Finding 624938 (2022-005)

Significant Deficiency
Requirement
B
Questioned Costs
$1
Year
2022
Accepted
2022-12-13
Audit: 45814
Organization: Idea Public Schools (TX)

AI Summary

  • Core Issue: There are significant deficiencies in payroll controls, including missing documentation for approved pay rates and lack of supervisor approval for timesheets.
  • Impacted Requirements: Compliance with federal program criteria for payroll documentation and internal controls, specifically for Title I, Magnet Schools, and Special Education Grants.
  • Recommended Follow-Up: Ensure all payroll documentation is complete and approvals are obtained; management acknowledges the issue and has a corrective action plan in place.

Finding Text

Finding #2022-005 ? Significant Deficiency and Other Non-Compliance Applicable federal programs: U. S. Department of Education Assistance Listing #: 84.165 ? Magnet Schools Assistance Contract Number: U165A170044 U. S. Department of Education Passed through Texas Education Agency Assistance Listing #: 84.010 ? Title I Grants to Local Educational Agencies Contract Numbers: 21610141108807; 21610101108807; 226101011008807; 22610141108807 Assistance Listing #: 84.287 ? Twenty-First Century Community Learning Centers Contract Numbers: 226950267110025; 216950247110016; 216950267110025 Assistance Listing #: 84.027 ? Special Education Grants to States Contract Numbers: 216600011088076000; 226600011088076000 Criteria: Effective internal control over payroll requires that appropriate documentation of approved salaries or pay rates be obtained and retained, and timesheets be approved by the employee?s supervisor. Additionally, the School?s policies include review of the payroll register by the compensation department prior to payroll being processed. Condition and context: During our testing of internal controls over payroll and compliance, we noted the following: ? No documentation of approved pay rate: - Title I Grants to Local Educational Agencies ? 1 of 40 employees tested - Magnet Schools Assistance ? 1 of 40 employees tested ? Timesheet not approved by supervisor: - Magnet Schools Assistance ? 1 of 11 hourly employees tested - Twenty-First Century Community Learning Centers ? 3 of 36 hourly employees tested ? No semi-annual certification of work performed: - Special Education Grants to States ? 1 out of 40 employees tested In our testing of the approval of the payroll registers by the compensation department, we noted 2 of the 13 payroll registers tested for the School were not reviewed and approved by the compensation department. Questioned costs: $8,598 Cause and effect: Same as finding #2022-002. Recommendation: Same as finding #2022-002. View of responsible officials and planned corrective actions: Management agrees with the finding. See Corrective Action Plan.

Categories

Questioned Costs Significant Deficiency Internal Control / Segregation of Duties

Other Findings in this Audit

  • 41861 2022-005
    Significant Deficiency
  • 41862 2022-005
    Significant Deficiency
  • 48495 2022-005
    Significant Deficiency
  • 48496 2022-005
    Significant Deficiency
  • 618303 2022-005
    Significant Deficiency
  • 618304 2022-005
    Significant Deficiency
  • 624937 2022-005
    Significant Deficiency

Programs in Audit

ALN Program Name Expenditures
10.555 National School Lunch Program $37.64M
10.553 School Breakfast Program $31.60M
84.010 Title I Grants to Local Educational Agencies $21.19M
84.425 Education Stabilization Fund $16.48M
84.282 Charter Schools $11.31M
84.027 Special Education_grants to States $6.81M
84.165 Magnet Schools Assistance $4.35M
10.558 Child and Adult Care Food Program $3.96M
84.287 Twenty-First Century Community Learning Centers $1.62M
84.374 Teacher Incentive Fund $1.60M
84.365 English Language Acquisition State Grants $1.54M
84.424 Student Support and Academic Enrichment Program $1.19M
84.367 Improving Teacher Quality State Grants $1.02M
93.323 Epidemiology and Laboratory Capacity for Infectious Diseases (elc) $600,721
84.173 Special Education_preschool Grants $49,628
84.411 Investing in Innovation (i3) Fund $36,170
84.377 School Improvement Grants $1,335