Finding Text
Finding 2024-006 – Material Weakness and Noncompliance – Allowable Activities – Documentation of Payroll and Disbursement
Classification
Program Name: Literacy Excellence Accelerates Performance – 84.215G
Awarding Agency: U.S. Department of Education
Finding Type: Material Weakness on Internal Controls over Compliance and Noncompliance
Questioned Cost Amount: $54,107
Context / Criteria: The School District should maintain internal controls to document disbursements and salaries and wages that
accurately reflect the expenditures incurred and work performed based on Uniform Guidance. The internal
controls should provide reasonable assurance that the charges are accurate, allowable, and properly allocated
as to account and period.
Condition: The School District’s support for the payroll and disbursements indicated that the incorrect account and object
code was used. The School District expensed 4 of the sample of 40 for disbursement testing and 3 of the sample
of 20 for payroll testing to the incorrect accounts. Additionally, it was noted the School District potentially
overcharged the Retirement and FICA expenses compared to the School District’s school-wide rates.
Cause / Effect: The School District is not appropriately labeling expenditures for posting and/or not appropriately reviewing
expenditures compared to budget to prevent and identify errors. The lack of review for charges being posted to
these accounts could result in the School District over or under-charging certain function or object codes compare
to approved budgets.
Recommendation: We recommend management implement procedures to ensure all expenditures are being allocated to the correct
program, account and object code. A comparison of actual expenditures to budget may help identify and prevent
misstatements to account for function, program and object codes.
Views of Responsible Officials and Corrective Actions: Management is in agreement with the finding. See accompanying corrective action plan.