WHITE OAK INDEPENDENT SCHOOL DISTRICT

Federal Program: ESEA Title I Part A Compliance Requirement: Allowable Cost Criteria: Ongoing monitoring of the general ledger, and activity in the federal program to ensure that the costs charged to the program are allowable according to the grant guidelines. Condition: We noted a deficiency in internal control procedures related to documentation of administrative review and approval of the allowable costs that were charged to the program, including employees' payroll. Cause: The cause of the deficiency appears to be a lack of regular administrative review procedures and a lack of communication between the program directors, the payroll administrator, and the Chief Financial Officer Effect: The lack of internal controls could result in a questioned cost.

Recommendation: It is recommended that when setting up the payroll at the beginning of the year, HR needs to verify and document that the employees charged to the program have the correct credentials and that their schedules align with the program requirements. We also recommend the program director review and approve who is being charged to the program at least twice a year.

Federal Program: ESSER FUND II of the CRRSA ACT and ESSER FUND III of the American Rescue Plan Act of 2021 Compliance Requirement: Allowable Cost Criteria: Ongoing monitoring of the general ledger, and activity in the federal program to ensure that the costs charged to the program are allowable according to the grant guidelines and the grant spend plan. Condition: We noted a deficiency in internal control procedures related to documentation of administrative review and approval of the allowable costs that were charged to the program, including employees' payroll. Cause: The cause of the deficiency appears to be a lack of regular administrative review procedures and a lack of communication between the program directors, payroll administrator, and the Chief Financial Officer. Effect: The lack of internal controls could result in a questioned cost. Recommendation: It is recommended that when setting up the payroll at the beginning of the year, HR needs to verify and document that the employees charged to the program agree with what was decided in the spend plan and that there were no changes. Also, verify any other expenditures charged to the program agree to the spend plan