Finding Text
Allowable Costs/Cost Principles
Federal Program Information
Funding Agency: U.S. Department of Education
Title: Education Stabilization Fund
AL Number: 84.425
Criteria
A system of good internal controls would have an entity to file all approved wages in the
employee personal file and approve all transactions.
Condition
Supporting documentation for approved staff wages was missing for 11 employees out of
the 40 transactions tested. We also noted 1 non-payroll transaction that did not have the
proper approval.
Questioned Costs
Undeterminable
Context
In a population over 250, 40 transactions were selected for testing. Of the 40 transactions
selected, 26 transactions were non-payroll and 14 transactions were payroll. Out of the 26
non-payroll transactions, 1 did not have the proper approval. Also, out of 14 payroll
transactions, 11 were missing documentation to support approval of the wage rate.
.
Effect
Employees may not be compensated the correct amount. There is also an increased risk of
unallowable non-payroll transactions being charged to the program.
Cause
Management oversight.
Recommendation
We recommend the District put a copy of the approved wages in each personal file so they
have a record of what each employee will be paid. Also, the district should put procedures in
place to ensure all transactions are properly approved.
Repeat Finding
This is a repeat finding of 2021-007.
Views of Responsible Officials
See corrective action plan.