Audit 23750

Assistance Listing Number: 84.367 Program Title: Title II Improving Teacher Quality - Staff Development Federal Award Number: Not applicable Federal Award Year: 2021/2022 Pass Through Entity: Chicago Public Schools Criteria or specific requirement ? Per 2 CFR 200.430 (a) and 200.431 (a), charges to Federal awards for salaries and wages (may also include benefits) must be supported by a system of internal control which provides reasonable assurance that the charges are accurate, allowable, and properly allocated. The percent of compensation for personnel services paid currently to employees rendered during the period of performance under the federal award, cannot exceed the percentage of costs approved in the consolidated grants application. Condition ? Title I wages and salaries (including benefits if applicable) paid currently does not equal (is less or greater than) the percentage of personnel costs approved in the grant. Questioned costs ? $416.00 Context ? Monitoring activities were conducted based on a questionnaire developed to help determine whether the appropriate program and fiscal components were in place and documentation maintained was on file as per grant requirements. The review consisted of examining records on file at the school, classroom observations, reviewing the school's organizational chart, and discussions with school staff, the principal and/or principal's designee. Cause ? This finding occurred, in part, due to employee turnover in the past year. There were no controls in place to ensure that all administrative requirements were met, and proper reviews and procedures were not being used for expenses that flow into the claim reimbursement. Effect - Without the proper review controls, there is a heightened risk that the Organization's report may not be accurate and could lead to funds having to be returned. Repeat Finding: No Recommendation ? Effective control and accountability must be maintained for all funds. Charges to Federal awards for salaries and wages must be based on records that accurately reflect the work performed, according to 2 CFR 200.62, 200.302, and 200.303. Per 2 CFR 200.308 (b), recipients are required to report deviations from budget or project scope or objective, and request prior approval from the federal awarding agency. Copies of approved amendment(s) must be maintained on file to support any changes to the original approved application. For all unallowable claimed expenditures, funds must be returned to the Board to comply with Federal reporting requirements per 2 CFR 200.410. The school administrator is required to submit a claims adjustment in Oracle to start this process. View of Responsible Officials - Management agrees with the finding and is implementing a corrective action plan in November 2022.

Assistance Listing Number: 84.425D Program Title: American Rescue Plan - Emergency and Secondary School Emergency Relief Fund III - MFT Federal Award Number: Not applicable Federal Award Year: 2021/2022 Pass Through Entity: Chicago Public Schools Criteria or specific requirement ? Violation of the administrative requirements at 29 CFR Part 200, which require proper internal controls over procedures and requirements in the administration of grant funds. The Organization over claimed expenditures during the fiscal year ended June 30, 2022. Condition - The following discrepancies and inconsistencies were identified: administrative procedures and requirements of the grantor were not followed; there was no proper review or approval of required reporting prior to submission. Questioned costs - None Context - A non-statistical sample of 45 were selected for testing. We noted the one instance of the same invoice submitted twice for reimbursement through two separate claims during fiscal year 2022. We also noted one instance of payroll claim amount exceeded the actual expenditure amount. Cause - This finding occurred, in part, due to employee turnover in the past year. There were no controls in place to ensure that all administrative requirements were met, and proper reviews and procedures were not being used for expenses that flow into the claim reimbursement. Effect - Without the proper review controls, there is a heightened risk that the Organization's report may not be accurate and could lead to funds having to be returned. Repeat Finding: No Recommendation - Effective control and accountability must be maintained for all funds. Charges to federal awards must be based on records that are properly processed and accurately reflect the cost. EPIC should strengthen processes surrounding administering and monitoring of all programs to ensure that their policies are consistently and properly applied. Management should perform proper monitoring and review of all claims for reimbursement. Management should also provide regular training to ensure all personnel are current and up to date with regulations and requirements. For all unallowable claimed expenditures, funds must be returned to the pass-through grantor to comply with federal reporting requirements per 2 CFR 200.410. View of Responsible Officials - Management agrees with the finding and is implementing a corrective action plan in November 2022. See management?s corrective action plan on page 17.

