FAC Explorer

Finding 526690 (2024-003)

Significant Deficiency
Requirement
B
Questioned Costs
$1
Year
2024
Accepted
2025-03-12
Audit: 345702
Organization: Hamtramck Public Schools (MI)
Auditor: Yeo & Yeo PC

AI Summary

  • Core Issue: The district failed to maintain proper payroll controls for Title I grant transactions, with 3 out of 40 transactions lacking supporting time sheets.
  • Impacted Requirements: Compliance with U.S. Department of Education regulations regarding allowable costs and payroll documentation.
  • Recommended Follow-Up: Review and reinforce payroll processes with staff to ensure all time sheets are accurately completed and retained.

Finding Text

Significant Deficiency and Noncompliance – Title I Allowable Costs Program information: Title I Grants to Local Educational Agencies, Title I Part I Imp Basic Programs. U.S. Department of Education, Passed through Michigan Department of Education, AL #84.010. Criteria: The School District has a responsibility to implement proper controls over the payroll processes related to the grant. Condition: For the Title I grant, we noted 3 out of 40 payroll transactions, for which, the district was not able to produce the time sheet supporting the employees hours. Questioned costs: $42,841 determined based on actual questioned costs of $1,930 extrapolated to the sample population Cause and effect: This was caused due to significant turnover in the business office and payroll department, resulting in a lack of controls being followed. Recommendation: We recommend that the district reviews payroll processes with all employees and supervisors to ensure that all time sheets are being properly filled out and maintained. Views of responsible officials: Management agrees with the finding. Corrective action plan: See attached corrective action plan.

Corrective Action Plan

Person responsible for the corrective action: Breia Kilgo, HR Director, Jill Boston, Payroll Coordinator, Diane Haack, HR Specialist, and Kristina Govan, HR Specialist Corrective action planned: With the turnover creating instability in the Business Department, the district’s Payroll Department was reorganized to report to the HR Director. Additionally, the HR Department was reorganized creating two HR Specialist positions and eliminating the Executive Director position. The Payroll Coordinator and HR Specialists coordinate with district staff responsible for completing payroll reporting and approving timesheets to ensure compliance. The HR Specialists support the Payroll Coordinator to review staff payroll reporting throughout the district ensuring proper authorization of payroll for processing. Anticipated completion date: December 31, 2024

Categories

Questioned Costs Allowable Costs / Cost Principles Significant Deficiency

Other Findings in this Audit

  • 526691 2024-003
    Significant Deficiency
  • 526692 2024-003
    Significant Deficiency
  • 526693 2024-003
    Significant Deficiency
  • 526694 2024-002
    Significant Deficiency
  • 526695 2024-002
    Significant Deficiency
  • 526696 2024-002
    Significant Deficiency
  • 1103132 2024-003
    Significant Deficiency
  • 1103133 2024-003
    Significant Deficiency
  • 1103134 2024-003
    Significant Deficiency
  • 1103135 2024-003
    Significant Deficiency
  • 1103136 2024-002
    Significant Deficiency
  • 1103137 2024-002
    Significant Deficiency
  • 1103138 2024-002
    Significant Deficiency

Programs in Audit

ALN Program Name Expenditures
10.553 School Breakfast Program $747,540
84.027 Special Education Grants to States $370,082
84.365 English Language Acquisition State Grants $212,900
84.002 Adult Education - Basic Grants to States $190,009
84.010 Title I Grants to Local Educational Agencies $180,241
84.367 Supporting Effective Instruction State Grants (formerly Improving Teacher Quality State Grants) $133,510
10.582 Fresh Fruit and Vegetable Program $89,772
84.048 Career and Technical Education -- Basic Grants to States $88,581
84.424 Student Support and Academic Enrichment Program $88,333
93.778 Medical Assistance Program $22,702
10.559 Summer Food Service Program for Children $20,334
10.558 Child and Adult Care Food Program $17,464
10.579 Child Nutrition Discretionary Grants Limited Availability $7,006
84.425 Education Stabilization Fund $5,068
10.555 National School Lunch Program $321