Audit 12028

Allowable Costs/Activites Allowed. The District is required to report allowable costs/activites allowed based on the grant, the grant budget and for th period of the grant. Condition: The amount claimed on the June 30, 2023 ESSER 3 expenditure report included an expense that had been claimed on the 6/30/22 ESSER 2 expenditure report. Questioned Costs - $$7,296.62; Salary in 1000-100 of $5,365.50 and benefits in 1000-200 of $1,931.12. Context: It was noted that a journal entry to reclassify expenses included an expense from June 2022 that were already claimed when reviewing the journal entries with the client. Effect: The District did not file an accurate expenditure report at June 30, 2023. Cause: The District claimed the same expense in 2022 and 2023. Recommedation: To review the general ledger for duplicate or unallowable epenses before entering into the expenditure report and submitting. Management's response: The District will review the general ledger for duplicate or unallowable expenses before submitting quarterly reports.

Reporting. To determine that an accurate June 30, 2023 expenditure report was filed with the Illinois State Board of Education. The District reported expenses on the 6/30/23 expenditure report that were paid after year end. Condition: It was noted that the District claimed a total of $94,359 at 6/30/23, however $57,85 these expenses were paid after year end and should be considered outstanding obligations at 6/30/23. Questioned Costs - None; Context - The District claimed expenses on the 6/30/23 expenditure reports that were not paid until August 2023. The expenses were allowable under the grant, but the District claimed the expense too early. Effect: The District claimed expenses early and were reimbursed for expenses of $57,850 in Juy 2023 that were not paid until August 2023. Cause: The District mistakenly picked up the wrong total on the general ledger report used to claim expenses. Recommendation: We recommend reconciling the general ledger AP totals to the expenditure reports before submitting. Management's response: The District will add a verifiation process to reconile the general ledger AP totals to the expenditure reports before submitting.

Criteria: Reporting. To determine that an accurate June 30, 2023 expenditure report was filed with the Illinois State Board of Education. The District reported expenses on the 6/30/23 expenditure report that were paiid after year end. Condition: It was noted that the District claimed a total of $271,874 at 6/30/23, however 22,157 of July and August 2023 salaries and $8,695 of July and August 2023 benefits were paid after year end and should be considered outstanding obligations at 6/30/23. Questioned costs: None. Context: The District claimed expenses on the 6/30/23 expenditure report that were not paid until July and August 2023. The expenses were allowable under the grant, but the District claimed the expenses too early. Effect: The District claimed expenses early and were reimbursed for expenses of $30,852 in July 2023 that were not paid until July and August 2023. Cause: The DIstrict mistakenly picked up the wrong total on the general ledger report used to claim expenses. Recommendation: We recommend reconciling the general ledger AP totals to the expenditure reports before submitting. Management's response: The District will add a verification process to reconcile the general ledger AP totals to the expenditure reports before submitting.

Criteria: Reporting. The accounts used to record expenditures on the quarterly expenditure reports should match the budget. Condition: It was noted that there was an inconsistency when comparing the expenditure report to the budget. Questioned costs: None. Context: The District claimed expenses on the 6/30/23 expenditure report in account 1000-3000 that should be recorded in account 2210-300 per the budget. Effect: The expenditures were not recorded/reported consistently between the two reports. Cause: A coding errror was made when entering the expenditures into the general ledger and expenditure report. Recommendation: We recommend reviewing the general ledger to determine that expenses are coded appropriately per the budget. Management' response: The District will review the general ledger to the budget before submitting the expenditure reports.

Criteria: Reporting. All quarterly expenditure reports must be filed with the Illinois State Board of Education no later thanb 20 days after the end of the quarter (10/20, 1/20, 4/20 and 7/20). Condition: The 2nd quarter ESSER 2 report was filed 25 days after the 20 day deadline. Questioned costs: None. Context: The 2nd quarter ESSER 2 report was filed 25 days after the 20 day dealine. Effect: The District was not in compliance by filing their expenditure reports late. Cause: The District did not employ proper oversight to ensure that the quarterly expenditure reports were timely filed. Recommendation: We recommend that steps are taken, including oversight by a second employee, to ensure that all quarterly expenditure reports are filed by the due dates. Management' response: The District will take the necesary steps to file all quarterly expenditure reports on time in the future.

