Finding Text
Significant Deficiency and Noncompliance – ESSER Allowable Cost
Program information: COVID-19 Governor’s Emergency Education Relief (GEER), U.S. Department of
Education, passed through Michigan Department of Education, AL #84.425C;
COVID-19 Elementary and Secondary School Emergency Relief (ESSER)
Formula, U.S. Department of Education, passed through Michigan Department of
Education, AL #84.425D; COVID-19 ESSER Education Equity, U.S. Department
of Education, passed through Michigan Department of Education, AL #84.425D.
Criteria: The School District has a responsibility to implement proper controls over the
payroll processes related to the grant.
Condition: For the ESSER III formula grant, we noted 1 out of 40 payroll transactions, for
which, the district was not able to produce the time sheet supporting the employees
hours. Additionally, we noted 1 out of 40 payroll transactions for which the time
sheet was not filled out, therefore making it impossible to support the amount that
the employee was paid and charged to the grant.
Questioned costs: $30,736 determined based on actual questioned costs of $1,044 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.