Audit 290195

FY End
2023-06-30
Total Expended
$6.21M
Findings
26
Programs
10
Year: 2023 Accepted: 2024-02-13
Auditor: Eccezion

Organization Exclusion Status:

Checking exclusion status...

Findings

ID Ref Severity Repeat Requirement
367009 2023-004 Significant Deficiency - N
367010 2023-004 Significant Deficiency - N
367011 2023-004 Significant Deficiency - N
367012 2023-005 - - N
367013 2023-005 - - N
367014 2023-005 - - N
367015 2023-006 Significant Deficiency - L
367016 2023-006 Significant Deficiency - L
367017 2023-006 Significant Deficiency - L
367018 2023-007 Significant Deficiency - L
367019 2023-007 Significant Deficiency - L
367020 2023-007 Significant Deficiency - L
367021 2023-007 Significant Deficiency - L
943451 2023-004 Significant Deficiency - N
943452 2023-004 Significant Deficiency - N
943453 2023-004 Significant Deficiency - N
943454 2023-005 - - N
943455 2023-005 - - N
943456 2023-005 - - N
943457 2023-006 Significant Deficiency - L
943458 2023-006 Significant Deficiency - L
943459 2023-006 Significant Deficiency - L
943460 2023-007 Significant Deficiency - L
943461 2023-007 Significant Deficiency - L
943462 2023-007 Significant Deficiency - L
943463 2023-007 Significant Deficiency - L

Programs

ALN Program Spent Major Findings
84.010 Title I Grants to Local Educational Agencies $512,396 - 0
93.778 Medical Assistance Program $204,042 - 0
84.027 Special Education_grants to States $155,195 Yes 1
10.553 School Breakfast Program $134,128 Yes 2
84.367 Improving Teacher Quality State Grants $133,018 - 0
10.555 National School Lunch Program $128,639 Yes 2
84.365 English Language Acquisition State Grants $60,994 - 0
84.173 Special Education_preschool Grants $16,998 Yes 1
84.425 Education Stabilization Fund $16,703 Yes 1
84.424 Student Support and Academic Enrichment Program $9,750 - 0

Contacts

Name Title Type
PC6WGCJJQHL6 Jeff Schubert Auditee
8153857210 Kevin Smith Auditor
No contacts on file

Notes to SEFA

Title: BASIS OF PRESENTATION Accounting Policies: Expenditures reported on the Schedule are reported on the cash basis of accounting. Such expenditures are recognized following the cost principles contained in the Uniform Guidance, wherein certain types of expenditures are not allowable or are limited as to reimbursement. De Minimis Rate Used: N Rate Explanation: Costs are charged as direct costs The Schedule of Expenditures of Federal Awards includes the federal award activity of McHenry Community Consolidated School District No. 15 under programs of the federal government for the year ended June 30, 2023. The information in this Schedule is presented in accordance with requirements of the Title 2 U.S. Code of Federal Regulations Part 200, Uniform Administrative Requirements, Cost Principles, and Audit Requirements for Federal Awards (Uniform Guidance). Therefore, some amounts presented in the schedule may offer from amounts presented in, and used in the preparation of, the basic financial statements.
Title: SUMMARY OF ACCOUNTING POLICIES Accounting Policies: Expenditures reported on the Schedule are reported on the cash basis of accounting. Such expenditures are recognized following the cost principles contained in the Uniform Guidance, wherein certain types of expenditures are not allowable or are limited as to reimbursement. De Minimis Rate Used: N Rate Explanation: Costs are charged as direct costs Expenditures reported on the Schedule are reported on the cash basis of accounting. Such expenditures are recognized following the cost principles contained in the Uniform Guidance, wherein certain types of expenditures are not allowable or are limited as to reimbursement.
Title: INDIRECT COST RATE Accounting Policies: Expenditures reported on the Schedule are reported on the cash basis of accounting. Such expenditures are recognized following the cost principles contained in the Uniform Guidance, wherein certain types of expenditures are not allowable or are limited as to reimbursement. De Minimis Rate Used: N Rate Explanation: Costs are charged as direct costs The District has elected not to use the 10 percent de minimis indirect rate as allowed under the Uniform Guidance.
Title: SUBRECIPIENTS Accounting Policies: Expenditures reported on the Schedule are reported on the cash basis of accounting. Such expenditures are recognized following the cost principles contained in the Uniform Guidance, wherein certain types of expenditures are not allowable or are limited as to reimbursement. De Minimis Rate Used: N Rate Explanation: Costs are charged as direct costs The District did not provide federal awards to subrecipients during the year ended June 30, 2023.
Title: FEDERAL LOANS Accounting Policies: Expenditures reported on the Schedule are reported on the cash basis of accounting. Such expenditures are recognized following the cost principles contained in the Uniform Guidance, wherein certain types of expenditures are not allowable or are limited as to reimbursement. De Minimis Rate Used: N Rate Explanation: Costs are charged as direct costs There were no federal loans or loan guarantees outstanding at year end.
Title: DONATED PERSONAL PROTECTIVE EQUIPMENT (PPE) (UNAUDITED) Accounting Policies: Expenditures reported on the Schedule are reported on the cash basis of accounting. Such expenditures are recognized following the cost principles contained in the Uniform Guidance, wherein certain types of expenditures are not allowable or are limited as to reimbursement. De Minimis Rate Used: N Rate Explanation: Costs are charged as direct costs The District was not the recipient of any federally donated PPE during the current fiscal year.

