Agenda Item
d. Approval of the FY 2022 Audit Corrective Action Plan
Summary: Mr. Byron Schueneman, Chief Financial Officer, Division of Finance
Request: It is requested that the Board of Education approve the FY 2022 audit corrective action plan developed in response to Senate Bill 68 requirements. FY 2022 audit results stipulate the District’s designated risk level as being moderate. The District’s corrective action plan must be presented at a regular board meeting, signed by each board member, and submitted to the State Board of Education no later than 120 days from receiving audit results (June 28, 2023).
Why: Approval of the corrective action plan is in accordance with the provisions of Senate Bill 68.
Details: Senate Bill 68 stipulates that the Department of Audits and Accounts designate a risk level for each school system. The FY 2022 audit contained seven significant deficiency findings. These seven items result in the School District’s designated risk level as being moderate. With this designation, the School District is required to submit to the State Board of Education, within 120 days of the date of the Audit Committee Letter, a detailed corrective action plan. The corrective action plan should be presented at a regular board meeting and signed by each board member.
Financial impact: No financial impact
Contact: Mr. Byron Schueneman, Chief Financial Officer, Division of Finance, 678.676.0270
Mr. Lance McConkey, Comptroller, Division of Finance, 678.676.0445
Effective: Upon Board approval
Status: General Counsel approval not required
Mr. Diijon DaCosta, Board Chair
Mrs. Deirdre Pierce, Vice Chair
Mrs. Anna Hill
Mrs. Whitney McGinniss
Mrs. Allyson Gevertz
Mrs. Vickie B. Turner
Dr. Devon Horton, Superintendent Dr. Joyce Morley
FS 2022-001 Strengthen Oversight of the Information System Conversion
Internal Control Impact: Significant Deficiency
Compliance Impact: None
Repeat of Prior Year Finding: FS 2021-001
Description:
The DeKalb County Board of Education (School District) should strengthen oversight of its information system
conversion from its legacy human resources/payroll (HR/Payroll) and financial system to its new financial system.
Corrective Action Plan:
The District has time-lined multiple corrective actions and increased efforts to fully implement the Financial
Management Information System (FMIS).
Planned actions include:
• Identify a project manager responsible for overseeing the full implementation of the FMIS
• Provide necessary resources such as staff augmentation and vendor subject matter experts to support the
project manager.
• Segment the remaining tasks into detailed, yet manageable pieces of work that can be met within an
achievable timeline.
o Phase I (October 15, 2023) – transition all twelve-month employees into the FMIS.
o Phase II (January 15, 2024) – transition all ten and eleven-month employees into the FMIS.
o Phase III (April 15, 2024) – transition all part time and additional pay into the FMIS
• Facilitate the development of new standard operating procedures to support business processes within
the FMIS for Human Resources, Finance, and Payroll Departments.
• Implement a communication plan to ensure all employees impacted in this FMIS conversion are aware of
necessary activities and have necessary support.
• Provide effective and transparent project progress reporting. Assemble an Executive Committee (Chief
Financial Officer, Chief Human Resources Officer, Chief Information Officer, Chief Operations Officer, and
Chief of Staff) with Superintendent oversight to ensure project governance and consensus on all project-
related decisions.
Estimated Completion Date: June 2024
Contact Person: Monika Davis, Chief Information Officer
Telephone: 678-676-1210
E-mail: Monika_Davis@dekalbschoolsga.org
Robert R. Freeman Administrative Complex
1701 Mountain Industrial Blvd. | Stone Mountain, GA 30083
678.676.1200 | www.dekalbschoolsga.org
FS 2022-002 Strengthen Information Technology General Controls
Internal Control Impact: Significant Deficiency
Compliance Impact: None
Repeat of Prior Year Finding: FS 2021-002
Description:
The DeKalb County Board of Education (School District) should strengthen logical access controls over its financial
and human resource/payroll (HR/payroll) systems.
Corrective Action Plan:
The District’s Division of Information and Instructional Technology (DIIT) has made corrective actions to ensure
logical access control procedures and recertification processes operate appropriately.
To support this effort, the Division of Information and Instructional Technology will:
• Update and strengthen general controls for system governance, management, and configuration. This
includes reviewing, updating, and enforcing change control policies to ensure appropriate monitoring for
system integrity.
• Update and strengthen logical access controls which includes enhanced management verification and
approval as well as appropriate oversight by the District’s Finance Division and Audits and Compliance
Department.
• Establish a quarterly, user access recertification process for both the legacy and new ERP system based on
division management approval and user role-based fiduciary responsibility.
• Expand staffing model to facilitate ongoing ERP system governance, support, and sustainability.
• Develop ongoing, coherent, and clear communication to district leadership and impacted staff regarding
Information Technology policies and procedures.
The District will continue to work aggressively to sunset the legacy ERP system and completely migrate
to the new ERP system. Considering the legacy ERP system has technical limitations that prevent some
of the recommended controls, the District will continue to implement manual processes on a quarterly
basis to help with risk mitigation.
