Finding 36660 (2022-101)

Significant Deficiency
Requirement
B
Questioned Costs
-
Year
2022
Accepted
2023-03-05

AI Summary

  • Core Issue: One employee's compensation changes were not properly documented, affecting record accuracy.
  • Impacted Requirements: Compliance with 2 CFR 200.430(i)(1)(i) regarding accurate record-keeping and internal controls.
  • Recommended Follow-Up: Implement formal procedures to ensure all compensation changes are documented in personnel files.

Finding Text

FAL No. and Name: FAL 84.425D Covid-19 - Elementary and Secondary School Emergency Relief Award Number: Fund 21FESSII-110593-01A Federal Agency: Arizona Department of Education Compliance Requirement: Allowable Costs Questioned Costs: None Criteria: In accordance with 2 CFR, ?200.430(i)(1)(i), the School should maintain records that are supported by a system of internal control which provides reasonable assurance that the charges are accurate. Condition and context: For one out of forty employees tested, changes made to the employee's compensation were not accurately documented in the employee's personnel file. Cause: The School needs to formalize its procedures to properly document changes made to employee compensation levels. Effect: The employee's compensation costs charged to the program where not accurately documented in their personnel file, however it was determined that they where paid the proper amount. Recommendation: To help ensure that when changes are made to compensation levels employees are accurately paid, the School should implement internal control policies and procedures that require updates being adequately documented in the employee's personnel file. Management's Corrective Action Plan is included at the end of this report.

Corrective Action Plan

We have prepared the following corrective action plan as required by the standards applicable to financial audits contained in Government Auditing Standards and by the audit requirements of Title 2 U.S Code of Federal Regulations Part 200, Uniform Administrative Requirements, Cost Principles, and Audit Requirements for Federal Awards (Uniform Guidance). Specifically, for each finding we are providing you with the names of the contact people responsible for corrective action, the corrective action planned, and the anticipated completion date. Findings - Financial Statement Audit 2022-001: Significant Deficiency in Internal Controls: Payroll Recommendation: To help ensure that when changes are made to compensation levels employees are accurately paid, the School should implement internal control policies and procedures that require updates being adequately documented in the employee's personnel file. Action Taken: Ethos Academy concurs and has implemented the recommendation. Completion Date: During fiscal year 2023. Contact Person: Tamara Garcia, Director Federal Awards Findings and Questioned Costs 2022-101 Significant Deficiency in Internal Controls Over Compliance: Payroll Recommendation: To help ensure that when changes are made to compensation levels employees are accurately paid, the School should implement internal control policies and procedures that require updates being adequately documented in the employee's personnel file. Action Taken: Ethos Academy concurs and has implemented the recommendation. Completion Date: During fiscal year 2023. Contact Person: Tamara Garcia, Director

Categories

Allowable Costs / Cost Principles Internal Control / Segregation of Duties

Other Findings in this Audit

  • 613102 2022-101
    Significant Deficiency

Programs in Audit

ALN Program Name Expenditures
84.425 Covid-19 Education Stabilization Fund $316,244
10.555 National School Lunch Program $221,901
84.010 Title I Grants to Local Educational Agencies $159,065
84.027 Special Education_grants to States $55,170
84.365 English Language Acquisition State Grants $4,389
84.367 Improving Teacher Quality State Grants $3,650