Finding 39846 (2022-003)

Material Weakness
Requirement
A
Questioned Costs
$1
Year
2022
Accepted
2023-09-27

AI Summary

  • Core Issue: Payroll expenses lacked proper documentation as they were not aligned with employment contracts.
  • Impacted Requirements: Compliance with 2 CFR 200.403(g) for allowable costs requires adequate documentation.
  • Recommended Follow-Up: Ensure all payroll-related expenditures are backed by accurate employment contracts detailing actual contract days and payment amounts.

Finding Text

2022-003 Federal Agency: U.S. Department of Education Pass Thru Entity: Oklahoma State Department of Education Program: COVID-19 Education Stabilization Fund Assistance Listing: COVID-19- 84.425D & 84.425U Grant Period: Year ending June 30, 2022 Condition: Payroll related expenditures were not supported by terms of the employment contract. Criteria: 2 CFR ?200.403 (g) Costs that meet general criteria in order to be allowable under federal awards must be adequately documented. Cause: Employment contracts were not prepared based on actual contract days. Context: A sample of 40 expenditures totaling $1,546,887 was selected for audit from a population of $3,350,305. The test found 10 items that were not in compliance with questioned costs totaling $311,952. Effect: The expenditures may be disallowed. Recommendation: Payroll-related expenditures need to be supported by the term of the employment contract. Employment contracts need to include actual contract days and the total amount of pay for those days. Repeat Finding from Prior Year: No Views of Responsible Officials and Planned Corrective Action: Due to lack of training and guidance the prior human resource director, did not complete contracts accurately and consistently. New human resource director has completed training. In addition, District has reviewed a portion of contracts from FY21 and all contracts for FY22 and implemented procedures to ensure amounts paid agree with contract terms. FY23 new procedures were in place at time contracts were written.

Categories

Questioned Costs

Other Findings in this Audit

  • 39842 2022-006
    Material Weakness
  • 39843 2022-003
    Material Weakness
  • 39844 2022-004
    Material Weakness
  • 39845 2022-005
    Material Weakness Repeat
  • 39847 2022-004
    Material Weakness
  • 39848 2022-005
    Material Weakness Repeat
  • 39849 2022-003
    Material Weakness
  • 39850 2022-004
    Material Weakness
  • 39851 2022-005
    Material Weakness Repeat
  • 39852 2022-007
    Material Weakness
  • 39853 2022-008
    Material Weakness
  • 39854 2022-007
    Material Weakness
  • 39855 2022-008
    Material Weakness
  • 48207 2022-007
    Material Weakness
  • 48208 2022-008
    Material Weakness
  • 616284 2022-006
    Material Weakness
  • 616285 2022-003
    Material Weakness
  • 616286 2022-004
    Material Weakness
  • 616287 2022-005
    Material Weakness Repeat
  • 616288 2022-003
    Material Weakness
  • 616289 2022-004
    Material Weakness
  • 616290 2022-005
    Material Weakness Repeat
  • 616291 2022-003
    Material Weakness
  • 616292 2022-004
    Material Weakness
  • 616293 2022-005
    Material Weakness Repeat
  • 616294 2022-007
    Material Weakness
  • 616295 2022-008
    Material Weakness
  • 616296 2022-007
    Material Weakness
  • 616297 2022-008
    Material Weakness
  • 624649 2022-007
    Material Weakness
  • 624650 2022-008
    Material Weakness

Programs in Audit

ALN Program Name Expenditures
84.010 Title I Grants to Local Educational Agencies $2.07M
84.425 Education Stabilization Fund $775,412
84.377 School Improvement Grants $647,961
10.553 School Breakfast Program $390,313
10.555 National School Lunch Program $126,121
10.558 Child and Adult Care Food Program $105,459
84.048 Career and Technical Education -- Basic Grants to States $44,953
84.060 Indian Education_grants to Local Educational Agencies $42,617
15.130 Indian Education_assistance to Schools $27,523
97.036 Disaster Grants - Public Assistance (presidentially Declared Disasters) $22,842
84.173 Special Education_preschool Grants $16,046
84.027 Special Education_grants to States $10,346
84.184 Safe and Drug-Free Schools and Communities_national Programs $2,622