Audit 21865

FY End
2022-06-30
Total Expended
$1.11M
Findings
8
Programs
12
Organization: Okaw Valley Cusd 302 (IL)
Year: 2022 Accepted: 2023-07-09

Organization Exclusion Status:

Checking exclusion status...

Findings

ID Ref Severity Repeat Requirement
22683 2022-002 Material Weakness - B
22684 2022-003 Material Weakness - B
22685 2022-002 Material Weakness - B
22686 2022-003 Material Weakness - B
599125 2022-002 Material Weakness - B
599126 2022-003 Material Weakness - B
599127 2022-002 Material Weakness - B
599128 2022-003 Material Weakness - B

Contacts

Name Title Type
GRZ9K7SRLJE9 Kent Stauder Auditee
2176653232 Kent Kull Auditor
No contacts on file

Notes to SEFA

Title: Subrecipients Accounting Policies: The accompanying Schedule of Expenditures of Federal Awards includes the federal grant activity of Okaw Valley Community Unit School District 302 and is presented on the modified cash basis of accounting. The information in this schedule is presented in accordance with the requirements of the Office of Management and Budget Uniform Administrative Requirements, Cost Principles, and Audit Requirements for Federal Awards. Therefore, some amounts presented in this schedule may differ from amounts presented in, or used in the preparation of, the Basic financial statements. De Minimis Rate Used: N Rate Explanation: The auditee did not use the de minimis cost rate. Of the federal expenditures presented in the schedule, Okaw Valley Community Unit School District 302 provided no federal awards to subrecipients.
Title: Non-Cash Assistance Accounting Policies: The accompanying Schedule of Expenditures of Federal Awards includes the federal grant activity of Okaw Valley Community Unit School District 302 and is presented on the modified cash basis of accounting. The information in this schedule is presented in accordance with the requirements of the Office of Management and Budget Uniform Administrative Requirements, Cost Principles, and Audit Requirements for Federal Awards. Therefore, some amounts presented in this schedule may differ from amounts presented in, or used in the preparation of, the Basic financial statements. De Minimis Rate Used: N Rate Explanation: The auditee did not use the de minimis cost rate. The following amounts were expended in the form of non-cash assistance by Okaw Valley Community Unit School District 302 and should be included in the Schedule of Expenditures of Federal Awards: NON-CASH COMMODITIES (CFDA 10.555): $14,888 OTHER NON-CASH ASSISTANCE - DEPT. OF DEFENSE FRUITS & VEGETABLES $5,044 Total Non-Cash $19,932
Title: Other Information Accounting Policies: The accompanying Schedule of Expenditures of Federal Awards includes the federal grant activity of Okaw Valley Community Unit School District 302 and is presented on the modified cash basis of accounting. The information in this schedule is presented in accordance with the requirements of the Office of Management and Budget Uniform Administrative Requirements, Cost Principles, and Audit Requirements for Federal Awards. Therefore, some amounts presented in this schedule may differ from amounts presented in, or used in the preparation of, the Basic financial statements. De Minimis Rate Used: N Rate Explanation: The auditee did not use the de minimis cost rate. Insurance coverage in effect paid with Federal funds during the fiscal year: Property No Auto No General Liability No Workers Compensation No Loans/Loan Guarantees Outstanding at June 30: No District had Federal grants requiring matching expenditures No

