Audit 22354

FY End
2022-06-30
Total Expended
$3.76M
Findings
8
Programs
11
Year: 2022 Accepted: 2023-06-07

Organization Exclusion Status:

Checking exclusion status...

Findings

ID Ref Severity Repeat Requirement
19918 2022-006 Material Weakness - L
19919 2022-007 - - F
19920 2022-006 Material Weakness - L
19921 2022-007 - - F
596360 2022-006 Material Weakness - L
596361 2022-007 - - F
596362 2022-006 Material Weakness - L
596363 2022-007 - - F

Contacts

Name Title Type
NT32K2A1T678 Jason Bauer Auditee
2175621500 Cory A Brown 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 Pana Community Unit School District #8 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, Pana Community Unit School District #8 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 Pana Community Unit School District #8 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 Pana Community Unit School District #8 and should be included in the Schedule of Expenditures of Federal Awards: NON-CASH COMMODITIES (CFDA 10.555): $32,218 OTHER NON-CASH ASSISTANCE - DEPT. OF DEFENSE FRUITS & VEGETABLES $38,020 Total Non-Cash $70,238
Title: Other Information Accounting Policies: The accompanying Schedule of Expenditures of Federal Awards includes the federal grant activity of Pana Community Unit School District #8 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

1. FINDING NUMBER: 2022- 006 2. THIS FINDING IS: X New Repeat from Prior year? Year originally reported? 3. Federal Program Name and Year: Education Stabilization Fund- 2021 & 2022 4. Project No.: 4998- DE, E2 & E3 5. CFDA No.: 84.425- COVID-19, 84.425D & 84.425- COVID-19, 84.425U 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 and for complete general ledger support to be maintained by District personnel for all expenditure reports filed. 9. Condition Expenditure functions and objects used to record grant expenditures in the general ledger are not consistent with the expenditure functions and objects used for grant reporting and general ledger support for each expenditure report filed is not complete and readily available. 10. Questioned Costs $3,156 11. Context A material amount of expenditures included in numerous accounts on the June 30, 2022 expenditure reports were not coded to the same function and object in the general ledger and complete general ledger support was not readily available for any Education Stabilization Fund grants. 12. Effect Grant expenditures claimed cannot be easily reconciled to the general ledger and $3,156 of expenditures were not able to be reconciled to the general ledger, resulting in questioned costs of that amount. Consequently, determining the population of Education Stabilization Fund expenditures for Single Audit testing was difficult. 13. Cause Coding of grant expenditures and grant expenditure report preparation are assigned to two different employees and no review is done to ensure expenditures are coded to the functions in which they were budgeted and subsequently claimed on expenditure reports. 14. Recommendation Grant expenditures should be recorded in the same general ledger expenditure functions as are used for grant reporting and supporting general ledger reports should be maintained in District files for all expenditure reports filed. The employees assigned to code grant expenditures and prepare grant expenditure reports should work together to accomplish this. 15. Management's response Management will implement the auditor's recommendation for the year ended June 30, 2023.
1. FINDING NUMBER: 2022- 007 2. THIS FINDING IS: X New Repeat from Prior year? Year originally reported? 3. Federal Program Name and Year: Education Stabilization Fund- 2021 & 2022 4. Project No.: 4998- E2 & E3 5. CFDA No.: 84.425- COVID-19, 84.425D & 84.425- COVID-19, 84.425U 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) Equipment and Real Property Management compliance requirements require the District to maintain complete property records for all equipment and real property acquired with federal funds. 9. Condition The District's property records did not include all equipment purchased with federal funds. 10. Questioned Costs None 11. Context The property records maintained by District were materially not complete, including the omission of all technology equipment acquired with federal funds. 12. Effect The District is not in compliance with Equipment and Real Property Management compliance requirements. 13. Cause The District administrative staff does not maintain a consolidated list of all equipment purchased with federal funds; instead, employees that purchase equipment with federal funds are responsible for maintaining a list that includes the equipment they purchased. 14. Recommendation The District should assign an administrative employee with knowledge of all of the District's federal grant budgets to maintain a complete list of equipment purchased with federal funds. 15. Management's response Management will implement the auditor's recommendation for the year ended June 30, 2023.
