Finding Text
2023-002 - ALLOWABLE COSTS AND ACTIVITIES
Federal Program Information:
Department of Education:
ALN – 84.425 – Education Stabilization Fund
Criteria: The following CFR applies to this finding: 2 CFR 200.303
Condition: During audit procedures, it was identified that the Unit does not have a process
to document approval over disbursements. Unit’s control over timesheets and payroll
charges are not consistently applied.
Cause: The Unit does not have the necessary internal controls over compliance.
Effect: Insufficient controls could allow for unallowable costs to be charged.
Identification Of Questioned Costs: None Identified
Context: There were 3 cash disbursements and all 3 were tested and found no process
to document approval before payment is issued. 72 payroll charges out of a population
of over 250. It was identified that salaried employees do not complete timesheets and
instead track time with Absence and Substitute Report. It was found that 4 samples where
the software generated leave report was not consistent with the Absence and Substitute
Reports. Additionally 4 samples were identified where the unit could not provide
justification for the pay rate. One contract was not provided for one staff person. This is
not statistically valid sample.
Repeat Finding: This is not a repeat finding
Recommendation: It is recommended that the Unit implement internal control processes
and procedures to ensure that they are following the criteria above.
Views of Responsible Officials and Corrective Action Plan: Please see the Corrective
Action Plan issued by Regional School Unit No. 70.