FAC Explorer

Audit 302542

FY End
2023-06-30
Total Expended
$3.29M
Findings
4
Programs
11
Organization: Cary Community Consoldiated School District No. 26 (IL)
Year: 2023 Accepted: 2024-04-04
Auditor: Lauterbach & Amen LLP

Organization Exclusion Status:

Findings

ID Ref Severity Repeat Requirement
392281 2023-001 Material Weakness - P
392282 2023-002 Significant Deficiency - P
968723 2023-001 Material Weakness - P
968724 2023-002 Significant Deficiency - P

Programs

ALN Program Spent Major Findings
84.425 Education Stabilization Fund $133,602 Yes 0
84.027 Special Education_grants to States $94,533 Yes 0
93.778 Medical Assistance Program $74,311 - 0
10.555 National School Lunch Program $61,899 Yes 0
84.367 Improving Teacher Quality State Grants $49,907 - 0
84.173 Special Education_preschool Grants $43,442 Yes 0
84.365 English Language Acquisition State Grants $33,087 - 0
10.553 School Breakfast Program $20,108 Yes 0
84.010 Title I Grants to Local Educational Agencies $14,296 - 0
84.173 Special Education_grants to States $10,587 Yes 0
84.424 Student Support and Academic Enrichment Program $8,470 - 0

Contacts

Name Title Type
J5WRBJTYN8F3 David Shepherd Auditee
2243575100 Don Shaw Auditor
No contacts on file

Notes to SEFA

Title: NOTE 4 – NONCASH TRANSACTIONS Accounting Policies: NOTE 1 – BASIS OF PRESENTATION The accompanying schedule of expenditures of federal awards (the Schedule) includes the federal grant activity of the School District 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 Uniform Guidance, Audits of States, Local Governments, and Non-Profit Organizations. Because the Schedule presents only a selected portion of the operations of the School District, it is not intended to and does not present the financial position, changes in net position, or cash flows of the School District. NOTE 2 – SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES Expenditures Expenditures reported on the Schedule are reported on the accrual basis of accounting. Pass-Through Entities Pass-through entity identifying numbers are presented on the Schedule where available. De Minimis Rate Used: N Rate Explanation: The School District has selected to use a rate other than the 10% de minimis indirect cost rate as permitted by 2 CFR Section 200.414. The School District received $74,634 of Federal non-cash commodities passed through the Illinois State Board of Education.
Title: NOTE 5 – SUBRECIPIENT RELATIONSHIPS Accounting Policies: NOTE 1 – BASIS OF PRESENTATION The accompanying schedule of expenditures of federal awards (the Schedule) includes the federal grant activity of the School District 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 Uniform Guidance, Audits of States, Local Governments, and Non-Profit Organizations. Because the Schedule presents only a selected portion of the operations of the School District, it is not intended to and does not present the financial position, changes in net position, or cash flows of the School District. NOTE 2 – SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES Expenditures Expenditures reported on the Schedule are reported on the accrual basis of accounting. Pass-Through Entities Pass-through entity identifying numbers are presented on the Schedule where available. De Minimis Rate Used: N Rate Explanation: The School District has selected to use a rate other than the 10% de minimis indirect cost rate as permitted by 2 CFR Section 200.414. The School District did not remit any funds to subrecipients.

Finding Details

Finding 2023-001
Accounting Software Condition: During audit fieldwork, our testing we noted the District is using an accounting software package that is outdated and provides minimal support for issues that arise. The software allowed for funds to be out of balance and Trial Balances that did not match the general ledger, and journal entries to be posed to prior fiscal years. Criteria: A good software system should restricted the capability of posting one-sided entries and should close each fiscal year to not allow for journal entries to be posted in prior fiscal years. Cause: Year-end entries were required in order to balance funds and accurately present the District’s financial statements. Effect: The District’s financial statements did not represent the actual activity of the fiscal year audited at audit fieldwork. Recommendation: We recommend the District review the current accounting software package and investigate the purchase of a new software. If the District retains the software package, we recommend the District ensure funds are balanced and the general ledger matches the trial balances provided at audit fieldwork.
Finding 2023-002
Audit Journal Entries Condition: During audit fieldwork, our testing resulted in audit adjustments in order to present materially accurate financial statements. Criteria: A good system of internal controls would provide for accurate representations of adjusted account balances for all District accounts prior to audit fieldwork. Cause: Year-end entries related to various accruals and other items were required in order to accurately present the District’s financial statements. Effect: The District’s financial statements were not fully adjusted prior to audit fieldwork. Recommendation: A vital process of effective internal controls is the review and subsequent adjustment of general ledger balances. This review and adjustment will aid in the appropriate budgeting and management of the District’s financial activities and resources.
Finding 2023-001
Accounting Software Condition: During audit fieldwork, our testing we noted the District is using an accounting software package that is outdated and provides minimal support for issues that arise. The software allowed for funds to be out of balance and Trial Balances that did not match the general ledger, and journal entries to be posed to prior fiscal years. Criteria: A good software system should restricted the capability of posting one-sided entries and should close each fiscal year to not allow for journal entries to be posted in prior fiscal years. Cause: Year-end entries were required in order to balance funds and accurately present the District’s financial statements. Effect: The District’s financial statements did not represent the actual activity of the fiscal year audited at audit fieldwork. Recommendation: We recommend the District review the current accounting software package and investigate the purchase of a new software. If the District retains the software package, we recommend the District ensure funds are balanced and the general ledger matches the trial balances provided at audit fieldwork.
Finding 2023-002
Audit Journal Entries Condition: During audit fieldwork, our testing resulted in audit adjustments in order to present materially accurate financial statements. Criteria: A good system of internal controls would provide for accurate representations of adjusted account balances for all District accounts prior to audit fieldwork. Cause: Year-end entries related to various accruals and other items were required in order to accurately present the District’s financial statements. Effect: The District’s financial statements were not fully adjusted prior to audit fieldwork. Recommendation: A vital process of effective internal controls is the review and subsequent adjustment of general ledger balances. This review and adjustment will aid in the appropriate budgeting and management of the District’s financial activities and resources.