Audit 25796

FY End
2022-06-30
Total Expended
$6.78M
Findings
34
Programs
14
Year: 2022 Accepted: 2022-11-10

Organization Exclusion Status:

Checking exclusion status...

Findings

ID Ref Severity Repeat Requirement
30732 2022-005 Significant Deficiency - F
30733 2022-005 Significant Deficiency - F
30734 2022-005 Significant Deficiency - F
30735 2022-007 Significant Deficiency Yes L
30736 2022-005 Significant Deficiency - F
30737 2022-007 Significant Deficiency - L
30738 2022-005 Significant Deficiency - F
30739 2022-007 Significant Deficiency - L
30740 2022-005 Significant Deficiency - F
30741 2022-007 Significant Deficiency - L
31555 2022-008 Significant Deficiency - L
31556 2022-004 Significant Deficiency - F
31557 2022-006 - - L
31558 2022-004 Significant Deficiency - F
31559 2022-006 - - L
31560 2022-007 Significant Deficiency Yes L
31561 2022-007 Significant Deficiency - L
607174 2022-005 Significant Deficiency - F
607175 2022-005 Significant Deficiency - F
607176 2022-005 Significant Deficiency - F
607177 2022-007 Significant Deficiency Yes L
607178 2022-005 Significant Deficiency - F
607179 2022-007 Significant Deficiency - L
607180 2022-005 Significant Deficiency - F
607181 2022-007 Significant Deficiency - L
607182 2022-005 Significant Deficiency - F
607183 2022-007 Significant Deficiency - L
607997 2022-008 Significant Deficiency - L
607998 2022-004 Significant Deficiency - F
607999 2022-006 - - L
608000 2022-004 Significant Deficiency - F
608001 2022-006 - - L
608002 2022-007 Significant Deficiency Yes L
608003 2022-007 Significant Deficiency - L

Contacts

Name Title Type
MZJMSZMXGQL5 Bradford Tuttle Auditee
6184985561 Daniel Phipps Auditor
No contacts on file

Notes to SEFA

Title: BASIS OF PRESENTATION Accounting Policies: Federal awards are accounted for using the cash basis of accounting . The Schedule reflects the cash basis of accounting in which revenues are recognized when received and expenditures are recognized when spent. De Minimis Rate Used: N Rate Explanation: The District did not elect to use the 10% de minimis indirect cost rate. The District elected to use the restricted indirect cost rate of 2.62% and unrestricted indirect cost rate of 16.88%. The accompanying Schedule of Expenditures of Federal Awards (the Schedule) summarizes the expenditures of Community Unit School District No. 100 under programs of the federal government for the fiscal year ended June 30, 2022. Because the Schedule presents only a selected portion of the operations of the District, it is not intended to and does not present the financial position, changes in fund balance, revenues and expenditures of the District. For purposes of the Schedule, federal awards include all grants, contracts and similar agreements entered into directly between the District and agencies and departments of the federal governments and all sub-awards to the District by nonfederal organizations pursuant to federal agency for the District's major and nonmajor programs in accordance with the provisions of the U.S. Office of Management and Title 2 U.S. Code of Federal Regulations Part 200, Uniform Administrative Requirements, Cost Principals, and Audit Requirements for Federal Awards (Uniform Guidance).
Title: SUBRECIPIENTS Accounting Policies: Federal awards are accounted for using the cash basis of accounting . The Schedule reflects the cash basis of accounting in which revenues are recognized when received and expenditures are recognized when spent. De Minimis Rate Used: N Rate Explanation: The District did not elect to use the 10% de minimis indirect cost rate. The District elected to use the restricted indirect cost rate of 2.62% and unrestricted indirect cost rate of 16.88%. None.
Title: NONMONETARY DISTRIBUTIONS Accounting Policies: Federal awards are accounted for using the cash basis of accounting . The Schedule reflects the cash basis of accounting in which revenues are recognized when received and expenditures are recognized when spent. De Minimis Rate Used: N Rate Explanation: The District did not elect to use the 10% de minimis indirect cost rate. The District elected to use the restricted indirect cost rate of 2.62% and unrestricted indirect cost rate of 16.88%. During the year ended June 30, 2022, the District received $75,166 in non-cash funding through the Illinois State Board of Education's Child Nutrition program.
Title: INSURANCE Accounting Policies: Federal awards are accounted for using the cash basis of accounting . The Schedule reflects the cash basis of accounting in which revenues are recognized when received and expenditures are recognized when spent. De Minimis Rate Used: N Rate Explanation: The District did not elect to use the 10% de minimis indirect cost rate. The District elected to use the restricted indirect cost rate of 2.62% and unrestricted indirect cost rate of 16.88%. The District had no insurance as it relates to federal programs in effect for the year ended June 30, 2022.
Title: LOANS AND LOAN GURANTEES Accounting Policies: Federal awards are accounted for using the cash basis of accounting . The Schedule reflects the cash basis of accounting in which revenues are recognized when received and expenditures are recognized when spent. De Minimis Rate Used: N Rate Explanation: The District did not elect to use the 10% de minimis indirect cost rate. The District elected to use the restricted indirect cost rate of 2.62% and unrestricted indirect cost rate of 16.88%. The District had no outstanding loans or loan guarantees from federal sources as of June 30, 2022.
Title: RECONCILIATION OF EXPENSES REPORTED ON JUNE 30, 2021 SEFA Accounting Policies: Federal awards are accounted for using the cash basis of accounting . The Schedule reflects the cash basis of accounting in which revenues are recognized when received and expenditures are recognized when spent. De Minimis Rate Used: N Rate Explanation: The District did not elect to use the 10% de minimis indirect cost rate. The District elected to use the restricted indirect cost rate of 2.62% and unrestricted indirect cost rate of 16.88%. Circumstances during the Districts June 30, 2021 fiscal year end audit led there to be expenditures reported on the June 30, 2021 schedule of expenditures of federal awards (SEFA) for which grants, budgets, and a budget amendment had not yet been approved by Illinois State Board of Education (the passthrough agency). Grants and budgets that had not yet been approved include the ESSER II (project 2021-4998-E2) and ESSER III (project 2022-4998-E3) programs and the budget amendment that had not been approved was for the ESSER I program (project 2022-4998-ER). It was determined that there was a strong likelihood that the grants, budgets, and budget amendment would be approved so the expenditures were included on the June 30, 2021 SEFA. Updated guidance suggests that expenditures should not be reported on the SEFA until there is an award or the budget amendment is approved, even if the recognition on the SEFA does not agree to recognition in the financial statements. Since there was not an actual award and the budget amendment was not approved by the Districts June 30, 2021 fiscal year end, the expenditures should not have been included on the June 30, 2021 SEFA. The grants and budgets have since been approved and amended and the District has included the expenditures on the June 30, 2022 SEFA, which is in line with updated guidance. The reconciliation below shows originally reported expenditures, the expenditures that should be removed, and the resulting actual June 30, 2021 federal expenditures. ORIGINALLY REPORTED JUNE 30, 2021 FEDERAL EXPENDITURES: $3,564,783 LESS: ESSER I EXPENDITURES TO BE REMOVED ($57,254) LESS: ESSER II EXPENDITURES TO BE REMOVED ($371,527) LESS: ESSER III EXPENDITURES TO BE REMOVED ($38,761) ACTUAL JUNE 30, 2021 FEDERAL EXPENDITURES $3,097,241

Finding Details

Criteria or specific requirement: Equipment/Real Property Management. Condition: The District budgeted for and included items in capital outlay objects in both the general ledger and ISBE expenditure reports that were below the District's capitalization threshold of $5,000. Questioned Costs: None. Context: The ESSER I, ESSER D2, ESSER DE, and ESSER II grants included items below the capitalization threshold of $5,000 in capital outlay objects. Effect: The District did not follow it's capitalization threshold as outline in its Fixed Asset Policy. Cause: This was an oversight by management. Recommendation: The District should only include items greater than its $5,000 capitalization threshold in capital outlay objects in its general ledger, budgets, and expenditure reports filed with ISBE. Management's response: Management will communicate the District's capitalization policy and the proper recording of items that fall underneath the Districts capitalization threshold with all District employees who are involved with grant writing, grant reporting, and posting to the general ledger system.