Allowable Costs/Activites Allowed. The District is required to report allowable costs/activites allowed based on the grant, the grant budget and for th period of the grant. Condition: The amount claimed on the June 30, 2023 ESSER 3 expenditure report included an expense that had been claimed on the 6/30/22 ESSER 2 expenditure report. Questioned Costs - $$7,296.62; Salary in 1000-100 of $5,365.50 and benefits in 1000-200 of $1,931.12. Context: It was noted that a journal entry to reclassify expenses included an expense from June 2022 that were already claimed when reviewing the journal entries with the client. Effect: The District did not file an accurate expenditure report at June 30, 2023. Cause: The District claimed the same expense in 2022 and 2023. Recommedation: To review the general ledger for duplicate or unallowable epenses before entering into the expenditure report and submitting. Management's response: The District will review the general ledger for duplicate or unallowable expenses before submitting quarterly reports.

Reporting. To determine that an accurate June 30, 2023 expenditure report was filed with the Illinois State Board of Education. The District reported expenses on the 6/30/23 expenditure report that were paid after year end. Condition: It was noted that the District claimed a total of $94,359 at 6/30/23, however $57,85 these expenses were paid after year end and should be considered outstanding obligations at 6/30/23. Questioned Costs - None; Context - The District claimed expenses on the 6/30/23 expenditure reports that were not paid until August 2023. The expenses were allowable under the grant, but the District claimed the expense too early. Effect: The District claimed expenses early and were reimbursed for expenses of $57,850 in Juy 2023 that were not paid until August 2023. Cause: The District mistakenly picked up the wrong total on the general ledger report used to claim expenses. Recommendation: We recommend reconciling the general ledger AP totals to the expenditure reports before submitting. Management's response: The District will add a verifiation process to reconile the general ledger AP totals to the expenditure reports before submitting.

Criteria: Reporting. To determine that an accurate June 30, 2023 expenditure report was filed with the Illinois State Board of Education. The District reported expenses on the 6/30/23 expenditure report that were paiid after year end. Condition: It was noted that the District claimed a total of $271,874 at 6/30/23, however 22,157 of July and August 2023 salaries and $8,695 of July and August 2023 benefits were paid after year end and should be considered outstanding obligations at 6/30/23. Questioned costs: None. Context: The District claimed expenses on the 6/30/23 expenditure report that were not paid until July and August 2023. The expenses were allowable under the grant, but the District claimed the expenses too early. Effect: The District claimed expenses early and were reimbursed for expenses of $30,852 in July 2023 that were not paid until July and August 2023. Cause: The DIstrict mistakenly picked up the wrong total on the general ledger report used to claim expenses. Recommendation: We recommend reconciling the general ledger AP totals to the expenditure reports before submitting. Management's response: The District will add a verification process to reconcile the general ledger AP totals to the expenditure reports before submitting.

Criteria: Reporting. The accounts used to record expenditures on the quarterly expenditure reports should match the budget. Condition: It was noted that there was an inconsistency when comparing the expenditure report to the budget. Questioned costs: None. Context: The District claimed expenses on the 6/30/23 expenditure report in account 1000-3000 that should be recorded in account 2210-300 per the budget. Effect: The expenditures were not recorded/reported consistently between the two reports. Cause: A coding errror was made when entering the expenditures into the general ledger and expenditure report. Recommendation: We recommend reviewing the general ledger to determine that expenses are coded appropriately per the budget. Management' response: The District will review the general ledger to the budget before submitting the expenditure reports.

Criteria: Reporting. All quarterly expenditure reports must be filed with the Illinois State Board of Education no later thanb 20 days after the end of the quarter (10/20, 1/20, 4/20 and 7/20). Condition: The 2nd quarter ESSER 2 report was filed 25 days after the 20 day deadline. Questioned costs: None. Context: The 2nd quarter ESSER 2 report was filed 25 days after the 20 day dealine. Effect: The District was not in compliance by filing their expenditure reports late. Cause: The District did not employ proper oversight to ensure that the quarterly expenditure reports were timely filed. Recommendation: We recommend that steps are taken, including oversight by a second employee, to ensure that all quarterly expenditure reports are filed by the due dates. Management' response: The District will take the necesary steps to file all quarterly expenditure reports on time in the future.