Internal audit flags time-and-effort documentation gaps; procurement reports MBE spending at 2.8%

The Richland Two internal auditor presented results of a time‑and‑effort audit and described several documentation deficiencies; district procurement leaders reported low certified minority business participation and described steps to increase outreach.

Melissa Myers, executive director of internal auditing, told the board the audit focused on compliance with federal and state requirements for employees paid entirely or in part with federal funds. The audit found the district’s semiannual certification template appeared to be a State Department of Education template and recommended updating it to a district‑branded form. The audit also found instances of missing employee signatures on time sheets, payroll requisitions not approved by supervisors and — in one isolated school — payroll documentation that could not be located.

“We noted untimely submission and approval of time sheets,” Myers said. She recommended expanding written procedures for electronic timekeeping, communicating expectations to supervisors, distributing state record‑retention requirements to responsible staff and reconciling time sheets with payroll requisitions to prevent miscalculation.

Procurement update and MBE participation

Luana Robinson Lee, executive director of business operations, presented a procurement summary for the prior fiscal year. Robinson Lee said the district handled roughly 24,000 P‑card transactions with a single‑transaction P‑card limit of $5,000 and issued slightly over 7,600 purchase orders. She said the district’s certified minority business enterprise (MBE) participation was 2.8% of controllable dollars; total MBE participation (including noncertified participation) was 9.2%.

To raise certified‑MBE participation, Robinson Lee described procedural and outreach steps: asking schools and departments to attempt to obtain at least one quote from a certified minority business for purchases between $5,000 and $15,000; hosting “how to do business with the district” sessions tied to the district’s reverse trade show; updating procurement web pages and increasing social‑media outreach; and continuing supplier engagement and training for bookkeepers and principals.

Board and staff follow up

Board members asked about where time‑and‑effort issues appeared (school level vs. district payroll processing) and whether new clock‑in software would help; Myers said some issues were at the school level and some in district payroll processing, and that the audit covered the prior school year. Robinson Lee confirmed the district rolled out clocking software this school year and that it should help generate records for signatures and reconciliations.

Why it matters

Time‑and‑effort documentation supports the district’s use of federal funds; improper documentation can expose the district to audit findings and federal remediation requirements. Low certified‑MBE participation may affect the district’s goals for supplier diversity and reporting to external auditors.

Ending note

Myers said business services agreed with the findings and is implementing corrective actions; procurement said it will pursue outreach steps in the minority utilization plan approved by the board at the meeting.