Finding Details

1. FINDING NUMBER: 2023 - 004 2. THIS FINDING IS: New 3. Federal Program Name and Year: Child Nutrition Cluster 4. Project No.: 4299-00, 4210-00, 4210-BT, 4210-SC, 4220-00 5. CFDA No.: 10.555, 10.553 6. Passed Through: Illinois State Board of Education 7. Federal Agency: U.S. Department of Agriculture 8. Criteria or specific requirement (including statutory, regulatory, or other citation): For the 3% verifications of applications, the District is required to select error prone applications for households receiving free or reduced lunch as determined by October 1st. They then request documentation on the household income to verify the information provided on the application was correct and the determination does not need to be changed. If the documentation determines the original application determination was incorrect, they are to change the student's status of free or reduced. 9. Condition: In a population of 4 error prone applications selected for verification, exceptions were noted on 2 of the applications selected for verification. One of the exceptions stemmed from verification documentation received determined the student should be changed from reduced lunch to paid lunch and this change was not made. The other exception also resulted from verification documentation received determined the student should be changed from free lunch to reduced lunch and this change was not made. 10. Questioned Costs: N/A 11. Context: 4 verification forms were selected from a population of 4. 12. Effect: Students received free/reduced lunch for the year when they should have been switched to reduced/paid lunch. 13. Cause: The District did not correctly determine the free, reduced, or paid status based on documentation received during the verification process. 14. Recommendation: The District should implement/follow procedures to ensure a student's free or reduced lunch status is properly updated during the application verification process. 15. Management's response: Management will implement review procedures to ensure the free or reduced lunch status is properly calculated and updated during the application verification process.
1. FINDING NUMBER: 2023 - 004 2. THIS FINDING IS: New 3. Federal Program Name and Year: Child Nutrition Cluster 4. Project No.: 4299-00, 4210-00, 4210-BT, 4210-SC, 4220-00 5. CFDA No.: 10.555, 10.553 6. Passed Through: Illinois State Board of Education 7. Federal Agency: U.S. Department of Agriculture 8. Criteria or specific requirement (including statutory, regulatory, or other citation): For the 3% verifications of applications, the District is required to select error prone applications for households receiving free or reduced lunch as determined by October 1st. They then request documentation on the household income to verify the information provided on the application was correct and the determination does not need to be changed. If the documentation determines the original application determination was incorrect, they are to change the student's status of free or reduced. 9. Condition: In a population of 4 error prone applications selected for verification, exceptions were noted on 2 of the applications selected for verification. One of the exceptions stemmed from verification documentation received determined the student should be changed from reduced lunch to paid lunch and this change was not made. The other exception also resulted from verification documentation received determined the student should be changed from free lunch to reduced lunch and this change was not made. 10. Questioned Costs: N/A 11. Context: 4 verification forms were selected from a population of 4. 12. Effect: Students received free/reduced lunch for the year when they should have been switched to reduced/paid lunch. 13. Cause: The District did not correctly determine the free, reduced, or paid status based on documentation received during the verification process. 14. Recommendation: The District should implement/follow procedures to ensure a student's free or reduced lunch status is properly updated during the application verification process. 15. Management's response: Management will implement review procedures to ensure the free or reduced lunch status is properly calculated and updated during the application verification process.
1. FINDING NUMBER: 2023 - 004 2. THIS FINDING IS: New 3. Federal Program Name and Year: Child Nutrition Cluster 4. Project No.: 4299-00, 4210-00, 4210-BT, 4210-SC, 4220-00 5. CFDA No.: 10.555, 10.553 6. Passed Through: Illinois State Board of Education 7. Federal Agency: U.S. Department of Agriculture 8. Criteria or specific requirement (including statutory, regulatory, or other citation): For the 3% verifications of applications, the District is required to select error prone applications for households receiving free or reduced lunch as determined by October 1st. They then request documentation on the household income to verify the information provided on the application was correct and the determination does not need to be changed. If the documentation determines the original application determination was incorrect, they are to change the student's status of free or reduced. 9. Condition: In a population of 4 error prone applications selected for verification, exceptions were noted on 2 of the applications selected for verification. One of the exceptions stemmed from verification documentation received determined the student should be changed from reduced lunch to paid lunch and this change was not made. The other exception also resulted from verification documentation received determined the student should be changed from free lunch to reduced lunch and this change was not made. 10. Questioned Costs: N/A 11. Context: 4 verification forms were selected from a population of 4. 12. Effect: Students received free/reduced lunch for the year when they should have been switched to reduced/paid lunch. 13. Cause: The District did not correctly determine the free, reduced, or paid status based on documentation received during the verification process. 14. Recommendation: The District should implement/follow procedures to ensure a student's free or reduced lunch status is properly updated during the application verification process. 15. Management's response: Management will implement review procedures to ensure the free or reduced lunch status is properly calculated and updated during the application verification process.
1. FINDING NUMBER: 2023 - 005 2. THIS FINDING IS: New 3. Federal Program Name and Year: Child Nutrition Cluster 4. Project No.: 4299-00, 4210-00, 4210-BT, 4210-SC, 4220-00 5. CFDA No.: 10.555, 10.553 6. Passed Through: Illinois State Board of Education 7. Federal Agency: U.S. Department of Agriculture 8. Criteria or specific requirement (including statutory, regulatory, or other citation): For the 3% verification of applications, the District needs to ensure this process is completed by the November 15th due date. 9. Condition: The District did not complete the 3% verification of applications procedures by the due date. 10. Questioned Costs: N/A 11. Context: The District missed the deadline pertaining to the completion of 3% verification of applications. 12. Effect: The District is not in compliance with the completion of the verification process. 13. Cause: The District was not using the correct due dates and timelines on verification letters being sent to families chosen for the 3% verification process. 14. Recommendation: We recommend the District uses ISBE's recommended due dates and timelines for verification letters being sent to families to ensure the 3% application verification process is completed before the November 15th due date. 15. Management's response: Management will update the timelines used on the verification letters being sent to families so they are in line with what ISBE recommends so that verification testing can be completed by the deadline.
