Audit 24023

FY End
2022-06-30
Total Expended
$948,148
Findings
18
Programs
12
Year: 2022 Accepted: 2023-05-22

Organization Exclusion Status:

Checking exclusion status...

Findings

ID Ref Severity Repeat Requirement
35620 2022-005 Material Weakness - N
35621 2022-005 Material Weakness - N
35622 2022-005 Material Weakness - N
35623 2022-005 Material Weakness - N
35624 2022-005 Material Weakness - N
35625 2022-006 Material Weakness - B
35626 2022-007 Significant Deficiency - L
35627 2022-006 Material Weakness - B
35628 2022-007 Significant Deficiency - L
612062 2022-005 Material Weakness - N
612063 2022-005 Material Weakness - N
612064 2022-005 Material Weakness - N
612065 2022-005 Material Weakness - N
612066 2022-005 Material Weakness - N
612067 2022-006 Material Weakness - B
612068 2022-007 Significant Deficiency - L
612069 2022-006 Material Weakness - B
612070 2022-007 Significant Deficiency - L

Programs

ALN Program Spent Major Findings
84.027 Special Education_grants to States $106,051 - 0
10.553 School Breakfast Program $55,958 Yes 1
10.555 National School Lunch Program $30,775 Yes 1
84.358 Rural Education $24,385 - 0
84.010 Title I Grants to Local Educational Agencies $20,000 - 0
84.367 Improving Teacher Quality State Grants $16,626 - 0
10.560 State Administrative Expenses for Child Nutrition $11,538 - 0
84.424 Student Support and Academic Enrichment Program $10,000 - 0
93.778 Medical Assistance Program $8,603 - 0
84.425 Education Stabilization Fund $4,470 Yes 2
84.173 Special Education_preschool Grants $4,083 - 0
10.649 Pandemic Ebt Administrative Costs $614 - 0

Contacts

Name Title Type
FZQSHQXB6GA5 Dr. Greg Frehner Auditee
6186588286 Jeffrey C. Stroder, CPA 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 Vienna School District No. 55 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, Vienna School District No. 55 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 Vienna School District No. 55 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 Vienna School District No. 55 and should be included in the Schedule of Expenditures of Federal Awards: Non-Cash Commodities - $20,139; Other Non-Cash Assistance (Department of Defense Fruits & Vegetables) - $10,636; Total non-cash assistance - $30,775.

