FAC Explorer

Audit 305936

FY End
2023-06-30
Total Expended
$17.32M
Findings
8
Programs
15
Organization: J Sterling Morton High School District No. 201 (IL)
Year: 2023 Accepted: 2024-05-09
Auditor: Sikich LLP

Organization Exclusion Status:

Findings

ID Ref Severity Repeat Requirement
396262 2023-005 Material Weakness Yes F
396263 2023-005 Material Weakness Yes F
396264 2023-005 Material Weakness Yes F
396265 2023-005 Material Weakness Yes F
972704 2023-005 Material Weakness Yes F
972705 2023-005 Material Weakness Yes F
972706 2023-005 Material Weakness Yes F
972707 2023-005 Material Weakness Yes F

Programs

ALN Program Spent Major Findings
84.425 Covid-19 Elementary and Secondary School Emergency Relief Early Childhood Grants $7.74M Yes 1
84.027 Idea - Flow Through $1.73M Yes 0
84.010 Title I - Low Income $1.69M - 0
93.778 Medicaid Admin Outreach $507,746 - 0
84.367 Title II - Teacher Quality $284,942 - 0
84.027 Arp-Lea-Idea $248,048 Yes 0
10.553 School Breakfast Program $203,497 - 0
10.555 Non-Cash Commodities $165,996 - 0
10.555 National School Lunch Program $142,147 - 0
84.048 Cte- Perkins Secondary $133,639 - 0
10.558 Child and Adult Care Food Program $102,301 - 0
84.365 Title III - Liplep $99,949 - 0
10.582 Non-Cash Commodities - Fresh Fruit and Vegetables $77,946 - 0
84.027 Idea - Room and Board $54,900 Yes 0
10.579 Nslp Equipment Assistance Grant $26,152 - 0

Contacts

Name Title Type
SLMVD5KPJ3B3 Chistroper Blomquist Auditee
7087802800 Anthony Cervini Auditor
No contacts on file

Notes to SEFA

Title: Note 3: Subrecipients Accounting Policies: The accompanying Schedule of Expenditures of Federal Awards includes the federal grant activity of J S Morton HSD 201 and is presented on the modified accrual basis of accounting. The information in this schedule is presented in accordance with the requirements of the Office of Management and Budget Uniform Administrative Requirements, Cost Principles, and Audit Requirements for Federal Awards. 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 elect to use the federal 10% de minimis indirect cost rate. Of the federal expenditures presented in the schedule, J S Morton HSD 201 provided $0 federal awards to subrecipients
Title: Note 4: Non-Cash Assistance Accounting Policies: The accompanying Schedule of Expenditures of Federal Awards includes the federal grant activity of J S Morton HSD 201 and is presented on the modified accrual basis of accounting. The information in this schedule is presented in accordance with the requirements of the Office of Management and Budget Uniform Administrative Requirements, Cost Principles, and Audit Requirements for Federal Awards. 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 elect to use the federal 10% de minimis indirect cost rate. J S Morton HSD 201 expended $243,942 in the form of non-cash assistance and should be included in the Schedule of Expenditures of Federal Awards.
Title: Note 5: Other Information Accounting Policies: The accompanying Schedule of Expenditures of Federal Awards includes the federal grant activity of J S Morton HSD 201 and is presented on the modified accrual basis of accounting. The information in this schedule is presented in accordance with the requirements of the Office of Management and Budget Uniform Administrative Requirements, Cost Principles, and Audit Requirements for Federal Awards. 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 elect to use the federal 10% de minimis indirect cost rate. No Insurance coverage in effect was paid with Federal funds during the fiscal year. No Loans/Loan Guarantees Outstanding at June 30 and the District did not have Federal grants requiring matching expenditures.

