Crestwood School District

Semi-annual certifications and personnel activity reports were not completed for all Title I staff.

Effective immediately, all Title I staff will be completing semi-annual certifications and personnel activity reports as appropriate.

2024-001

Semi-annual certifications and personnel activity reports were not completed for Title I staff.

Effective immediately, all Title I staff will be completing semi-annual certifications and personnel activity reports as appropriate.

2020-003 Allowable Costs/ Cost Principles - Payroll Documentation (repeat comment) Finding Type Immaterial non compliance; significant deficiency in internal controls over compliance Program Names Title I Part A (CFDA 84.010), IDEA Part B (CFDA 84.027), and IDEA Preschool (CFDA 84.173) Criteria The Uniform Guidance requires the District to support payroll charged to federal grants with adequate documentation in accordance with the District's payroll policies. Per the federal and District policies, the District is required to support payroll charges to a federal grant with semi-annual payroll certifications for employees charged 100% to a federal grant and Personal Activity Reports or timesheets for those who split their time between multiple programs and objectives . Condition For the employees charged to Title I and IDEA grant that were selected for testing, semi annual certifications and personal activity reports were provided, however, those certifications and personal activity reports were not prepared timely. Cause This a repeat finding from the prior year and was caused by significant turnover in the superintendent, finance, and grant coordinator positions at the school which resulted in supervisory staff not understanding the documentation requirements for payroll charged to federal grant programs. Effect As a result of the condition, the District did not maintain timely documentaion to support payroll expenditures charged to the federal grants. Questioned Costs None Recommendation We recommend the District obtain and maintain the necessary staff certifications and Personal Activity Reports required by federal and District policies for payroll expenditures charged to federal grant programs. View of Responsible Officials Effective immediately, the District will maintain semi-annual certifications and personnel activity reports on a timely basis to support payroll expenditures for those employees charged to a federal grant.

Corrective Action Plan for Findings - Material Audit Adjustments ? Administration was relatively new to the district at the time of the audit, which created a learning curve for the internal service fund. The district will make sure that all material entries related to the internal service fund and grant revenue are completed prior to the auditor's review. - Independent Review of Manual Journal Entries ? A journal entry form has been created. The form details the account numbers be affected by the transaction and must have back documentation attached to justify the amounts. The transaction is signed by the individual creating the entry, verified by the Director of Business & Operations and then input by the Business Office secretary where it is numbered and scanned into the system. - Allowable Cost/Cost Principles - Payroll Documentation The district will maintain semi-annual certifications signed twice a year (January and June) to verify payroll expenditures being charged to federal grants.

2019-002

2019-002 ? Allowable Costs/Cost Principles ? Payroll Documentation Finding Type. Immaterial noncompliance; Significant deficiency in internal controls over compliance Program. Title I, Part A; U.S. Department of Education; Michigan Department of Education; CFDA Number 84.010; All award numbers. Criteria. The Uniform Guidance requires the District to support payroll charged to federal cost objectives with adequate documentation in accordance with the District's payroll policies. Per the District's federal policies, the District is required to support payroll charges to federal cost objectives with adequate documentation including semi-annual payroll certifications for employees charged 100% to a single federal cost objective and with Personnel Activity Reports or timesheets for those who split their time between multiple cost objectives. Condition. Of the 40 payroll transactions selected for testing, four (all related to the same employee) lacked documentation that complied with the District's policies. Cause. This condition appears to be the result of the District charging costs to the Title I program that were not properly supported using allowable methods. Effect. As a result of this condition, the District does not have appropriate payroll support for four of the transactions charged to the grant. Questioned Costs. The total charges included in our sample that were not supported by allowable documentation amounted to $8,674. Recommendation. We recommend the District limit payroll charged to federal programs to costs that are supported by documentation that is allowable under federal cost principles and its own policies and procedures. View of Responsible Officials. Effective immediately, the District's Director of Curriculum will maintain personnel activity reports to support his payroll charges to federal cost objectives. Responsible Official. Director of Business Operations Estimated Completion Date. June 2020

Finding: 2019-002 ? Allowable Costs/Cost Principles (Repeat) Auditor Description of Condition and Effect: Of the 40 payroll transactions selected for testing, four (all related to the same employee) lacked documentation that complied with the District's policies. As a result of this condition, the District does not have appropriate payroll support for four of the transactions charged to the grant. Auditor Recommendation: We recommend the District limit payroll charged to federal programs to costs that are supported by documentation that is allowable under federal cost principles and its own policies and procedures. Corrective Action: Effective immediately, the District's Director of Curriculum will maintain personnel activity reports to support his payroll charges to federal cost objectives. Contact Person: Director of Business Operations Due Date: June 30, 2020 Status: In process