Finding 36896 (2022-002)

Significant Deficiency
Requirement
A
Questioned Costs
-
Year
2022
Accepted
2023-03-02
Audit: 25582
Organization: Harrison County School District (MS)

AI Summary

  • Core Issue: A math teacher received $6,254 in incentive pay despite exceeding the allowed absences, violating grant criteria.
  • Impacted Requirements: The grant specifies a maximum of eight absences for eligibility; this was not adhered to due to management oversight.
  • Recommended Follow-Up: Management should ensure compliance with incentive pay criteria and consult with the Mississippi Department of Education about repayment and legal counsel regarding salary restitution.

Finding Text

Finding 2022-002 Reference Number: 2022-002 Federal Agency: U.S. Department of Education Federal Program: Supporting effective instruction ? state grants Assistance Listing No.: 84.367 Compliance Requirement: Activities Allowed or Unallowed Type of Finding: Significant deficiency in Internal Control over Compliance CRITERIA: The grant application outlined specific criteria and conditions that were to be met. Incentive pay for recruitment and retention of math teachers was an allowable cost as part of the grant. One criterion was the maximum number of absences a teacher was allowed during the school year, which was eight (8) days, then they were no longer eligible to receive incentive pay. CONDITION: Management paid one (1) math teacher incentive pay of $6,254 (including fringe benefits) when the teacher?s absences exceeded the eight (8) days allowed. Policy Code GBCAA Recruitment and Retention Procedures outlined this criteria and was signed by the employee and principal. Since the employee?s absences exceeded what was allowed, that employee should not have received the incentive pay. CAUSE: The cause of the condition was oversight by management. EFFECT: The effect of the condition resulted in overpayment of salary to the teacher and $6,254 of unallowed cost being charged to the federal program. QUESTIONED COST: None PREVALENCE OF AUDIT FINDING: This condition is considered to be an isolated incident. REPEAT FINDING: This is not a repeat finding. RECOMMENDATION: It is recommended that management exercise due diligence and caution regarding incentive pay to ensure that all program criteria are met. In addition, it is recommended that management consult with the Mississippi Department of Education regarding repayment of $6,254 to the federal program. It is further recommended that management consult with legal counsel regarding the teacher?s restitution to the district for the overpayment in salary. VIEWS OF RESPONSIBLE OFFICIAL: See Auditee?s Corrective Action Plan

Corrective Action Plan

2022-002 a. Name of contact person responsible for corrective action: Mitchell King b. Corrective action planned: The District has amended policy on incentive pay to require it to be paid at the end of the year, after criteria has been verified. Repayment has been requested from the employee. c. Anticipated completion date: June 30, 2023

Categories

Internal Control / Segregation of Duties Allowable Costs / Cost Principles Significant Deficiency

Other Findings in this Audit

  • 36895 2022-001
    Significant Deficiency
  • 613337 2022-001
    Significant Deficiency
  • 613338 2022-002
    Significant Deficiency

Programs in Audit

ALN Program Name Expenditures
10.555 National School Lunch Program $9.33M
84.010 Title I Grants to Local Educational Agencies $5.79M
84.425 Covid-19 - Education Stabilization Fund (essser) Arp III $4.09M
84.027 Special Education_grants to States $3.92M
84.425 Covid--19 - Education Stabilization Fund (esser) II $1.38M
84.367 Improving Teacher Quality State Grants $901,371
10.555 Covid-19 - Emergency Operation Cost Reimbursement Program $586,234
84.424 Student Support and Academic Enrichment Program $407,349
10.582 Fresh Fruit and Vegetable Program $370,024
12.U01 Reserve Officers' Training Corps $222,487
84.048 Career and Technical Education -- Basic Grants to States $208,897
84.027 Covid-19 - Special Education_grants to States $149,656
84.365 English Language Acquisition State Grants $95,882
84.173 Special Education_preschool Grants $94,180
84.425 Covid-19 - Education Stabilization Fund (esser) I $44,166
84.425 Covid-19 - Cte Esser Grant $16,550
93.778 Medical Assistance Program $16,125
84.173 Covid-19 - Idea Arp $1,678