Common Audit Findings - Region One ESC...Common Audit Findings 2. Time and Effort - Lack of Supporting Documentation - Not adequately maintained or after the fact - Periodic Certifications

©2015, Region One Education Service Center


Common Audit Findings for Federal Awards



Common Audit Findings

1. Internal Controls • Lack of Written Policies and Procedures • Reporting of Expenditures for Reimbursement • Use of Credit/Debit Cards • Travel • Employee Reimbursements • Inventory Controls • Time and Effort • Budgetary Controls • Purchasing




2. Time and Effort - Lack of Supporting Documentation - Not adequately maintained or after the fact - Periodic Certifications Prepared in advance not after the fact Not signed by the employee or supervisor - Personnel Activity Report (PAR) - Did not account for 100% of the time

compensated - Budgeted hours reported on PAR




2. Time and Effort continued…

- Not adequately maintained or Not after-the-fact

Substitute Time and Effort Reporting System

- Not approved by TEA

- The employee did not work on a set schedule

- Semi-annual certifications not signed by employee and supervisor




3. Lack of supporting Documentation

- Signed and dated job descriptions

- tutoring/extra duty pay

- Supplemental pay agreement time sheets

- Documentation demonstrating HQ status




3. Lack of supporting Documentation continued…

- Lack of payroll or salary authorization form with source(s) of funds approved for payments

- Payroll costs did not match time allocated

- Payroll costs charged toe the incorrect grant period




3. Lack of supporting Documentation continued…

- Amounts recorded in the payroll journals do not match with the payroll costs charged to the grant in the general ledger

- Payroll checks issued in midmonth every month prior to services being performed

- Expenditures claimed for reimbursement not recorded in financial records




4. Budgets/Amendments

- Positions not approved in the TEA approved program budget

- Encumbrances not recorded in the general ledger

- Incorrect fund codes used for reporting expenditures




4. Budgets/Amendments continued…

- Items requiring TEA approval purchased without approval (capital outlay items)

- Cost incurred from class object codes not approved in the program budget

- Budget amendments 25%

- Variance/threshold




5. Required Set Asides

- Amounts not appropriated/identified in financial records to match amounts reserved for specific activities such as Districtwide Parental Involvement or Districtwide Professional Development Activities as reported on Schedule PS-3101 of Consolidated Federal Grant Application




6. Lack of Source Documentation

- Third party documents such as an invoice/billing statement to support expenditure

- Lack of approval from authorized personnel

- Lack of purchase order

- Gift cards without additional support




6. Lack of Source Documentation continued

- Incomplete receipts/invoices

- Credit card statements without backup receipts

- Lack of valid contracts/agreements for professional/contracted services




7. Unallowable costs

- Necessary and Reasonable

- Not aligned with campus/district improvement plan

- Grant writing services




8. Allocable Costs

- Good/services at the end of the grant period (Stockpiling of supplies)

- Cost allocation plans for:

- Rent/utilities

- Maintenance and repair agreements

- Other shared costs

- Software used for multiple programs




9. Period of availability

- Pre award costs charged to the grant without TEA approval

- Annual subscriptions/software licenses-outside of the grant period




10. Shared Service Agreements

- Lack of shared service agreements with member districts

- Agreement not clear about roles and responsibilities of fiscal agent and member district

- Lack o oversight fiscal agent regarding expenditures of grant funds




11. Schoolwide program out of compliance

- Lack of documentation to demonstrate needs assessments

- School improvement plans missing key elements

- Methodology demonstrating the accounting for expenditures from schoolwide pool at each participating campus

- Demonstration of supplement not supplant requirements on schoolwide program

Documents

Common Audit Findings - Region One ESC...Common Audit Findings 2. Time and Effort - Lack of Supporting Documentation - Not adequately maintained or after the fact - Periodic Certifications