Estimated Completion Date: June 2024
Contact Person: Monika Davis, Chief Information Officer
Telephone: 678-676-1210
E-mail: Monika_Davis@dekalbschoolsga.org
Robert R. Freeman Administrative Complex
1701 Mountain Industrial Blvd. | Stone Mountain, GA 30083
678.676.1200 | www.dekalbschoolsga.org
FS 2022-003 Internal Control Procedures
Internal Control Impact: Significant Deficiency
Compliance Impact: None
Description:
The accounting procedures of the School District were insufficient to provide adequate internal controls over
multiple control categories.
Corrective Action Plan:
The District will review current finance practices to strengthen internal controls, policies, and procedures and
ensure adherence through improved monitoring.
Plan actions include:
• Update and strengthen standard operating procedures for
o Treasury management and bank reconciliations,
o General billing, invoicing, and revenue recognition,
o Accounts payable and expense recognition,
o Journal entries, and
o Capital asset processing.
• Provide continuous training to all District employees to ensure adherence to internal controls, policies,
and procedures.
• Review and clean-up transaction activity and balances booked to funds not aligned to the State Chart of
Accounts.
• Develop a general ledger month-end close checklist which includes a listing of journal entries,
reconciliations, monitoring and other clean-up activity to be performed monthly.
• Develop a year-end close checklist with due dates for tasks, reviews, and reconciliations necessary to
ensure a timely closeout and accurate financial reporting.
• Engage other audit services to perform the District’s annual audit, and deliver results by December 31st of
each year. This will allow sufficient time for change implementation prior to next audit.
Estimated Completion Date: June 2024
Contact Person: Byron Schueneman, Chief Financial Officer
Telephone: 678.676.0133
E-mail: Byron_Schueneman@dekalbschoolsga.org
Robert R. Freeman Administrative Complex
1701 Mountain Industrial Blvd. | Stone Mountain, GA 30083
678.676.1200 | www.dekalbschoolsga.org
FS 2022-004 Strengthen Controls over Employee Compensation
Internal Control Impact: Significant Deficiency
Compliance Impact: None
Repeat of Prior Year Finding: FS 2021-003
Description:
The School District’s policies and procedures were insufficient to provide adequate internal controls over the
employee compensation process.
Corrective Action Plan:
Management shall review, develop and implement internal controls and other processes regarding supplements
and other compensation. The processes will outline document retention and improve the precision of leave
reporting.
Planned Actions Include:
• Supplements and other compensation:
o Develop policy to address employee supplements and pay for extra work. Policy (GBA) was
created and implemented for supplemental pay. This policy requires Superintendent or designee
approval for supplements and pay for extra work.
o Review and obtain appropriate documentation for current supplements.
o Monitor new supplements and pay for extra work via Human Resources document review and
verification.
o Management shall review and monitor frozen-scale employees to ensure policy is followed and
appropriate approvals are completed. A plan to return these employees back to a step structure
shall be prepared and communicated to the employee.
• Compensated Absences
o Review policy GBRI for appropriateness and employee leave banks for excessive or negative leave.
o Amend leave reporting practices to ensure employees cannot accrue more than the maximum
allowable leave.
Estimated Completion Date: June 2024
Contact Person: Dr. Tekshia Ward-Smith, Human Resources Administrator
Telephone: 678-676-0094
E-mail: Tekshia_M_Ward-Smith@dekalbschoolsga.org
Robert R. Freeman Administrative Complex
1701 Mountain Industrial Blvd. | Stone Mountain, GA 30083
678.676.1200 | www.dekalbschoolsga.org
FA 2022-001 Improve Budgetary Controls over Expenditures
Compliance Requirement: Activities Allowed or Unallowed
Allowable Costs / Cost Principles
Internal Control Impact: Significant Deficiency
Compliance Impact: Nonmaterial Noncompliance
Federal Awarding Agency: U.S. Department of Education
Pass-Through Entity: Georgia Department of Education
AL Number and Title: COVID-19 84.425D – Elementary and Secondary
School Emergency Relief Fund
Federal Award Number: S425D210012 (Year: 2021)
S425D200012 (Year: 2020)
Questioned Costs: $62,747.69
Description:
A review of expenditures charged to the Elementary and Secondary School Emergency Relief Fund program
revealed instances in which expenditures had not been properly approved by the pass-through entity.
Corrective Action Plan:
The School District will review current internal control procedures related to the ESSER program expenditures.
Additionally, the School District will ensure all ESSER fund users receive its policies and procedures to ensure
allowable expenditures are approved through the Consolidated Application process before spending federal
funds. The Program management in collaboration with Division of Finance implements a monitoring process to
ensure control procedures are followed.
• Ongoing Training: The School District will increase training on federal grant compliance requirements and
internal controls and procedures. The topics will cover intent of grant, allowable uses of ESSER grant
funds, prior approval requirements of potential expenditures, required documentation for review and
approval process, requirement that all potential expenditures be approved in the Consolidated
Application and deemed allowable before spending of federal funds.
• Workflow Improvements: Review and approval workflow for expenditures will be strengthened to ensure
review and approval by Office of Federal Program and Division of Finance. The School District continues
to strengthen monitoring on internal controls through workflow improvements.
