Orchard Park Central School District

Finding 2025-001—Education Stabilization-Payroll Certification Education Stabilization Fund– ALN 84.425 Criteria—There are two separate sets of rules for employee certification, depending on whether the employee works solely on a federal award or on multiple activities. When an employee is expected to work solely on a federal award then charges for salaries need to be supported by periodic certifications. This certification needs to be prepared at least semiannually and signed by the employee. When an employee works on multiple activities, then personnel activity reports must be completed monthly to document the distribution of time worked on the federal programs. These reports are required to be completed after the work is done and be signed and dated by the employee. Condition—Payroll costs funded through federal awards were not properly certified. Context—During our testing of compliance we found that the District did not complete payroll certification forms for employees paid under the Education Stabilization program. Effect—Payroll costs may be misclassified for federal award purposes. Cause—Payroll certifications for employees were not performed during the fiscal year ended June 30, 2025. Recommendation—We recommend that the District develop a procedure to certify payroll in accordance with federal standards as explained above. Management Response—Management will plan to implement appropriate payroll certification procedures for future years.

Management Response—Management will plan to implement appropriate payroll certification procedures for future years.