FAC Explorer

Audit 29369

FY End
2022-06-30
Total Expended
$3.15M
Findings
10
Programs
13
Organization: Hillsboro Community Unit School District No. 3 (IL)
Year: 2022 Accepted: 2022-12-01
Auditor: Scheffel Boyle

Organization Exclusion Status:

Findings

ID Ref Severity Repeat Requirement
32791 2022-004 Significant Deficiency - A
32792 2022-002 - Yes L
32793 2022-003 - - L
32794 2022-002 - Yes L
32795 2022-002 - Yes L
609233 2022-004 Significant Deficiency - A
609234 2022-002 - Yes L
609235 2022-003 - - L
609236 2022-002 - Yes L
609237 2022-002 - Yes L

Programs

ALN Program Spent Major Findings
84.027 Special Education_grants to States $457,591 - 0
10.553 School Breakfast Program $135,320 - 0
84.367 Improving Teacher Quality State Grants $105,542 - 0
84.425 Education Stabilization Fund $38,958 Yes 1
84.424 Student Support and Academic Enrichment Program $25,689 - 0
84.173 Special Education_preschool Grants $22,590 - 0
84.010 Title I Grants to Local Educational Agencies $17,575 Yes 1
93.778 Medical Assistance Program $17,574 - 0
84.048 Career and Technical Education -- Basic Grants to States $16,630 - 0
10.555 National School Lunch Program $13,603 - 0
10.559 Summer Food Service Program for Children $9,814 - 0
10.558 Child and Adult Care Food Program $3,424 - 0
10.649 Pandemic Ebt Administrative Costs $614 - 0

Contacts

Name Title Type
W1CLVUPR6KW3 David Powell Auditee
2175325184 Dale Holtmann Auditor
No contacts on file