Criteria or specific requirement: Equipment/Real Property Management. Condition: The District budgeted for and included items in capital outlay objects in both the general ledger and ISBE expenditure reports that were below the District's capitalization threshold of $5,000. Questioned Costs: None. Context: The ESSER I, ESSER D2, ESSER DE, and ESSER II grants included items below the capitalization threshold of $5,000 in capital outlay objects. Effect: The District did not follow it's capitalization threshold as outline in its Fixed Asset Policy. Cause: This was an oversight by management. Recommendation: The District should only include items greater than its $5,000 capitalization threshold in capital outlay objects in its general ledger, budgets, and expenditure reports filed with ISBE. Management's response: Management will communicate the District's capitalization policy and the proper recording of items that fall underneath the Districts capitalization threshold with all District employees who are involved with grant writing, grant reporting, and posting to the general ledger system.
Criteria or specific requirement: Equipment/Real Property Management. Condition: The District budgeted for and included items in capital outlay objects in both the general ledger and ISBE expenditure reports that were below the District's capitalization threshold of $5,000. Questioned Costs: None. Context: The ESSER I, ESSER D2, ESSER DE, and ESSER II grants included items below the capitalization threshold of $5,000 in capital outlay objects. Effect: The District did not follow it's capitalization threshold as outline in its Fixed Asset Policy. Cause: This was an oversight by management. Recommendation: The District should only include items greater than its $5,000 capitalization threshold in capital outlay objects in its general ledger, budgets, and expenditure reports filed with ISBE. Management's response: Management will communicate the District's capitalization policy and the proper recording of items that fall underneath the Districts capitalization threshold with all District employees who are involved with grant writing, grant reporting, and posting to the general ledger system.
Criteria or specific requirement: The District is required to report grant expenditures in accordance with the Illinois State Board of Education State and Federal Grant Administration Policy, Fiscal Requirements, and Procedures in accordance with the Grant Accountability and Transparency Act (GATA), 30 ILCS 708/1 et seq and Title 2 Code of Federal Regulations Part 200 ? Uniform Administrative Requirements, Cost Principles, and Audit Requirements for Federal Awards. Per the State and Federal Grant Administration Policy, "all federal expenditure reports must be submitted on a cumulative (i.e., year-to-date), cash basis accounting method (i.e., expenses are recognized when they are paid). Outstanding obligations may be reported on June expenditure reports through the project end date ? even if the project ends after June. As grantees report cumulative cash basis expenditures via the Electronic Expenditure Reporting system, ISBE will reimburse the expenditures accordingly on a weekly basis. Grantees that submit expenditures only under this traditional reimbursement method can submit as frequent as weekly, but at a minimum, quarterly." Additionally, "expenditure reports are due 20 calendar days after the expenditure through date. Reports not received by the due date will result in project funds being frozen until an acceptable report is submitted." Condition: Quarterly expenditure reports for the projects expenditures were not timely filed for ESSER DE (4 of 4 quarters required), ESSER PL (2 of 4 quarters required), ESSER E2 (1 of 4 quarters required), ESSER CP (1 of 1 quarter required), and ESSER D2 (1 of 3 quarters required). Questioned Costs: None. Context: Required expenditure reports for the projects expenditures were not timely filed for ESSER DE (4 of 4 quarters required), ESSER PL (2 of 4 quarters required), ESSER E2 (1 of 4 quarters required), ESSER CP (1 of 1 quarter required), and ESSER D2 (1 of 3 quarters required). Effect: Projects may not be properly monitored and funding could be frozen if reports are not timely filed. Cause: Lack of monitoring due dates of required reports. Recommendation: The District should schedule the due dates of all project reports in order to avoid late filings. Management's response: The District will review procedures to determine if added steps are needed to ensure timely grant expenditure reporting.
Criteria or specific requirement: Equipment/Real Property Management. Condition: The District budgeted for and included items in capital outlay objects in both the general ledger and ISBE expenditure reports that were below the District's capitalization threshold of $5,000. Questioned Costs: None. Context: The ESSER I, ESSER D2, ESSER DE, and ESSER II grants included items below the capitalization threshold of $5,000 in capital outlay objects. Effect: The District did not follow it's capitalization threshold as outline in its Fixed Asset Policy. Cause: This was an oversight by management. Recommendation: The District should only include items greater than its $5,000 capitalization threshold in capital outlay objects in its general ledger, budgets, and expenditure reports filed with ISBE. Management's response: Management will communicate the District's capitalization policy and the proper recording of items that fall underneath the Districts capitalization threshold with all District employees who are involved with grant writing, grant reporting, and posting to the general ledger system.
Criteria or specific requirement: The District is required to report grant expenditures in accordance with the Illinois State Board of Education State and Federal Grant Administration Policy, Fiscal Requirements, and Procedures in accordance with the Grant Accountability and Transparency Act (GATA), 30 ILCS 708/1 et seq and Title 2 Code of Federal Regulations Part 200 ? Uniform Administrative Requirements, Cost Principles, and Audit Requirements for Federal Awards. Per the State and Federal Grant Administration Policy, "all federal expenditure reports must be submitted on a cumulative (i.e., year-to-date), cash basis accounting method (i.e., expenses are recognized when they are paid). Outstanding obligations may be reported on June expenditure reports through the project end date ? even if the project ends after June. As grantees report cumulative cash basis expenditures via the Electronic Expenditure Reporting system, ISBE will reimburse the expenditures accordingly on a weekly basis. Grantees that submit expenditures only under this traditional reimbursement method can submit as frequent as weekly, but at a minimum, quarterly." Additionally, "expenditure reports are due 20 calendar days after the expenditure through date. Reports not received by the due date will result in project funds being frozen until an acceptable report is submitted." Condition: Quarterly expenditure reports for the projects expenditures were not timely filed for ESSER DE (4 of 4 quarters required), ESSER PL (2 of 4 quarters required), ESSER E2 (1 of 4 quarters required), ESSER CP (1 of 1 quarter required), and ESSER D2 (1 of 3 quarters required). Questioned Costs: None. Context: Required expenditure reports for the projects expenditures were not timely filed for ESSER DE (4 of 4 quarters required), ESSER PL (2 of 4 quarters required), ESSER E2 (1 of 4 quarters required), ESSER CP (1 of 1 quarter required), and ESSER D2 (1 of 3 quarters required). Effect: Projects may not be properly monitored and funding could be frozen if reports are not timely filed. Cause: Lack of monitoring due dates of required reports. Recommendation: The District should schedule the due dates of all project reports in order to avoid late filings. Management's response: The District will review procedures to determine if added steps are needed to ensure timely grant expenditure reporting.