1. FINDING NUMBER: 2023 - 005 2. THIS FINDING IS: New 3. Federal Program Name and Year: Child Nutrition Cluster 4. Project No.: 4299-00, 4210-00, 4210-BT, 4210-SC, 4220-00 5. CFDA No.: 10.555, 10.553 6. Passed Through: Illinois State Board of Education 7. Federal Agency: U.S. Department of Agriculture 8. Criteria or specific requirement (including statutory, regulatory, or other citation): For the 3% verification of applications, the District needs to ensure this process is completed by the November 15th due date. 9. Condition: The District did not complete the 3% verification of applications procedures by the due date. 10. Questioned Costs: N/A 11. Context: The District missed the deadline pertaining to the completion of 3% verification of applications. 12. Effect: The District is not in compliance with the completion of the verification process. 13. Cause: The District was not using the correct due dates and timelines on verification letters being sent to families chosen for the 3% verification process. 14. Recommendation: We recommend the District uses ISBE's recommended due dates and timelines for verification letters being sent to families to ensure the 3% application verification process is completed before the November 15th due date. 15. Management's response: Management will update the timelines used on the verification letters being sent to families so they are in line with what ISBE recommends so that verification testing can be completed by the deadline.
1. FINDING NUMBER: 2023 - 005 2. THIS FINDING IS: New 3. Federal Program Name and Year: Child Nutrition Cluster 4. Project No.: 4299-00, 4210-00, 4210-BT, 4210-SC, 4220-00 5. CFDA No.: 10.555, 10.553 6. Passed Through: Illinois State Board of Education 7. Federal Agency: U.S. Department of Agriculture 8. Criteria or specific requirement (including statutory, regulatory, or other citation): For the 3% verification of applications, the District needs to ensure this process is completed by the November 15th due date. 9. Condition: The District did not complete the 3% verification of applications procedures by the due date. 10. Questioned Costs: N/A 11. Context: The District missed the deadline pertaining to the completion of 3% verification of applications. 12. Effect: The District is not in compliance with the completion of the verification process. 13. Cause: The District was not using the correct due dates and timelines on verification letters being sent to families chosen for the 3% verification process. 14. Recommendation: We recommend the District uses ISBE's recommended due dates and timelines for verification letters being sent to families to ensure the 3% application verification process is completed before the November 15th due date. 15. Management's response: Management will update the timelines used on the verification letters being sent to families so they are in line with what ISBE recommends so that verification testing can be completed by the deadline.
1. FINDING NUMBER: 2023 - 006 2. THIS FINDING IS: New 3. Federal Program Name and Year: Elementary and Secondary Emergency Relief Fund 4. Project No.: 4998-E2, 4998-E3, 4998-HL 5. CFDA No.: 84.425 6. Passed Through: Illinois State Board of Education 7. Federal Agency: U.S. Department of Education 8. Criteria or specific requirement (including statutory, regulatory, or other citation): Recipients are required to submit accurate data to the state outlining expenditures by specific categories and object codes. The District is also required to document their review and approval process for quarterly expenditure reports. 9. Condition: Data submitted to the State showed expenditures categorized differently from previously filed expenditure reports. Review and approval of quarterly expenditure reports were not documented, and the same person preparing the reports is submitting them. 10. Questioned Costs: None 11. Context: A clerical error caused amounts to be categorized incorrectly for the ESSER LEA Data Collection Form submission. No review process of quarterly expenditure reports is documented. 12. Effect: Data was not accurately submitted. Expense reports are being submitted without documented second review. The Districts review and approval process is not in compliance. 13. Cause: District did not have adequate procedures implemented to detect or prevent this error. The same person preparing the expenditure reports is submitting them, there is no documented second reviewer. 14. Recommendation: District should develop and implement procedures to reconcile amounts for annual reports to periodic expenditure reports, and have reports reviewed by a second person prior to submission. 15. Management's response: Management will implement procedures including reconciling amounts between underlying data, quarterly expenditure reports and annual data collection reports. Additionally, the review of quarterly expenditure reports will be documented before submission.
1. FINDING NUMBER: 2023 - 006 2. THIS FINDING IS: New 3. Federal Program Name and Year: Elementary and Secondary Emergency Relief Fund 4. Project No.: 4998-E2, 4998-E3, 4998-HL 5. CFDA No.: 84.425 6. Passed Through: Illinois State Board of Education 7. Federal Agency: U.S. Department of Education 8. Criteria or specific requirement (including statutory, regulatory, or other citation): Recipients are required to submit accurate data to the state outlining expenditures by specific categories and object codes. The District is also required to document their review and approval process for quarterly expenditure reports. 9. Condition: Data submitted to the State showed expenditures categorized differently from previously filed expenditure reports. Review and approval of quarterly expenditure reports were not documented, and the same person preparing the reports is submitting them. 10. Questioned Costs: None 11. Context: A clerical error caused amounts to be categorized incorrectly for the ESSER LEA Data Collection Form submission. No review process of quarterly expenditure reports is documented. 12. Effect: Data was not accurately submitted. Expense reports are being submitted without documented second review. The Districts review and approval process is not in compliance. 13. Cause: District did not have adequate procedures implemented to detect or prevent this error. The same person preparing the expenditure reports is submitting them, there is no documented second reviewer. 14. Recommendation: District should develop and implement procedures to reconcile amounts for annual reports to periodic expenditure reports, and have reports reviewed by a second person prior to submission. 15. Management's response: Management will implement procedures including reconciling amounts between underlying data, quarterly expenditure reports and annual data collection reports. Additionally, the review of quarterly expenditure reports will be documented before submission.
