Finding 538267 (2024-005)

AL #84.425C and #84.425U – Elementary and Secondary Emergency Relief Fund – Activities Allowed / Allowable Costs / Cost Principles – Material Weakness Criteria The District shall maintain supporting records for all expenses charged to grants, including approved pay rates, time sheets and approval of time worked by employees. Condition We selected a random sample of 40 expenditures to test for allowable costs. Of the 40 selected, 9 were non-payroll items and 31 were payroll related expenditures. Of the 31 payroll items tested: 28 did not have timecards, and therefore no approval of the hours, 22 had insufficient information to support the amount charged to the grant and 11 had no paystubs. Cause The District is not properly maintaining supporting documentation for expenditures charged to grants. Additionally, timecards should be signed by the employee and approved by their supervisor to support the time worked. Effect The District may be charging incorrect amounts to grants. Questioned Costs $23,211.66 Recommendation We recommend that the District maintain supporting documentation for employee’s time charged to grants and related information, such as paystubs and approved pay rates. Additional, employee timecards should clearly document which grant they are working and should be signed by the employee and approved by the employee’s supervisor. Views of Responsible Officials and Planned Corrective Actions The business manager will take this recommendation and do a better job at keeping track of these timecards, paystubs, and other documents relating to grants.