Finding Text
2023-004 Documentation of Review and Approval of Disbursements
Title and Assistance Listing Number of the Federal Program: 84.425D COVID-19 - Elementary and Secondary School Emergency Relief Fund; 84.425U COVID-19 - American Rescue plan – Elementary and Secondary School Emergency Relief
Fiscal Year Finding Originated: 2023
Compliance Requirement: Activities Allowed or Unallowed, Allowable Costs/Cost Principles
Name of Federal Agency: Department of Education
Pass-through Agency: Louisiana Department of Education / East Baton Rouge Parish School Board
Questioned Costs: No questioned costs reported.
Condition: The Academies were not consistently able to provide documentation of review and approval of transactions tested.
Criteria: As noted in 2 CFR 200.303 “Internal controls”, non-Federal entities must establish and maintain effective internal control over Federal awards that provides reasonable assurance that the non-Federal entity is managing Federal awards in compliance with Federal statutes, regulations, and the terms and conditions of Federal awards.
Cause: For non-payroll items, 9 out of 21 transactions tested did not have sufficient documentation notating review and approval of the non-payroll disbursements. As a result, internal controls over non-payroll disbursements were not operating effectively.
For payroll items, 8 out of 26 payroll transactions tested did not have sufficient documentation notating review and approval of the payroll costs. The Academies changed their payroll service provider during the fiscal year and did not retain pertinent information regarding approval of payroll from the previous payroll provider, to which the exceptions are derived from.
Effect: Disbursements that lack supervisory review and approval are at greater risk of being improper due to fraud or error.
Recommendation: The Academies should ensure internal controls are operating effectively and that documentation of internal controls is maintained to demonstrate the effectiveness of the control.
Views of responsible officials: See views of responsible officials on page 36.