1. FINDING NUMBER: 2023 - 006 2. THIS FINDING IS: New 3. Federal Program Name and Year: Elementary and Secondary Emergency Relief Fund 4. Project No.: 4998-E2, 4998-E3, 4998-HL 5. CFDA No.: 84.425 6. Passed Through: Illinois State Board of Education 7. Federal Agency: U.S. Department of Education 8. Criteria or specific requirement (including statutory, regulatory, or other citation): Recipients are required to submit accurate data to the state outlining expenditures by specific categories and object codes. The District is also required to document their review and approval process for quarterly expenditure reports. 9. Condition: Data submitted to the State showed expenditures categorized differently from previously filed expenditure reports. Review and approval of quarterly expenditure reports were not documented, and the same person preparing the reports is submitting them. 10. Questioned Costs: None 11. Context: A clerical error caused amounts to be categorized incorrectly for the ESSER LEA Data Collection Form submission. No review process of quarterly expenditure reports is documented. 12. Effect: Data was not accurately submitted. Expense reports are being submitted without documented second review. The Districts review and approval process is not in compliance. 13. Cause: District did not have adequate procedures implemented to detect or prevent this error. The same person preparing the expenditure reports is submitting them, there is no documented second reviewer. 14. Recommendation: District should develop and implement procedures to reconcile amounts for annual reports to periodic expenditure reports, and have reports reviewed by a second person prior to submission. 15. Management's response: Management will implement procedures including reconciling amounts between underlying data, quarterly expenditure reports and annual data collection reports. Additionally, the review of quarterly expenditure reports will be documented before submission.
1. FINDING NUMBER: 2023 - 007 2. THIS FINDING IS: New 3. Federal Program Name and Year: Special Education Cluster 4. Project No.: 4620-00, 4998-ID, 4600-00, 4998-PS 5. CFDA No.: 84.027, 84.027X, 84.173, 84.173X 6. Passed Through: Illinois State Board of Education 7. Federal Agency: U.S. Department of Education 8. Criteria or specific requirement (including statutory, regulatory, or other citation): Management is responsible for accurately filing expenditure reports and retaining documentation to support claims. 9. Condition: Expenditure reports are not being properly reviewed and tied out to the General Ledger accounts being used to track special education grant expenses. The District was unable to provide documentation showing which specific expenditures were submitted for reimbursement. This resulted in not having sufficient expenditures documented for the Special Education - Preschool grant (23-4600-00) which in turn resulted in questioned costs noted below. 10. Questioned Costs: $174 11. Context: The District was unable to provide reports accurately supporting the amounts that were claimed on quarterly expenditure reports for all grants within the cluster. 12. Effect: The District could potentially over or underclaim expenditure reimbursements. 13. Cause: The District does not have procedures implemented to properly review the expenditure claims and match it to the General Ledger accounts set up to track grant expenditures. 14. Recommendation: The District should implement review procedures to ensure expenditure reports are accurately filled out and have adequate documentation supporting which expenditures were submitted for reimbursement. 15. Management's response: Management will implement a process to properly track grant expenditures and also create an improved review process.
1. FINDING NUMBER: 2023 - 007 2. THIS FINDING IS: New 3. Federal Program Name and Year: Special Education Cluster 4. Project No.: 4620-00, 4998-ID, 4600-00, 4998-PS 5. CFDA No.: 84.027, 84.027X, 84.173, 84.173X 6. Passed Through: Illinois State Board of Education 7. Federal Agency: U.S. Department of Education 8. Criteria or specific requirement (including statutory, regulatory, or other citation): Management is responsible for accurately filing expenditure reports and retaining documentation to support claims. 9. Condition: Expenditure reports are not being properly reviewed and tied out to the General Ledger accounts being used to track special education grant expenses. The District was unable to provide documentation showing which specific expenditures were submitted for reimbursement. This resulted in not having sufficient expenditures documented for the Special Education - Preschool grant (23-4600-00) which in turn resulted in questioned costs noted below. 10. Questioned Costs: $174 11. Context: The District was unable to provide reports accurately supporting the amounts that were claimed on quarterly expenditure reports for all grants within the cluster. 12. Effect: The District could potentially over or underclaim expenditure reimbursements. 13. Cause: The District does not have procedures implemented to properly review the expenditure claims and match it to the General Ledger accounts set up to track grant expenditures. 14. Recommendation: The District should implement review procedures to ensure expenditure reports are accurately filled out and have adequate documentation supporting which expenditures were submitted for reimbursement. 15. Management's response: Management will implement a process to properly track grant expenditures and also create an improved review process.
