FAC Explorer

Finding 514159 (2023-002)

Significant Deficiency
Requirement
AB
Questioned Costs
-
Year
2023
Accepted
2024-12-13
Audit: 332343
Organization: Lorain City School District (OH)
Auditor: Keith Faber / Ohio Auditor of State

AI Summary

  • Core Issue: Employees were overpaid due to a processing error, receiving $1,272 each instead of the approved $424.
  • Impacted Requirements: Payments were unauthorized by the Board of Education, making them ineligible as federal expenditures from the Title I fund.
  • Recommended Follow-up: Review and strengthen internal controls to prevent similar errors and ensure compliance with funding regulations.

Finding Text

On December 12, 2022, the Board of Education approved a supplemental contract with three District employees for Title I (Fund 572) services in the aggregate amount of $1,272 or $424 each. However, due to a processing error which was not detected by the District’s internal controls, each employee was paid $1,272, resulting in an overpayment to each employee in the amount of $848 or an aggregate amount of $2,544. Since these payments were not authorized by the Board of Education they are not deemed as allowable federal expenditures from the Title I fund.

Corrective Action Plan

The District was unable to follow the established procedure as planned. The District has since assessed the situation and implemented corrective measures to ensure adherence moving forward. The District has since recouped the appropriate funds from the employees.

Categories

Internal Control / Segregation of Duties

Other Findings in this Audit

  • 1090601 2023-002
    Significant Deficiency

Programs in Audit

ALN Program Name Expenditures
84.425 Covid-19 Education Stabilization Fund $11.26M
84.010 Title I Grants to Local Educational Agencies $6.83M
10.555 National School Lunch Program $3.21M
84.027 Special Education_grants to States $2.01M
10.553 School Breakfast Program $1.60M
84.367 Improving Teacher Quality State Grants $725,222
84.424 Student Support and Academic Enrichment Program $368,371
84.287 Twenty-First Century Community Learning Centers $350,658
84.027 Covid-19 Special Education_grants to States $301,887
84.048 Career and Technical Education -- Basic Grants to States $301,032
10.582 Fresh Fruit and Vegetable Program $185,687
10.555 Covid-19 National School Lunch Program $148,417
10.558 Child and Adult Care Food Program $99,144
84.365 English Language Acquisition State Grants $85,756
84.173 Special Education_preschool Grants $45,787
10.649 Covid-19 Pandemic Ebt Administrative Costs $5,950