Finding Details

Criteria: According to 7 CFR Section 210.14(a), a school food authority shall maintain a nonprofit school food service. In addition, 7 CFR Section 210.14(b) states that the school food service authority shall limit its net cash resources to an amount that does not exceed three months' average expenditures for its nonprofit school food service. Condition: The District has food service net cash resources in excess of the three month average expenditure carryover limit. Questioned Costs: None. Context: The District has net cash resources of $262,147, and the three month average expenditures is $64,983, resulting in excess net cash resources of $197,164. Effect: The District has earned $197,164 in its food service program in excess of what is allowed. Cause: The District was previously unaware of the requirements, and was not charging all of the expenditures allowable to operate the food service program to the program. Recommendation: We recommend that the District monitor the profit made by the food service program. All allowable expenditures used to operate the program should be charged to the program. In addition, the District needs to adopt a plan to spend the accumulated cash reserves. Management's Response: The cafeteria will be billed indirect cost items based on the rate provided by the Illinois State Board of Education. The cafeteria will also make a plan to spend the carryover amount.
Criteria: According to 7 CFR Section 210.14(a), a school food authority shall maintain a nonprofit school food service. In addition, 7 CFR Section 210.14(b) states that the school food service authority shall limit its net cash resources to an amount that does not exceed three months' average expenditures for its nonprofit school food service. Condition: The District has food service net cash resources in excess of the three month average expenditure carryover limit. Questioned Costs: None. Context: The District has net cash resources of $262,147, and the three month average expenditures is $64,983, resulting in excess net cash resources of $197,164. Effect: The District has earned $197,164 in its food service program in excess of what is allowed. Cause: The District was previously unaware of the requirements, and was not charging all of the expenditures allowable to operate the food service program to the program. Recommendation: We recommend that the District monitor the profit made by the food service program. All allowable expenditures used to operate the program should be charged to the program. In addition, the District needs to adopt a plan to spend the accumulated cash reserves. Management's Response: The cafeteria will be billed indirect cost items based on the rate provided by the Illinois State Board of Education. The cafeteria will also make a plan to spend the carryover amount.
Criteria: According to 7 CFR Section 210.14(a), a school food authority shall maintain a nonprofit school food service. In addition, 7 CFR Section 210.14(b) states that the school food service authority shall limit its net cash resources to an amount that does not exceed three months' average expenditures for its nonprofit school food service. Condition: The District has food service net cash resources in excess of the three month average expenditure carryover limit. Questioned Costs: None. Context: The District has net cash resources of $262,147, and the three month average expenditures is $64,983, resulting in excess net cash resources of $197,164. Effect: The District has earned $197,164 in its food service program in excess of what is allowed. Cause: The District was previously unaware of the requirements, and was not charging all of the expenditures allowable to operate the food service program to the program. Recommendation: We recommend that the District monitor the profit made by the food service program. All allowable expenditures used to operate the program should be charged to the program. In addition, the District needs to adopt a plan to spend the accumulated cash reserves. Management's Response: The cafeteria will be billed indirect cost items based on the rate provided by the Illinois State Board of Education. The cafeteria will also make a plan to spend the carryover amount.
Criteria: According to 7 CFR Section 210.14(a), a school food authority shall maintain a nonprofit school food service. In addition, 7 CFR Section 210.14(b) states that the school food service authority shall limit its net cash resources to an amount that does not exceed three months' average expenditures for its nonprofit school food service. Condition: The District has food service net cash resources in excess of the three month average expenditure carryover limit. Questioned Costs: None. Context: The District has net cash resources of $262,147, and the three month average expenditures is $64,983, resulting in excess net cash resources of $197,164. Effect: The District has earned $197,164 in its food service program in excess of what is allowed. Cause: The District was previously unaware of the requirements, and was not charging all of the expenditures allowable to operate the food service program to the program. Recommendation: We recommend that the District monitor the profit made by the food service program. All allowable expenditures used to operate the program should be charged to the program. In addition, the District needs to adopt a plan to spend the accumulated cash reserves. Management's Response: The cafeteria will be billed indirect cost items based on the rate provided by the Illinois State Board of Education. The cafeteria will also make a plan to spend the carryover amount.