1. FINDING NUMBER: 2023 - 007 2. THIS FINDING IS: New 3. Federal Program Name and Year: Special Education Cluster 4. Project No.: 4620-00, 4998-ID, 4600-00, 4998-PS 5. CFDA No.: 84.027, 84.027X, 84.173, 84.173X 6. Passed Through: Illinois State Board of Education 7. Federal Agency: U.S. Department of Education 8. Criteria or specific requirement (including statutory, regulatory, or other citation): Management is responsible for accurately filing expenditure reports and retaining documentation to support claims. 9. Condition: Expenditure reports are not being properly reviewed and tied out to the General Ledger accounts being used to track special education grant expenses. The District was unable to provide documentation showing which specific expenditures were submitted for reimbursement. This resulted in not having sufficient expenditures documented for the Special Education - Preschool grant (23-4600-00) which in turn resulted in questioned costs noted below. 10. Questioned Costs: $174 11. Context: The District was unable to provide reports accurately supporting the amounts that were claimed on quarterly expenditure reports for all grants within the cluster. 12. Effect: The District could potentially over or underclaim expenditure reimbursements. 13. Cause: The District does not have procedures implemented to properly review the expenditure claims and match it to the General Ledger accounts set up to track grant expenditures. 14. Recommendation: The District should implement review procedures to ensure expenditure reports are accurately filled out and have adequate documentation supporting which expenditures were submitted for reimbursement. 15. Management's response: Management will implement a process to properly track grant expenditures and also create an improved review process.
1. FINDING NUMBER: 2023 - 007 2. THIS FINDING IS: New 3. Federal Program Name and Year: Special Education Cluster 4. Project No.: 4620-00, 4998-ID, 4600-00, 4998-PS 5. CFDA No.: 84.027, 84.027X, 84.173, 84.173X 6. Passed Through: Illinois State Board of Education 7. Federal Agency: U.S. Department of Education 8. Criteria or specific requirement (including statutory, regulatory, or other citation): Management is responsible for accurately filing expenditure reports and retaining documentation to support claims. 9. Condition: Expenditure reports are not being properly reviewed and tied out to the General Ledger accounts being used to track special education grant expenses. The District was unable to provide documentation showing which specific expenditures were submitted for reimbursement. This resulted in not having sufficient expenditures documented for the Special Education - Preschool grant (23-4600-00) which in turn resulted in questioned costs noted below. 10. Questioned Costs: $174 11. Context: The District was unable to provide reports accurately supporting the amounts that were claimed on quarterly expenditure reports for all grants within the cluster. 12. Effect: The District could potentially over or underclaim expenditure reimbursements. 13. Cause: The District does not have procedures implemented to properly review the expenditure claims and match it to the General Ledger accounts set up to track grant expenditures. 14. Recommendation: The District should implement review procedures to ensure expenditure reports are accurately filled out and have adequate documentation supporting which expenditures were submitted for reimbursement. 15. Management's response: Management will implement a process to properly track grant expenditures and also create an improved review process.
1. FINDING NUMBER: 2023 - 004 2. THIS FINDING IS: New 3. Federal Program Name and Year: Child Nutrition Cluster 4. Project No.: 4299-00, 4210-00, 4210-BT, 4210-SC, 4220-00 5. CFDA No.: 10.555, 10.553 6. Passed Through: Illinois State Board of Education 7. Federal Agency: U.S. Department of Agriculture 8. Criteria or specific requirement (including statutory, regulatory, or other citation): For the 3% verifications of applications, the District is required to select error prone applications for households receiving free or reduced lunch as determined by October 1st. They then request documentation on the household income to verify the information provided on the application was correct and the determination does not need to be changed. If the documentation determines the original application determination was incorrect, they are to change the student's status of free or reduced. 9. Condition: In a population of 4 error prone applications selected for verification, exceptions were noted on 2 of the applications selected for verification. One of the exceptions stemmed from verification documentation received determined the student should be changed from reduced lunch to paid lunch and this change was not made. The other exception also resulted from verification documentation received determined the student should be changed from free lunch to reduced lunch and this change was not made. 10. Questioned Costs: N/A 11. Context: 4 verification forms were selected from a population of 4. 12. Effect: Students received free/reduced lunch for the year when they should have been switched to reduced/paid lunch. 13. Cause: The District did not correctly determine the free, reduced, or paid status based on documentation received during the verification process. 14. Recommendation: The District should implement/follow procedures to ensure a student's free or reduced lunch status is properly updated during the application verification process. 15. Management's response: Management will implement review procedures to ensure the free or reduced lunch status is properly calculated and updated during the application verification process.
1. FINDING NUMBER: 2023 - 004 2. THIS FINDING IS: New 3. Federal Program Name and Year: Child Nutrition Cluster 4. Project No.: 4299-00, 4210-00, 4210-BT, 4210-SC, 4220-00 5. CFDA No.: 10.555, 10.553 6. Passed Through: Illinois State Board of Education 7. Federal Agency: U.S. Department of Agriculture 8. Criteria or specific requirement (including statutory, regulatory, or other citation): For the 3% verifications of applications, the District is required to select error prone applications for households receiving free or reduced lunch as determined by October 1st. They then request documentation on the household income to verify the information provided on the application was correct and the determination does not need to be changed. If the documentation determines the original application determination was incorrect, they are to change the student's status of free or reduced. 9. Condition: In a population of 4 error prone applications selected for verification, exceptions were noted on 2 of the applications selected for verification. One of the exceptions stemmed from verification documentation received determined the student should be changed from reduced lunch to paid lunch and this change was not made. The other exception also resulted from verification documentation received determined the student should be changed from free lunch to reduced lunch and this change was not made. 10. Questioned Costs: N/A 11. Context: 4 verification forms were selected from a population of 4. 12. Effect: Students received free/reduced lunch for the year when they should have been switched to reduced/paid lunch. 13. Cause: The District did not correctly determine the free, reduced, or paid status based on documentation received during the verification process. 14. Recommendation: The District should implement/follow procedures to ensure a student's free or reduced lunch status is properly updated during the application verification process. 15. Management's response: Management will implement review procedures to ensure the free or reduced lunch status is properly calculated and updated during the application verification process.
