Finding 381023 (2023-007)

Significant Deficiency
Requirement
AB
Questioned Costs
-
Year
2023
Accepted
2024-03-19

AI Summary

  • Core Issue: The District has compliance problems with the Education Stabilization Fund due to payroll errors, leading to potential overpayments.
  • Impacted Requirements: Failure to meet federal program compliance requirements regarding allowable costs and activities.
  • Recommended Follow-Up: Review and strengthen internal controls for payroll and federal program reporting to prevent future errors.

Finding Text

Audit Finding 2023-007 – Education Stabilization Fund (Assistance Listing 84.425) Grant Period – Year Ended June 30, 2023 Criteria or Specific Requirement: Internal control that supports the District's ability to maintain compliance with federal program compliance requirements. Questioned Costs: Known Question Costs determined through audit test work totaled $9,239. Based on the sample size and the total population, this amount extrapolates to $245,883. Condition: During our audit, we noted an employee receiving an overpayment on their payroll check, as well as another employee being paid for a claim payment had been mistakenly created, and the attempt to correct the issue lead to incorrectly recording additional salary on the general ledger. Context: The District could be requesting higher reimbursements then they are entitled to, as well as overpaying employees. Effect or Potential Effect: The District did not comply with allowable cost and allowable activities compliance requirements for the Education Stabilization Fund. Cause: District Personnel did not ensure salaries were being paid and recorded correctly. Recommendation: Review internal controls relating to payroll and federal programs to ensure payroll activity is properly reported.

Corrective Action Plan

CORRECTIVE ACTION PLAN (CAP): 1. Explanation of Disagreement with Audit Finding There is no disagreement with the finding. 2. Actions Planned in Response to Finding The District's internal controls related to payroll will continue to improve. 3. Official Responsible for Ensuring CAP Linh Phan, Manager, Accounting and Finance, Grants Accounting 4. Planned Completion Date for CAP The planned completion date for the CAP is June 30, 2024. 5. Plan to Monitor Completion of CAP The Finance Department management will be monitoring the corrective action plan.

Categories

Allowable Costs / Cost Principles Cash Management Internal Control / Segregation of Duties

Other Findings in this Audit

Programs in Audit

ALN Program Name Expenditures
84.425 Education Stabilization Fund $9.29M
10.553 School Breakfast Program $2.85M
84.367 Improving Teacher Quality State Grants $2.15M
84.371 Striving Readers $1.54M
10.555 National School Lunch Program $1.37M
21.027 Coronavirus State and Local Fiscal Recovery Funds $1.36M
10.588 Assessment of Alternatives to Face-to-Face Interviews in Snap $1.08M
84.424 Student Support and Academic Enrichment Program $1.05M
84.365 English Language Acquisition State Grants $867,530
10.559 Summer Food Service Program for Children $833,388
84.334 Gaining Early Awareness and Readiness for Undergraduate Programs $797,356
84.048 Career and Technical Education -- Basic Grants to States $788,489
84.002 Adult Education - Basic Grants to States $670,861
10.582 Fresh Fruit and Vegetable Program $519,396
84.215 Fund for the Improvement of Education $501,157
84.287 Twenty-First Century Community Learning Centers $296,243
84.181 Special Education-Grants for Infants and Families $295,428
84.060 Indian Education_grants to Local Educational Agencies $174,703
84.173 Special Education_preschool Grants $120,280
84.010 Title I Grants to Local Educational Agencies $118,780
94.006 Americorps $99,841
93.323 Epidemiology and Laboratory Capacity for Infectious Diseases (elc) $96,938
84.196 Education for Homeless Children and Youth $85,000
93.566 Refugee and Entrant Assistance_state Administered Programs $75,348
97.010 Citizenship Education and Training $22,869
10.575 Farm to School Grant Program $3,653
84.027 Special Education_grants to States $1,200
45.310 Grants to States $1,099