FAC Explorer

Finding 514194 (2024-002)

Significant Deficiency
Requirement
B
Questioned Costs
-
Year
2024
Accepted
2024-12-13
Audit: 332402
Organization: Austin Achieve Public Schools, Inc. (TX)
Auditor: Sutton Frost Cary LLP

AI Summary

  • Core Issue: There is a significant deficiency in internal controls regarding payroll documentation for grant-funded employees.
  • Impacted Requirements: Payroll wages charged to grants must be supported by approved offer letters from management or the board.
  • Recommended Follow-Up: The School should establish internal controls to ensure all employee offer letters are documented and approved.

Finding Text

Finding 2024‐002: Allowable costs – Significant deficiency in internal control over compliance. Child Nutrition Cluster Criteria: Payroll wages charged to grants should be supported by an offer letter approved by management and/or the board of directors. Condition: During allowable cost testing, 55 employees out of 60 sampled did not have approved offer letters on file. These costs were subsequently charged to the grant. Cause: Internal controls were not in place requiring in the School to document approved offer letters for employees. Effect: The School’s reporting of employee wages was not fully documented in accordance with internal control over compliance. Questioned costs: None. Recommendation: The School should implement internal controls to ensure offer letters approved by management and/or the board of directors are kept on file. Management’s response: See corrective action plan.

Corrective Action Plan

AAPS has corrected for this finding at the beginning of FY25 by having offer letters issued by our HR Manager to all employees. Offer letters are securely stored in individual employees’ personnel folders.

Categories

Allowable Costs / Cost Principles Reporting School Nutrition Programs Significant Deficiency Internal Control / Segregation of Duties

Other Findings in this Audit

  • 514195 2024-002
    Significant Deficiency
  • 514196 2024-002
    Significant Deficiency
  • 514197 2024-002
    Significant Deficiency
  • 514198 2024-002
    Significant Deficiency
  • 514199 2024-002
    Significant Deficiency
  • 514200 2024-002
    Significant Deficiency
  • 1090636 2024-002
    Significant Deficiency
  • 1090637 2024-002
    Significant Deficiency
  • 1090638 2024-002
    Significant Deficiency
  • 1090639 2024-002
    Significant Deficiency
  • 1090640 2024-002
    Significant Deficiency
  • 1090641 2024-002
    Significant Deficiency
  • 1090642 2024-002
    Significant Deficiency

Programs in Audit

ALN Program Name Expenditures
10.553 School Breakfast Program $1.35M
10.558 Child and Adult Care Food Program $1.21M
84.010 Title I Grants to Local Educational Agencies $911,723
94.006 Americorps State and National 94.006 $566,165
84.027 Special Education Grants to States $468,693
84.365 English Language Acquisition State Grants $221,052
84.367 Supporting Effective Instruction State Grants (formerly Improving Teacher Quality State Grants) $126,111
10.555 National School Lunch Program $95,003
84.424 Student Support and Academic Enrichment Program $72,648
84.048 Career and Technical Education -- Basic Grants to States $34,473
84.425 Education Stabilization Fund $11,201
84.173 Special Education Preschool Grants $4,574