Notes to SEFA

Title: Summary of Significant Accounting Policies Accounting Policies: The accompanying schedule of expenditures of federal awards includes the federal award activity of Hillsboro Community Unit School District No. 3 under programs of the federal government for the year ended June 30, 2022. and is presented on the modified accrual basis of accounting. The information in this schedule is presented in accordance with the requirements of 2 U.S. Code of Federal Regulations Part 200, Uniform Administration Requirements, Cost Principals, and Audit Requirements for Federal Awards (Uniform Guidance). Therefore, some amounts presented in this schedule may differ from amounts presented in, or used in the preparation of, the basic financial statements. De Minimis Rate Used: N Rate Explanation: The auditee did not use the de minimis cost rate. Expenditures reported on the schedule are reported on the modified accrual basis of accounting. Such expenditures are recognized following the cost principals contained in the Uniform Guidance, wherein certain types of expenditures are not allowable or are limited as to reimbursement.
Title: Food Distribution Accounting Policies: The accompanying schedule of expenditures of federal awards includes the federal award activity of Hillsboro Community Unit School District No. 3 under programs of the federal government for the year ended June 30, 2022. and is presented on the modified accrual basis of accounting. The information in this schedule is presented in accordance with the requirements of 2 U.S. Code of Federal Regulations Part 200, Uniform Administration Requirements, Cost Principals, and Audit Requirements for Federal Awards (Uniform Guidance). Therefore, some amounts presented in this schedule may differ from amounts presented in, or used in the preparation of, the basic financial statements. De Minimis Rate Used: N Rate Explanation: The auditee did not use the de minimis cost rate. Nonmonetary assistance is reported in the schedule at the fair value of the commodities received and disbursed. At June 30, 2022 the District received food commodities totaling $56,213.
Title: Insurance Accounting Policies: The accompanying schedule of expenditures of federal awards includes the federal award activity of Hillsboro Community Unit School District No. 3 under programs of the federal government for the year ended June 30, 2022. and is presented on the modified accrual basis of accounting. The information in this schedule is presented in accordance with the requirements of 2 U.S. Code of Federal Regulations Part 200, Uniform Administration Requirements, Cost Principals, and Audit Requirements for Federal Awards (Uniform Guidance). Therefore, some amounts presented in this schedule may differ from amounts presented in, or used in the preparation of, the basic financial statements. De Minimis Rate Used: N Rate Explanation: The auditee did not use the de minimis cost rate. The District purchases commercial general liability, workers' compensation and property insurance to cover all risks. The District does not have any insurance provided by federal sources.
Title: Payments to Subrecipients Accounting Policies: The accompanying schedule of expenditures of federal awards includes the federal award activity of Hillsboro Community Unit School District No. 3 under programs of the federal government for the year ended June 30, 2022. and is presented on the modified accrual basis of accounting. The information in this schedule is presented in accordance with the requirements of 2 U.S. Code of Federal Regulations Part 200, Uniform Administration Requirements, Cost Principals, and Audit Requirements for Federal Awards (Uniform Guidance). Therefore, some amounts presented in this schedule may differ from amounts presented in, or used in the preparation of, the basic financial statements. De Minimis Rate Used: N Rate Explanation: The auditee did not use the de minimis cost rate. No amounts were provided to subrecipients for the year ended June 30, 2022.
Title: Loans and Loan Guarantees Accounting Policies: The accompanying schedule of expenditures of federal awards includes the federal award activity of Hillsboro Community Unit School District No. 3 under programs of the federal government for the year ended June 30, 2022. and is presented on the modified accrual basis of accounting. The information in this schedule is presented in accordance with the requirements of 2 U.S. Code of Federal Regulations Part 200, Uniform Administration Requirements, Cost Principals, and Audit Requirements for Federal Awards (Uniform Guidance). Therefore, some amounts presented in this schedule may differ from amounts presented in, or used in the preparation of, the basic financial statements. De Minimis Rate Used: N Rate Explanation: The auditee did not use the de minimis cost rate. The District has no loans or loan guarantees agreements from federal sources.
Title: Matching Requirements Accounting Policies: The accompanying schedule of expenditures of federal awards includes the federal award activity of Hillsboro Community Unit School District No. 3 under programs of the federal government for the year ended June 30, 2022. and is presented on the modified accrual basis of accounting. The information in this schedule is presented in accordance with the requirements of 2 U.S. Code of Federal Regulations Part 200, Uniform Administration Requirements, Cost Principals, and Audit Requirements for Federal Awards (Uniform Guidance). Therefore, some amounts presented in this schedule may differ from amounts presented in, or used in the preparation of, the basic financial statements. De Minimis Rate Used: N Rate Explanation: The auditee did not use the de minimis cost rate. The District has no grants requiring matching of expenditures.

