Finding Text
Title 2 U. S. Code of Federal Regulations, Part 200, Uniform Administrative Requirements, Cost Principles and Audit Requirements for Federal Awards (Uniform Guidance), 2 CFR 200.303, requires non-Federal entities receiving Federal awards (i.e., auditee management) to establish and maintain effective internal control over the Federal Award that provide reasonable assurance that the non-Federal entity is managing the Federal Award in compliance with Federal statutes, regulations, and the terms and conditions of the Federal Award. In fiscal year 2022, the Monroe County Board of Education (Board) compensated an employee $15,280.00 for work performed on the Twenty-First Century Community Learning Centers Program (the program). The Board received information indicating the employee did not perform the program work for which she was compensated. Management performed an internal investigation and determined the records submitted to support this work were falsified. The Board obtained statements from three other program employees that contradicted the employee?s hours worked per timesheets submitted for the program. The Board also obtained a statement from the supervisor whose signature was on nine of the timesheets. The supervisor stated she did not sign any program timesheets for the employee. Additionally, the Alabama Department of Education performed a compliance monitoring review of the program and determined that $22,512.18 of other expenditures paid from program in fiscal year 2022 were unallowable. The Board subsequently reclassified expenditures totaling $22,512.18 to the General Fund and reimbursed the Alabama Department of Education. An effective system of internal controls was not in place to ensure that timesheets submitted contained accurate information and were properly approved by supervisory personnel. Additionally, the Board did not have procedures in place to ensure that expenditures charged to the program were properly supported and allowable. As a result, the Board expended $15,280.00 for personnel compensation from the program and $22,512.18 for other expenditures from the General Fund that were not substantiated by appropriate records and/or properly approved. Recommendation The Monroe County Board of Education should implement effective internal controls to ensure all expenditures are approved and appropriate supporting records are maintained.