The Washington State Auditor uncovered what were termed "significant deficiencies in the design or operation of internal control over major federal programs" in the most recent audit of the Lyle School District's financial statements.
In an audit report released Aug. 22, the Washington Auditor's Office described its "finding" as follows: "The Lyle School District did not have adequate internal controls to ensure compliance with time and effort requirements for the 21st Century Community Learning Centers grant."
According to the report -- which covered a one year period that began Sept. 1, 2001, and continued through Aug. 31, 2002 -- three program coordinators within the school district "did not have adequate time and effort documentation to support their payroll and benefit costs."
"Management was aware of time and effort requirements and they were under the impression the appropriate documentation was being obtained," the report noted. "It is the district's responsibility to review all available guidance and maintain internal controls over federal programs. Without proper internal controls for time and effort records, we were unable to verify the accuracy of all payroll costs charged to this program. Questioned costs of $13,473.94 are associated with this program."
In the written response to the audit's finding, the school district said the condition had since been taken care of.
"Time and effort documentation has been corrected for the 2002-03 grant year. We feel we are now in compliance with the time and effort requirements. All staff in federal programs are aware of internal control requirements by the U.S. Office of Management and Budget."
The State Auditor recommend that the Lyle School District "establish and follow internal controls over the compliance of time and effort for payroll to comply with federal cost principles and consult with the Office of Superintendent of Public Instruction for additional guidance if needed."
The Auditor's Office noted that the school district's anticipated corrective action would be reviewed during the next audit.
Neither Lyle School District Superintendent Martin Huffman nor Lyle School Board Chairman Dan Smith could be reached for comment as of press time Tuesday.
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