Finding Details

SECTION III - FEDERAL AWARD FINDINGS AND QUESTIONED COSTS 1. FINDING NUMBER: 2022- 002 2. THIS FINDING IS: X New Repeat from Prior year? Year originally reported? 3. Federal Program Name and Year: COVID 19: Education Stabilization Fund (2021 & 2022) 4. Project No.: 4998-ER, E2, E3 5. CFDA No.: 84.425D-COVID 19, 84.425U-COVID 19 6. Passed Through: Illinois State Board of Education 7. Federal Agency: Department of Education 8. Criteria or specific requirement (including statutory, regulatory, or other citation) Internal controls over compliance over reporting of federal expenditures require expenditures to be coded to the same expenditure functions and object codes in the District's general ledger as they are on grant expenditure reports. Additionally, the source of funds used for federal expenditures should be identified in the underlying accounting records. 9. Condition Expenditure functions used to record grant expenditures in the general ledger are not consistent with the expenditure functions used for grant reporting and the general ledger account number did not identify which federal funds were being utilized. Numerous expenditures were coded to the grant general ledger accounts via journal entry reclassification. 10. Questioned Costs None 11. Context Numerous expenditures in the District's general ledger which were claimed on grant expenditure reports were not coded to accounts which identified the source of federal funds nor to the same function and object codes as reported on the grant expenditure reports. 12. Effect Grant expenditures claimed cannot be easily reconciled to the general ledger totals. 13. Cause Coding of grant expenditures was not reviewed to ensure expenditures are coded to functions in which they are budgeted and to general ledger accounts that clearly identify which federal funds or other funds were utilized. 14. Recommendation Grant expenditures should be recorded in the same general ledger expenditure functions as are used for grant reporting and should identify the federal funds being utilized. 15. Management's response Management will implement the auditor's recommendation in the year ended June 30, 2023.
SECTION III - FEDERAL AWARD FINDINGS AND QUESTIONED COSTS 1. FINDING NUMBER: 2022- 003 2. THIS FINDING IS: X New Repeat from Prior year? Year originally reported? 3. Federal Program Name and Year: COVID 19: Education Stabilization Fund (2021 & 2022) 4. Project No.: 4998-ER, E2, E3 5. CFDA No.: 84.425D-COVID 19, 84.425U-COVID 19 6. Passed Through: Illinois State Board of Education 7. Federal Agency: Department of Education 8. Criteria or specific requirement (including statutory, regulatory, or other citation) Internal controls over compliance related to reporting require periodic comparison of grant expenditure reports to supporting records. 9. Condition Purchased services and supplies and materials reported on the June 30, 2022 ESSER II grant expenditure report did not reconcile to supporting records. 10. Questioned Costs $70,642 11. Context Purchased services and supplies and materials claimed on the June 30, 2022 ESSER II grant expenditure report were also reimbursed by ERATE, resulting in $70,642 of questioned costs. 12. Effect The District reported purchased services and supplies and materials in the amount of $70,642 on the June 30, 2022 ESSER II grant expenditure report that were paid with ERATE funds. 13. Cause Coding of grant expenditures was not reviewed to ensure expenditures are coded to functions in which they are budgeted and to general ledger accounts that clearly identify which federal funds or other funds were utilized. 14. Recommendation The District should assign personnel independent of the grant expenditure report preparer to review the grant expenditure reports for proper coding of grant expenditures prior to submission of the grant expenditure reports. 15. Management's response Corrective action has been taken by the District prior to completion of the Single Audit. The District has been in contact with the Illinois State Board of Education (ISBE) Funding and Disbursements Division. In conjunction with ISBE, the District will apply for a fiscal year 2024 ESSER II grant in the amount of $70,642. The District will pay for the grant expenditures and file quarterly grant expenditure reports; however, ISBE will not reimburse the District for those expenditures. Additionally, the District will assign personnel independent of the grant expenditure report preparer to review the grant expenditure reports for proper coding of grant expenditures prior to submission of the grant expenditure reports.
SECTION III - FEDERAL AWARD FINDINGS AND QUESTIONED COSTS 1. FINDING NUMBER: 2022- 002 2. THIS FINDING IS: X New Repeat from Prior year? Year originally reported? 3. Federal Program Name and Year: COVID 19: Education Stabilization Fund (2021 & 2022) 4. Project No.: 4998-ER, E2, E3 5. CFDA No.: 84.425D-COVID 19, 84.425U-COVID 19 6. Passed Through: Illinois State Board of Education 7. Federal Agency: Department of Education 8. Criteria or specific requirement (including statutory, regulatory, or other citation) Internal controls over compliance over reporting of federal expenditures require expenditures to be coded to the same expenditure functions and object codes in the District's general ledger as they are on grant expenditure reports. Additionally, the source of funds used for federal expenditures should be identified in the underlying accounting records. 9. Condition Expenditure functions used to record grant expenditures in the general ledger are not consistent with the expenditure functions used for grant reporting and the general ledger account number did not identify which federal funds were being utilized. Numerous expenditures were coded to the grant general ledger accounts via journal entry reclassification. 10. Questioned Costs None 11. Context Numerous expenditures in the District's general ledger which were claimed on grant expenditure reports were not coded to accounts which identified the source of federal funds nor to the same function and object codes as reported on the grant expenditure reports. 12. Effect Grant expenditures claimed cannot be easily reconciled to the general ledger totals. 13. Cause Coding of grant expenditures was not reviewed to ensure expenditures are coded to functions in which they are budgeted and to general ledger accounts that clearly identify which federal funds or other funds were utilized. 14. Recommendation Grant expenditures should be recorded in the same general ledger expenditure functions as are used for grant reporting and should identify the federal funds being utilized. 15. Management's response Management will implement the auditor's recommendation in the year ended June 30, 2023.
