Finding Text
2023-004: Activities Allowed or Unallowed / Allowable Costs / Cost Principles (15.042)
Criteria
A system of internal controls requires approval of employee wages
Condition:
During our review of transactions, we noted one employee contract and six salary
authorization forms that did not have the proper approvals.
Cause:
Management oversight
Effects:
There is an increased possibility of unallowed expenditures being charged to the program.
Questioned Costs:
None
Context:
Of twelve employee contracts tested, one was missing approval. Additionally, of eight salary
authorization forms tested, six were missing approval by someone outside of the payroll
department.
Repeat Finding:
No
Recommendation:
The District should implement policies and procedures to ensure all grant expenditures are
approved.
Management’s Response:
The District currently does have processes and controls in place to ensure grant
expenditures have been approved. Specific to this audit finding of an employee contract and
salary authorization forms not having proper approvals, the Business Manager will meet with
the Human Resource Manager to review the current control and approval processes for
employee contracts and salary authorization forms and make changes as appropriate.