East Carroll Parish School Board

Reference # and title: 2020-002 Internal controls Over Allowable Costs and Cost Principles CFDA#, Federal Award Title, Federal Agency, Federal Award # and Year, and the name of Pass-Through Entity: This finding relates to the COVID-19 Education Stabilization Fund CFDA# 84.425D for the Federal Award Year 2020, received from Federal Agency: U.S. Department of Education, passed through Louisiana Department of Education. Criteria or specific requirement: Provisions of 2 CFR Part 200, Subpart E, section 200.403(f) states in order to be allowable under federal awards, costs must not be included as a cost or used to meet cost-sharing or matching requirements of any other federally financed program in either the current or prior period. Condition found: In testing costs reimbursed by Education Stabilization funding it was determined that food and food service supplies totaling $60,760 were reimbursed by this program. The School Board also received funding for meals served under the Summer Food Service Program for Children (CFDA #10.559). The funding for meals served covers the cost of food, food service supplies and employee costs. This was corrected through an audit adjustment crediting deferred revenue and in fiscal year 2021, a subsequent reimbursement request was reduced by the deferred revenue amount. Context: This appears to be an isolated incidence. Possible asserted effect (cause and effect): Cause: The School Board did not make the journal entry to transfer the cost of food reimbursed from the Summer Food Service Program for Children from the Education Stabilization fund before completing the request for reimbursement. This caused the School Board to request more in costs than were allowable. Effect: Deferred revenue resulted from the reimbursement of unallowable costs. Recommendations to prevent future occurrences: The School Board should implement monitoring procedures to ensure all expenditures are valid and allowable before submitting a request for reimbursement request. The School Board should implement procedures to ensure expenses are not being reimbursed by more than one federal program. Origination date and prior year reference (if applicable): This finding originated fiscal year ended June 30, 2020. View of responsible official: Management agrees with finding.

Reference # and title: 2020-002 Internal controls Over Allowable Costs and Cost Principles CFDA#, Federal Award Title, Federal Agency, Federal Award # and Year, and the name of Pass-Through Entity: This finding relates to the COVID-19 Education Stabilization Fund CFDA# 84.425D for the Federal Award Year 2020, received from Federal Agency: U.S. Department of Education, passed through Louisiana Department of Education. Condition: Provisions of 2 CFR Part 200, Subpart E, section 200.403(f) states in order to be allowable under federal awards, costs must not be included as a cost or used to meet cost-sharing or matching requirements of any other federally financed program in either the current or prior period. In testing costs reimbursed by Education Stabilization funding it was determined that food and food service supplies totaling $60,760 were reimbursed by this program. The School Board also received funding for meals served under the Summer Food Service Program for Children (CFDA #10.559). The funding for meals served covers the cost of food, food service supplies and employee costs. This was corrected through an audit adjustment crediting deferred revenue and in fiscal year 2021, a subsequent reimbursement request was reduced by the deferred revenue amount. Corrective action planned: A reimbursement request in FY 2021 was reduced by the amount of the deferred revenue. Procedures are established whereas supervisors are responsible for monitoring expenditures of federal programs before request for reimbursements are made. Person responsible for corrective action: Theresa Thomas Telephone: (318) 559-2222 East Carroll Parish School Board Fax: (318) 559-3864 P. O. Box 792 Lake Providence, LA 71254-0792 Anticipated completion date: June 30, 2021