Criteria: According to 7 CFR Section 210.14(a), a school food authority shall maintain a nonprofit school food service. In addition, 7 CFR Section 210.14(b) states that the school food service authority shall limit its net cash resources to an amount that does not exceed three months' average expenditures for its nonprofit school food service. Condition: The District has food service net cash resources in excess of the three month average expenditure carryover limit. Questioned Costs: None. Context: The District has net cash resources of $262,147, and the three month average expenditures is $64,983, resulting in excess net cash resources of $197,164. Effect: The District has earned $197,164 in its food service program in excess of what is allowed. Cause: The District was previously unaware of the requirements, and was not charging all of the expenditures allowable to operate the food service program to the program. Recommendation: We recommend that the District monitor the profit made by the food service program. All allowable expenditures used to operate the program should be charged to the program. In addition, the District needs to adopt a plan to spend the accumulated cash reserves. Management's Response: The cafeteria will be billed indirect cost items based on the rate provided by the Illinois State Board of Education. The cafeteria will also make a plan to spend the carryover amount.
Criteria: For employees whose time is coded to multiple cost centers, time and effort documentation is essential to support the amount of time charged to each program. That documentation should be approved by the employee's supervisor. Condition: We found that time cards supporting the amount of time charged to the grant program contained no evidence of supervisory approval. Questioned Costs: None. Context: Total salaries of the program were $100,595. The portion of these salaries paid to employees working for multiple cost centers is not known. Effect: Increases the risk that inappropriate time charges could be applied to the grant program resulting in overcharging the grant for costs incurred. Our test was a statistical sample of 40 salary charges to the grant and 8 charges did not have supervisory approval of time cards. Cause: Hourly employee timesheets are not reviewed and approved by a supervisor. Recommendation: We recommend the District provide proper documentation of a supervisor's approval on the time sheet for payment of hourly employees. Management's Response: A supervisor will begin noting approval with a signature on timecards.
Criteria: The function and object codes on ISBE expenditure submissions should match the actual expenditures on the District's accounting records. Condition: Function and object codes per the District's ISBE expenditure report submissions did not match the District's accounting records. Questioned Costs: None. Context: The District's 4th quarter expenditures submission reported $189,278 for function 2450 and object 300. The actual expenditure was recorded to function 2530 and object 500. Effect: Function and object codes for actual expenditures did not match the ISBE submission. Cause: There was a lack of oversight by the Superintendent on the preparation of the quarterly expenditure reports along with the supporting documentation used to prepare them by the bookkeeper. Additionally, recorded expenditures had to be reclassified to conform with ISBE reporting requirements. Recommendation: We recommend that the Superintendent review the quarterly expenditure reports and supporting documentation to ensure all costs are reported timely and accurately. Management's Response: The Superintendent will review the quarterly reports submitted to ISBE and agree with the Districts' accounting software before they are submitted.
Criteria: For employees whose time is coded to multiple cost centers, time and effort documentation is essential to support the amount of time charged to each program. That documentation should be approved by the employee's supervisor. Condition: We found that time cards supporting the amount of time charged to the grant program contained no evidence of supervisory approval. Questioned Costs: None. Context: Total salaries of the program were $100,595. The portion of these salaries paid to employees working for multiple cost centers is not known. Effect: Increases the risk that inappropriate time charges could be applied to the grant program resulting in overcharging the grant for costs incurred. Our test was a statistical sample of 40 salary charges to the grant and 8 charges did not have supervisory approval of time cards. Cause: Hourly employee timesheets are not reviewed and approved by a supervisor. Recommendation: We recommend the District provide proper documentation of a supervisor's approval on the time sheet for payment of hourly employees. Management's Response: A supervisor will begin noting approval with a signature on timecards.
Criteria: The function and object codes on ISBE expenditure submissions should match the actual expenditures on the District's accounting records. Condition: Function and object codes per the District's ISBE expenditure report submissions did not match the District's accounting records. Questioned Costs: None. Context: The District's 4th quarter expenditures submission reported $189,278 for function 2450 and object 300. The actual expenditure was recorded to function 2530 and object 500. Effect: Function and object codes for actual expenditures did not match the ISBE submission. Cause: There was a lack of oversight by the Superintendent on the preparation of the quarterly expenditure reports along with the supporting documentation used to prepare them by the bookkeeper. Additionally, recorded expenditures had to be reclassified to conform with ISBE reporting requirements. Recommendation: We recommend that the Superintendent review the quarterly expenditure reports and supporting documentation to ensure all costs are reported timely and accurately. Management's Response: The Superintendent will review the quarterly reports submitted to ISBE and agree with the Districts' accounting software before they are submitted.
