NATIONAL ASSOCIATION OF STATE DIRECTORS OF SPECIAL EDUCATION

Condition: Two exceptions related to controls over direct expenses were identified as part of the audit. Criteria: All expenditures of federal grant awards should be supported by documentation and approved. Cause: oIn one instance, the telephone expenses allocated to the federal award during the year were estimated due to delays in receiving invoices. Additionally, in one month tested the total personnel hours excluded 29 total hours. oIn a second instance, an employee reimbursement for allowable travel costs erroneously included reimbursement for an amount paid by the employer credit card. Context and Effect: oThe telephone cost allocation was recalculated for the entire year and the estimated excess amount charged to the major program for telephone expenses due to the above was approximately $200. oAll employee reimbursements charged to the major program were reviewed and no additional instances were noted which resulted in an overcharge to the federal award. In two instances, reimbursable expenses were noted on the expense reimbursed which were not reimbursed. The estimated excess amount charged to the major program for employee reimbursements due to the above was approximately $400. oAs a mitigating factor, one AMEX bill with expenditures allocable to the major program was not allocated to the major program within the accounting system. As a result, there were sufficient allowable costs for the major program that were not charged to the major program to fully offset the amounts noted above. Recommendations: oWe recommend the process for allocating telephone costs to federal awards be reevaluated to prevent similar reoccurrences in the future, including a review and approval of the allocation calculation. oWe recommend the process and forms for submitting employee reimbursements be re-evaluated to prevent similar recurrences in the future. oWe recommend a process be established to record credit card statements that are not fully coded in an account that will be identified and reconciled as part of the monthly reconciliation process.

Condition: Due to the transition to a new payroll system, payroll approvals were not consistently documented in a timely manner. Criteria: Payroll costs charged to federal awards should be reviewed and approved by a responsible party. Cause: Due to the transition to a new payroll system, approvals were not consistently captured in the new payroll system at the time of the payroll. Context and Effect: Two payroll periods tested did not include supervisor approvals on all employees timesheets. The two payroll periods were after the transition to a new timekeeping and payroll service provider. The executive director denoted approval at the time of the audit. As additional context, two payrolls tested prior had documentation of approvals, and two payrolls tested later in the fiscal year had documentation of approvals. Recommendations: We recommend the policy for approval of all timesheets be followed consistently.

GSA_MIGRATION