Finding 628605 (2022-002)

Significant Deficiency
Requirement
A
Questioned Costs
-
Year
2022
Accepted
2023-03-13
Audit: 48951
Auditor: Wipfli LLP

AI Summary

  • Core Issue: The District overpaid employees due to incorrect payroll controls and lack of proper review of pay rate adjustments.
  • Impacted Requirements: Compliance with U.S. Department of Education and Uniform Guidance, which mandate that salary charges align with approved pay rates.
  • Recommended Follow-Up: Implement stronger payroll controls and ensure management reviews pay rate calculations to prevent future overpayments.

Finding Text

2022-002 Over Payment of Wages Federal Program Information: Funding agency: U.S. Department of Education Title: Elementary and Secondary School Emergency Relief (ESSER) Fund, American Rescue Plan - Elementary and Secondary School Emergency Relief (ARP ESSER) AL number: 84.425D and 84.425U Award year and number: 2021 - #0340612922021 and #0340612932021 Criteria or Specific Requirement: The U.S. Department of Education and Uniform Guidance require that charges to federal awards for salaries and wages be based on approved pay rates and be properly paid. Condition: During our testing of internal controls over payroll we noted two instances in which employees were paid more than their approved contract. Context: We selected a sample of 40 payroll transactions from the Elementary and Secondary School Emergency Relief (ESSER) Fund and American Rescue Plan - Elementary and Secondary School Emergency Relief (ARP ESSER) funds. Questioned Costs: To be determined by grantor. Effect: The District overpaid payroll which could cause grants to be overspent. Cause: The District's controls over payroll did not function correctly and the recalculation of mid year compensation adjustments were not properly reviewed by the District to ensure they were correct. Repeat: No Auditor's Recommendation: We recommend the District implement controls to ensure that payrates are properly calculated and that those calculations are reviewed by the appropriate level of management. View of Responsible Officials:

Categories

Internal Control / Segregation of Duties

Other Findings in this Audit

  • 52161 2022-002
    Significant Deficiency
  • 52162 2022-002
    Significant Deficiency
  • 52163 2022-002
    Significant Deficiency
  • 628603 2022-002
    Significant Deficiency
  • 628604 2022-002
    Significant Deficiency

Programs in Audit

ALN Program Name Expenditures
84.425 Education Stabilization Fund $580,558
84.010 Title I Grants to Local Educational Agencies $380,668
84.287 Twenty-First Century Community Learning Centers $337,997
84.371 Striving Readers $202,939
10.553 School Breakfast Program $182,353
93.069 Public Health Emergency Preparedness $45,945
10.582 Fresh Fruit and Vegetable Program $43,615
10.555 National School Lunch Program $36,792
84.048 Career and Technical Education -- Basic Grants to States $30,179
84.173 Special Education_preschool Grants $29,501
10.559 Summer Food Service Program for Children $26,288
84.126 Rehabilitation Services_vocational Rehabilitation Grants to States $22,625
84.027 Special Education_grants to States $17,496