FAC Explorer

Finding 43103 (2022-002)

Significant Deficiency
Requirement
B
Questioned Costs
-
Year
2022
Accepted
2023-03-30
Audit: 48701
Organization: Varnum School District (OK)
Auditor: Kerry John Patten CPA

AI Summary

  • Core Issue: Extra duty contracts were approved without necessary School Board authority, leading to payroll charges to federal awards without proper oversight.
  • Impacted Requirements: Compliance with federal grant regulations requiring Board approval for all employment contracts.
  • Recommended Follow-up: Implement procedures to ensure all employment contracts receive proper signatures from School Board members before any payroll payments are made.

Finding Text

U.S. Department of Education -2022-2 Title IV, 21st Century Community Learning Centers -ALN No. 84.287 Grant Period -Fiscal year ended June 30, 2022 Significant Deficiency: As discussed in Finding 2022-1, written authority by the School Board of Education was not fulfilled when creating and approving the extra duty contracts, including payroll charged to federal awards. Due to the failure to require approvals from the Board of Education, employee's payroll was charged to federal awards without assurance that the School Board of Education had approved and/or had knowledge of the payroll expenditures. Procedures should be implemented requiring all employment contracts, including extra duty employment contracts be signed by appropriate members of the School Board of Education prior to paying employees.

Corrective Action Plan

project Number: 21st Century - Project 553. Corrective steps: Procedures have been put in place to ensure employees are being paid in accordance with the District contracts with board approval. All extra duty contracts have been signed by the Varnum School Board. Completion date: 3-20-2023. Plan for monitoring adherence to the corrective action plan: The Varnum Schools Superintendent will monitor for compliance.

Categories

Student Financial Aid Significant Deficiency

Other Findings in this Audit

  • 619545 2022-002
    Significant Deficiency

Programs in Audit

ALN Program Name Expenditures
84.287 Twenty-First Century Community Learning Centers $254,172
10.555 National School Lunch Program $148,064
84.010 Title I Grants to Local Educational Agencies $125,999
84.060 Indian Education_grants to Local Educational Agencies $37,764
10.553 School Breakfast Program $27,237
84.358 Rural Education $21,717
15.130 Indian Education_assistance to Schools $8,677
84.425 Education Stabilization Fund $3,255
84.027 Special Education_grants to States $847
84.126 Rehabilitation Services_vocational Rehabilitation Grants to States $667
84.041 Impact Aid $225