Finding Text
Federal Program: ESSER FUND II of the CRRSA ACT and ESSER FUND III of the American Rescue Plan Act
of 2021
Compliance Requirement: Allowable Cost
Criteria:
Ongoing monitoring of the general ledger, and activity in the federal program to ensure that the costs
charged to the program are allowable according to the grant guidelines and the grant spend plan.
Condition:
We noted a deficiency in internal control procedures related to documentation of administrative review
and approval of the allowable costs that were charged to the program, including employees' payroll.
Cause:
The cause of the deficiency appears to be a lack of regular administrative review procedures and a lack of
communication between the program directors, payroll administrator, and the Chief Financial Officer.
Effect:
The lack of internal controls could result in a questioned cost.
Recommendation:
It is recommended that when setting up the payroll at the beginning of the year, HR needs to verify and
document that the employees charged to the program agree with what was decided in the spend plan
and that there were no changes. Also, verify any other expenditures charged to the program agree to
the spend plan