Finding 544068 (2024-005)

Significant Deficiency Repeat Finding
Requirement
AB
Questioned Costs
-
Year
2024
Accepted
2025-03-31

AI Summary

  • Core Issue: One employee lacked a signed salary authorization form, indicating a gap in wage approval controls.
  • Impacted Requirements: Internal controls for employee wage approval were not properly enforced, increasing the risk of unallowed payroll costs.
  • Recommended Follow-Up: The District should strengthen policies to ensure all employee wages are documented and approved consistently.

Finding Text

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 that did not have a signed salary authorization form. Cause: The District did not have proper controls in place to ensure approval of employee wages. Effects: There is an increased possibility of unallowed payroll expenditures being charged to the program. Questioned Costs: None Context: Of seven employees tested for proper wage approval, one employee was missing a signed salary authorization form. Repeat Finding: Yes Recommendation: The District should implement policies and procedures to ensure all employee wages are approved and the proper documentation is maintained. 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 missing salary authorization forms, the Business Manager will meet with the Human Resource Manager to review the current control and approval processes for employee salaries and make changes as appropriate.

Corrective Action Plan

Contact Person: Business Manager and Human Resource Manager Planned Corrective Action: The District currently does have processes and controls in place to ensure grant expenditures have been approved. Specific to this audit finding of missing salary authorization forms, the Business Manager will meet with the Human Resource Manager to review the current control and approval processes for employee salaries and make changes as appropriate. Planned Completion Date: January 2025

Categories

Allowable Costs / Cost Principles

Other Findings in this Audit

  • 544065 2024-004
    Significant Deficiency Repeat
  • 544066 2024-004
    Significant Deficiency Repeat
  • 544067 2024-004
    Significant Deficiency Repeat
  • 544069 2024-005
    Significant Deficiency Repeat
  • 544070 2024-006
    Significant Deficiency Repeat
  • 544071 2024-006
    Significant Deficiency Repeat
  • 544072 2024-007
    Significant Deficiency Repeat
  • 544073 2024-007
    Significant Deficiency Repeat
  • 1120507 2024-004
    Significant Deficiency Repeat
  • 1120508 2024-004
    Significant Deficiency Repeat
  • 1120509 2024-004
    Significant Deficiency Repeat
  • 1120510 2024-005
    Significant Deficiency Repeat
  • 1120511 2024-005
    Significant Deficiency Repeat
  • 1120512 2024-006
    Significant Deficiency Repeat
  • 1120513 2024-006
    Significant Deficiency Repeat
  • 1120514 2024-007
    Significant Deficiency Repeat
  • 1120515 2024-007
    Significant Deficiency Repeat

Programs in Audit

ALN Program Name Expenditures
84.425 Education Stabilization Fund $1.49M
15.046 Administrative Cost Grants for Indian Schools $572,054
15.047 Indian Education Facilities, Operations, and Maintenance $484,750
84.027 Special Education Grants to States $220,638
15.044 Indian Schools Student Transportation $219,194
84.060 Indian Education Grants to Local Educational Agencies $77,594
84.010 Title I Grants to Local Educational Agencies $77,364
84.336 Teacher Quality Partnership Grants $59,836
10.553 School Breakfast Program $31,208
84.424 Student Support and Academic Enrichment Program $29,363
15.042 Indian School Equalization $26,737
84.367 Supporting Effective Instruction State Grants (formerly Improving Teacher Quality State Grants) $20,535
10.559 Summer Food Service Program for Children $12,831
15.149 Focus on Student Achievement $8,993
15.151 Education Enhancements $8,471
10.555 National School Lunch Program $8,380
10.579 Child Nutrition Discretionary Grants Limited Availability $2,773
10.560 State Administrative Expenses for Child Nutrition $1,649
84.358 Rural Education $609