Audit 22831

FY End
2022-06-30
Total Expended
$1.32M
Findings
8
Programs
12
Organization: Neoga Cusd 3 (IL)
Year: 2022 Accepted: 2023-02-05

Organization Exclusion Status:

Checking exclusion status...

Findings

ID Ref Severity Repeat Requirement
22994 2022-005 Significant Deficiency - L
22995 2022-005 Significant Deficiency - L
22996 2022-006 - - F
22997 2022-006 - - F
599436 2022-005 Significant Deficiency - L
599437 2022-005 Significant Deficiency - L
599438 2022-006 - - F
599439 2022-006 - - F

Programs

ALN Program Spent Major Findings
84.027 Special Education_grants to States $243,142 Yes 0
10.555 National School Lunch Program $205,973 - 0
84.425 Education Stabilization Fund $112,999 Yes 1
32.009 Emergency Connectivity Fund Program $44,556 - 0
10.553 School Breakfast Program $40,912 - 0
84.048 Career and Technical Education -- Basic Grants to States $21,578 - 0
84.010 Title I Grants to Local Educational Agencies $19,621 - 0
84.367 Improving Teacher Quality State Grants $17,208 - 0
84.173 Special Education_preschool Grants $16,758 Yes 1
84.424 Student Support and Academic Enrichment Program $16,285 - 0
93.778 Medical Assistance Program $15,127 - 0
84.358 Rural Education $7,054 - 0

Contacts

Name Title Type
FVPATYKALF96 Kevin Haarman Auditee
2177756049 Cory A. Brown Auditor
No contacts on file

Notes to SEFA

Title: Non-Cash Assistance Accounting Policies: The accompanying Schedule of Expenditures of Federal Awards includes the federal grant activity of Neoga Community Unit School District #3 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 Neoga Community Unit School District #3 and should be included in the Schedule of Expenditures of Federal Awards: NON-CASH COMMODITIES (CFDA 10.555): $9,976 OTHER NON-CASH ASSISTANCE - DEPT. OF DEFENSE FRUITS & VEGETABLES $10,992 Total Non-Cash $20,968
Title: Other Information Accounting Policies: The accompanying Schedule of Expenditures of Federal Awards includes the federal grant activity of Neoga Community Unit School District #3 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
Title: Subrecipients Accounting Policies: The accompanying Schedule of Expenditures of Federal Awards includes the federal grant activity of Neoga Community Unit School District #3 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, Neoga Community Unit School District #3 provided federal awards to no subrecipients.