Criteria or specific requirement: Equipment/Real Property Management. Condition: The District budgeted for and included items in capital outlay objects in both the general ledger and ISBE expenditure reports that were below the District's capitalization threshold of $5,000. Questioned Costs: None. Context: The ESSER I, ESSER D2, ESSER DE, and ESSER II grants included items below the capitalization threshold of $5,000 in capital outlay objects. Effect: The District did not follow it's capitalization threshold as outline in its Fixed Asset Policy. Cause: This was an oversight by management. Recommendation: The District should only include items greater than its $5,000 capitalization threshold in capital outlay objects in its general ledger, budgets, and expenditure reports filed with ISBE. Management's response: Management will communicate the District's capitalization policy and the proper recording of items that fall underneath the Districts capitalization threshold with all District employees who are involved with grant writing, grant reporting, and posting to the general ledger system.
Criteria or specific requirement: The District is required to report grant expenditures in accordance with the Illinois State Board of Education State and Federal Grant Administration Policy, Fiscal Requirements, and Procedures in accordance with the Grant Accountability and Transparency Act (GATA), 30 ILCS 708/1 et seq and Title 2 Code of Federal Regulations Part 200 ? Uniform Administrative Requirements, Cost Principles, and Audit Requirements for Federal Awards. Per the State and Federal Grant Administration Policy, "all federal expenditure reports must be submitted on a cumulative (i.e., year-to-date), cash basis accounting method (i.e., expenses are recognized when they are paid). Outstanding obligations may be reported on June expenditure reports through the project end date ? even if the project ends after June. As grantees report cumulative cash basis expenditures via the Electronic Expenditure Reporting system, ISBE will reimburse the expenditures accordingly on a weekly basis. Grantees that submit expenditures only under this traditional reimbursement method can submit as frequent as weekly, but at a minimum, quarterly." Additionally, "expenditure reports are due 20 calendar days after the expenditure through date. Reports not received by the due date will result in project funds being frozen until an acceptable report is submitted." Condition: Quarterly expenditure reports for the projects expenditures were not timely filed for ESSER DE (4 of 4 quarters required), ESSER PL (2 of 4 quarters required), ESSER E2 (1 of 4 quarters required), ESSER CP (1 of 1 quarter required), and ESSER D2 (1 of 3 quarters required). Questioned Costs: None. Context: Required expenditure reports for the projects expenditures were not timely filed for ESSER DE (4 of 4 quarters required), ESSER PL (2 of 4 quarters required), ESSER E2 (1 of 4 quarters required), ESSER CP (1 of 1 quarter required), and ESSER D2 (1 of 3 quarters required). Effect: Projects may not be properly monitored and funding could be frozen if reports are not timely filed. Cause: Lack of monitoring due dates of required reports. Recommendation: The District should schedule the due dates of all project reports in order to avoid late filings. Management's response: The District will review procedures to determine if added steps are needed to ensure timely grant expenditure reporting.
Criteria or specific requirement: Equipment/Real Property Management. Condition: The District budgeted for and included items in capital outlay objects in both the general ledger and ISBE expenditure reports that were below the District's capitalization threshold of $5,000. Questioned Costs: None. Context: The ESSER I, ESSER D2, ESSER DE, and ESSER II grants included items below the capitalization threshold of $5,000 in capital outlay objects. Effect: The District did not follow it's capitalization threshold as outline in its Fixed Asset Policy. Cause: This was an oversight by management. Recommendation: The District should only include items greater than its $5,000 capitalization threshold in capital outlay objects in its general ledger, budgets, and expenditure reports filed with ISBE. Management's response: Management will communicate the District's capitalization policy and the proper recording of items that fall underneath the Districts capitalization threshold with all District employees who are involved with grant writing, grant reporting, and posting to the general ledger system.
Criteria or specific requirement: The District is required to report grant expenditures in accordance with the Illinois State Board of Education State and Federal Grant Administration Policy, Fiscal Requirements, and Procedures in accordance with the Grant Accountability and Transparency Act (GATA), 30 ILCS 708/1 et seq and Title 2 Code of Federal Regulations Part 200 ? Uniform Administrative Requirements, Cost Principles, and Audit Requirements for Federal Awards. Per the State and Federal Grant Administration Policy, "all federal expenditure reports must be submitted on a cumulative (i.e., year-to-date), cash basis accounting method (i.e., expenses are recognized when they are paid). Outstanding obligations may be reported on June expenditure reports through the project end date ? even if the project ends after June. As grantees report cumulative cash basis expenditures via the Electronic Expenditure Reporting system, ISBE will reimburse the expenditures accordingly on a weekly basis. Grantees that submit expenditures only under this traditional reimbursement method can submit as frequent as weekly, but at a minimum, quarterly." Additionally, "expenditure reports are due 20 calendar days after the expenditure through date. Reports not received by the due date will result in project funds being frozen until an acceptable report is submitted." Condition: Quarterly expenditure reports for the projects expenditures were not timely filed for ESSER DE (4 of 4 quarters required), ESSER PL (2 of 4 quarters required), ESSER E2 (1 of 4 quarters required), ESSER CP (1 of 1 quarter required), and ESSER D2 (1 of 3 quarters required). Questioned Costs: None. Context: Required expenditure reports for the projects expenditures were not timely filed for ESSER DE (4 of 4 quarters required), ESSER PL (2 of 4 quarters required), ESSER E2 (1 of 4 quarters required), ESSER CP (1 of 1 quarter required), and ESSER D2 (1 of 3 quarters required). Effect: Projects may not be properly monitored and funding could be frozen if reports are not timely filed. Cause: Lack of monitoring due dates of required reports. Recommendation: The District should schedule the due dates of all project reports in order to avoid late filings. Management's response: The District will review procedures to determine if added steps are needed to ensure timely grant expenditure reporting.
Criteria or specific requirement: The District is required to report grant expenditures in accordance with the Illinois State Board of Education State and Federal Grant Administration Policy, Fiscal Requirements, and Procedures in accordance with the Grant Accountability and Transparency Act (GATA), 30 ILCS 708/1 et seq and Title 2 Code of Federal Regulations Part 200 ? Uniform Administrative Requirements, Cost Principles, and Audit Requirements for Federal Awards. Per the State and Federal Grant Administration Policy, "all federal expenditure reports must be submitted on a cumulative (i.e., year-to-date), cash basis accounting method (i.e., expenses are recognized when they are paid). Outstanding obligations may be reported on June expenditure reports through the project end date ? even if the project ends after June. As grantees report cumulative cash basis expenditures via the Electronic Expenditure Reporting system, ISBE will reimburse the expenditures accordingly on a weekly basis. Grantees that submit expenditures only under this traditional reimbursement method can submit as frequent as weekly, but at a minimum, quarterly." Additionally, "expenditure reports are due 20 calendar days after the expenditure through date. Reports not received by the due date will result in project funds being frozen until an acceptable report is submitted." Condition: Quarterly expenditure reports for the projects expenditures were not timely filed for ARP ESSER - Homeless Children and Youth (1 of 2 quarters required). Questioned Costs: None. Context: Required expenditure reports for the projects expenditures were not timely filed for ARP ESSER - Homeless Children and Youth (1 of 2 quarters required). Effect- Projects may not be properly monitored and funding could be frozen if reports are not timely filed. Cause: Lack of monitoring due dates of required reports. Recommendation: The District should schedule the due dates of all projects in order to avoid late filings. Management's response: The District will review procedures to determine if added steps are needed to ensure timely grant expenditure reporting.
Criteria or specific requirement: Equipment/Real Property Management. Condition: The District budgeted for and included items in capital outlay objects in both the general ledger and ISBE expenditures that were below the District's capitalization threshold of $5,000. Questioned Costs: None. Context: The ESSER III grant included items below the capitalization threshold of $5,000 in capital outlay objects. Effect: The District did not follow it's capitalization threshold as outlined in its Fixed Asset Policy. Cause: This was an oversight by management. Recommendation: The District should only include items greater that $5,000 capitalization threshold in capital outlay objects in its general ledger, budgets, and expenditure reports filed with ISBE. Management's response: Management will communicate the District's capitalization policy and the proper recording of items that fall underneath the District's capitalization threshold with all District employees who are involved with grant writing, grant reporting, and posting to the general ledger system.
