Finding 953769 (2023-001)

Internal Control Deficiency over Review of Payroll Expenditures – WIC Special Supplemental Nutrition, Infants, and Children Listing Number 10.557, Grant Period - Year Ended June 30, 2023 Criteria: Title 2, Subtitle A Chapter II Part 200 Subpart D 200.303 Internal controls. The non-Federal entity must: (a) Establish and maintain effective internal control over the Federal award that provides reasonable assurance that the non-Federal entity is managing the Federal award in compliance with Federal statutes, regulations, and the terms and conditions of the Federal award. These internal controls should be in compliance with guidance in “Standards for Internal Control in the Federal Government” issued by the Comptroller General of the United States or the “Internal Control Integrated Framework”, issued by the Committee of Sponsoring Organizations of the Treadway Commission (COSO). Condition: During our testing of payroll expenditures, we noted seven out of the forty expenses we tested did not have Supervisor or Coordinator approval on the employee’s timecard. We consider this finding to be a Significant Deficiency with relation to the Allowable Costs Compliance Requirement. Statistical sampling was not used when making sample selections. Questioned Costs: $0 Effect: The District did not have proper approval for hours worked in the program. Cause: The condition was an administrative oversight. Recommendation: We recommend the District improve their payroll review process to ensure all hours are approved by a Supervisor or Coordinator. Views of Responsible Officials: Management agrees with the Single Audit finding and a response is included in the Corrective Action Plan.