Material Weakness
Internal Control over Compliance
Federal Programs Impacted: Education Stabilization Funds (84.425D, 84.425U) and Supporting Effective Instruction State Grant (84.367)
2023-004 Condition: Wages and benefits charged to federal grant programs were not properly supported with documentation of the employee’s job functions and allowability for the program. Discrepancies were identified between employee contracts, employee time and effort documentation, and actual coding of wages and benefits. The wages and benefits that lacked supporting documentation were determined to be allowable to the programs tested.
Criteria: A strong system of internal control includes proper maintenance of all payroll amendments and addendums for all periods in which employees are paid. Documentation of employee wage agreements and time and effort reporting should be maintained and updated as staffing assignments are revised.
Auditor’s Recommendation: We recommend that management implement a process to ensure that all employees have current wage agreements. In addition, the wage agreements, time and effort reporting, and actual recording of wages and benefits should be reviewed periodically to confirm agreement of documentation.
Management’s Response: Management is aware of this issue and is working on revisions to the internal process and control procedure to address it. Part of this issue is due to limitations in the District’s contract-issuing system. An additional system was developed to be able to electronically issue contract addendums to employees. However, due to extremely high turnover throughout the year, that system has not been implemented. As the District stabilizes its turnover, the system will be implemented and should address all issues with this finding. Gary Manuel, Director of Human Resources, is responsible for the corrective action. Implementation will be completed by June 30, 2025.