Criteria: According to 7 CFR Section 210.14(a), a school food authority shall maintain a nonprofit school food service. In addition, 7 CFR Section 210.14(b) states that the school food service authority shall limit its net cash resources to an amount that does not exceed three months' average expenditures for its nonprofit school food service. Condition: The District has food service net cash resources in excess of the three month average expenditure carryover limit. Questioned Costs: None. Context: The District has net cash resources of $262,147, and the three month average expenditures is $64,983, resulting in excess net cash resources of $197,164. Effect: The District has earned $197,164 in its food service program in excess of what is allowed. Cause: The District was previously unaware of the requirements, and was not charging all of the expenditures allowable to operate the food service program to the program. Recommendation: We recommend that the District monitor the profit made by the food service program. All allowable expenditures used to operate the program should be charged to the program. In addition, the District needs to adopt a plan to spend the accumulated cash reserves. Management's Response: The cafeteria will be billed indirect cost items based on the rate provided by the Illinois State Board of Education. The cafeteria will also make a plan to spend the carryover amount.
Criteria: According to 7 CFR Section 210.14(a), a school food authority shall maintain a nonprofit school food service. In addition, 7 CFR Section 210.14(b) states that the school food service authority shall limit its net cash resources to an amount that does not exceed three months' average expenditures for its nonprofit school food service. Condition: The District has food service net cash resources in excess of the three month average expenditure carryover limit. Questioned Costs: None. Context: The District has net cash resources of $262,147, and the three month average expenditures is $64,983, resulting in excess net cash resources of $197,164. Effect: The District has earned $197,164 in its food service program in excess of what is allowed. Cause: The District was previously unaware of the requirements, and was not charging all of the expenditures allowable to operate the food service program to the program. Recommendation: We recommend that the District monitor the profit made by the food service program. All allowable expenditures used to operate the program should be charged to the program. In addition, the District needs to adopt a plan to spend the accumulated cash reserves. Management's Response: The cafeteria will be billed indirect cost items based on the rate provided by the Illinois State Board of Education. The cafeteria will also make a plan to spend the carryover amount.
Criteria: According to 7 CFR Section 210.14(a), a school food authority shall maintain a nonprofit school food service. In addition, 7 CFR Section 210.14(b) states that the school food service authority shall limit its net cash resources to an amount that does not exceed three months' average expenditures for its nonprofit school food service. Condition: The District has food service net cash resources in excess of the three month average expenditure carryover limit. Questioned Costs: None. Context: The District has net cash resources of $262,147, and the three month average expenditures is $64,983, resulting in excess net cash resources of $197,164. Effect: The District has earned $197,164 in its food service program in excess of what is allowed. Cause: The District was previously unaware of the requirements, and was not charging all of the expenditures allowable to operate the food service program to the program. Recommendation: We recommend that the District monitor the profit made by the food service program. All allowable expenditures used to operate the program should be charged to the program. In addition, the District needs to adopt a plan to spend the accumulated cash reserves. Management's Response: The cafeteria will be billed indirect cost items based on the rate provided by the Illinois State Board of Education. The cafeteria will also make a plan to spend the carryover amount.
Criteria: According to 7 CFR Section 210.14(a), a school food authority shall maintain a nonprofit school food service. In addition, 7 CFR Section 210.14(b) states that the school food service authority shall limit its net cash resources to an amount that does not exceed three months' average expenditures for its nonprofit school food service. Condition: The District has food service net cash resources in excess of the three month average expenditure carryover limit. Questioned Costs: None. Context: The District has net cash resources of $262,147, and the three month average expenditures is $64,983, resulting in excess net cash resources of $197,164. Effect: The District has earned $197,164 in its food service program in excess of what is allowed. Cause: The District was previously unaware of the requirements, and was not charging all of the expenditures allowable to operate the food service program to the program. Recommendation: We recommend that the District monitor the profit made by the food service program. All allowable expenditures used to operate the program should be charged to the program. In addition, the District needs to adopt a plan to spend the accumulated cash reserves. Management's Response: The cafeteria will be billed indirect cost items based on the rate provided by the Illinois State Board of Education. The cafeteria will also make a plan to spend the carryover amount.
