Title: 1. SCOPE OF SINGLE AUDIT
Accounting Policies: General — The accompanying schedule of expenditures of federal awards (Schedule) includes the
federal grant activity of CPS under programs of the federal government for the year ended June 30,
2023. The information in this schedule is presented in accordance with the requirements of the
Uniform Guidance and the pass through requirements of ISBE. Because the Schedule presents only
a selected portion of the operations of CPS, it is not intended to and does not present the financial
position or changes in net position of CPS. Only federal programs considered active during the year
ended June 30, 2023, are reflected in the Schedule. An active federal program is defined as a federal
program that incurred expenditures (adjustments) of funds or accrued (deferred) grant revenue
adjustments during the fiscal year or a federal program considered as not completed or closed out at
the beginning of the fiscal year. The Schedule is prepared using the accrual basis of accounting. In
addition, there is no federal insurance in effect during the year and no loan or loan guarantees
outstanding at year end.
Expenditures — For all expenditure-driven federal programs, expenditures included on the Schedule
represent actual expenditures incurred (governmental fund basis) during the fiscal year ended June
30, 2023. In accordance with Uniform Guidance, pension costs are uniformly charged to all positions
as a direct benefit cost in proportion to pensionable salary regardless of whether the funding source is
local, state, or federal.
For formula-driven federal programs, expenditures are presented on the Schedule as follows:
• The expenditures for the National School Lunch and Breakfast Program in the schedule only
reflect the portion funded by the Program.
• Expenditures for the Food Donation Program represent commodities received at amounts per the
USDA standard price listings.
De Minimis Rate Used: N
Rate Explanation: Indirect Cost Rate — The amount expended includes amounts claimed as indirect cost recovery
using an approved indirect cost rate percent by the ISBE or as per the funding agencies approved
budget. The Chicago Public Schools has not elected to use the 10-percent de minimis indirect cost
rate allowed under the Uniform Guidance.
General — The Board of Education of the City of Chicago (CPS) is a body politic and corporate of the
State of Illinois. All significant federal financial and compliance operations of CPS are included in the
scope of Title 2 U.S. Code of Federal Regulations Part 200 Uniform Administrative Requirements,
Cost Principles and Audit Requirements for Federal Awards (Uniform Guidance). The U.S.
Department of Education (ED) is CPS’ cognizant federal agency for the Single Audit. Cognizant duties
have been delegated to the Illinois State Board of Education (ISBE) by the ED, which, in turn,
oversees the performance of such duties.
Title: 2. NATURE OF FEDERAL FINANCIAL ASSISTANCE
Accounting Policies: General — The accompanying schedule of expenditures of federal awards (Schedule) includes the
federal grant activity of CPS under programs of the federal government for the year ended June 30,
2023. The information in this schedule is presented in accordance with the requirements of the
Uniform Guidance and the pass through requirements of ISBE. Because the Schedule presents only
a selected portion of the operations of CPS, it is not intended to and does not present the financial
position or changes in net position of CPS. Only federal programs considered active during the year
ended June 30, 2023, are reflected in the Schedule. An active federal program is defined as a federal
program that incurred expenditures (adjustments) of funds or accrued (deferred) grant revenue
adjustments during the fiscal year or a federal program considered as not completed or closed out at
the beginning of the fiscal year. The Schedule is prepared using the accrual basis of accounting. In
addition, there is no federal insurance in effect during the year and no loan or loan guarantees
outstanding at year end.
Expenditures — For all expenditure-driven federal programs, expenditures included on the Schedule
represent actual expenditures incurred (governmental fund basis) during the fiscal year ended June
30, 2023. In accordance with Uniform Guidance, pension costs are uniformly charged to all positions
as a direct benefit cost in proportion to pensionable salary regardless of whether the funding source is
local, state, or federal.
For formula-driven federal programs, expenditures are presented on the Schedule as follows:
• The expenditures for the National School Lunch and Breakfast Program in the schedule only
reflect the portion funded by the Program.
• Expenditures for the Food Donation Program represent commodities received at amounts per the
USDA standard price listings.
De Minimis Rate Used: N
Rate Explanation: Indirect Cost Rate — The amount expended includes amounts claimed as indirect cost recovery
using an approved indirect cost rate percent by the ISBE or as per the funding agencies approved
budget. The Chicago Public Schools has not elected to use the 10-percent de minimis indirect cost
rate allowed under the Uniform Guidance.
Generally, federal awards are granted for the purpose of providing specific goods or services or aid to
specific individuals. In addition to the purposes they serve, federal programs can be classified
according to the basis under which the federal programs are funded. For certain federal programs,
funds are received based upon actual qualified expenditures up to the total federal awards amount
(expenditure-driven federal programs). For other federal programs, funds are received based on an
approved formula such as a standard reimbursement rate applied to qualified unit of service provided
(formula-driven federal program).
The majority of CPS’ federal awards are passed through and received from the ISBE. For those passthrough
federal awards, CPS’ direct reporting responsibility is to ISBE, which, in their capacity as subgrantors,
oversee and monitor the utilization of such federal awards by CPS.