Finding Details

Finding 2023-005
Criteria 2 CFR 200.313, Equipment , requires the following with respect to equipment purchased with Federal Funds: (1) 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 FAIN), who holds title, the acquisition date, and 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 sale price of the property. (2) A physical inventory of the property must be taken and the results reconciled with the property records at least once every two years. (3) A control system must be developed to ensure adequate safeguards to prevent loss, damage, or theft of the property. Any loss, damage, or theft must be investigated. Condition: The District does not currently maintain a detailed accounting/list of its capital assets, including Federal assets. The District does not have a recent replacement cost valuation for insurance purposes. We consider this finding to be a material weakness in internal control over major programs. Questioned Costs: N/A Context: The District has not updated or prepared a detailed listing of capital assets in recent years, but rather has relied upon the auditor to provided non-auditing services in this area. The District has not obtained an insurance valuation of its property in recent years. Effect: The District is out of compliance with Federal property regulations as a result of this condition. Cause: The cause of the condition is because the District has not contracted with any third parties to accomplish the task, nor has it allocated internal resources to the condition. Recommendation: We recommend that the District contract with a third party asset vendor or allocate internal business office resources to performing a detailed inventory and accounting of capital assets. We also recommend the District obtain an appraisal for insurance purposes to ensure that the District's property is appropriately insured in the event of loss. Management Response: Management agrees with this finding. Management is in the process of determining the most efficient way to handle this process and is evaluating the cost-benefit of implementing various processes and procedures.
Finding 2023-005
Criteria 2 CFR 200.313, Equipment , requires the following with respect to equipment purchased with Federal Funds: (1) 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 FAIN), who holds title, the acquisition date, and 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 sale price of the property. (2) A physical inventory of the property must be taken and the results reconciled with the property records at least once every two years. (3) A control system must be developed to ensure adequate safeguards to prevent loss, damage, or theft of the property. Any loss, damage, or theft must be investigated. Condition: The District does not currently maintain a detailed accounting/list of its capital assets, including Federal assets. The District does not have a recent replacement cost valuation for insurance purposes. We consider this finding to be a material weakness in internal control over major programs. Questioned Costs: N/A Context: The District has not updated or prepared a detailed listing of capital assets in recent years, but rather has relied upon the auditor to provided non-auditing services in this area. The District has not obtained an insurance valuation of its property in recent years. Effect: The District is out of compliance with Federal property regulations as a result of this condition. Cause: The cause of the condition is because the District has not contracted with any third parties to accomplish the task, nor has it allocated internal resources to the condition. Recommendation: We recommend that the District contract with a third party asset vendor or allocate internal business office resources to performing a detailed inventory and accounting of capital assets. We also recommend the District obtain an appraisal for insurance purposes to ensure that the District's property is appropriately insured in the event of loss. Management Response: Management agrees with this finding. Management is in the process of determining the most efficient way to handle this process and is evaluating the cost-benefit of implementing various processes and procedures.
Finding 2023-005
Criteria 2 CFR 200.313, Equipment , requires the following with respect to equipment purchased with Federal Funds: (1) 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 FAIN), who holds title, the acquisition date, and 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 sale price of the property. (2) A physical inventory of the property must be taken and the results reconciled with the property records at least once every two years. (3) A control system must be developed to ensure adequate safeguards to prevent loss, damage, or theft of the property. Any loss, damage, or theft must be investigated. Condition: The District does not currently maintain a detailed accounting/list of its capital assets, including Federal assets. The District does not have a recent replacement cost valuation for insurance purposes. We consider this finding to be a material weakness in internal control over major programs. Questioned Costs: N/A Context: The District has not updated or prepared a detailed listing of capital assets in recent years, but rather has relied upon the auditor to provided non-auditing services in this area. The District has not obtained an insurance valuation of its property in recent years. Effect: The District is out of compliance with Federal property regulations as a result of this condition. Cause: The cause of the condition is because the District has not contracted with any third parties to accomplish the task, nor has it allocated internal resources to the condition. Recommendation: We recommend that the District contract with a third party asset vendor or allocate internal business office resources to performing a detailed inventory and accounting of capital assets. We also recommend the District obtain an appraisal for insurance purposes to ensure that the District's property is appropriately insured in the event of loss. Management Response: Management agrees with this finding. Management is in the process of determining the most efficient way to handle this process and is evaluating the cost-benefit of implementing various processes and procedures.
Finding 2023-005
Criteria 2 CFR 200.313, Equipment , requires the following with respect to equipment purchased with Federal Funds: (1) 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 FAIN), who holds title, the acquisition date, and 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 sale price of the property. (2) A physical inventory of the property must be taken and the results reconciled with the property records at least once every two years. (3) A control system must be developed to ensure adequate safeguards to prevent loss, damage, or theft of the property. Any loss, damage, or theft must be investigated. Condition: The District does not currently maintain a detailed accounting/list of its capital assets, including Federal assets. The District does not have a recent replacement cost valuation for insurance purposes. We consider this finding to be a material weakness in internal control over major programs. Questioned Costs: N/A Context: The District has not updated or prepared a detailed listing of capital assets in recent years, but rather has relied upon the auditor to provided non-auditing services in this area. The District has not obtained an insurance valuation of its property in recent years. Effect: The District is out of compliance with Federal property regulations as a result of this condition. Cause: The cause of the condition is because the District has not contracted with any third parties to accomplish the task, nor has it allocated internal resources to the condition. Recommendation: We recommend that the District contract with a third party asset vendor or allocate internal business office resources to performing a detailed inventory and accounting of capital assets. We also recommend the District obtain an appraisal for insurance purposes to ensure that the District's property is appropriately insured in the event of loss. Management Response: Management agrees with this finding. Management is in the process of determining the most efficient way to handle this process and is evaluating the cost-benefit of implementing various processes and procedures.
