Recommendation: We recommend that the District ensure that an individual familiar with the various compliance requirements be involved in the review of payroll. Agency?s Response: The District?s payroll office will work more closely with Federal Programs to ensure proper compliance when additional compensation is requested. Amounts will be verified prior to processing payment and ensure amounts fall within compliance. Person responsible for corrective action: Jade Kittrell, Payroll Specialist, Valeryia Gauthier, Federal Programs Director. Timeframe: Immediate as of November 2022.