East Mesa Charter Elementary School

Criteria: In accordance with 2 CFR, §200.430(i)(1)(i), the School should maintain records that are supported by a system of internal control which provides reasonable assurance that the amounts charged to the grant are accurate. Condition and context: We noted the following errors out of a sample of forty payroll transactions that we tested for the payroll periods ended February 9, 2024 and April 19, 2024: 1) one employee was not paid at the correct rate of pay for both pay periods. Cause: Documentation was not sufficient to support all amounts paid to employees and internal controls were not effective in preventing payroll errors. Effect: There is an increased risk that employee compensation will not be paid accurately and amounts charged to federal programs will not be properly supported. Recommendation: To help ensure that charges to payroll expenses are properly supported and accurate, the School should implement internal control policies and procedures that requires periodic reviews of employee records as it relates to payrates, amounts recorded on timesheets, and time off approvals.