1. FINDING NUMBER: 2022- 006 2. THIS FINDING IS: X New Repeat from Prior year? Year originally reported? 3. Federal Program Name and Year: Education Stabilization Fund- 2021 & 2022 4. Project No.: 4998- DE, E2 & E3 5. CFDA No.: 84.425- COVID-19, 84.425D & 84.425- COVID-19, 84.425U 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 and for complete general ledger support to be maintained by District personnel for all expenditure reports filed. 9. Condition Expenditure functions and objects used to record grant expenditures in the general ledger are not consistent with the expenditure functions and objects used for grant reporting and general ledger support for each expenditure report filed is not complete and readily available. 10. Questioned Costs $3,156 11. Context A material amount of expenditures included in numerous accounts on the June 30, 2022 expenditure reports were not coded to the same function and object in the general ledger and complete general ledger support was not readily available for any Education Stabilization Fund grants. 12. Effect Grant expenditures claimed cannot be easily reconciled to the general ledger and $3,156 of expenditures were not able to be reconciled to the general ledger, resulting in questioned costs of that amount. Consequently, determining the population of Education Stabilization Fund expenditures for Single Audit testing was difficult. 13. Cause Coding of grant expenditures and grant expenditure report preparation are assigned to two different employees and no review is done to ensure expenditures are coded to the functions in which they were budgeted and subsequently claimed on expenditure reports. 14. Recommendation Grant expenditures should be recorded in the same general ledger expenditure functions as are used for grant reporting and supporting general ledger reports should be maintained in District files for all expenditure reports filed. The employees assigned to code grant expenditures and prepare grant expenditure reports should work together to accomplish this. 15. Management's response Management will implement the auditor's recommendation for the year ended June 30, 2023.
1. FINDING NUMBER: 2022- 007 2. THIS FINDING IS: X New Repeat from Prior year? Year originally reported? 3. Federal Program Name and Year: Education Stabilization Fund- 2021 & 2022 4. Project No.: 4998- E2 & E3 5. CFDA No.: 84.425- COVID-19, 84.425D & 84.425- COVID-19, 84.425U 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) Equipment and Real Property Management compliance requirements require the District to maintain complete property records for all equipment and real property acquired with federal funds. 9. Condition The District's property records did not include all equipment purchased with federal funds. 10. Questioned Costs None 11. Context The property records maintained by District were materially not complete, including the omission of all technology equipment acquired with federal funds. 12. Effect The District is not in compliance with Equipment and Real Property Management compliance requirements. 13. Cause The District administrative staff does not maintain a consolidated list of all equipment purchased with federal funds; instead, employees that purchase equipment with federal funds are responsible for maintaining a list that includes the equipment they purchased. 14. Recommendation The District should assign an administrative employee with knowledge of all of the District's federal grant budgets to maintain a complete list of equipment purchased with federal funds. 15. Management's response Management will implement the auditor's recommendation for the year ended June 30, 2023.
1. FINDING NUMBER: 2022- 006 2. THIS FINDING IS: X New Repeat from Prior year? Year originally reported? 3. Federal Program Name and Year: Education Stabilization Fund- 2021 & 2022 4. Project No.: 4998- DE, E2 & E3 5. CFDA No.: 84.425- COVID-19, 84.425D & 84.425- COVID-19, 84.425U 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 and for complete general ledger support to be maintained by District personnel for all expenditure reports filed. 9. Condition Expenditure functions and objects used to record grant expenditures in the general ledger are not consistent with the expenditure functions and objects used for grant reporting and general ledger support for each expenditure report filed is not complete and readily available. 10. Questioned Costs $3,156 11. Context A material amount of expenditures included in numerous accounts on the June 30, 2022 expenditure reports were not coded to the same function and object in the general ledger and complete general ledger support was not readily available for any Education Stabilization Fund grants. 12. Effect Grant expenditures claimed cannot be easily reconciled to the general ledger and $3,156 of expenditures were not able to be reconciled to the general ledger, resulting in questioned costs of that amount. Consequently, determining the population of Education Stabilization Fund expenditures for Single Audit testing was difficult. 13. Cause Coding of grant expenditures and grant expenditure report preparation are assigned to two different employees and no review is done to ensure expenditures are coded to the functions in which they were budgeted and subsequently claimed on expenditure reports. 14. Recommendation Grant expenditures should be recorded in the same general ledger expenditure functions as are used for grant reporting and supporting general ledger reports should be maintained in District files for all expenditure reports filed. The employees assigned to code grant expenditures and prepare grant expenditure reports should work together to accomplish this. 15. Management's response Management will implement the auditor's recommendation for the year ended June 30, 2023.
