Finding Text
AL 84.425 Education Stabilization Fund Under the Coronavirus Aid, Relief, and Economic
Security Act
Grant Year 2023
Criteria
A system of internal controls would include ensuring all employee wages are being properly
approved, timecards being approved, and review and approval of expenditures before being
charged to a grant.
Condition
We noted during payroll testing that 1 employee wages could not be verified as being board
approved. We also noted that 10 of the 11 timecards tested were not properly approved. Finally,
during testing we noted 5 of our 18 payroll transactions were unallowed according to the
application that the District submitted to MDE as well as non-payroll transactions that were
required to be recoded to non-federal expenditures.
Cause
Management oversight.
Context
18 payroll transactions were selected from a population over 250.
Questioned Costs
N/A
Effect
There is an increased risk of charging unallowable activities/costs to the program.
Repeat Finding
This is not a repeat finding.
Recommendation
The District should implement policies and procedures to ensure all employee’s wages are
approved, timecards submitted are approved, and transactions that are charged to grants are
reviewed and approved before being charged to the grant.
Views of Responsible Officials and Planned Corrective Actions
The District agrees with the recommendation and will review policies and procedures.