Finding Text
FINDINGS AND QUESTIONED COSTS RELATED TO FEDERAL AWARDS Finding Number: 2022-001 Repeat Finding: No Program Name/Assistance Listing Title: Child Nutrition Cluster Assistance Listing Number: 10.559 Federal Agency: U.S. Department of Agriculture Federal Award Number: 7AZ300AZ3 Pass-Through Agency: Arizona Department of Education Questioned Costs: $19,881 Type of Finding: Significant Deficiency Compliance Requirement: Activities Allowed or Unallowed: Allowable Costs/Cost Principles CRITERIA Management is responsible for establishing and maintaining internal controls over payroll. In addition, management is responsible for maintaining documentation to support all salary and wage payments to employees. Further, 2 CFR Part 200.430(i) requires that salaries and wages must be based on records such as pay agreements. CONDITION The District lacked proper internal controls over payroll. CAUSE The District did not establish adequate controls over the retention of employee pay agreements. EFFECT The District?s did not have documentation to support the rate of pay for three employees. CONTEXT The District was not able to provide a pay agreement to support the rate of pay for three of 50 employees reviewed. The sample was not intended to be, and was not, a statistically valid sample. RECOMMENDATION The District should enhance its internal control procedures over payroll to ensure that all pay agreements related to payroll are retained. VIEWS OF RESPONSIBLE OFFICIALS See Corrective Action Plan.