Audit 295874

FY End
2023-06-30
Total Expended
$1.59M
Findings
2
Programs
9
Organization: Central School District No. 104 (IL)
Year: 2023 Accepted: 2024-03-19
Auditor: F E W CPAS

Organization Exclusion Status:

Checking exclusion status...

Findings

ID Ref Severity Repeat Requirement
381149 2023-007 Material Weakness - P
957591 2023-007 Material Weakness - P

Programs

ALN Program Spent Major Findings
84.425 Education Stabilization Fund $904,180 Yes 1
10.555 National School Lunch Program $249,011 - 0
84.027 Special Education_grants to States $168,242 - 0
84.010 Title I Grants to Local Educational Agencies $156,623 - 0
10.553 School Breakfast Program $71,650 - 0
93.778 Medical Assistance Program $21,882 - 0
84.173 Special Education_preschool Grants $11,037 - 0
84.367 Title II Teacher Quality $5,336 - 0
84.424 Title IV Student Support $3,664 - 0

Contacts

Name Title Type
JH43NXJN7U56 Dr. Gabrielle Rodriguez Auditee
6186326336 James Lunk Auditor
No contacts on file

Notes to SEFA

Title: NOTE 1 - REPORTING ENTITY BASIS OF PRESENTATION AND ACCOUNTING Accounting Policies: The accompanying Schedule of Expenditures of Federal Awards includes the federal grant activity of the District and is presented on the modified cash basis of accounting. The information in this schedule is presented in accordance with the requirements of 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 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 District has not elected to use the 10% de minimis indirect cost rate. The accompanying Schedule of Expenditures of Federal Awards includes the federal grant activity of the District and is presented on the modified cash basis of accounting. The information in this schedule is presented in accordance with the requirements of 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 this schedule may differ from amounts presented in, or used in the preparation of, the basic financial statements.
Title: NOTE 2 - SUBRECIPIENTS Accounting Policies: The accompanying Schedule of Expenditures of Federal Awards includes the federal grant activity of the District and is presented on the modified cash basis of accounting. The information in this schedule is presented in accordance with the requirements of 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 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 District has not elected to use the 10% de minimis indirect cost rate. None of the federal expenditures presented in the schedule were provided to sub-recipients.
Title: NOTE 3 - DESCRIPTIONS OF MAJOR FEDERAL PROGRAM Accounting Policies: The accompanying Schedule of Expenditures of Federal Awards includes the federal grant activity of the District and is presented on the modified cash basis of accounting. The information in this schedule is presented in accordance with the requirements of 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 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 District has not elected to use the 10% de minimis indirect cost rate. The Education Stabilization Fund via the Elementary and Secondary School Emergency Relief Fund provides grants in support of ongoing Covid-19 recovery efforts.
Title: NOTE 4 - NON-CASH ASSISTANCE Accounting Policies: The accompanying Schedule of Expenditures of Federal Awards includes the federal grant activity of the District and is presented on the modified cash basis of accounting. The information in this schedule is presented in accordance with the requirements of 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 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 District has not elected to use the 10% de minimis indirect cost rate. Nonmonetary assistance is reported in the schedule at the fair value of the commodities received and disbursed. At June 30, 2023, the District received food commodities totaling $18,274 from the US Department of Agriculture. These programs are part of the Federal Child Nutrition Cluster.
Title: NOTE 5 - INSURANCE Accounting Policies: The accompanying Schedule of Expenditures of Federal Awards includes the federal grant activity of the District and is presented on the modified cash basis of accounting. The information in this schedule is presented in accordance with the requirements of 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 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 District has not elected to use the 10% de minimis indirect cost rate. The federal programs presented in the previous schedule did not have separate program specific insurance policies.
Title: NOTE 6 - LOANS/LOAN GUARANTEES/INTEREST SUBSIDIES Accounting Policies: The accompanying Schedule of Expenditures of Federal Awards includes the federal grant activity of the District and is presented on the modified cash basis of accounting. The information in this schedule is presented in accordance with the requirements of 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 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 District has not elected to use the 10% de minimis indirect cost rate. The federal programs presented in the previous schedule did not have any loans, loan guarantees, or interest subsidies associated with them.
Title: NOTE 7 - DE MINIMIS COST RATE Accounting Policies: The accompanying Schedule of Expenditures of Federal Awards includes the federal grant activity of the District and is presented on the modified cash basis of accounting. The information in this schedule is presented in accordance with the requirements of 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 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 District has not elected to use the 10% de minimis indirect cost rate. The District has not elected to use the 10% de minimis indirect cost rate.

Finding Details

2023-007 – Recording and accounting for federal awards Criteria: All recipients of federal awards are required to be able to create a Schedule of Expenditures of Federal Awards. Condition: During the fiscal year, the District did not properly track and account for all federal awards and expenditures. Cause: The District did not categorize federal awards and expenditures in distinguishable accounts. Effect: Lack of adequate controls over federal expenditures and improperly accounting for funds created a situation where the District was unable to produce a Schedule of Expenditures of Federal Awards. Recommendation: We recommend that the District implement a process to properly record and account for federal expenditures. Management Response: Management agrees with the finding and will ensure the required controls are in place. Anticipated completion date is June 30, 2024.
2023-007 – Recording and accounting for federal awards Criteria: All recipients of federal awards are required to be able to create a Schedule of Expenditures of Federal Awards. Condition: During the fiscal year, the District did not properly track and account for all federal awards and expenditures. Cause: The District did not categorize federal awards and expenditures in distinguishable accounts. Effect: Lack of adequate controls over federal expenditures and improperly accounting for funds created a situation where the District was unable to produce a Schedule of Expenditures of Federal Awards. Recommendation: We recommend that the District implement a process to properly record and account for federal expenditures. Management Response: Management agrees with the finding and will ensure the required controls are in place. Anticipated completion date is June 30, 2024.