1. FINDING NUMBER: 2023 - 004 2. THIS FINDING IS: New 3. Federal Program Name and Year: Child Nutrition Cluster 4. Project No.: 4299-00, 4210-00, 4210-BT, 4210-SC, 4220-00 5. CFDA No.: 10.555, 10.553 6. Passed Through: Illinois State Board of Education 7. Federal Agency: U.S. Department of Agriculture 8. Criteria or specific requirement (including statutory, regulatory, or other citation): For the 3% verifications of applications, the District is required to select error prone applications for households receiving free or reduced lunch as determined by October 1st. They then request documentation on the household income to verify the information provided on the application was correct and the determination does not need to be changed. If the documentation determines the original application determination was incorrect, they are to change the student's status of free or reduced. 9. Condition: In a population of 4 error prone applications selected for verification, exceptions were noted on 2 of the applications selected for verification. One of the exceptions stemmed from verification documentation received determined the student should be changed from reduced lunch to paid lunch and this change was not made. The other exception also resulted from verification documentation received determined the student should be changed from free lunch to reduced lunch and this change was not made. 10. Questioned Costs: N/A 11. Context: 4 verification forms were selected from a population of 4. 12. Effect: Students received free/reduced lunch for the year when they should have been switched to reduced/paid lunch. 13. Cause: The District did not correctly determine the free, reduced, or paid status based on documentation received during the verification process. 14. Recommendation: The District should implement/follow procedures to ensure a student's free or reduced lunch status is properly updated during the application verification process. 15. Management's response: Management will implement review procedures to ensure the free or reduced lunch status is properly calculated and updated during the application verification process.
1. FINDING NUMBER: 2023 - 005 2. THIS FINDING IS: New 3. Federal Program Name and Year: Child Nutrition Cluster 4. Project No.: 4299-00, 4210-00, 4210-BT, 4210-SC, 4220-00 5. CFDA No.: 10.555, 10.553 6. Passed Through: Illinois State Board of Education 7. Federal Agency: U.S. Department of Agriculture 8. Criteria or specific requirement (including statutory, regulatory, or other citation): For the 3% verification of applications, the District needs to ensure this process is completed by the November 15th due date. 9. Condition: The District did not complete the 3% verification of applications procedures by the due date. 10. Questioned Costs: N/A 11. Context: The District missed the deadline pertaining to the completion of 3% verification of applications. 12. Effect: The District is not in compliance with the completion of the verification process. 13. Cause: The District was not using the correct due dates and timelines on verification letters being sent to families chosen for the 3% verification process. 14. Recommendation: We recommend the District uses ISBE's recommended due dates and timelines for verification letters being sent to families to ensure the 3% application verification process is completed before the November 15th due date. 15. Management's response: Management will update the timelines used on the verification letters being sent to families so they are in line with what ISBE recommends so that verification testing can be completed by the deadline.
1. FINDING NUMBER: 2023 - 005 2. THIS FINDING IS: New 3. Federal Program Name and Year: Child Nutrition Cluster 4. Project No.: 4299-00, 4210-00, 4210-BT, 4210-SC, 4220-00 5. CFDA No.: 10.555, 10.553 6. Passed Through: Illinois State Board of Education 7. Federal Agency: U.S. Department of Agriculture 8. Criteria or specific requirement (including statutory, regulatory, or other citation): For the 3% verification of applications, the District needs to ensure this process is completed by the November 15th due date. 9. Condition: The District did not complete the 3% verification of applications procedures by the due date. 10. Questioned Costs: N/A 11. Context: The District missed the deadline pertaining to the completion of 3% verification of applications. 12. Effect: The District is not in compliance with the completion of the verification process. 13. Cause: The District was not using the correct due dates and timelines on verification letters being sent to families chosen for the 3% verification process. 14. Recommendation: We recommend the District uses ISBE's recommended due dates and timelines for verification letters being sent to families to ensure the 3% application verification process is completed before the November 15th due date. 15. Management's response: Management will update the timelines used on the verification letters being sent to families so they are in line with what ISBE recommends so that verification testing can be completed by the deadline.
1. FINDING NUMBER: 2023 - 005 2. THIS FINDING IS: New 3. Federal Program Name and Year: Child Nutrition Cluster 4. Project No.: 4299-00, 4210-00, 4210-BT, 4210-SC, 4220-00 5. CFDA No.: 10.555, 10.553 6. Passed Through: Illinois State Board of Education 7. Federal Agency: U.S. Department of Agriculture 8. Criteria or specific requirement (including statutory, regulatory, or other citation): For the 3% verification of applications, the District needs to ensure this process is completed by the November 15th due date. 9. Condition: The District did not complete the 3% verification of applications procedures by the due date. 10. Questioned Costs: N/A 11. Context: The District missed the deadline pertaining to the completion of 3% verification of applications. 12. Effect: The District is not in compliance with the completion of the verification process. 13. Cause: The District was not using the correct due dates and timelines on verification letters being sent to families chosen for the 3% verification process. 14. Recommendation: We recommend the District uses ISBE's recommended due dates and timelines for verification letters being sent to families to ensure the 3% application verification process is completed before the November 15th due date. 15. Management's response: Management will update the timelines used on the verification letters being sent to families so they are in line with what ISBE recommends so that verification testing can be completed by the deadline.