Title: 4. RELATIONSHIP TO THE FINANCIAL STATEMENTS INCLUDED IN THE ANNUAL
COMPREHENSIVE FINANCIAL REPORT
Accounting Policies: General — The accompanying schedule of expenditures of federal awards (Schedule) includes the
federal grant activity of CPS under programs of the federal government for the year ended June 30,
2023. The information in this schedule is presented in accordance with the requirements of the
Uniform Guidance and the pass through requirements of ISBE. Because the Schedule presents only
a selected portion of the operations of CPS, it is not intended to and does not present the financial
position or changes in net position of CPS. Only federal programs considered active during the year
ended June 30, 2023, are reflected in the Schedule. An active federal program is defined as a federal
program that incurred expenditures (adjustments) of funds or accrued (deferred) grant revenue
adjustments during the fiscal year or a federal program considered as not completed or closed out at
the beginning of the fiscal year. The Schedule is prepared using the accrual basis of accounting. In
addition, there is no federal insurance in effect during the year and no loan or loan guarantees
outstanding at year end.
Expenditures — For all expenditure-driven federal programs, expenditures included on the Schedule
represent actual expenditures incurred (governmental fund basis) during the fiscal year ended June
30, 2023. In accordance with Uniform Guidance, pension costs are uniformly charged to all positions
as a direct benefit cost in proportion to pensionable salary regardless of whether the funding source is
local, state, or federal.
For formula-driven federal programs, expenditures are presented on the Schedule as follows:
• The expenditures for the National School Lunch and Breakfast Program in the schedule only
reflect the portion funded by the Program.
• Expenditures for the Food Donation Program represent commodities received at amounts per the
USDA standard price listings.
De Minimis Rate Used: N
Rate Explanation: Indirect Cost Rate — The amount expended includes amounts claimed as indirect cost recovery
using an approved indirect cost rate percent by the ISBE or as per the funding agencies approved
budget. The Chicago Public Schools has not elected to use the 10-percent de minimis indirect cost
rate allowed under the Uniform Guidance.
The following is a reconciliation of federal grant revenues as reflected in the Supplementary Schedule
of Expenditures of Federal Awards in CPS’ Annual Comprehensive Financial Reports:
Total per the Schedule ................................................................................... $ 1,504,228,843
E-Rate program revenues not included in the Schedule .......................... 7,424,627
Medicaid Fee for Service Revenue not included in the Schedule ........... 29,391,976
Build America Bonds (BABS) revenue not included in the Schedule ..... 18,617,845
U.S. Department of Defense Reserve Officer Training Corps (ROTC)
revenue not included in the Schedule ......................................................... 4,130,777
Adjustments to record revenue that do not provide current financial
resources .......................................................................................................... (68,389,327)
Federal aid per the Statement of Revenues, Expenditures and Net
Changes in Fund Balances - Governmental Funds .................................. $ 1,495,404,741
Expenditures relating to individual federal programs are not represented separately from other CPS
expenditures in CPS’ Annual Comprehensive Financial Report. Accordingly, a similar reconciliation of
expenditures is not included herein.
Title: 5. FINAL CLAIMS
Accounting Policies: General — The accompanying schedule of expenditures of federal awards (Schedule) includes the
federal grant activity of CPS under programs of the federal government for the year ended June 30,
2023. The information in this schedule is presented in accordance with the requirements of the
Uniform Guidance and the pass through requirements of ISBE. Because the Schedule presents only
a selected portion of the operations of CPS, it is not intended to and does not present the financial
position or changes in net position of CPS. Only federal programs considered active during the year
ended June 30, 2023, are reflected in the Schedule. An active federal program is defined as a federal
program that incurred expenditures (adjustments) of funds or accrued (deferred) grant revenue
adjustments during the fiscal year or a federal program considered as not completed or closed out at
the beginning of the fiscal year. The Schedule is prepared using the accrual basis of accounting. In
addition, there is no federal insurance in effect during the year and no loan or loan guarantees
outstanding at year end.
Expenditures — For all expenditure-driven federal programs, expenditures included on the Schedule
represent actual expenditures incurred (governmental fund basis) during the fiscal year ended June
30, 2023. In accordance with Uniform Guidance, pension costs are uniformly charged to all positions
as a direct benefit cost in proportion to pensionable salary regardless of whether the funding source is
local, state, or federal.
For formula-driven federal programs, expenditures are presented on the Schedule as follows:
• The expenditures for the National School Lunch and Breakfast Program in the schedule only
reflect the portion funded by the Program.
• Expenditures for the Food Donation Program represent commodities received at amounts per the
USDA standard price listings.
De Minimis Rate Used: N
Rate Explanation: Indirect Cost Rate — The amount expended includes amounts claimed as indirect cost recovery
using an approved indirect cost rate percent by the ISBE or as per the funding agencies approved
budget. The Chicago Public Schools has not elected to use the 10-percent de minimis indirect cost
rate allowed under the Uniform Guidance.
Some final claims for federal programs with a contractual funding period ended June 30, 2023, were
filed prior to recording certain year-end adjustments and, therefore, do not agree with the related
amounts accrued and reported in the Schedule. CPS plans to submit a program liquidation report to
the respective grantor agencies, which will revise the outstanding obligation amounts per the final
claim, thereby reflecting the appropriate year-end adjustments for these federal awards.