Assistance Listing Number: 84.367 Program Title: Title II Improving Teacher Quality - Staff Development Federal Award Number: Not applicable Federal Award Year: 2021/2022 Pass Through Entity: Chicago Public Schools Criteria or specific requirement ? Per 2 CFR 200.430 (a) and 200.431 (a), charges to Federal awards for salaries and wages (may also include benefits) must be supported by a system of internal control which provides reasonable assurance that the charges are accurate, allowable, and properly allocated. The percent of compensation for personnel services paid currently to employees rendered during the period of performance under the federal award, cannot exceed the percentage of costs approved in the consolidated grants application. Condition ? Title I wages and salaries (including benefits if applicable) paid currently does not equal (is less or greater than) the percentage of personnel costs approved in the grant. Questioned costs ? $416.00 Context ? Monitoring activities were conducted based on a questionnaire developed to help determine whether the appropriate program and fiscal components were in place and documentation maintained was on file as per grant requirements. The review consisted of examining records on file at the school, classroom observations, reviewing the school's organizational chart, and discussions with school staff, the principal and/or principal's designee. Cause ? This finding occurred, in part, due to employee turnover in the past year. There were no controls in place to ensure that all administrative requirements were met, and proper reviews and procedures were not being used for expenses that flow into the claim reimbursement. Effect - Without the proper review controls, there is a heightened risk that the Organization's report may not be accurate and could lead to funds having to be returned. Repeat Finding: No Recommendation ? Effective control and accountability must be maintained for all funds. Charges to Federal awards for salaries and wages must be based on records that accurately reflect the work performed, according to 2 CFR 200.62, 200.302, and 200.303. Per 2 CFR 200.308 (b), recipients are required to report deviations from budget or project scope or objective, and request prior approval from the federal awarding agency. Copies of approved amendment(s) must be maintained on file to support any changes to the original approved application. For all unallowable claimed expenditures, funds must be returned to the Board to comply with Federal reporting requirements per 2 CFR 200.410. The school administrator is required to submit a claims adjustment in Oracle to start this process. View of Responsible Officials - Management agrees with the finding and is implementing a corrective action plan in November 2022.

Assistance Listing Number: 84.425D Program Title: American Rescue Plan - Emergency and Secondary School Emergency Relief Fund III - MFT Federal Award Number: Not applicable Federal Award Year: 2021/2022 Pass Through Entity: Chicago Public Schools Criteria or specific requirement ? Violation of the administrative requirements at 29 CFR Part 200, which require proper internal controls over procedures and requirements in the administration of grant funds. The Organization over claimed expenditures during the fiscal year ended June 30, 2022. Condition - The following discrepancies and inconsistencies were identified: administrative procedures and requirements of the grantor were not followed; there was no proper review or approval of required reporting prior to submission. Questioned costs - None Context - A non-statistical sample of 45 were selected for testing. We noted the one instance of the same invoice submitted twice for reimbursement through two separate claims during fiscal year 2022. We also noted one instance of payroll claim amount exceeded the actual expenditure amount. Cause - This finding occurred, in part, due to employee turnover in the past year. There were no controls in place to ensure that all administrative requirements were met, and proper reviews and procedures were not being used for expenses that flow into the claim reimbursement. Effect - Without the proper review controls, there is a heightened risk that the Organization's report may not be accurate and could lead to funds having to be returned. Repeat Finding: No Recommendation - Effective control and accountability must be maintained for all funds. Charges to federal awards must be based on records that are properly processed and accurately reflect the cost. EPIC should strengthen processes surrounding administering and monitoring of all programs to ensure that their policies are consistently and properly applied. Management should perform proper monitoring and review of all claims for reimbursement. Management should also provide regular training to ensure all personnel are current and up to date with regulations and requirements. For all unallowable claimed expenditures, funds must be returned to the pass-through grantor to comply with federal reporting requirements per 2 CFR 200.410. View of Responsible Officials - Management agrees with the finding and is implementing a corrective action plan in November 2022. See management?s corrective action plan on page 17.