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.