Unified School District No. 489 Hays, Kansas

SIGNIFICANT DEFICIENCY 2024-003 Federal Award Special Education (IDEA) Cluster – 84.027 and 84.173 Compliance Requirement Maintenance of Effort Criteria or specific requirement Internal controls should be in place to ensure that accurate amounts are reported to the State Department of Education for the Maintenance of Effort calculation. Condition Certain expenditure amounts reported to the State Department of Education for the Maintenance of Effort calculation were not accurate or could not be corroborated. Context We determined, through testing of the Maintenance of Effort submission, that five amounts reported had an immaterial variance when compared to the supporting documentation. Cause Supporting documentation was not saved at the time of preparation of the report, and some relevant accounts were missed when summing the expenditures that needed to be reported. Effect The State Department of Education was provided inaccurate amounts for use in its Maintenance of Effort calculation. Recommendation Procedures should be established and implemented to ensure that all supporting documentation used in the preparation of the Maintenance of Effort submission be saved and that all expenditures reported are accurate. Views of responsible officials See Corrective Action Plan.

2021-001 ? Child Nutrition Cluster ? Allowable Activities and Costs/Cost Principles Criteria or specific requirement Reimbursement for meals served is determined by applying the applicable meals times rates formula. Condition The District submitted inaccurate meal counts for reimbursement. Context During testing of the Child Nutrition Cluster, it was discovered that one meal was over-reimbursed during a month tested and one meal was under-reimbursed during a month tested. Cause Handwritten meal counts were incorrectly summed and submitted for reimbursement. Effect Inaccurate meal counts were submitted to the State and reimbursed. Recommendation We recommend that the District review its controls related to monthly reimbursement requests for the Child Nutrition Cluster in order to ensure that accurate meal counts are submitted. Views of responsible officials See Corrective Action Plan.

Criteria or specific requirement Internal controls should be in place to ensure that any raises given, or other changes made to an employee?s pay during the year, are properly documented. Proper documentation is needed to allow for review and monitoring of the payroll process. Part of this process includes ensuring that updated contracts are properly signed by the appropriate individuals and filed for record-keeping. Condition Updated contracts are not consistently being signed and stored for record-keeping and review. In addition, due to the lack of review process, errors on works agreements are not being caught or corrected. Context We determined, through testing of a sample of the Head Start Program, that employees are receiving raises or other changes are being made to their salary, and some of these updated contracts are not being signed by the appropriate officials and the individual employee. In addition, work agreements were found that did not match the amount paid to the employee. Of the 32 employees tested, 2 did not have proper supporting documentation showing the wages or salary that they were paid. Effect Two employees were not paid the amount that their documentation shows. Total questioned costs are $2,938. Cause Changes are being made within the payroll system without ensuring that a signed contract or work agreement exists to support the changes. Recommendation We recommend that the District put in place a policy that is effective at ensuring that all contracted employees sign and return a copy of their contract. In addition, these contracts should be reviewed before entering changes into the payroll system. Views of responsible officials and planned corrective actions See corrective action plan.

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