Finding 2023-005
Criteria 2 CFR 200.313, Equipment , requires the following with respect to equipment purchased with Federal Funds: (1) 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 FAIN), who holds title, the acquisition date, and 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 sale price of the property. (2) A physical inventory of the property must be taken and the results reconciled with the property records at least once every two years. (3) A control system must be developed to ensure adequate safeguards to prevent loss, damage, or theft of the property. Any loss, damage, or theft must be investigated. Condition: The District does not currently maintain a detailed accounting/list of its capital assets, including Federal assets. The District does not have a recent replacement cost valuation for insurance purposes. We consider this finding to be a material weakness in internal control over major programs. Questioned Costs: N/A Context: The District has not updated or prepared a detailed listing of capital assets in recent years, but rather has relied upon the auditor to provided non-auditing services in this area. The District has not obtained an insurance valuation of its property in recent years. Effect: The District is out of compliance with Federal property regulations as a result of this condition. Cause: The cause of the condition is because the District has not contracted with any third parties to accomplish the task, nor has it allocated internal resources to the condition. Recommendation: We recommend that the District contract with a third party asset vendor or allocate internal business office resources to performing a detailed inventory and accounting of capital assets. We also recommend the District obtain an appraisal for insurance purposes to ensure that the District's property is appropriately insured in the event of loss. Management Response: Management agrees with this finding. Management is in the process of determining the most efficient way to handle this process and is evaluating the cost-benefit of implementing various processes and procedures.
Finding 2023-005
Criteria 2 CFR 200.313, Equipment , requires the following with respect to equipment purchased with Federal Funds: (1) 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 FAIN), who holds title, the acquisition date, and 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 sale price of the property. (2) A physical inventory of the property must be taken and the results reconciled with the property records at least once every two years. (3) A control system must be developed to ensure adequate safeguards to prevent loss, damage, or theft of the property. Any loss, damage, or theft must be investigated. Condition: The District does not currently maintain a detailed accounting/list of its capital assets, including Federal assets. The District does not have a recent replacement cost valuation for insurance purposes. We consider this finding to be a material weakness in internal control over major programs. Questioned Costs: N/A Context: The District has not updated or prepared a detailed listing of capital assets in recent years, but rather has relied upon the auditor to provided non-auditing services in this area. The District has not obtained an insurance valuation of its property in recent years. Effect: The District is out of compliance with Federal property regulations as a result of this condition. Cause: The cause of the condition is because the District has not contracted with any third parties to accomplish the task, nor has it allocated internal resources to the condition. Recommendation: We recommend that the District contract with a third party asset vendor or allocate internal business office resources to performing a detailed inventory and accounting of capital assets. We also recommend the District obtain an appraisal for insurance purposes to ensure that the District's property is appropriately insured in the event of loss. Management Response: Management agrees with this finding. Management is in the process of determining the most efficient way to handle this process and is evaluating the cost-benefit of implementing various processes and procedures.
Finding 2023-005
Criteria 2 CFR 200.313, Equipment , requires the following with respect to equipment purchased with Federal Funds: (1) 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 FAIN), who holds title, the acquisition date, and 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 sale price of the property. (2) A physical inventory of the property must be taken and the results reconciled with the property records at least once every two years. (3) A control system must be developed to ensure adequate safeguards to prevent loss, damage, or theft of the property. Any loss, damage, or theft must be investigated. Condition: The District does not currently maintain a detailed accounting/list of its capital assets, including Federal assets. The District does not have a recent replacement cost valuation for insurance purposes. We consider this finding to be a material weakness in internal control over major programs. Questioned Costs: N/A Context: The District has not updated or prepared a detailed listing of capital assets in recent years, but rather has relied upon the auditor to provided non-auditing services in this area. The District has not obtained an insurance valuation of its property in recent years. Effect: The District is out of compliance with Federal property regulations as a result of this condition. Cause: The cause of the condition is because the District has not contracted with any third parties to accomplish the task, nor has it allocated internal resources to the condition. Recommendation: We recommend that the District contract with a third party asset vendor or allocate internal business office resources to performing a detailed inventory and accounting of capital assets. We also recommend the District obtain an appraisal for insurance purposes to ensure that the District's property is appropriately insured in the event of loss. Management Response: Management agrees with this finding. Management is in the process of determining the most efficient way to handle this process and is evaluating the cost-benefit of implementing various processes and procedures.
Finding 2023-005
Criteria 2 CFR 200.313, Equipment , requires the following with respect to equipment purchased with Federal Funds: (1) 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 FAIN), who holds title, the acquisition date, and 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 sale price of the property. (2) A physical inventory of the property must be taken and the results reconciled with the property records at least once every two years. (3) A control system must be developed to ensure adequate safeguards to prevent loss, damage, or theft of the property. Any loss, damage, or theft must be investigated. Condition: The District does not currently maintain a detailed accounting/list of its capital assets, including Federal assets. The District does not have a recent replacement cost valuation for insurance purposes. We consider this finding to be a material weakness in internal control over major programs. Questioned Costs: N/A Context: The District has not updated or prepared a detailed listing of capital assets in recent years, but rather has relied upon the auditor to provided non-auditing services in this area. The District has not obtained an insurance valuation of its property in recent years. Effect: The District is out of compliance with Federal property regulations as a result of this condition. Cause: The cause of the condition is because the District has not contracted with any third parties to accomplish the task, nor has it allocated internal resources to the condition. Recommendation: We recommend that the District contract with a third party asset vendor or allocate internal business office resources to performing a detailed inventory and accounting of capital assets. We also recommend the District obtain an appraisal for insurance purposes to ensure that the District's property is appropriately insured in the event of loss. Management Response: Management agrees with this finding. Management is in the process of determining the most efficient way to handle this process and is evaluating the cost-benefit of implementing various processes and procedures.