1. FINDING NUMBER: 2022- 007 2. THIS FINDING IS: X New Repeat from Prior year? Year originally reported? 3. Federal Program Name and Year: Education Stabilization Fund- 2021 & 2022 4. Project No.: 4998- E2 & E3 5. CFDA No.: 84.425- COVID-19, 84.425D & 84.425- COVID-19, 84.425U 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) Equipment and Real Property Management compliance requirements require the District to maintain complete property records for all equipment and real property acquired with federal funds. 9. Condition The District's property records did not include all equipment purchased with federal funds. 10. Questioned Costs None 11. Context The property records maintained by District were materially not complete, including the omission of all technology equipment acquired with federal funds. 12. Effect The District is not in compliance with Equipment and Real Property Management compliance requirements. 13. Cause The District administrative staff does not maintain a consolidated list of all equipment purchased with federal funds; instead, employees that purchase equipment with federal funds are responsible for maintaining a list that includes the equipment they purchased. 14. Recommendation The District should assign an administrative employee with knowledge of all of the District's federal grant budgets to maintain a complete list of equipment purchased with federal funds. 15. Management's response Management will implement the auditor's recommendation for the year ended June 30, 2023.
1. FINDING NUMBER: 2022- 006 2. THIS FINDING IS: X New Repeat from Prior year? Year originally reported? 3. Federal Program Name and Year: Education Stabilization Fund- 2021 & 2022 4. Project No.: 4998- DE, E2 & E3 5. CFDA No.: 84.425- COVID-19, 84.425D & 84.425- COVID-19, 84.425U 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 and for complete general ledger support to be maintained by District personnel for all expenditure reports filed. 9. Condition Expenditure functions and objects used to record grant expenditures in the general ledger are not consistent with the expenditure functions and objects used for grant reporting and general ledger support for each expenditure report filed is not complete and readily available. 10. Questioned Costs $3,156 11. Context A material amount of expenditures included in numerous accounts on the June 30, 2022 expenditure reports were not coded to the same function and object in the general ledger and complete general ledger support was not readily available for any Education Stabilization Fund grants. 12. Effect Grant expenditures claimed cannot be easily reconciled to the general ledger and $3,156 of expenditures were not able to be reconciled to the general ledger, resulting in questioned costs of that amount. Consequently, determining the population of Education Stabilization Fund expenditures for Single Audit testing was difficult. 13. Cause Coding of grant expenditures and grant expenditure report preparation are assigned to two different employees and no review is done to ensure expenditures are coded to the functions in which they were budgeted and subsequently claimed on expenditure reports. 14. Recommendation Grant expenditures should be recorded in the same general ledger expenditure functions as are used for grant reporting and supporting general ledger reports should be maintained in District files for all expenditure reports filed. The employees assigned to code grant expenditures and prepare grant expenditure reports should work together to accomplish this. 15. Management's response Management will implement the auditor's recommendation for the year ended June 30, 2023.
1. FINDING NUMBER: 2022- 007 2. THIS FINDING IS: X New Repeat from Prior year? Year originally reported? 3. Federal Program Name and Year: Education Stabilization Fund- 2021 & 2022 4. Project No.: 4998- E2 & E3 5. CFDA No.: 84.425- COVID-19, 84.425D & 84.425- COVID-19, 84.425U 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) Equipment and Real Property Management compliance requirements require the District to maintain complete property records for all equipment and real property acquired with federal funds. 9. Condition The District's property records did not include all equipment purchased with federal funds. 10. Questioned Costs None 11. Context The property records maintained by District were materially not complete, including the omission of all technology equipment acquired with federal funds. 12. Effect The District is not in compliance with Equipment and Real Property Management compliance requirements. 13. Cause The District administrative staff does not maintain a consolidated list of all equipment purchased with federal funds; instead, employees that purchase equipment with federal funds are responsible for maintaining a list that includes the equipment they purchased. 14. Recommendation The District should assign an administrative employee with knowledge of all of the District's federal grant budgets to maintain a complete list of equipment purchased with federal funds. 15. Management's response Management will implement the auditor's recommendation for the year ended June 30, 2023.