Finding Details

Finding 2022-004
Criteria: Allowable Costs/Activities Allowed. The District is required to report allowable costs/activities allowed based on the grant, the grant budget and for the period of the grant. Condition: The District did not submit accurate expenditure reports by claiming an expense before the grant start date. The grant start date was January 19, 2022 and the District claimed an expense in account 1000-300 that was paid September 17, 2021. Questioned costs: $1,160 in account 1000-300. Context: The District claimed an expense that was unallowed as it was before the grant start date. Effect: The District overstated their purchased services in account 1000-300 by claiming an expense before the grant start date. Cause: The District did not employ proper oversight to ensure that the quarterly expenditure reports claimed allowable expenses after the grant start date. Recommendation: We recommend that steps are taken, including oversight by a second employee, to ensure that expenditure reports are reviewed for allowable expenses and that all expenses are after the grant start date before submitting the reports. Management response: The District will take the necessary steps to claim allowable expenses on future expenditure reports.
Finding 2022-002
Criteria: Reporting. All quarterly expenditure reports must be filed with the Illinois State Board of Education no later than 20 days after the end of the quarter (10/20, 1/20, 4/20 and 7/20). Condition: Quarters 1 and 2 for ESSER - Digital Equity were not filed due to no expenses and quarter 3 was filed 85 days after the 20 days deadline. Quarter 4 of ESSER II was filed 7 days after the 20 days deadline. Quarter 1 of ESSER ER was filed 90 days after the 20 day deadline and quarter 2 was filed 11 days after the 20 day deadline. Questioned Costs: No questioned costs. Context: The quarterly reports for the federal grants ranged from 7 days to 90 days filed after the 20 day deadline. Effect: The District was not in compliance by filing their expenditure reports late. Cause: The District did not employ proper oversight to ensure that the quarterly expenditure reports were filed timely. Recommendation: We recommend that steps are taken, including oversight by a second employee, to ensure that all quarterly expenditure reports are filed by the due dates. Management response: The District will take the necessary steps to file all quarterly expenditure reports on time in the future.
Finding 2022-003
Criteria: Reporting. Condition: The District did not submit accurate total expenditure reports. The District miscoded an expense of $5,493 that should be reported in account 2110-400 and reported the expense in account 2130-100. Questioned costs: No questioned costs. Context: The quarterly expense report was under reported for account 2110-400 and over reported for account 2130-100. Effect: The District was over budget in the account 2130-100. Cause: The District did not employ proper oversight to ensure that the quarterly expenditure reports filed were in agreement with the general ledger. Recommendation: We recommend that steps are taken, including oversight by a second employee, to ensure that all quarterly expenditure reports are reconciled with the general ledger before submitting the reports. Management response: The District will take the necessary steps to file all quarterly expenditure reports accurately in the future.
Finding 2022-002
Criteria: Reporting. All quarterly expenditure reports must be filed with the Illinois State Board of Education no later than 20 days after the end of the quarter (10/20, 1/20, 4/20 and 7/20). Condition: Quarters 1 and 2 for ESSER - Digital Equity were not filed due to no expenses and quarter 3 was filed 85 days after the 20 days deadline. Quarter 4 of ESSER II was filed 7 days after the 20 days deadline. Quarter 1 of ESSER ER was filed 90 days after the 20 day deadline and quarter 2 was filed 11 days after the 20 day deadline. Questioned Costs: No questioned costs. Context: The quarterly reports for the federal grants ranged from 7 days to 90 days filed after the 20 day deadline. Effect: The District was not in compliance by filing their expenditure reports late. Cause: The District did not employ proper oversight to ensure that the quarterly expenditure reports were filed timely. Recommendation: We recommend that steps are taken, including oversight by a second employee, to ensure that all quarterly expenditure reports are filed by the due dates. Management response: The District will take the necessary steps to file all quarterly expenditure reports on time in the future.
Finding 2022-002
Criteria: Reporting. All quarterly expenditure reports must be filed with the Illinois State Board of Education no later than 20 days after the end of the quarter (10/20, 1/20, 4/20 and 7/20). Condition: Quarters 1 and 2 for ESSER - Digital Equity were not filed due to no expenses and quarter 3 was filed 85 days after the 20 days deadline. Quarter 4 of ESSER II was filed 7 days after the 20 days deadline. Quarter 1 of ESSER ER was filed 90 days after the 20 day deadline and quarter 2 was filed 11 days after the 20 day deadline. Questioned Costs: No questioned costs. Context: The quarterly reports for the federal grants ranged from 7 days to 90 days filed after the 20 day deadline. Effect: The District was not in compliance by filing their expenditure reports late. Cause: The District did not employ proper oversight to ensure that the quarterly expenditure reports were filed timely. Recommendation: We recommend that steps are taken, including oversight by a second employee, to ensure that all quarterly expenditure reports are filed by the due dates. Management response: The District will take the necessary steps to file all quarterly expenditure reports on time in the future.
