Audit finds payroll concerns at East Union ECC

AFTON — A special investigation report by Auditor Rob Sand finds nearly $5,000 of unexplained payroll transactions between a director and a custodian at East Union Early Childhood Center.

The investigation covered July 1, 2020 to Aug. 31, 2022 and was requested by district officials due to payroll concerns.

Sand reported the investigation identified $4,453.08 improper payroll and $760.91 of related payroll costs paid to custodian Grant Hall by former director Hope Hall. Both employees have been removed from the East Union staff directory.

“Because ECC records were not sufficiently maintained, it was not possible to determine if additional payroll transactions were improperly recorded or if additional amounts were improperly disbursed,” Sand stated.

Sand recommended district officials implement procedures to insure internal controls are strengthened including “developing policies and procedures to prevent district staff from hiring, supervising and approving time records for family or relatives.”

In addition, district staff were encouraged to review payroll and related documentation to determine “reasonableness of hours worked” as well as ensuring adequate documentation maintained for overtime hours.

Hope began serving as ECC director in 2011. Since August 2022, Peggy Hardy has been in the director role as well as part-time teaching. She has been with East Union for 10 years.