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.