Finding Text
Federal Program: ESEA Title I Part A
Compliance Requirement: Allowable Cost
Criteria:
Ongoing monitoring of the general ledger, and activity in the federal program to ensure that the costs
charged to the program are allowable according to the grant guidelines.
Condition:
We noted a deficiency in internal control procedures related to documentation of administrative review
and approval of the allowable costs that were charged to the program, including employees' payroll.
Cause:
The cause of the deficiency appears to be a lack of regular administrative review procedures and a lack of
communication between the program directors, the payroll administrator, and the Chief Financial Officer
Effect:
The lack of internal controls could result in a questioned cost.
Recommendation:
It is recommended that when setting up the payroll at the beginning of the year, HR needs to verify and
document that the employees charged to the program have the correct credentials and that their
schedules align with the program requirements. We also recommend the program director review and
approve who is being charged to the program at least twice a year.