Finding Text
Condition: The agency amended the administrative expenditure budget effective February 1, 2024. One employee had a budgeted salary amended effective February 1, 2024. The amended budget document shows the amended salary at $27.95 per hour for 88 hours at a total of $19,676.80. Per discussion with management, this amount was not correct. The employee’s amended salary should have been $27.95 per hour at 8 hours for 3 days per week from February 2024 through September 2024. The amount that should have been paid per month was $2,850.90 or $22,807.20 for February through September. The employee was actually paid $3,521.70 per month from February 1, 2024 through September 30, 2024 for a total of $28,173.60. The result was an overpayment of $5,366. Criteria: CACFP funds may be used to pay for expenditures that meet Food and Nutrition Services’ (FNS) definition of allowable, are reasonable and necessary, and have State agency approval. An agency may have costs that are necessary and reasonable for operation of the institution but are not allowed as Program costs. Program funds may not be used to cover unallowable costs. Agencies must include all costs in the budget. The allowable costs must be approved in advance by the State agency through the annual budget approval process or amendment process before the agency can charge them to the CACFP. Cause: The budgeted salary for an employee were not amended correctly. For payroll processing, the correct amended budget for wages was not used on one employee. The correct revised change was not processed in the payroll system. Effect: The employee was over paid in the amount of $5,366. Context: The total amount of expenditures for the program totaled $2,025,416. Of this amount, administrative expenditures totaled $311,466. The population of administrative expenditures contained 326 disbursements. A sample of 46 administrative expenses were selected for audit. A test of administrative expenditures showed that one employee was paid more than the amended salary in February 2024. As a result, the wages to the payroll were examined for February 2024 through September 2024. The employee was overpaid February 2024 through September 2024 in the amount of $ 5,366. The sample was a statistically valid sample. Recommendation: The Executive Director must ensure that any amended budgets for salaries are properly reflected in the accounting system before processing the payroll that includes the change. Copies of the payroll that is budgeted for administrative salaries should be provided for review and to ensure that the correct pay rate is used for computing payroll expenditures. Management Response: We agree with finding and the recommended procedure to be implemented. Responsible Official: Mark Cittadino, Executive Director, PO Box 5280, Slidell, LA 70469, Telephone (985) 641-5051 Total Department of Agriculture Questioned Costs: $5,366