Criteria: According to 7 CFR Section 210.14(a), a school food authority shall maintain a nonprofit school food service. In addition, 7 CFR Section 210.14(b) states that the school food service authority shall limit its net cash resources to an amount that does not exceed three months' average expenditures for its nonprofit school food service. Condition: The District has food service net cash resources in excess of the three month average expenditure carryover limit. Questioned Costs: None. Context: The District has net cash resources of $262,147, and the three month average expenditures is $64,983, resulting in excess net cash resources of $197,164. Effect: The District has earned $197,164 in its food service program in excess of what is allowed. Cause: The District was previously unaware of the requirements, and was not charging all of the expenditures allowable to operate the food service program to the program. Recommendation: We recommend that the District monitor the profit made by the food service program. All allowable expenditures used to operate the program should be charged to the program. In addition, the District needs to adopt a plan to spend the accumulated cash reserves. Management's Response: The cafeteria will be billed indirect cost items based on the rate provided by the Illinois State Board of Education. The cafeteria will also make a plan to spend the carryover amount.
Criteria: For employees whose time is coded to multiple cost centers, time and effort documentation is essential to support the amount of time charged to each program. That documentation should be approved by the employee's supervisor. Condition: We found that time cards supporting the amount of time charged to the grant program contained no evidence of supervisory approval. Questioned Costs: None. Context: Total salaries of the program were $100,595. The portion of these salaries paid to employees working for multiple cost centers is not known. Effect: Increases the risk that inappropriate time charges could be applied to the grant program resulting in overcharging the grant for costs incurred. Our test was a statistical sample of 40 salary charges to the grant and 8 charges did not have supervisory approval of time cards. Cause: Hourly employee timesheets are not reviewed and approved by a supervisor. Recommendation: We recommend the District provide proper documentation of a supervisor's approval on the time sheet for payment of hourly employees. Management's Response: A supervisor will begin noting approval with a signature on timecards.
Criteria: The function and object codes on ISBE expenditure submissions should match the actual expenditures on the District's accounting records. Condition: Function and object codes per the District's ISBE expenditure report submissions did not match the District's accounting records. Questioned Costs: None. Context: The District's 4th quarter expenditures submission reported $189,278 for function 2450 and object 300. The actual expenditure was recorded to function 2530 and object 500. Effect: Function and object codes for actual expenditures did not match the ISBE submission. Cause: There was a lack of oversight by the Superintendent on the preparation of the quarterly expenditure reports along with the supporting documentation used to prepare them by the bookkeeper. Additionally, recorded expenditures had to be reclassified to conform with ISBE reporting requirements. Recommendation: We recommend that the Superintendent review the quarterly expenditure reports and supporting documentation to ensure all costs are reported timely and accurately. Management's Response: The Superintendent will review the quarterly reports submitted to ISBE and agree with the Districts' accounting software before they are submitted.
Criteria: For employees whose time is coded to multiple cost centers, time and effort documentation is essential to support the amount of time charged to each program. That documentation should be approved by the employee's supervisor. Condition: We found that time cards supporting the amount of time charged to the grant program contained no evidence of supervisory approval. Questioned Costs: None. Context: Total salaries of the program were $100,595. The portion of these salaries paid to employees working for multiple cost centers is not known. Effect: Increases the risk that inappropriate time charges could be applied to the grant program resulting in overcharging the grant for costs incurred. Our test was a statistical sample of 40 salary charges to the grant and 8 charges did not have supervisory approval of time cards. Cause: Hourly employee timesheets are not reviewed and approved by a supervisor. Recommendation: We recommend the District provide proper documentation of a supervisor's approval on the time sheet for payment of hourly employees. Management's Response: A supervisor will begin noting approval with a signature on timecards.
Criteria: The function and object codes on ISBE expenditure submissions should match the actual expenditures on the District's accounting records. Condition: Function and object codes per the District's ISBE expenditure report submissions did not match the District's accounting records. Questioned Costs: None. Context: The District's 4th quarter expenditures submission reported $189,278 for function 2450 and object 300. The actual expenditure was recorded to function 2530 and object 500. Effect: Function and object codes for actual expenditures did not match the ISBE submission. Cause: There was a lack of oversight by the Superintendent on the preparation of the quarterly expenditure reports along with the supporting documentation used to prepare them by the bookkeeper. Additionally, recorded expenditures had to be reclassified to conform with ISBE reporting requirements. Recommendation: We recommend that the Superintendent review the quarterly expenditure reports and supporting documentation to ensure all costs are reported timely and accurately. Management's Response: The Superintendent will review the quarterly reports submitted to ISBE and agree with the Districts' accounting software before they are submitted.