Finding Text
Condition
There were inadequate controls over payments for goods and services.
Criteria
The School Board should adhere to its policies and procedures to ensure that all payments are made after services are performed and based on actual costs.
Cause
The School Board did not adhere to their policies and procedures regarding purchasing documentation.
Effect
Payments were made in advance of the services being performed and were based on estimates.
Context
A sample of 58 disbursements were selected for audit from a population of 491 disbursements. The test found that 16 disbursements were paid in advance of services being performed. These payments were based on estimates. After obtaining the actual cost of the services performed it was determined that there was an excess paid of $99,284, which is questioned costs. Our sample was a non-statistical sample.
Recommendation
The School Board should adhere to their policies and procedures to ensure that all payments are made after services are performed and based on actual costs.
Views of Responsible Officials and Planned Corrective Action
LPSS followed guidance provided by the Louisiana Department of Education (LDOE) on a conference call that occurred on February 17, 2023, to issue final payments based on enrollment counts of children in April 2023 for the months of April, May and June 2023. This recommendation was provided to encourage LPSS to quickly request funds from their department.
During the financial audit, the external auditors cited LPSS for not having documentation to substantiate certain payments that were based on LDOE’s guidance. Since then, additional training has already occurred on how to interact with unfounded guidance and how to review and interpret certain documents for payment processing. Regardless of LDOE recommendations in relation to this program, payments will not be made in advance of services rendered, and payments will not be based on estimates. Staff will strictly adhere to contractual guidelines and stipulations, purchasing policies and procedures.