Finding 2022-004
Criteria: Allowable Costs/Activities Allowed. The District is required to report allowable costs/activities allowed based on the grant, the grant budget and for the period of the grant. Condition: The District did not submit accurate expenditure reports by claiming an expense before the grant start date. The grant start date was January 19, 2022 and the District claimed an expense in account 1000-300 that was paid September 17, 2021. Questioned costs: $1,160 in account 1000-300. Context: The District claimed an expense that was unallowed as it was before the grant start date. Effect: The District overstated their purchased services in account 1000-300 by claiming an expense before the grant start date. Cause: The District did not employ proper oversight to ensure that the quarterly expenditure reports claimed allowable expenses after the grant start date. Recommendation: We recommend that steps are taken, including oversight by a second employee, to ensure that expenditure reports are reviewed for allowable expenses and that all expenses are after the grant start date before submitting the reports. Management response: The District will take the necessary steps to claim allowable expenses on future expenditure reports.
Finding 2022-002
Criteria: Reporting. All quarterly expenditure reports must be filed with the Illinois State Board of Education no later than 20 days after the end of the quarter (10/20, 1/20, 4/20 and 7/20). Condition: Quarters 1 and 2 for ESSER - Digital Equity were not filed due to no expenses and quarter 3 was filed 85 days after the 20 days deadline. Quarter 4 of ESSER II was filed 7 days after the 20 days deadline. Quarter 1 of ESSER ER was filed 90 days after the 20 day deadline and quarter 2 was filed 11 days after the 20 day deadline. Questioned Costs: No questioned costs. Context: The quarterly reports for the federal grants ranged from 7 days to 90 days filed after the 20 day deadline. Effect: The District was not in compliance by filing their expenditure reports late. Cause: The District did not employ proper oversight to ensure that the quarterly expenditure reports were filed timely. Recommendation: We recommend that steps are taken, including oversight by a second employee, to ensure that all quarterly expenditure reports are filed by the due dates. Management response: The District will take the necessary steps to file all quarterly expenditure reports on time in the future.
Finding 2022-003
Criteria: Reporting. Condition: The District did not submit accurate total expenditure reports. The District miscoded an expense of $5,493 that should be reported in account 2110-400 and reported the expense in account 2130-100. Questioned costs: No questioned costs. Context: The quarterly expense report was under reported for account 2110-400 and over reported for account 2130-100. Effect: The District was over budget in the account 2130-100. Cause: The District did not employ proper oversight to ensure that the quarterly expenditure reports filed were in agreement with the general ledger. Recommendation: We recommend that steps are taken, including oversight by a second employee, to ensure that all quarterly expenditure reports are reconciled with the general ledger before submitting the reports. Management response: The District will take the necessary steps to file all quarterly expenditure reports accurately in the future.
Finding 2022-002
Criteria: Reporting. All quarterly expenditure reports must be filed with the Illinois State Board of Education no later than 20 days after the end of the quarter (10/20, 1/20, 4/20 and 7/20). Condition: Quarters 1 and 2 for ESSER - Digital Equity were not filed due to no expenses and quarter 3 was filed 85 days after the 20 days deadline. Quarter 4 of ESSER II was filed 7 days after the 20 days deadline. Quarter 1 of ESSER ER was filed 90 days after the 20 day deadline and quarter 2 was filed 11 days after the 20 day deadline. Questioned Costs: No questioned costs. Context: The quarterly reports for the federal grants ranged from 7 days to 90 days filed after the 20 day deadline. Effect: The District was not in compliance by filing their expenditure reports late. Cause: The District did not employ proper oversight to ensure that the quarterly expenditure reports were filed timely. Recommendation: We recommend that steps are taken, including oversight by a second employee, to ensure that all quarterly expenditure reports are filed by the due dates. Management response: The District will take the necessary steps to file all quarterly expenditure reports on time in the future.
Finding 2022-002
Criteria: Reporting. All quarterly expenditure reports must be filed with the Illinois State Board of Education no later than 20 days after the end of the quarter (10/20, 1/20, 4/20 and 7/20). Condition: Quarters 1 and 2 for ESSER - Digital Equity were not filed due to no expenses and quarter 3 was filed 85 days after the 20 days deadline. Quarter 4 of ESSER II was filed 7 days after the 20 days deadline. Quarter 1 of ESSER ER was filed 90 days after the 20 day deadline and quarter 2 was filed 11 days after the 20 day deadline. Questioned Costs: No questioned costs. Context: The quarterly reports for the federal grants ranged from 7 days to 90 days filed after the 20 day deadline. Effect: The District was not in compliance by filing their expenditure reports late. Cause: The District did not employ proper oversight to ensure that the quarterly expenditure reports were filed timely. Recommendation: We recommend that steps are taken, including oversight by a second employee, to ensure that all quarterly expenditure reports are filed by the due dates. Management response: The District will take the necessary steps to file all quarterly expenditure reports on time in the future.