Finding 383711 (2023-002)

2023-002 - ALLOWABLE COSTS AND ACTIVITIES Federal Program Information: Department of Education: ALN – 84.425 – Education Stabilization Fund Criteria: The following CFR applies to this finding: 2 CFR 200.303 Condition: During audit procedures, it was identified that the Unit does not have a process to document approval over disbursements. Unit’s control over timesheets and payroll charges are not consistently applied. Cause: The Unit does not have the necessary internal controls over compliance. Effect: Insufficient controls could allow for unallowable costs to be charged. Identification Of Questioned Costs: None Identified Context: There were 3 cash disbursements and all 3 were tested and found no process to document approval before payment is issued. 72 payroll charges out of a population of over 250. It was identified that salaried employees do not complete timesheets and instead track time with Absence and Substitute Report. It was found that 4 samples where the software generated leave report was not consistent with the Absence and Substitute Reports. Additionally 4 samples were identified where the unit could not provide justification for the pay rate. One contract was not provided for one staff person. This is not statistically valid sample. Repeat Finding: This is not a repeat finding Recommendation: It is recommended that the Unit implement internal control processes and procedures to ensure that they are following the criteria above. Views of Responsible Officials and Corrective Action Plan: Please see the Corrective Action Plan issued by Regional School Unit No. 70.