Finding 547010 (2024-003)

2024-003 Finding COVID-19 Education Stabilization Fund Under the Coronavirus Aid, Relief, and Economic Security Act (AL 84.425U) Criteria An appropriate system of internal controls would have all employee wages being approved by the District. Condition The District could not locate the support for the approval of one employee’s wage rate. Questioned Costs None Cause Oversight by management. Context In a population of over 250, a sample of 40 transactions were selected. In this sample, 11 were non-payroll transactions and 29 were payroll transactions. We noted one transaction in the 29 payroll transactions in which the District could not provide support of approval for the employee’s wage rate. Effect There is an increased risk of the District over charging payroll expenses to the federal grant. Repeat Finding No Recommendation The District should file each employee’s approved wage rate in their respective personnel file. Management’s Response The District agrees with the recommendation and will file all employee wage rate approvals in the respective personnel files.