Finding Text
2023-001 – Allowable Costs/Cost Principles – Timesheets
Finding Type. Immaterial noncompliance; Significant Deficiency in Internal Controls over Compliance
Federal program(s)
U.S. Department of Education -
COVID-19 - Education Stabilization Fund (ALN 84.425D and 84.425U); Passed through MDE; All project numbers.
Criteria. The Uniform Guidance requires the District to support payroll charged to federal cost objectives with adequate documentation in accordance with the District's payroll policies, which require timesheets include signature by the individual and evidence of approval by the individual's supervisor.
Condition. Two out of forty disbursements selected for testing did not include the required documentation by the employee and approvals by their supervisor.
Cause. Management did not consistently follow its documented payroll policies related to timesheet documentation during the year.
Effect. As a result of this condition, the District was exposed to increased risk that payroll charges of federal awards could be made for unallowable costs.
Questioned Costs. No costs have been questioned as a result of this finding.
Recommendation. We recommend that the District review its written policies and procedures over federal awards to ensure that all timesheets have the appropriate documentation and evidence of review and approval prior to payment.
View of Responsible Officials. The business office will be reviewing that all timesheets are signed by employees and approved by their supervisor prior to payment.
Responsible Official. Superintendent and Business Manager
Estimated Completion Date. June 30, 2024