Finding Details

1. Finding Number: 2022-005 2. This Finding is: New 3. Federal Program Name and Year: Special Education Cluster (Special Education Preschool Grants)- 2022 & Education Stabilization Fund (ESSER II)- 2021 4. Project No.: 4600 & 4998- E2 5. CFDA No.: 84.173 & 84.425- COVID-19, 84.425D 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 for reporting federal expenditures require the review of expenditure reports by someone independent of the preparer before their submission to ensure proper cutoff of expenditures. 9. Condition The District's expenditure reports were not reviewed by someone independent of the preparer and the District's June 30, 2022 expenditure reports included expenditures paid subsequent to June 30, 2022. 10. Questioned Costs $9,750 11. Context This condition occurred on the June 30, 2022 expenditure reports and the questioned costs listed above are not material to the Special Education Cluster or the Education Stabilization Fund. 12. Effect The District was reimbursed for expenditures more quickly than they were eligible for reimbursement. 13. Cause Despite using the modified cash basis of accounting, the District believed they could claim the expenditures on the June 30, 2022 expenditure report because they were contractually obligated to purchase. However, they did not receive the invoice until subsequent to June 30, 2022. 14. Recommendation The District should assign an employee independent of the preparer to review the District's expenditure reports prior to submission to ensure that expenditures are only claimed for reimbursement subsequent to their payment. 15. Management's response Management will implement the auditor's recommendation for the year ended June 30, 2023.
1. Finding Number: 2022-005 2. This Finding is: New 3. Federal Program Name and Year: Special Education Cluster (Special Education Preschool Grants)- 2022 & Education Stabilization Fund (ESSER II)- 2021 4. Project No.: 4600 & 4998- E2 5. CFDA No.: 84.173 & 84.425- COVID-19, 84.425D 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 for reporting federal expenditures require the review of expenditure reports by someone independent of the preparer before their submission to ensure proper cutoff of expenditures. 9. Condition The District's expenditure reports were not reviewed by someone independent of the preparer and the District's June 30, 2022 expenditure reports included expenditures paid subsequent to June 30, 2022. 10. Questioned Costs $9,750 11. Context This condition occurred on the June 30, 2022 expenditure reports and the questioned costs listed above are not material to the Special Education Cluster or the Education Stabilization Fund. 12. Effect The District was reimbursed for expenditures more quickly than they were eligible for reimbursement. 13. Cause Despite using the modified cash basis of accounting, the District believed they could claim the expenditures on the June 30, 2022 expenditure report because they were contractually obligated to purchase. However, they did not receive the invoice until subsequent to June 30, 2022. 14. Recommendation The District should assign an employee independent of the preparer to review the District's expenditure reports prior to submission to ensure that expenditures are only claimed for reimbursement subsequent to their payment. 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: New 3. Federal Program Name and Year: Education Stabilization Fund- ESSER II 2021 & ESSER III 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 real property acquired with Federal Funds. 9. Condition The District's property records did not include all equipment purchased with federal funds and the records did not include serial numbers for all the equipment. 10. Questioned Costs None 11. Context The equipment not included in the property records was material to the program and the omission of serial numbers was present for all equipment tested. 12. Effect The District is not in compliance with Equipment and Real Property Management compliance requirements. 13. Cause The District was not aware all serial numbers needed to be included in the property records and mistakenly did not include some equipment in their property records. 14. Recommendation The District should assign an employee independent of the preparer, preferably with knowledge of applicable federal grant expenditures, to review the District's property records on a periodic basis to ensure completeness and adequacy. 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: New 3. Federal Program Name and Year: Education Stabilization Fund- ESSER II 2021 & ESSER III 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 real property acquired with Federal Funds. 9. Condition The District's property records did not include all equipment purchased with federal funds and the records did not include serial numbers for all the equipment. 10. Questioned Costs None 11. Context The equipment not included in the property records was material to the program and the omission of serial numbers was present for all equipment tested. 12. Effect The District is not in compliance with Equipment and Real Property Management compliance requirements. 13. Cause The District was not aware all serial numbers needed to be included in the property records and mistakenly did not include some equipment in their property records. 14. Recommendation The District should assign an employee independent of the preparer, preferably with knowledge of applicable federal grant expenditures, to review the District's property records on a periodic basis to ensure completeness and adequacy. 15. Management's response Management will implement the auditor's recommendation for the year ended June 30, 2023.
1. Finding Number: 2022-005 2. This Finding is: New 3. Federal Program Name and Year: Special Education Cluster (Special Education Preschool Grants)- 2022 & Education Stabilization Fund (ESSER II)- 2021 4. Project No.: 4600 & 4998- E2 5. CFDA No.: 84.173 & 84.425- COVID-19, 84.425D 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 for reporting federal expenditures require the review of expenditure reports by someone independent of the preparer before their submission to ensure proper cutoff of expenditures. 9. Condition The District's expenditure reports were not reviewed by someone independent of the preparer and the District's June 30, 2022 expenditure reports included expenditures paid subsequent to June 30, 2022. 10. Questioned Costs $9,750 11. Context This condition occurred on the June 30, 2022 expenditure reports and the questioned costs listed above are not material to the Special Education Cluster or the Education Stabilization Fund. 12. Effect The District was reimbursed for expenditures more quickly than they were eligible for reimbursement. 13. Cause Despite using the modified cash basis of accounting, the District believed they could claim the expenditures on the June 30, 2022 expenditure report because they were contractually obligated to purchase. However, they did not receive the invoice until subsequent to June 30, 2022. 14. Recommendation The District should assign an employee independent of the preparer to review the District's expenditure reports prior to submission to ensure that expenditures are only claimed for reimbursement subsequent to their payment. 15. Management's response Management will implement the auditor's recommendation for the year ended June 30, 2023.
1. Finding Number: 2022-005 2. This Finding is: New 3. Federal Program Name and Year: Special Education Cluster (Special Education Preschool Grants)- 2022 & Education Stabilization Fund (ESSER II)- 2021 4. Project No.: 4600 & 4998- E2 5. CFDA No.: 84.173 & 84.425- COVID-19, 84.425D 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 for reporting federal expenditures require the review of expenditure reports by someone independent of the preparer before their submission to ensure proper cutoff of expenditures. 9. Condition The District's expenditure reports were not reviewed by someone independent of the preparer and the District's June 30, 2022 expenditure reports included expenditures paid subsequent to June 30, 2022. 10. Questioned Costs $9,750 11. Context This condition occurred on the June 30, 2022 expenditure reports and the questioned costs listed above are not material to the Special Education Cluster or the Education Stabilization Fund. 12. Effect The District was reimbursed for expenditures more quickly than they were eligible for reimbursement. 13. Cause Despite using the modified cash basis of accounting, the District believed they could claim the expenditures on the June 30, 2022 expenditure report because they were contractually obligated to purchase. However, they did not receive the invoice until subsequent to June 30, 2022. 14. Recommendation The District should assign an employee independent of the preparer to review the District's expenditure reports prior to submission to ensure that expenditures are only claimed for reimbursement subsequent to their payment. 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: New 3. Federal Program Name and Year: Education Stabilization Fund- ESSER II 2021 & ESSER III 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 real property acquired with Federal Funds. 9. Condition The District's property records did not include all equipment purchased with federal funds and the records did not include serial numbers for all the equipment. 10. Questioned Costs None 11. Context The equipment not included in the property records was material to the program and the omission of serial numbers was present for all equipment tested. 12. Effect The District is not in compliance with Equipment and Real Property Management compliance requirements. 13. Cause The District was not aware all serial numbers needed to be included in the property records and mistakenly did not include some equipment in their property records. 14. Recommendation The District should assign an employee independent of the preparer, preferably with knowledge of applicable federal grant expenditures, to review the District's property records on a periodic basis to ensure completeness and adequacy. 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: New 3. Federal Program Name and Year: Education Stabilization Fund- ESSER II 2021 & ESSER III 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 real property acquired with Federal Funds. 9. Condition The District's property records did not include all equipment purchased with federal funds and the records did not include serial numbers for all the equipment. 10. Questioned Costs None 11. Context The equipment not included in the property records was material to the program and the omission of serial numbers was present for all equipment tested. 12. Effect The District is not in compliance with Equipment and Real Property Management compliance requirements. 13. Cause The District was not aware all serial numbers needed to be included in the property records and mistakenly did not include some equipment in their property records. 14. Recommendation The District should assign an employee independent of the preparer, preferably with knowledge of applicable federal grant expenditures, to review the District's property records on a periodic basis to ensure completeness and adequacy. 15. Management's response Management will implement the auditor's recommendation for the year ended June 30, 2023.