Audit 301671

Federal Program Name and Year:Title I Grants to Local Educational Agencies; Project No.:23-4300-00; Assistance Listing no.: 84.010; Passed Through:Illinois State Board of Education; Federal Agency:United States Department of Education. Criteria or specific requirement (including statutory, regulatory, or other citation), Per the Illinois State Board of Education (ISBE) Electronic Expenditure Reporting System Quarterly user guide, quarterly expenditure reports are due 20 calendar days after the expenditure report date. Condition: The District submitted all quarterly expenditure reports late per ISBE requirements. Questioned Costs: None. Context: All quarterly expenditure reports submitted were late. Quarter one was due October 20, 2023 and submitted September 22, 2023. Quarters two and three were not submitted. Quarter four was due July 20, 2023, and submitted October 2, 2023. Effect: The District was out of compliance with its subgrantor/cognizant agency (ISBE) as a result of submitting the expenditure reports late. Cause: The cause of the condition was a lack of a procedure to ensure timely filings in the grant administration department. Recommendation: It is recommended that the District establish policies and procedures regarding timely grant expenditure report submissions and that these policies and procedure be trained on with staff and enforced to ensure compliance. Managements response: See corrective action plan.

Federal Program Name and Year: COVID 19 - Education Stabilization Fund; Project No.: 23-4998-E2; Assistance Listing no.: 84.425; Passed Through: Illinois State Board of Education; Federal Agency: United States Department of Education. Criteria or specific requirement (including statutory, regulatory, or other citation): Property records must be maintained that include a description of the property, a serial number or other identification number, the source of funding for the property (including the federal award identification number), who holds title, the acquisition date, cost of the property, percentage of federal participation in the project costs for the federal award under which the property was acquired, the location, use and condition of the property, and any ultimate disposition data including the date of disposal and sales price of the property (2 CFR section 200.313(d)(1)). Condition: The District did not maintain adequate property records to comply with 2 CFR section 200.313(d)(1). Questioned Costs: None. Context: The District last updated its property records in 2021. Since 2021, the District has relied upon non-audit services from its accounting firm to assist with compiling capital asset values for external reporting. These non-audit services are not detailed enough to comply with Federal regulations because they are meant to satisfy Accounting Principles Generally Accepted in the United States of America. Effect: The District was out of compliance with Federal Equipment and Real Property Management regulations. Cause: The cause of the condition was a lack of a business office policy and procedure to ensure annual updating of property records, including the tagging and marking of items or Federal origin. Recommendation: It is recommended that the business office establish a policy and procedure to ensure annual updating of property records, including the tagging and marking of items of Federal origin. Management's response: See corrective action plan.

Federal Program Name and Year:Title I Grants to Local Educational Agencies; Project No.:23-4300-00; Assistance Listing no.: 84.010; Passed Through:Illinois State Board of Education; Federal Agency:United States Department of Education. Criteria or specific requirement (including statutory, regulatory, or other citation), Per the Illinois State Board of Education (ISBE) Electronic Expenditure Reporting System Quarterly user guide, quarterly expenditure reports are due 20 calendar days after the expenditure report date. Condition: The District submitted all quarterly expenditure reports late per ISBE requirements. Questioned Costs: None. Context: All quarterly expenditure reports submitted were late. Quarter one was due October 20, 2023 and submitted September 22, 2023. Quarters two and three were not submitted. Quarter four was due July 20, 2023, and submitted October 2, 2023. Effect: The District was out of compliance with its subgrantor/cognizant agency (ISBE) as a result of submitting the expenditure reports late. Cause: The cause of the condition was a lack of a procedure to ensure timely filings in the grant administration department. Recommendation: It is recommended that the District establish policies and procedures regarding timely grant expenditure report submissions and that these policies and procedure be trained on with staff and enforced to ensure compliance. Managements response: See corrective action plan.

Federal Program Name and Year: COVID 19 - Education Stabilization Fund; Project No.: 23-4998-E2; Assistance Listing no.: 84.425; Passed Through: Illinois State Board of Education; Federal Agency: United States Department of Education. Criteria or specific requirement (including statutory, regulatory, or other citation): Property records must be maintained that include a description of the property, a serial number or other identification number, the source of funding for the property (including the federal award identification number), who holds title, the acquisition date, cost of the property, percentage of federal participation in the project costs for the federal award under which the property was acquired, the location, use and condition of the property, and any ultimate disposition data including the date of disposal and sales price of the property (2 CFR section 200.313(d)(1)). Condition: The District did not maintain adequate property records to comply with 2 CFR section 200.313(d)(1). Questioned Costs: None. Context: The District last updated its property records in 2021. Since 2021, the District has relied upon non-audit services from its accounting firm to assist with compiling capital asset values for external reporting. These non-audit services are not detailed enough to comply with Federal regulations because they are meant to satisfy Accounting Principles Generally Accepted in the United States of America. Effect: The District was out of compliance with Federal Equipment and Real Property Management regulations. Cause: The cause of the condition was a lack of a business office policy and procedure to ensure annual updating of property records, including the tagging and marking of items or Federal origin. Recommendation: It is recommended that the business office establish a policy and procedure to ensure annual updating of property records, including the tagging and marking of items of Federal origin. Management's response: See corrective action plan.