Criteria or specific requirement: The District is required to report grant expenditures in accordance with the Illinois State Board of Education State and Federal Grant Administration Policy, Fiscal Requirements, and Procedures in accordance with the Grant Accountability and Transparency Act (GATA), 30 ILCS 708/1 et seq and Title 2 Code of Federal Regulations Part 200?Uniform Administrative Requirements, Cost Principles, and Audit Requirements for Federal Awards. According to the State and Federal Grant Administration Policy, "Amendments are required when: There is a significant change in program scope (e.g., adding a new component - summer school); or the grantee intends to budget for more available funds (i.e., federal carryover); or the expense expenditures exceed the ISBE expenditure variance of 10 percent or $1,000 per an object total, whichever is greater without going over the total budget; or the grantee adds a new expenditure item." Additionally stated in the document "grantees that submit a state or federal budget amendment between the project begin and end date are not allowed to begin an activity, obligate or expend funds prior to the date of receipt at ISBE, provided the scope or intent of the approved project has not changed." Lastly stated in the document, "any amount reported in an expenditure account (cell) not budgeted or not within the acceptable expenditure variance, will not be accepted. Failure to submit an acceptable report will result in the delay of current payments. Expenditures and obligations in excess of the total project budget will not be allowed." Condition: Expenditures claimed on the project's cumulative June 30, 2022 quarterly report did not match the accounting records. Total expenditures reported in the district's accounting records were $2,128,915 and total expenditures reported on the ISBE June 30, 2022 expenditure report was $2,152,978. Difference of $24,063 was a result of a journal entry in which funds got moved within the grant from function 2210 object 300 to function 2230 object 300. The $24,063 was reported under function 2230 object 300 but was not removed from function 2210 object 300 on the June 30, 2022 expenditure report. The July 31, 2022 expenditure report, function 2210 object 300 was corrected by the District to report the proper amount of expenses so there will be no questioned cost, only an error in reporting. Questioned Costs: None. Context: Expenditures claimed on the project's cumulative June 30, 2022 quarterly report did not match the accounting records. Total expenditures reported in the district's accounting records were $2,128,915 and total expenditures reported on the ISBE June 30, 2022 expenditure report was $2,152,978. Difference of $24,063 was a result of a journal entry in which funds got moved within the grant from function 2210 object 300 to function 2230 object 300. The $24,063 was reported under function 2230 object 300 but was not removed from function 2210 object 300 on the June 30, 2022 expenditure report. The July 31, 2022 expenditure report, function 2210 object 300 was corrected by the District to report the proper amount of expenses so there will be no questioned cost, only an error in reporting. Effect: Expenditures on the cumulative quarterly report as of June 30, 2022, which should agree to expenses spent as of the fiscal year end, did not agree to the District's records. Cause: Discrepancy was due to a journal entry made in the general ledger. Recommendation: The District needs to ensure that all records accurately reflect the appropriate expenditures of the grant program and appropriate expenditure reports are filed. Management's response: The District is aware of the discrepancy and has already corrected the issue on their July 31, 2022 expenditure report filed with ISBE.
Criteria or specific requirement: Equipment/Real Property Management. Condition: The District budgeted for and included items in capital outlay objects in both the general ledger and ISBE expenditures that were below the District's capitalization threshold of $5,000. Questioned Costs: None. Context: The ESSER III grant included items below the capitalization threshold of $5,000 in capital outlay objects. Effect: The District did not follow it's capitalization threshold as outlined in its Fixed Asset Policy. Cause: This was an oversight by management. Recommendation: The District should only include items greater that $5,000 capitalization threshold in capital outlay objects in its general ledger, budgets, and expenditure reports filed with ISBE. Management's response: Management will communicate the District's capitalization policy and the proper recording of items that fall underneath the District's capitalization threshold with all District employees who are involved with grant writing, grant reporting, and posting to the general ledger system.
Criteria or specific requirement: The District is required to report grant expenditures in accordance with the Illinois State Board of Education State and Federal Grant Administration Policy, Fiscal Requirements, and Procedures in accordance with the Grant Accountability and Transparency Act (GATA), 30 ILCS 708/1 et seq and Title 2 Code of Federal Regulations Part 200?Uniform Administrative Requirements, Cost Principles, and Audit Requirements for Federal Awards. According to the State and Federal Grant Administration Policy, "Amendments are required when: There is a significant change in program scope (e.g., adding a new component - summer school); or the grantee intends to budget for more available funds (i.e., federal carryover); or the expense expenditures exceed the ISBE expenditure variance of 10 percent or $1,000 per an object total, whichever is greater without going over the total budget; or the grantee adds a new expenditure item." Additionally stated in the document "grantees that submit a state or federal budget amendment between the project begin and end date are not allowed to begin an activity, obligate or expend funds prior to the date of receipt at ISBE, provided the scope or intent of the approved project has not changed." Lastly stated in the document, "any amount reported in an expenditure account (cell) not budgeted or not within the acceptable expenditure variance, will not be accepted. Failure to submit an acceptable report will result in the delay of current payments. Expenditures and obligations in excess of the total project budget will not be allowed." Condition: Expenditures claimed on the project's cumulative June 30, 2022 quarterly report did not match the accounting records. Total expenditures reported in the district's accounting records were $2,128,915 and total expenditures reported on the ISBE June 30, 2022 expenditure report was $2,152,978. Difference of $24,063 was a result of a journal entry in which funds got moved within the grant from function 2210 object 300 to function 2230 object 300. The $24,063 was reported under function 2230 object 300 but was not removed from function 2210 object 300 on the June 30, 2022 expenditure report. The July 31, 2022 expenditure report, function 2210 object 300 was corrected by the District to report the proper amount of expenses so there will be no questioned cost, only an error in reporting. Questioned Costs: None. Context: Expenditures claimed on the project's cumulative June 30, 2022 quarterly report did not match the accounting records. Total expenditures reported in the district's accounting records were $2,128,915 and total expenditures reported on the ISBE June 30, 2022 expenditure report was $2,152,978. Difference of $24,063 was a result of a journal entry in which funds got moved within the grant from function 2210 object 300 to function 2230 object 300. The $24,063 was reported under function 2230 object 300 but was not removed from function 2210 object 300 on the June 30, 2022 expenditure report. The July 31, 2022 expenditure report, function 2210 object 300 was corrected by the District to report the proper amount of expenses so there will be no questioned cost, only an error in reporting. Effect: Expenditures on the cumulative quarterly report as of June 30, 2022, which should agree to expenses spent as of the fiscal year end, did not agree to the District's records. Cause: Discrepancy was due to a journal entry made in the general ledger. Recommendation: The District needs to ensure that all records accurately reflect the appropriate expenditures of the grant program and appropriate expenditure reports are filed. Management's response: The District is aware of the discrepancy and has already corrected the issue on their July 31, 2022 expenditure report filed with ISBE.
