Finding 587782 (2023-004)

2023-004: Activities Allowed or Unallowed; Allowable Costs/Cost Principles – 84.425 Education Stabilization Fund (U.S. Department of Education) Passed Through North Dakota Department of Public Instruction – F84425D Passed Through North Dakota Department of Public Instruction – F84425U Passed Through North Dakota Department of Health Criteria To ensure all payroll expenditures are allowable. Condition The District does not have controls in place to ensure all payroll transactions are formally approved. Effect There is an increased risk of unallowable costs being charged to grants. Cause Management oversight Questioned Costs None Context Out of nine payroll transactions tested, six employee timesheets were not approved until after payroll was processed. Additionally, two employees did not have a signed contract on file with an approved rate of pay. Repeat Finding Yes Recommendation The District should implement policies and procedures to ensure all timesheets are approved prior to processing payroll and that signed contracts are obtained for all employees. Views of Responsible Officials and Planned Corrective Actions To ensure that all payroll expenditures are allowable for hourly employees, timesheets will be approved by each supervisor and/or the Superintendent. Any additional pay issued to certified staff will have Superintendent approval documented on a pay request sheet. All certified employees will continue to have a signed contract on file each year. All non-certified employees will have a letter of assignment signed and on file each year.