• Budget Monitoring Improvements: To ensure the ESSER programs are prepared for audits, a full
reconciliation will be performed to ensure expenditures are approved through the Consolidated
Application budget approval process.
Estimated Completion Date: June 2024
Contact Person: Dr. Myisha Warren, Executive Director of Federal Programs
Telephone: 678-536-6648
E-mail: Myisha_Warren@dekalbschoolsga.org
Robert R. Freeman Administrative Complex
1701 Mountain Industrial Blvd. | Stone Mountain, GA 30083
678.676.1200 | www.dekalbschoolsga.org
FA 2022-002 Improve Controls over Indirect Costs
Compliance Requirement: Activities Allowed or Unallowed
Allowable Costs / Cost Principles
Internal Control Impact: Significant Deficiency
Compliance Impact: Nonmaterial Noncompliance
Federal Awarding Agency: U.S. Department of Education
Pass-Through Entity: Georgia Department of Education
AL Number and Title: COVID-19 84.425D – Elementary and Secondary
School Emergency Relief Fund
COVID-19 84.425U – American Rescue Plan
Elementary and Secondary School Emergency Relief Fund
Federal Award Number: S425D210012 (Year: 2021)
S425U210012 (Year: 2021)
Questioned Costs: $559,442.53
Description:
The School District charged indirect cost expenditures to the Elementary and Secondary School Emergency Relief
Fund program in excess of the maximum amount allowed.
Corrective Action Plan:
The School District will strengthen Finance internal controls, policies and procedures and ensure adherence
through improved monitoring.
• Ongoing Training: The School District will increase training on Title 2 U.S. Code of Federal Regulations
(CFR) Part 200, Uniform Administrative Requirements, Cost Principles, and Audit Requirements for
Federal Awards (Uniform Guidance), Section 200.303 – Internal Controls. Additionally, training will be
given on provisions included in the Uniform Guidance, Section 200.403 – Factors Affecting Allowability of
Costs. Training will also cover, GaDOE’s manual on Financial Management for Georgia Local Units of
Administration (FMGLUA).
• Internal Control Procedure Improvements: The School District will ensure ledger entries are accurate and
all control procedures are being followed.
• Questioned Costs: The expenditures will be moved to the correct ESSER account.
Estimated Completion Date: June 2024
Contact Person: Dr. Myisha Warren, Executive Director of Federal Programs
Telephone: 678-536-6648
E-mail: Myisha_Warren@dekalbschoolsga.org
Robert R. Freeman Administrative Complex
1701 Mountain Industrial Blvd. | Stone Mountain, GA 30083
678.676.1200 | www.dekalbschoolsga.org
FA 2022-003 Improve Controls over Equipment
Compliance Requirement: Equipment and Real Property Management
Internal Control Impact: Significant Deficiency
Compliance Impact: Nonmaterial Noncompliance
Federal Awarding Agency: U.S. Department of Education
Pass-Through Entity: Georgia Department of Education
AL Number and Title: COVID-19 84.425D – Elementary and Secondary
School Emergency Relief Fund
COVID-19 84.425U – American Rescue Plan
Elementary and Secondary School Emergency Relief Fund
Federal Award Number: S425D210012 (Year: 2021)
S425U210012 (Year: 2021)
S425D200012 (Year: 2020)
Questioned Costs: None Identified
Description:
The policies and procedures of the School District were insufficient to provide adequate internal controls over
equipment and real property management as it relates to the Elementary and Secondary School Emergency Relief
Fund program.
Corrective Action Plan:
The School District will maintain an equipment listing that includes all required information to identify the
equipment, its status, cost, location, and ultimate disposal data. A physical inventory of equipment will be
performed once every two years and the management will implement the monitoring to ensure control
procedures are followed.
• Ongoing training: The School District will ensure all equipment inventory monitors are trained in
maintaining accurate inventory as per Federal Uniform Guidance and guidance available from GaDOE.
The topics covered will include reconciliation of results of the physical inventory to reflect accurately on
property records.
Estimated Completion Date: June 2024
Contact Person: Dr. Myisha Warren, Executive Director of Federal Programs
Telephone: 678-536-6648
E-mail: Myisha_Warren@dekalbschoolsga.org
Robert R. Freeman Administrative Complex
1701 Mountain Industrial Blvd. | Stone Mountain, GA 30083
678.676.1200 | www.dekalbschoolsga.org
Presented to and approved by the DeKalb County Board of Education at the October 16, 2023, Board Meeting.
Signed By:
Dr. Devon Q. Horton, Superintendent
Mr. Diijon DaCosta, Board Chair
Mrs. Deirdre Pierce, Vice Chair
Mrs. Anna Hill
Mrs. Whitney McGinniss
Mrs. Allyson Gevertz
Mrs. Vickie B. Turner
Dr. Joyce Morley
Robert R. Freeman Administrative Complex
1701 Mountain Industrial Blvd. | Stone Mountain, GA 30083
678.676.1200 | www.dekalbschoolsga.org