Criteria or specific requirement: The District is required to report grant expenditures in accordance with the Illinois State Board of Education State and Federal Grant Administration Policy, Fiscal Requirements, and Procedures in accordance with the Grant Accountability and Transparency Act (GATA), 30 ILCS 708/1 et seq and Title 2 Code of Federal Regulations Part 200 ? Uniform Administrative Requirements, Cost Principles, and Audit Requirements for Federal Awards. Per the State and Federal Grant Administration Policy, "all federal expenditure reports must be submitted on a cumulative (i.e., year-to-date), cash basis accounting method (i.e., expenses are recognized when they are paid). Outstanding obligations may be reported on June expenditure reports through the project end date ? even if the project ends after June. As grantees report cumulative cash basis expenditures via the Electronic Expenditure Reporting system, ISBE will reimburse the expenditures accordingly on a weekly basis. Grantees that submit expenditures only under this traditional reimbursement method can submit as frequent as weekly, but at a minimum, quarterly." Additionally, "expenditure reports are due 20 calendar days after the expenditure through date. Reports not received by the due date will result in project funds being frozen until an acceptable report is submitted." Condition: Quarterly expenditure reports for the projects expenditures were not timely filed for ESSER DE (4 of 4 quarters required), ESSER PL (2 of 4 quarters required), ESSER E2 (1 of 4 quarters required), ESSER CP (1 of 1 quarter required), and ESSER D2 (1 of 3 quarters required). Questioned Costs: None. Context: Required expenditure reports for the projects expenditures were not timely filed for ESSER DE (4 of 4 quarters required), ESSER PL (2 of 4 quarters required), ESSER E2 (1 of 4 quarters required), ESSER CP (1 of 1 quarter required), and ESSER D2 (1 of 3 quarters required). Effect: Projects may not be properly monitored and funding could be frozen if reports are not timely filed. Cause: Lack of monitoring due dates of required reports. Recommendation: The District should schedule the due dates of all project reports in order to avoid late filings. Management's response: The District will review procedures to determine if added steps are needed to ensure timely grant expenditure reporting.
Criteria or specific requirement: The District is required to report grant expenditures in accordance with the Illinois State Board of Education State and Federal Grant Administration Policy, Fiscal Requirements, and Procedures in accordance with the Grant Accountability and Transparency Act (GATA), 30 ILCS 708/1 et seq and Title 2 Code of Federal Regulations Part 200 ? Uniform Administrative Requirements, Cost Principles, and Audit Requirements for Federal Awards. Per the State and Federal Grant Administration Policy, "all federal expenditure reports must be submitted on a cumulative (i.e., year-to-date), cash basis accounting method (i.e., expenses are recognized when they are paid). Outstanding obligations may be reported on June expenditure reports through the project end date ? even if the project ends after June. As grantees report cumulative cash basis expenditures via the Electronic Expenditure Reporting system, ISBE will reimburse the expenditures accordingly on a weekly basis. Grantees that submit expenditures only under this traditional reimbursement method can submit as frequent as weekly, but at a minimum, quarterly." Additionally, "expenditure reports are due 20 calendar days after the expenditure through date. Reports not received by the due date will result in project funds being frozen until an acceptable report is submitted." Condition: Quarterly expenditure reports for the projects expenditures were not timely filed for ESSER DE (4 of 4 quarters required), ESSER PL (2 of 4 quarters required), ESSER E2 (1 of 4 quarters required), ESSER CP (1 of 1 quarter required), and ESSER D2 (1 of 3 quarters required). Questioned Costs: None. Context: Required expenditure reports for the projects expenditures were not timely filed for ESSER DE (4 of 4 quarters required), ESSER PL (2 of 4 quarters required), ESSER E2 (1 of 4 quarters required), ESSER CP (1 of 1 quarter required), and ESSER D2 (1 of 3 quarters required). Effect: Projects may not be properly monitored and funding could be frozen if reports are not timely filed. Cause: Lack of monitoring due dates of required reports. Recommendation: The District should schedule the due dates of all project reports in order to avoid late filings. Management's response: The District will review procedures to determine if added steps are needed to ensure timely grant expenditure reporting.
Criteria or specific requirement: Equipment/Real Property Management. Condition: The District budgeted for and included items in capital outlay objects in both the general ledger and ISBE expenditure reports that were below the District's capitalization threshold of $5,000. Questioned Costs: None. Context: The ESSER I, ESSER D2, ESSER DE, and ESSER II grants included items below the capitalization threshold of $5,000 in capital outlay objects. Effect: The District did not follow it's capitalization threshold as outline in its Fixed Asset Policy. Cause: This was an oversight by management. Recommendation: The District should only include items greater than its $5,000 capitalization threshold in capital outlay objects in its general ledger, budgets, and expenditure reports filed with ISBE. Management's response: Management will communicate the District's capitalization policy and the proper recording of items that fall underneath the Districts capitalization threshold with all District employees who are involved with grant writing, grant reporting, and posting to the general ledger system.
Criteria or specific requirement: Equipment/Real Property Management. Condition: The District budgeted for and included items in capital outlay objects in both the general ledger and ISBE expenditure reports that were below the District's capitalization threshold of $5,000. Questioned Costs: None. Context: The ESSER I, ESSER D2, ESSER DE, and ESSER II grants included items below the capitalization threshold of $5,000 in capital outlay objects. Effect: The District did not follow it's capitalization threshold as outline in its Fixed Asset Policy. Cause: This was an oversight by management. Recommendation: The District should only include items greater than its $5,000 capitalization threshold in capital outlay objects in its general ledger, budgets, and expenditure reports filed with ISBE. Management's response: Management will communicate the District's capitalization policy and the proper recording of items that fall underneath the Districts capitalization threshold with all District employees who are involved with grant writing, grant reporting, and posting to the general ledger system.
Criteria or specific requirement: Equipment/Real Property Management. Condition: The District budgeted for and included items in capital outlay objects in both the general ledger and ISBE expenditure reports that were below the District's capitalization threshold of $5,000. Questioned Costs: None. Context: The ESSER I, ESSER D2, ESSER DE, and ESSER II grants included items below the capitalization threshold of $5,000 in capital outlay objects. Effect: The District did not follow it's capitalization threshold as outline in its Fixed Asset Policy. Cause: This was an oversight by management. Recommendation: The District should only include items greater than its $5,000 capitalization threshold in capital outlay objects in its general ledger, budgets, and expenditure reports filed with ISBE. Management's response: Management will communicate the District's capitalization policy and the proper recording of items that fall underneath the Districts capitalization threshold with all District employees who are involved with grant writing, grant reporting, and posting to the general ledger system.
Criteria or specific requirement: The District is required to report grant expenditures in accordance with the Illinois State Board of Education State and Federal Grant Administration Policy, Fiscal Requirements, and Procedures in accordance with the Grant Accountability and Transparency Act (GATA), 30 ILCS 708/1 et seq and Title 2 Code of Federal Regulations Part 200 ? Uniform Administrative Requirements, Cost Principles, and Audit Requirements for Federal Awards. Per the State and Federal Grant Administration Policy, "all federal expenditure reports must be submitted on a cumulative (i.e., year-to-date), cash basis accounting method (i.e., expenses are recognized when they are paid). Outstanding obligations may be reported on June expenditure reports through the project end date ? even if the project ends after June. As grantees report cumulative cash basis expenditures via the Electronic Expenditure Reporting system, ISBE will reimburse the expenditures accordingly on a weekly basis. Grantees that submit expenditures only under this traditional reimbursement method can submit as frequent as weekly, but at a minimum, quarterly." Additionally, "expenditure reports are due 20 calendar days after the expenditure through date. Reports not received by the due date will result in project funds being frozen until an acceptable report is submitted." Condition: Quarterly expenditure reports for the projects expenditures were not timely filed for ESSER DE (4 of 4 quarters required), ESSER PL (2 of 4 quarters required), ESSER E2 (1 of 4 quarters required), ESSER CP (1 of 1 quarter required), and ESSER D2 (1 of 3 quarters required). Questioned Costs: None. Context: Required expenditure reports for the projects expenditures were not timely filed for ESSER DE (4 of 4 quarters required), ESSER PL (2 of 4 quarters required), ESSER E2 (1 of 4 quarters required), ESSER CP (1 of 1 quarter required), and ESSER D2 (1 of 3 quarters required). Effect: Projects may not be properly monitored and funding could be frozen if reports are not timely filed. Cause: Lack of monitoring due dates of required reports. Recommendation: The District should schedule the due dates of all project reports in order to avoid late filings. Management's response: The District will review procedures to determine if added steps are needed to ensure timely grant expenditure reporting.
