Finding 400898 (2023-001)

Significant Deficiency
Requirement
AB
Questioned Costs
-
Year
2023
Accepted
2024-06-14

AI Summary

  • Core Issue: Timecards were not properly approved before payroll payments, violating internal control requirements.
  • Impacted Requirements: Compliance with the Uniform Guidance (2 CFR Section 200.303) for federal awards.
  • Recommended Follow-Up: Strengthen policies and procedures to ensure proper authorization of expenditures.

Finding Text

Program: U.S. Department of Agriculture; Passed through Alabama Department of Education; Child Nutrition Cluster, Assistance Listing #10.555 and #10.553, for 10/1/2022 through 9/30/2023. Criteria: The Uniform Guidance in 2 CFR Section 200.303 requires that non-Federal entities receiving Federal Awards establish and maintain internal control designed to reasonably ensure compliance with Federal Statutes, regulations, and the terms and conditions of the Federal award. Condition: Certain timecards were not properly approved prior to payment of the payroll expenditure. Context: This is a condition identified per review of the Board’s compliance with specified requirements using a statistically valid sample. Effect: Without adherence to controls in place to ensure costs are properly reviewed, the Board could request funds for costs or activities that are unallowable. Cause: Policies and procedures were not followed to properly authorize transactions. Repeat of a Prior-Year Finding: No Recommendation: The Board should strengthen its policies and procedures over the review of appropriate authorization to ensure that expenditures are allowable costs and for allowable activities. View of Responsible Officials: The Board and management agree with this finding.

Corrective Action Plan

Finding: Certain timecards were not properly approved prior to payment of the payroll expenditure within Assistance Listing #10.555 and #10.553 in regards to the Child Nutrition Program. Response: This took place during a period of transition in management personnel within the Child Nutrition Program. The Chief School Finance Officer (CSFO) has implemented the following procedure: If a timesheet has not been approved by a supervisor, the timesheet will be deleted from the payroll run that month and payment will be delayed until the supervisor approval is obtained or approval is granted by the CSFO. Completion date: April 1, 2024.

Categories

Allowable Costs / Cost Principles School Nutrition Programs Matching / Level of Effort / Earmarking

Other Findings in this Audit

  • 400899 2023-001
    Significant Deficiency
  • 400900 2023-001
    Significant Deficiency
  • 400901 2023-001
    Significant Deficiency
  • 977340 2023-001
    Significant Deficiency
  • 977341 2023-001
    Significant Deficiency
  • 977342 2023-001
    Significant Deficiency
  • 977343 2023-001
    Significant Deficiency

Programs in Audit

ALN Program Name Expenditures
84.425 Education Stabilization Fund $1.34M
84.010 Title I Grants to Local Educational Agencies $586,646
10.553 School Breakfast Program $144,026
10.555 National School Lunch Program $99,140
84.367 Improving Teacher Quality State Grants $88,655
93.600 Head Start $58,210
84.027 Special Education_grants to States $52,693
84.424 Student Support and Academic Enrichment Program $42,538
84.048 Career and Technical Education -- Basic Grants to States $40,959
84.173 Special Education_preschool Grants $11,080
96.001 Social Security_disability Insurance $360