1. FINDING NUMBER: 2023 - 006 2. THIS FINDING IS: New 3. Federal Program Name and Year: Elementary and Secondary Emergency Relief Fund 4. Project No.: 4998-E2, 4998-E3, 4998-HL 5. CFDA No.: 84.425 6. Passed Through: Illinois State Board of Education 7. Federal Agency: U.S. Department of Education 8. Criteria or specific requirement (including statutory, regulatory, or other citation): Recipients are required to submit accurate data to the state outlining expenditures by specific categories and object codes. The District is also required to document their review and approval process for quarterly expenditure reports. 9. Condition: Data submitted to the State showed expenditures categorized differently from previously filed expenditure reports. Review and approval of quarterly expenditure reports were not documented, and the same person preparing the reports is submitting them. 10. Questioned Costs: None 11. Context: A clerical error caused amounts to be categorized incorrectly for the ESSER LEA Data Collection Form submission. No review process of quarterly expenditure reports is documented. 12. Effect: Data was not accurately submitted. Expense reports are being submitted without documented second review. The Districts review and approval process is not in compliance. 13. Cause: District did not have adequate procedures implemented to detect or prevent this error. The same person preparing the expenditure reports is submitting them, there is no documented second reviewer. 14. Recommendation: District should develop and implement procedures to reconcile amounts for annual reports to periodic expenditure reports, and have reports reviewed by a second person prior to submission. 15. Management's response: Management will implement procedures including reconciling amounts between underlying data, quarterly expenditure reports and annual data collection reports. Additionally, the review of quarterly expenditure reports will be documented before submission.
1. FINDING NUMBER: 2023 - 006 2. THIS FINDING IS: New 3. Federal Program Name and Year: Elementary and Secondary Emergency Relief Fund 4. Project No.: 4998-E2, 4998-E3, 4998-HL 5. CFDA No.: 84.425 6. Passed Through: Illinois State Board of Education 7. Federal Agency: U.S. Department of Education 8. Criteria or specific requirement (including statutory, regulatory, or other citation): Recipients are required to submit accurate data to the state outlining expenditures by specific categories and object codes. The District is also required to document their review and approval process for quarterly expenditure reports. 9. Condition: Data submitted to the State showed expenditures categorized differently from previously filed expenditure reports. Review and approval of quarterly expenditure reports were not documented, and the same person preparing the reports is submitting them. 10. Questioned Costs: None 11. Context: A clerical error caused amounts to be categorized incorrectly for the ESSER LEA Data Collection Form submission. No review process of quarterly expenditure reports is documented. 12. Effect: Data was not accurately submitted. Expense reports are being submitted without documented second review. The Districts review and approval process is not in compliance. 13. Cause: District did not have adequate procedures implemented to detect or prevent this error. The same person preparing the expenditure reports is submitting them, there is no documented second reviewer. 14. Recommendation: District should develop and implement procedures to reconcile amounts for annual reports to periodic expenditure reports, and have reports reviewed by a second person prior to submission. 15. Management's response: Management will implement procedures including reconciling amounts between underlying data, quarterly expenditure reports and annual data collection reports. Additionally, the review of quarterly expenditure reports will be documented before submission.
1. FINDING NUMBER: 2023 - 006 2. THIS FINDING IS: New 3. Federal Program Name and Year: Elementary and Secondary Emergency Relief Fund 4. Project No.: 4998-E2, 4998-E3, 4998-HL 5. CFDA No.: 84.425 6. Passed Through: Illinois State Board of Education 7. Federal Agency: U.S. Department of Education 8. Criteria or specific requirement (including statutory, regulatory, or other citation): Recipients are required to submit accurate data to the state outlining expenditures by specific categories and object codes. The District is also required to document their review and approval process for quarterly expenditure reports. 9. Condition: Data submitted to the State showed expenditures categorized differently from previously filed expenditure reports. Review and approval of quarterly expenditure reports were not documented, and the same person preparing the reports is submitting them. 10. Questioned Costs: None 11. Context: A clerical error caused amounts to be categorized incorrectly for the ESSER LEA Data Collection Form submission. No review process of quarterly expenditure reports is documented. 12. Effect: Data was not accurately submitted. Expense reports are being submitted without documented second review. The Districts review and approval process is not in compliance. 13. Cause: District did not have adequate procedures implemented to detect or prevent this error. The same person preparing the expenditure reports is submitting them, there is no documented second reviewer. 14. Recommendation: District should develop and implement procedures to reconcile amounts for annual reports to periodic expenditure reports, and have reports reviewed by a second person prior to submission. 15. Management's response: Management will implement procedures including reconciling amounts between underlying data, quarterly expenditure reports and annual data collection reports. Additionally, the review of quarterly expenditure reports will be documented before submission.