SECTION III - FEDERAL AWARD FINDINGS AND QUESTIONED COSTS 1. FINDING NUMBER: 2022- 003 2. THIS FINDING IS: X New Repeat from Prior year? Year originally reported? 3. Federal Program Name and Year: COVID 19: Education Stabilization Fund (2021 & 2022) 4. Project No.: 4998-ER, E2, E3 5. CFDA No.: 84.425D-COVID 19, 84.425U-COVID 19 6. Passed Through: Illinois State Board of Education 7. Federal Agency: Department of Education 8. Criteria or specific requirement (including statutory, regulatory, or other citation) Internal controls over compliance related to reporting require periodic comparison of grant expenditure reports to supporting records. 9. Condition Purchased services and supplies and materials reported on the June 30, 2022 ESSER II grant expenditure report did not reconcile to supporting records. 10. Questioned Costs $70,642 11. Context Purchased services and supplies and materials claimed on the June 30, 2022 ESSER II grant expenditure report were also reimbursed by ERATE, resulting in $70,642 of questioned costs. 12. Effect The District reported purchased services and supplies and materials in the amount of $70,642 on the June 30, 2022 ESSER II grant expenditure report that were paid with ERATE funds. 13. Cause Coding of grant expenditures was not reviewed to ensure expenditures are coded to functions in which they are budgeted and to general ledger accounts that clearly identify which federal funds or other funds were utilized. 14. Recommendation The District should assign personnel independent of the grant expenditure report preparer to review the grant expenditure reports for proper coding of grant expenditures prior to submission of the grant expenditure reports. 15. Management's response Corrective action has been taken by the District prior to completion of the Single Audit. The District has been in contact with the Illinois State Board of Education (ISBE) Funding and Disbursements Division. In conjunction with ISBE, the District will apply for a fiscal year 2024 ESSER II grant in the amount of $70,642. The District will pay for the grant expenditures and file quarterly grant expenditure reports; however, ISBE will not reimburse the District for those expenditures. Additionally, the District will assign personnel independent of the grant expenditure report preparer to review the grant expenditure reports for proper coding of grant expenditures prior to submission of the grant expenditure reports.
SECTION III - FEDERAL AWARD FINDINGS AND QUESTIONED COSTS 1. FINDING NUMBER: 2022- 002 2. THIS FINDING IS: X New Repeat from Prior year? Year originally reported? 3. Federal Program Name and Year: COVID 19: Education Stabilization Fund (2021 & 2022) 4. Project No.: 4998-ER, E2, E3 5. CFDA No.: 84.425D-COVID 19, 84.425U-COVID 19 6. Passed Through: Illinois State Board of Education 7. Federal Agency: Department of Education 8. Criteria or specific requirement (including statutory, regulatory, or other citation) Internal controls over compliance over reporting of federal expenditures require expenditures to be coded to the same expenditure functions and object codes in the District's general ledger as they are on grant expenditure reports. Additionally, the source of funds used for federal expenditures should be identified in the underlying accounting records. 9. Condition Expenditure functions used to record grant expenditures in the general ledger are not consistent with the expenditure functions used for grant reporting and the general ledger account number did not identify which federal funds were being utilized. Numerous expenditures were coded to the grant general ledger accounts via journal entry reclassification. 10. Questioned Costs None 11. Context Numerous expenditures in the District's general ledger which were claimed on grant expenditure reports were not coded to accounts which identified the source of federal funds nor to the same function and object codes as reported on the grant expenditure reports. 12. Effect Grant expenditures claimed cannot be easily reconciled to the general ledger totals. 13. Cause Coding of grant expenditures was not reviewed to ensure expenditures are coded to functions in which they are budgeted and to general ledger accounts that clearly identify which federal funds or other funds were utilized. 14. Recommendation Grant expenditures should be recorded in the same general ledger expenditure functions as are used for grant reporting and should identify the federal funds being utilized. 15. Management's response Management will implement the auditor's recommendation in the year ended June 30, 2023.
