Finding Text
SECTION IV – FEDERAL AWARD FINDINGS AND QUESTIONED COSTS
Audit Finding 2023-002 – 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 initiate, record, process and report financial data consistent with the assertions of management in the basic financial statements and being charged to federal programs.
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 and charging the related activity to federal programs.
Context:
The District could be requesting higher reimbursements then they are entitled to, as well as overpaying employees.
Effect or Potential Effect:
Federal expenditures and related reimbursements from the federal government could be overstated.
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.