Criteria or specific requirement: Equipment/Real Property Management. Condition: The District budgeted for and included items in capital outlay objects in both the general ledger and ISBE expenditure reports that were below the District's capitalization threshold of $5,000. Questioned Costs: None. Context: The ESSER I, ESSER D2, ESSER DE, and ESSER II grants included items below the capitalization threshold of $5,000 in capital outlay objects. Effect: The District did not follow it's capitalization threshold as outline in its Fixed Asset Policy. Cause: This was an oversight by management. Recommendation: The District should only include items greater than its $5,000 capitalization threshold in capital outlay objects in its general ledger, budgets, and expenditure reports filed with ISBE. Management's response: Management will communicate the District's capitalization policy and the proper recording of items that fall underneath the Districts capitalization threshold with all District employees who are involved with grant writing, grant reporting, and posting to the general ledger system.
Criteria or specific requirement: The District is required to report grant expenditures in accordance with the Illinois State Board of Education State and Federal Grant Administration Policy, Fiscal Requirements, and Procedures in accordance with the Grant Accountability and Transparency Act (GATA), 30 ILCS 708/1 et seq and Title 2 Code of Federal Regulations Part 200 ? Uniform Administrative Requirements, Cost Principles, and Audit Requirements for Federal Awards. Per the State and Federal Grant Administration Policy, "all federal expenditure reports must be submitted on a cumulative (i.e., year-to-date), cash basis accounting method (i.e., expenses are recognized when they are paid). Outstanding obligations may be reported on June expenditure reports through the project end date ? even if the project ends after June. As grantees report cumulative cash basis expenditures via the Electronic Expenditure Reporting system, ISBE will reimburse the expenditures accordingly on a weekly basis. Grantees that submit expenditures only under this traditional reimbursement method can submit as frequent as weekly, but at a minimum, quarterly." Additionally, "expenditure reports are due 20 calendar days after the expenditure through date. Reports not received by the due date will result in project funds being frozen until an acceptable report is submitted." Condition: Quarterly expenditure reports for the projects expenditures were not timely filed for ESSER DE (4 of 4 quarters required), ESSER PL (2 of 4 quarters required), ESSER E2 (1 of 4 quarters required), ESSER CP (1 of 1 quarter required), and ESSER D2 (1 of 3 quarters required). Questioned Costs: None. Context: Required expenditure reports for the projects expenditures were not timely filed for ESSER DE (4 of 4 quarters required), ESSER PL (2 of 4 quarters required), ESSER E2 (1 of 4 quarters required), ESSER CP (1 of 1 quarter required), and ESSER D2 (1 of 3 quarters required). Effect: Projects may not be properly monitored and funding could be frozen if reports are not timely filed. Cause: Lack of monitoring due dates of required reports. Recommendation: The District should schedule the due dates of all project reports in order to avoid late filings. Management's response: The District will review procedures to determine if added steps are needed to ensure timely grant expenditure reporting.
Criteria or specific requirement: Equipment/Real Property Management. Condition: The District budgeted for and included items in capital outlay objects in both the general ledger and ISBE expenditure reports that were below the District's capitalization threshold of $5,000. Questioned Costs: None. Context: The ESSER I, ESSER D2, ESSER DE, and ESSER II grants included items below the capitalization threshold of $5,000 in capital outlay objects. Effect: The District did not follow it's capitalization threshold as outline in its Fixed Asset Policy. Cause: This was an oversight by management. Recommendation: The District should only include items greater than its $5,000 capitalization threshold in capital outlay objects in its general ledger, budgets, and expenditure reports filed with ISBE. Management's response: Management will communicate the District's capitalization policy and the proper recording of items that fall underneath the Districts capitalization threshold with all District employees who are involved with grant writing, grant reporting, and posting to the general ledger system.
Criteria or specific requirement: The District is required to report grant expenditures in accordance with the Illinois State Board of Education State and Federal Grant Administration Policy, Fiscal Requirements, and Procedures in accordance with the Grant Accountability and Transparency Act (GATA), 30 ILCS 708/1 et seq and Title 2 Code of Federal Regulations Part 200 ? Uniform Administrative Requirements, Cost Principles, and Audit Requirements for Federal Awards. Per the State and Federal Grant Administration Policy, "all federal expenditure reports must be submitted on a cumulative (i.e., year-to-date), cash basis accounting method (i.e., expenses are recognized when they are paid). Outstanding obligations may be reported on June expenditure reports through the project end date ? even if the project ends after June. As grantees report cumulative cash basis expenditures via the Electronic Expenditure Reporting system, ISBE will reimburse the expenditures accordingly on a weekly basis. Grantees that submit expenditures only under this traditional reimbursement method can submit as frequent as weekly, but at a minimum, quarterly." Additionally, "expenditure reports are due 20 calendar days after the expenditure through date. Reports not received by the due date will result in project funds being frozen until an acceptable report is submitted." Condition: Quarterly expenditure reports for the projects expenditures were not timely filed for ESSER DE (4 of 4 quarters required), ESSER PL (2 of 4 quarters required), ESSER E2 (1 of 4 quarters required), ESSER CP (1 of 1 quarter required), and ESSER D2 (1 of 3 quarters required). Questioned Costs: None. Context: Required expenditure reports for the projects expenditures were not timely filed for ESSER DE (4 of 4 quarters required), ESSER PL (2 of 4 quarters required), ESSER E2 (1 of 4 quarters required), ESSER CP (1 of 1 quarter required), and ESSER D2 (1 of 3 quarters required). Effect: Projects may not be properly monitored and funding could be frozen if reports are not timely filed. Cause: Lack of monitoring due dates of required reports. Recommendation: The District should schedule the due dates of all project reports in order to avoid late filings. Management's response: The District will review procedures to determine if added steps are needed to ensure timely grant expenditure reporting.
Criteria or specific requirement: Equipment/Real Property Management. Condition: The District budgeted for and included items in capital outlay objects in both the general ledger and ISBE expenditure reports that were below the District's capitalization threshold of $5,000. Questioned Costs: None. Context: The ESSER I, ESSER D2, ESSER DE, and ESSER II grants included items below the capitalization threshold of $5,000 in capital outlay objects. Effect: The District did not follow it's capitalization threshold as outline in its Fixed Asset Policy. Cause: This was an oversight by management. Recommendation: The District should only include items greater than its $5,000 capitalization threshold in capital outlay objects in its general ledger, budgets, and expenditure reports filed with ISBE. Management's response: Management will communicate the District's capitalization policy and the proper recording of items that fall underneath the Districts capitalization threshold with all District employees who are involved with grant writing, grant reporting, and posting to the general ledger system.