1. FINDING NUMBER: 2023 - 007 2. THIS FINDING IS: New 3. Federal Program Name and Year: Special Education Cluster 4. Project No.: 4620-00, 4998-ID, 4600-00, 4998-PS 5. CFDA No.: 84.027, 84.027X, 84.173, 84.173X 6. Passed Through: Illinois State Board of Education 7. Federal Agency: U.S. Department of Education 8. Criteria or specific requirement (including statutory, regulatory, or other citation): Management is responsible for accurately filing expenditure reports and retaining documentation to support claims. 9. Condition: Expenditure reports are not being properly reviewed and tied out to the General Ledger accounts being used to track special education grant expenses. The District was unable to provide documentation showing which specific expenditures were submitted for reimbursement. This resulted in not having sufficient expenditures documented for the Special Education - Preschool grant (23-4600-00) which in turn resulted in questioned costs noted below. 10. Questioned Costs: $174 11. Context: The District was unable to provide reports accurately supporting the amounts that were claimed on quarterly expenditure reports for all grants within the cluster. 12. Effect: The District could potentially over or underclaim expenditure reimbursements. 13. Cause: The District does not have procedures implemented to properly review the expenditure claims and match it to the General Ledger accounts set up to track grant expenditures. 14. Recommendation: The District should implement review procedures to ensure expenditure reports are accurately filled out and have adequate documentation supporting which expenditures were submitted for reimbursement. 15. Management's response: Management will implement a process to properly track grant expenditures and also create an improved review process.
1. FINDING NUMBER: 2023 - 007 2. THIS FINDING IS: New 3. Federal Program Name and Year: Special Education Cluster 4. Project No.: 4620-00, 4998-ID, 4600-00, 4998-PS 5. CFDA No.: 84.027, 84.027X, 84.173, 84.173X 6. Passed Through: Illinois State Board of Education 7. Federal Agency: U.S. Department of Education 8. Criteria or specific requirement (including statutory, regulatory, or other citation): Management is responsible for accurately filing expenditure reports and retaining documentation to support claims. 9. Condition: Expenditure reports are not being properly reviewed and tied out to the General Ledger accounts being used to track special education grant expenses. The District was unable to provide documentation showing which specific expenditures were submitted for reimbursement. This resulted in not having sufficient expenditures documented for the Special Education - Preschool grant (23-4600-00) which in turn resulted in questioned costs noted below. 10. Questioned Costs: $174 11. Context: The District was unable to provide reports accurately supporting the amounts that were claimed on quarterly expenditure reports for all grants within the cluster. 12. Effect: The District could potentially over or underclaim expenditure reimbursements. 13. Cause: The District does not have procedures implemented to properly review the expenditure claims and match it to the General Ledger accounts set up to track grant expenditures. 14. Recommendation: The District should implement review procedures to ensure expenditure reports are accurately filled out and have adequate documentation supporting which expenditures were submitted for reimbursement. 15. Management's response: Management will implement a process to properly track grant expenditures and also create an improved review process.
1. FINDING NUMBER: 2023 - 007 2. THIS FINDING IS: New 3. Federal Program Name and Year: Special Education Cluster 4. Project No.: 4620-00, 4998-ID, 4600-00, 4998-PS 5. CFDA No.: 84.027, 84.027X, 84.173, 84.173X 6. Passed Through: Illinois State Board of Education 7. Federal Agency: U.S. Department of Education 8. Criteria or specific requirement (including statutory, regulatory, or other citation): Management is responsible for accurately filing expenditure reports and retaining documentation to support claims. 9. Condition: Expenditure reports are not being properly reviewed and tied out to the General Ledger accounts being used to track special education grant expenses. The District was unable to provide documentation showing which specific expenditures were submitted for reimbursement. This resulted in not having sufficient expenditures documented for the Special Education - Preschool grant (23-4600-00) which in turn resulted in questioned costs noted below. 10. Questioned Costs: $174 11. Context: The District was unable to provide reports accurately supporting the amounts that were claimed on quarterly expenditure reports for all grants within the cluster. 12. Effect: The District could potentially over or underclaim expenditure reimbursements. 13. Cause: The District does not have procedures implemented to properly review the expenditure claims and match it to the General Ledger accounts set up to track grant expenditures. 14. Recommendation: The District should implement review procedures to ensure expenditure reports are accurately filled out and have adequate documentation supporting which expenditures were submitted for reimbursement. 15. Management's response: Management will implement a process to properly track grant expenditures and also create an improved review process.
1. FINDING NUMBER: 2023 - 007 2. THIS FINDING IS: New 3. Federal Program Name and Year: Special Education Cluster 4. Project No.: 4620-00, 4998-ID, 4600-00, 4998-PS 5. CFDA No.: 84.027, 84.027X, 84.173, 84.173X 6. Passed Through: Illinois State Board of Education 7. Federal Agency: U.S. Department of Education 8. Criteria or specific requirement (including statutory, regulatory, or other citation): Management is responsible for accurately filing expenditure reports and retaining documentation to support claims. 9. Condition: Expenditure reports are not being properly reviewed and tied out to the General Ledger accounts being used to track special education grant expenses. The District was unable to provide documentation showing which specific expenditures were submitted for reimbursement. This resulted in not having sufficient expenditures documented for the Special Education - Preschool grant (23-4600-00) which in turn resulted in questioned costs noted below. 10. Questioned Costs: $174 11. Context: The District was unable to provide reports accurately supporting the amounts that were claimed on quarterly expenditure reports for all grants within the cluster. 12. Effect: The District could potentially over or underclaim expenditure reimbursements. 13. Cause: The District does not have procedures implemented to properly review the expenditure claims and match it to the General Ledger accounts set up to track grant expenditures. 14. Recommendation: The District should implement review procedures to ensure expenditure reports are accurately filled out and have adequate documentation supporting which expenditures were submitted for reimbursement. 15. Management's response: Management will implement a process to properly track grant expenditures and also create an improved review process.