[read complete report – pdf] 

Audit Objective 

Determine whether University Preparatory Charter School for Young Men (School) officials accurately compensated employees. 

Key Findings 

School officials did not always accurately compensate employees or require adequate support for hours worked. Therefore, payroll errors went undetected and resulted in unnecessary and erroneous payments. We reviewed policies and documents and examined payroll-related records for 25 of the 138 individuals employed by the School and determined: 

• Officials lacked records to support compensation totaling $18,527 they paid three hourly employees. 
• Twelve employees received pay that was not consistent with their employment agreements, authorized pay rates or Board of Trustees (Board) policy resulting in compensation errors totaling $5,188. 
• Officials could not support they provided the Board with sufficient information for the Board to perform its oversight duties or ensure that the Chief Executive Officer (CEO) authorized salaries within the Board-approved range. 
• Officials did not adequately segregate payroll duties or establish sufficient compensating controls, which could allow other discrepancies to occur. 

Key Recommendations 

• Ensure employees are paid in accordance with employment agreements, approved salaries and pay rates and applicable Board policies. 
• Consult with legal counsel and determine the appropriate course of action to address the overpayments and underpayments identified. 

School officials agreed with our recommendations and indicated they will initiate corrective action.