Criteria or specific requirement: The District is required to report grant expenditures in accordance with the Illinois State Board of Education State and Federal Grant Administration Policy, Fiscal Requirements, and Procedures in accordance with the Grant Accountability and Transparency Act (GATA), 30 ILCS 708/1 et seq and Title 2 Code of Federal Regulations Part 200 ? Uniform Administrative Requirements, Cost Principles, and Audit Requirements for Federal Awards. Per the State and Federal Grant Administration Policy, "all federal expenditure reports must be submitted on a cumulative (i.e., year-to-date), cash basis accounting method (i.e., expenses are recognized when they are paid). Outstanding obligations may be reported on June expenditure reports through the project end date ? even if the project ends after June. As grantees report cumulative cash basis expenditures via the Electronic Expenditure Reporting system, ISBE will reimburse the expenditures accordingly on a weekly basis. Grantees that submit expenditures only under this traditional reimbursement method can submit as frequent as weekly, but at a minimum, quarterly." Additionally, "expenditure reports are due 20 calendar days after the expenditure through date. Reports not received by the due date will result in project funds being frozen until an acceptable report is submitted." Condition: Quarterly expenditure reports for the projects expenditures were not timely filed for ESSER DE (4 of 4 quarters required), ESSER PL (2 of 4 quarters required), ESSER E2 (1 of 4 quarters required), ESSER CP (1 of 1 quarter required), and ESSER D2 (1 of 3 quarters required). Questioned Costs: None. Context: Required expenditure reports for the projects expenditures were not timely filed for ESSER DE (4 of 4 quarters required), ESSER PL (2 of 4 quarters required), ESSER E2 (1 of 4 quarters required), ESSER CP (1 of 1 quarter required), and ESSER D2 (1 of 3 quarters required). Effect: Projects may not be properly monitored and funding could be frozen if reports are not timely filed. Cause: Lack of monitoring due dates of required reports. Recommendation: The District should schedule the due dates of all project reports in order to avoid late filings. Management's response: The District will review procedures to determine if added steps are needed to ensure timely grant expenditure reporting.
Criteria or specific requirement: The District is required to report grant expenditures in accordance with the Illinois State Board of Education State and Federal Grant Administration Policy, Fiscal Requirements, and Procedures in accordance with the Grant Accountability and Transparency Act (GATA), 30 ILCS 708/1 et seq and Title 2 Code of Federal Regulations Part 200 ? Uniform Administrative Requirements, Cost Principles, and Audit Requirements for Federal Awards. Per the State and Federal Grant Administration Policy, "all federal expenditure reports must be submitted on a cumulative (i.e., year-to-date), cash basis accounting method (i.e., expenses are recognized when they are paid). Outstanding obligations may be reported on June expenditure reports through the project end date ? even if the project ends after June. As grantees report cumulative cash basis expenditures via the Electronic Expenditure Reporting system, ISBE will reimburse the expenditures accordingly on a weekly basis. Grantees that submit expenditures only under this traditional reimbursement method can submit as frequent as weekly, but at a minimum, quarterly." Additionally, "expenditure reports are due 20 calendar days after the expenditure through date. Reports not received by the due date will result in project funds being frozen until an acceptable report is submitted." Condition: Quarterly expenditure reports for the projects expenditures were not timely filed for ARP ESSER - Homeless Children and Youth (1 of 2 quarters required). Questioned Costs: None. Context: Required expenditure reports for the projects expenditures were not timely filed for ARP ESSER - Homeless Children and Youth (1 of 2 quarters required). Effect- Projects may not be properly monitored and funding could be frozen if reports are not timely filed. Cause: Lack of monitoring due dates of required reports. Recommendation: The District should schedule the due dates of all projects in order to avoid late filings. Management's response: The District will review procedures to determine if added steps are needed to ensure timely grant expenditure reporting.
Criteria or specific requirement: Equipment/Real Property Management. Condition: The District budgeted for and included items in capital outlay objects in both the general ledger and ISBE expenditures that were below the District's capitalization threshold of $5,000. Questioned Costs: None. Context: The ESSER III grant included items below the capitalization threshold of $5,000 in capital outlay objects. Effect: The District did not follow it's capitalization threshold as outlined in its Fixed Asset Policy. Cause: This was an oversight by management. Recommendation: The District should only include items greater that $5,000 capitalization threshold in capital outlay objects in its general ledger, budgets, and expenditure reports filed with ISBE. Management's response: Management will communicate the District's capitalization policy and the proper recording of items that fall underneath the District's capitalization threshold with all District employees who are involved with grant writing, grant reporting, and posting to the general ledger system.
Criteria or specific requirement: The District is required to report grant expenditures in accordance with the Illinois State Board of Education State and Federal Grant Administration Policy, Fiscal Requirements, and Procedures in accordance with the Grant Accountability and Transparency Act (GATA), 30 ILCS 708/1 et seq and Title 2 Code of Federal Regulations Part 200?Uniform Administrative Requirements, Cost Principles, and Audit Requirements for Federal Awards. According to the State and Federal Grant Administration Policy, "Amendments are required when: There is a significant change in program scope (e.g., adding a new component - summer school); or the grantee intends to budget for more available funds (i.e., federal carryover); or the expense expenditures exceed the ISBE expenditure variance of 10 percent or $1,000 per an object total, whichever is greater without going over the total budget; or the grantee adds a new expenditure item." Additionally stated in the document "grantees that submit a state or federal budget amendment between the project begin and end date are not allowed to begin an activity, obligate or expend funds prior to the date of receipt at ISBE, provided the scope or intent of the approved project has not changed." Lastly stated in the document, "any amount reported in an expenditure account (cell) not budgeted or not within the acceptable expenditure variance, will not be accepted. Failure to submit an acceptable report will result in the delay of current payments. Expenditures and obligations in excess of the total project budget will not be allowed." Condition: Expenditures claimed on the project's cumulative June 30, 2022 quarterly report did not match the accounting records. Total expenditures reported in the district's accounting records were $2,128,915 and total expenditures reported on the ISBE June 30, 2022 expenditure report was $2,152,978. Difference of $24,063 was a result of a journal entry in which funds got moved within the grant from function 2210 object 300 to function 2230 object 300. The $24,063 was reported under function 2230 object 300 but was not removed from function 2210 object 300 on the June 30, 2022 expenditure report. The July 31, 2022 expenditure report, function 2210 object 300 was corrected by the District to report the proper amount of expenses so there will be no questioned cost, only an error in reporting. Questioned Costs: None. Context: Expenditures claimed on the project's cumulative June 30, 2022 quarterly report did not match the accounting records. Total expenditures reported in the district's accounting records were $2,128,915 and total expenditures reported on the ISBE June 30, 2022 expenditure report was $2,152,978. Difference of $24,063 was a result of a journal entry in which funds got moved within the grant from function 2210 object 300 to function 2230 object 300. The $24,063 was reported under function 2230 object 300 but was not removed from function 2210 object 300 on the June 30, 2022 expenditure report. The July 31, 2022 expenditure report, function 2210 object 300 was corrected by the District to report the proper amount of expenses so there will be no questioned cost, only an error in reporting. Effect: Expenditures on the cumulative quarterly report as of June 30, 2022, which should agree to expenses spent as of the fiscal year end, did not agree to the District's records. Cause: Discrepancy was due to a journal entry made in the general ledger. Recommendation: The District needs to ensure that all records accurately reflect the appropriate expenditures of the grant program and appropriate expenditure reports are filed. Management's response: The District is aware of the discrepancy and has already corrected the issue on their July 31, 2022 expenditure report filed with ISBE.