Reference # and title: 2019-004 Internal controls Over Allowable Costs and Cost Principles CFDA#, Federal Award Title, Federal Agency, Federal Award # and Year, and the name of Pass-Through Entity: This finding relates to the Title I grants CFDA# 84.010A for the Federal Award Year 2018, received from Federal Agency: U.S. Department of Education, passed through Louisiana Department of Education and to the Special Education Grants to States CFDA #84.027A for the Federal Award Year 2018, received from Federal Agency: U.S. Department of Education, passed through Louisiana Department of Education. Criteria or specific requirement: Proper internal controls over disbursements require proper documentation to be obtained, the charge should be properly allocated based on documentation and all charges should be reasonable and necessary for the grants objectives. Condition found: Title I - When testing payroll disbursements it was noted that two employees were being underpaid by one step level. It was also noted that the Supervisor did not have a study of her time spent working on this grant. The Supervisor had a time certification stating the percent of time she worked on Title I was 30% but her payroll history did not agree with the time certification form paying her 8.4% from Title I. Title I- When testing vendor disbursements the following items were noted: ? Late fee and sales tax paid on one check. ? Three disbursements either the invoice or purchase order was not approved. One disbursement the purchase order was dated three months after invoice. ? One disbursement was for equipment and was recorded as supplies and budgeted as supplies. The amount of this equipment was also mistyped in the budget. ? Computer tablets budgeted to Title IV were recorded as a Title I purchase. ? One invoice was paid for the incorrect amount. Special Education - When testing payroll disbursements it was noted that the Supervisor did not have a study of her time spent working on this grant. The Supervisor had a time certification stating the percent of time she worked on Special Education was 30% but her payroll history did not agree with the time certification form paying her 34.4% from Special Education. Special Education - When testing vendor disbursements the following items were noted: ? Early registration discount was not taken for conference as submitted by employee. ? An invoice was paid twice on one check. ? One disbursement was paid for purchase order amount and not invoice amount for items received. Context: For Title I grants, a sample of forty-four disbursements were selected for testing, which six were noted with exceptions. For Special Education grants, a sample of forty-seven disbursements were selected for testing, which five were noted with exceptions. Possible asserted effect (cause and effect): Cause: The cause associated with both Title I and Special Education grants is due to no time study being conducted by the Supervisor of the program and allocation of pay by payroll not being consistent with certification of time spent. Personnel salaries were not reviewed for proper placement on salary schedule. Vendor disbursements were not reviewed and approved consistently. Effect: The School Board may have not met all federal requirements related to allowable costs and cost principles. Recommendations to prevent future occurrences: The School Board should establish procedures to ensure all employees are paid properly on the salary schedule, properly allocated and are properly documented regarding time spent on the program. Procedures should be established to ensure that all invoices and purchase orders are properly approved, budgeted and matched to payment. View of responsible official: Management agrees with recommendation to prevent future occurrences.

Reference # and title: 2019-004 Internal controls Over Allowable Costs and Cost Principles CFDA#, Federal Award Title, Federal Agency, Federal Award # and Year, and the name of Pass-Through Entity: This finding relates to the Title I grants CFDA# 84.010A for the Federal Award Year 2018, received from Federal Agency: U.S. Department of Education, passed through Louisiana Department of Education and to the Special Education Grants to States CFDA #84.027A for the Federal Award Year 2018, received from Federal Agency: U.S. Department of Education, passed through Louisiana Department of Education. Condition: Proper internal controls over disbursements require proper documentation to be obtained, the charge should be properly allocated based on documentation and all charges should be reasonable and necessary for the grants objectives. Title I - When testing payroll disbursements it was noted that two employees were being underpaid by one step level. It was also noted that the Supervisor did not have a study of her time spent working on this grant. The Supervisor had a time certification stating the percent of time she worked on Title I was 30% but her payroll history did not agree with the time certification form paying her 8.4% from Title I. Title I- When testing vendor disbursements the following items were noted: ? Late fee and sales tax paid on one check. ? Three disbursements either the invoice or purchase order was not approved. One disbursement the purchase order was dated three months after invoice. ? One disbursement was for equipment and was recorded as supplies and budgeted as supplies. The amount of this equipment was also mistyped in the budget. ? Computer tablets budgeted to Title IV were recorded as a Title I purchase. ? One invoice was paid for the incorrect amount. Special Education - When testing payroll disbursements it was noted that the Supervisor did not have a study of her time spent working on this grant. The Supervisor had a time certification stating the percent of time she worked on Special Education was 30% but her payroll history did not agree with the time certification form paying her 34.4% from Special Education. Special Education - When testing vendor disbursements the following items were noted: ? Early registration discount was not taken for conference as submitted by employee. ? An invoice was paid twice on one check. ? One disbursement was paid for purchase order amount and not invoice amount for items received. Corrective action planned: Procedures are being implemented to ensure that all employees are being properly compensated according to schedules. Procedures are in place for vendor disbursements and educational in-services on following these procedures are conducted semi-annually. Special Education Supervisor and Payroll Clerk will collaborate on time spent per federal program and pay accordingly. Person responsible for corrective action: Theresa Thomas Telephone: (318) 559-2222 East Carroll Parish School Board Fax: (318) 559-3864 P. O. Box 792 Lake Providence, LA 71254-0792 Anticipated completion date: June 30, 2020