SECTION III - FEDERAL AWARD FINDINGS AND QUESTIONED COSTS 1. FINDING NUMBER: 2022- 003 2. THIS FINDING IS: X New Repeat from Prior year? Year originally reported? 3. Federal Program Name and Year: COVID 19: Education Stabilization Fund (2021 & 2022) 4. Project No.: 4998-ER, E2, E3 5. CFDA No.: 84.425D-COVID 19, 84.425U-COVID 19 6. Passed Through: Illinois State Board of Education 7. Federal Agency: Department of Education 8. Criteria or specific requirement (including statutory, regulatory, or other citation) Internal controls over compliance related to reporting require periodic comparison of grant expenditure reports to supporting records. 9. Condition Purchased services and supplies and materials reported on the June 30, 2022 ESSER II grant expenditure report did not reconcile to supporting records. 10. Questioned Costs $70,642 11. Context Purchased services and supplies and materials claimed on the June 30, 2022 ESSER II grant expenditure report were also reimbursed by ERATE, resulting in $70,642 of questioned costs. 12. Effect The District reported purchased services and supplies and materials in the amount of $70,642 on the June 30, 2022 ESSER II grant expenditure report that were paid with ERATE funds. 13. Cause Coding of grant expenditures was not reviewed to ensure expenditures are coded to functions in which they are budgeted and to general ledger accounts that clearly identify which federal funds or other funds were utilized. 14. Recommendation The District should assign personnel independent of the grant expenditure report preparer to review the grant expenditure reports for proper coding of grant expenditures prior to submission of the grant expenditure reports. 15. Management's response Corrective action has been taken by the District prior to completion of the Single Audit. The District has been in contact with the Illinois State Board of Education (ISBE) Funding and Disbursements Division. In conjunction with ISBE, the District will apply for a fiscal year 2024 ESSER II grant in the amount of $70,642. The District will pay for the grant expenditures and file quarterly grant expenditure reports; however, ISBE will not reimburse the District for those expenditures. Additionally, the District will assign personnel independent of the grant expenditure report preparer to review the grant expenditure reports for proper coding of grant expenditures prior to submission of the grant expenditure reports.
SECTION III - FEDERAL AWARD FINDINGS AND QUESTIONED COSTS 1. FINDING NUMBER: 2022- 002 2. THIS FINDING IS: X New Repeat from Prior year? Year originally reported? 3. Federal Program Name and Year: COVID 19: Education Stabilization Fund (2021 & 2022) 4. Project No.: 4998-ER, E2, E3 5. CFDA No.: 84.425D-COVID 19, 84.425U-COVID 19 6. Passed Through: Illinois State Board of Education 7. Federal Agency: Department of Education 8. Criteria or specific requirement (including statutory, regulatory, or other citation) Internal controls over compliance over reporting of federal expenditures require expenditures to be coded to the same expenditure functions and object codes in the District's general ledger as they are on grant expenditure reports. Additionally, the source of funds used for federal expenditures should be identified in the underlying accounting records. 9. Condition Expenditure functions used to record grant expenditures in the general ledger are not consistent with the expenditure functions used for grant reporting and the general ledger account number did not identify which federal funds were being utilized. Numerous expenditures were coded to the grant general ledger accounts via journal entry reclassification. 10. Questioned Costs None 11. Context Numerous expenditures in the District's general ledger which were claimed on grant expenditure reports were not coded to accounts which identified the source of federal funds nor to the same function and object codes as reported on the grant expenditure reports. 12. Effect Grant expenditures claimed cannot be easily reconciled to the general ledger totals. 13. Cause Coding of grant expenditures was not reviewed to ensure expenditures are coded to functions in which they are budgeted and to general ledger accounts that clearly identify which federal funds or other funds were utilized. 14. Recommendation Grant expenditures should be recorded in the same general ledger expenditure functions as are used for grant reporting and should identify the federal funds being utilized. 15. Management's response Management will implement the auditor's recommendation in the year ended June 30, 2023.
SECTION III - FEDERAL AWARD FINDINGS AND QUESTIONED COSTS 1. FINDING NUMBER: 2022- 003 2. THIS FINDING IS: X New Repeat from Prior year? Year originally reported? 3. Federal Program Name and Year: COVID 19: Education Stabilization Fund (2021 & 2022) 4. Project No.: 4998-ER, E2, E3 5. CFDA No.: 84.425D-COVID 19, 84.425U-COVID 19 6. Passed Through: Illinois State Board of Education 7. Federal Agency: Department of Education 8. Criteria or specific requirement (including statutory, regulatory, or other citation) Internal controls over compliance related to reporting require periodic comparison of grant expenditure reports to supporting records. 9. Condition Purchased services and supplies and materials reported on the June 30, 2022 ESSER II grant expenditure report did not reconcile to supporting records. 10. Questioned Costs $70,642 11. Context Purchased services and supplies and materials claimed on the June 30, 2022 ESSER II grant expenditure report were also reimbursed by ERATE, resulting in $70,642 of questioned costs. 12. Effect The District reported purchased services and supplies and materials in the amount of $70,642 on the June 30, 2022 ESSER II grant expenditure report that were paid with ERATE funds. 13. Cause Coding of grant expenditures was not reviewed to ensure expenditures are coded to functions in which they are budgeted and to general ledger accounts that clearly identify which federal funds or other funds were utilized. 14. Recommendation The District should assign personnel independent of the grant expenditure report preparer to review the grant expenditure reports for proper coding of grant expenditures prior to submission of the grant expenditure reports. 15. Management's response Corrective action has been taken by the District prior to completion of the Single Audit. The District has been in contact with the Illinois State Board of Education (ISBE) Funding and Disbursements Division. In conjunction with ISBE, the District will apply for a fiscal year 2024 ESSER II grant in the amount of $70,642. The District will pay for the grant expenditures and file quarterly grant expenditure reports; however, ISBE will not reimburse the District for those expenditures. Additionally, the District will assign personnel independent of the grant expenditure report preparer to review the grant expenditure reports for proper coding of grant expenditures prior to submission of the grant expenditure reports.