Criteria or specific requirement: Equipment/Real Property Management. Condition: The District budgeted for and included items in capital outlay objects in both the general ledger and ISBE expenditures that were below the District's capitalization threshold of $5,000. Questioned Costs: None. Context: The ESSER III grant included items below the capitalization threshold of $5,000 in capital outlay objects. Effect: The District did not follow it's capitalization threshold as outlined in its Fixed Asset Policy. Cause: This was an oversight by management. Recommendation: The District should only include items greater that $5,000 capitalization threshold in capital outlay objects in its general ledger, budgets, and expenditure reports filed with ISBE. Management's response: Management will communicate the District's capitalization policy and the proper recording of items that fall underneath the District's capitalization threshold with all District employees who are involved with grant writing, grant reporting, and posting to the general ledger system.
Criteria or specific requirement: The District is required to report grant expenditures in accordance with the Illinois State Board of Education State and Federal Grant Administration Policy, Fiscal Requirements, and Procedures in accordance with the Grant Accountability and Transparency Act (GATA), 30 ILCS 708/1 et seq and Title 2 Code of Federal Regulations Part 200?Uniform Administrative Requirements, Cost Principles, and Audit Requirements for Federal Awards. According to the State and Federal Grant Administration Policy, "Amendments are required when: There is a significant change in program scope (e.g., adding a new component - summer school); or the grantee intends to budget for more available funds (i.e., federal carryover); or the expense expenditures exceed the ISBE expenditure variance of 10 percent or $1,000 per an object total, whichever is greater without going over the total budget; or the grantee adds a new expenditure item." Additionally stated in the document "grantees that submit a state or federal budget amendment between the project begin and end date are not allowed to begin an activity, obligate or expend funds prior to the date of receipt at ISBE, provided the scope or intent of the approved project has not changed." Lastly stated in the document, "any amount reported in an expenditure account (cell) not budgeted or not within the acceptable expenditure variance, will not be accepted. Failure to submit an acceptable report will result in the delay of current payments. Expenditures and obligations in excess of the total project budget will not be allowed." Condition: Expenditures claimed on the project's cumulative June 30, 2022 quarterly report did not match the accounting records. Total expenditures reported in the district's accounting records were $2,128,915 and total expenditures reported on the ISBE June 30, 2022 expenditure report was $2,152,978. Difference of $24,063 was a result of a journal entry in which funds got moved within the grant from function 2210 object 300 to function 2230 object 300. The $24,063 was reported under function 2230 object 300 but was not removed from function 2210 object 300 on the June 30, 2022 expenditure report. The July 31, 2022 expenditure report, function 2210 object 300 was corrected by the District to report the proper amount of expenses so there will be no questioned cost, only an error in reporting. Questioned Costs: None. Context: Expenditures claimed on the project's cumulative June 30, 2022 quarterly report did not match the accounting records. Total expenditures reported in the district's accounting records were $2,128,915 and total expenditures reported on the ISBE June 30, 2022 expenditure report was $2,152,978. Difference of $24,063 was a result of a journal entry in which funds got moved within the grant from function 2210 object 300 to function 2230 object 300. The $24,063 was reported under function 2230 object 300 but was not removed from function 2210 object 300 on the June 30, 2022 expenditure report. The July 31, 2022 expenditure report, function 2210 object 300 was corrected by the District to report the proper amount of expenses so there will be no questioned cost, only an error in reporting. Effect: Expenditures on the cumulative quarterly report as of June 30, 2022, which should agree to expenses spent as of the fiscal year end, did not agree to the District's records. Cause: Discrepancy was due to a journal entry made in the general ledger. Recommendation: The District needs to ensure that all records accurately reflect the appropriate expenditures of the grant program and appropriate expenditure reports are filed. Management's response: The District is aware of the discrepancy and has already corrected the issue on their July 31, 2022 expenditure report filed with ISBE.
Criteria or specific requirement: The District is required to report grant expenditures in accordance with the Illinois State Board of Education State and Federal Grant Administration Policy, Fiscal Requirements, and Procedures in accordance with the Grant Accountability and Transparency Act (GATA), 30 ILCS 708/1 et seq and Title 2 Code of Federal Regulations Part 200 ? Uniform Administrative Requirements, Cost Principles, and Audit Requirements for Federal Awards. Per the State and Federal Grant Administration Policy, "all federal expenditure reports must be submitted on a cumulative (i.e., year-to-date), cash basis accounting method (i.e., expenses are recognized when they are paid). Outstanding obligations may be reported on June expenditure reports through the project end date ? even if the project ends after June. As grantees report cumulative cash basis expenditures via the Electronic Expenditure Reporting system, ISBE will reimburse the expenditures accordingly on a weekly basis. Grantees that submit expenditures only under this traditional reimbursement method can submit as frequent as weekly, but at a minimum, quarterly." Additionally, "expenditure reports are due 20 calendar days after the expenditure through date. Reports not received by the due date will result in project funds being frozen until an acceptable report is submitted." Condition: Quarterly expenditure reports for the projects expenditures were not timely filed for ESSER DE (4 of 4 quarters required), ESSER PL (2 of 4 quarters required), ESSER E2 (1 of 4 quarters required), ESSER CP (1 of 1 quarter required), and ESSER D2 (1 of 3 quarters required). Questioned Costs: None. Context: Required expenditure reports for the projects expenditures were not timely filed for ESSER DE (4 of 4 quarters required), ESSER PL (2 of 4 quarters required), ESSER E2 (1 of 4 quarters required), ESSER CP (1 of 1 quarter required), and ESSER D2 (1 of 3 quarters required). Effect: Projects may not be properly monitored and funding could be frozen if reports are not timely filed. Cause: Lack of monitoring due dates of required reports. Recommendation: The District should schedule the due dates of all project reports in order to avoid late filings. Management's response: The District will review procedures to determine if added steps are needed to ensure timely grant expenditure reporting.
Criteria or specific requirement: The District is required to report grant expenditures in accordance with the Illinois State Board of Education State and Federal Grant Administration Policy, Fiscal Requirements, and Procedures in accordance with the Grant Accountability and Transparency Act (GATA), 30 ILCS 708/1 et seq and Title 2 Code of Federal Regulations Part 200 ? Uniform Administrative Requirements, Cost Principles, and Audit Requirements for Federal Awards. Per the State and Federal Grant Administration Policy, "all federal expenditure reports must be submitted on a cumulative (i.e., year-to-date), cash basis accounting method (i.e., expenses are recognized when they are paid). Outstanding obligations may be reported on June expenditure reports through the project end date ? even if the project ends after June. As grantees report cumulative cash basis expenditures via the Electronic Expenditure Reporting system, ISBE will reimburse the expenditures accordingly on a weekly basis. Grantees that submit expenditures only under this traditional reimbursement method can submit as frequent as weekly, but at a minimum, quarterly." Additionally, "expenditure reports are due 20 calendar days after the expenditure through date. Reports not received by the due date will result in project funds being frozen until an acceptable report is submitted." Condition: Quarterly expenditure reports for the projects expenditures were not timely filed for ESSER DE (4 of 4 quarters required), ESSER PL (2 of 4 quarters required), ESSER E2 (1 of 4 quarters required), ESSER CP (1 of 1 quarter required), and ESSER D2 (1 of 3 quarters required). Questioned Costs: None. Context: Required expenditure reports for the projects expenditures were not timely filed for ESSER DE (4 of 4 quarters required), ESSER PL (2 of 4 quarters required), ESSER E2 (1 of 4 quarters required), ESSER CP (1 of 1 quarter required), and ESSER D2 (1 of 3 quarters required). Effect: Projects may not be properly monitored and funding could be frozen if reports are not timely filed. Cause: Lack of monitoring due dates of required reports. Recommendation: The District should schedule the due dates of all project reports in order to avoid late filings. Management's response: The District will review procedures to determine if added steps are needed to ensure timely grant expenditure reporting.