Finding 971091 (2022-004)

U.S. Department of Education COVID‐19 Governor’s Emergency Education Relief (GEER) CFDA #84.425C Activities Allowed Allowable Costs Significant Deficiency in Internal Control over Compliance and Noncompliance Criteria: A complete system of internal controls requires all expenditures to be properly approved and supported by appropriate documentation. In addition, all expenditures charged to the federal programs are required to be allowable costs under the program and allocated in accordance with CFA’s cost allocation plan. Condition: One out of 15 payroll expenditures tested allocated more time to the program than what was actually spent. Seven out of 15 payroll expenditures tested were improperly applied to the grant. Cause: Due to an oversight by CFA, the monthly payroll report was not updated to match the actual time spent on the program. Effect: Costs could be incorrectly applied to the program. Questioned Costs: $447 Context/Sampling: A nonstatistical sample of 60 transactions out of 361 total transactions were selected for testing which accounted for $62,746 of $819,086 total federal program expenditures. Repeat Finding from Prior Year: No. Recommendation: We recommend CFA implement controls to ensure payroll applied to the program matches time spent per supporting documentation. Views of Responsible Officials: Management agrees with the finding.