Finding Text
2024 -002 Approval Of Payroll Expense Transactions - Significant Deficiency - Activities Allowed Or Unallowed And Allowable Costs/Cost Principles
ALNs 84.010 – Title I And 84.425/84.425C/84.425D/84.425U Elementary And Secondary School Emergency Relief Fund (ESSER)
Criteria: The Uniform Guidance in 2 CFR Section 200.303 requires that non-Federal entities receiving Federal awards (i.e. auditee management) establish and maintain internal control designed to reasonably ensure compliance with Federal statutes, regulations, and the terms and conditions of the Federal award. The School has an internal control in place that payroll transactions are approved by the respective principal prior to their submission for payment
Condition: During the course of the audit, the engagement team identified multiple expenditures where the support showing the principal’s approval of the federal grant expense was unable to be provided.
Cause: The entity did not maintain sufficient support documentation to prove that expenditures were reviewed before payroll transactions were submitted for payment.
Effect: Potential noncompliance could occur if expenditure amounts are not reviewed by the principal for accuracy and completeness.
Questioned Costs: Not applicable.
Context: These audit findings represent a systemic issue.
Identification As A Repeat Finding: Yes
Recommendation: The School should maintain proper documentation of approvals for all payroll transactions.
View Of Responsible Officials: A process was put in place in January 2024 to ensure that all principal approvals are documented in writing or electronic approval in the system which can be date stamped by the system. Payroll will not be run, nor grants submitted, until proper approval is received.