Audit 307162

PANA COMMUNITY UNIT SCHOOL DISTRICT 8 SCHEDULE OF FINDINGS AND QUESTIONED COSTS Year Ending June 30, 2023 SECTION III - FEDERAL AWARD FINDINGS AND QUESTIONED COSTS 1. FINDING NUMBER: 2023- 006 2. THIS FINDING IS: New X Repeat from Prior year? Year originally reported? 2022 3. Federal Program Name and Year: Education Stabilization Fund- 2022 & 2023 4. Project No.: 4998- ER, E3, D3, HL 5. CFDA No.: 84.425- COVID-19, 84.425D; 84.425- COVID-19, 84.425U; 84.425- COVID-19, 84.425W 6. Passed Through: Illinois State Board of Education 7. Federal Agency: Department of Education 8. Criteria or specific requirement (including statutory, regulatory, or other citation) Internal controls over compliance over reporting of federal expenditures require expenditures to be coded to the same expenditure functions and object codes in the district's general ledger as they are on grant expenditure reports and for complete general ledger support to be maintained by District personnel for all expenditure reports filed. 9. Condition Expenditure functions and objects used to record grant expenditures in the general ledger are not consistent with the expenditure functions and objects used for grant reporting. In addition, general ledger support for each expenditure report submitted is not complete and readily available. 10. Questioned Costs 11. Context A material amount of expenditures included in numerous accounts on the Education Stabilization Fund expenditure reports were not coded to the same function and object in the general ledger and complete general ledger support was not readily available. 12. Effect Grant expenditures claimed cannot be easily reconciled to the general ledger. Consequently, determining the population of Education Stabilization Fund expenditures for Single Audit testing was difficult. 13. Cause Coding of grant expenditures and grant expenditure report preparation are assigned to two different employees and no review is done to ensure expenditures are coded to the functions in which they were budgeted and subsequently claimed on expenditure reports. 14. Recommendation Grant expenditures should be recorded in the same general ledger expenditure functions as are used for grant reporting and supporting general ledger reports should be maintained in District files for all expenditure reports filed. The employees assigned to code grant expenditures and prepare grant expenditure reports should work together to accomplish this. 15. Management's response Management will implement the auditor's recommendation for the year ended June 30, 2024.

PANA COMMUNITY UNIT SCHOOL DISTRICT 8 SCHEDULE OF FINDINGS AND QUESTIONED COSTS Year Ending June 30, 2023 SECTION III - FEDERAL AWARD FINDINGS AND QUESTIONED COSTS 1. FINDING NUMBER: 2023- 006 2. THIS FINDING IS: New X Repeat from Prior year? Year originally reported? 2022 3. Federal Program Name and Year: Education Stabilization Fund- 2022 & 2023 4. Project No.: 4998- ER, E3, D3, HL 5. CFDA No.: 84.425- COVID-19, 84.425D; 84.425- COVID-19, 84.425U; 84.425- COVID-19, 84.425W 6. Passed Through: Illinois State Board of Education 7. Federal Agency: Department of Education 8. Criteria or specific requirement (including statutory, regulatory, or other citation) Internal controls over compliance over reporting of federal expenditures require expenditures to be coded to the same expenditure functions and object codes in the district's general ledger as they are on grant expenditure reports and for complete general ledger support to be maintained by District personnel for all expenditure reports filed. 9. Condition Expenditure functions and objects used to record grant expenditures in the general ledger are not consistent with the expenditure functions and objects used for grant reporting. In addition, general ledger support for each expenditure report submitted is not complete and readily available. 10. Questioned Costs 11. Context A material amount of expenditures included in numerous accounts on the Education Stabilization Fund expenditure reports were not coded to the same function and object in the general ledger and complete general ledger support was not readily available. 12. Effect Grant expenditures claimed cannot be easily reconciled to the general ledger. Consequently, determining the population of Education Stabilization Fund expenditures for Single Audit testing was difficult. 13. Cause Coding of grant expenditures and grant expenditure report preparation are assigned to two different employees and no review is done to ensure expenditures are coded to the functions in which they were budgeted and subsequently claimed on expenditure reports. 14. Recommendation Grant expenditures should be recorded in the same general ledger expenditure functions as are used for grant reporting and supporting general ledger reports should be maintained in District files for all expenditure reports filed. The employees assigned to code grant expenditures and prepare grant expenditure reports should work together to accomplish this. 15. Management's response Management will implement the auditor's recommendation for the year ended June 30, 2024.

PANA COMMUNITY UNIT SCHOOL DISTRICT 8 SCHEDULE OF FINDINGS AND QUESTIONED COSTS Year Ending June 30, 2023 SECTION III - FEDERAL AWARD FINDINGS AND QUESTIONED COSTS 1. FINDING NUMBER: 2023- 006 2. THIS FINDING IS: New X Repeat from Prior year? Year originally reported? 2022 3. Federal Program Name and Year: Education Stabilization Fund- 2022 & 2023 4. Project No.: 4998- ER, E3, D3, HL 5. CFDA No.: 84.425- COVID-19, 84.425D; 84.425- COVID-19, 84.425U; 84.425- COVID-19, 84.425W 6. Passed Through: Illinois State Board of Education 7. Federal Agency: Department of Education 8. Criteria or specific requirement (including statutory, regulatory, or other citation) Internal controls over compliance over reporting of federal expenditures require expenditures to be coded to the same expenditure functions and object codes in the district's general ledger as they are on grant expenditure reports and for complete general ledger support to be maintained by District personnel for all expenditure reports filed. 9. Condition Expenditure functions and objects used to record grant expenditures in the general ledger are not consistent with the expenditure functions and objects used for grant reporting. In addition, general ledger support for each expenditure report submitted is not complete and readily available. 10. Questioned Costs 11. Context A material amount of expenditures included in numerous accounts on the Education Stabilization Fund expenditure reports were not coded to the same function and object in the general ledger and complete general ledger support was not readily available. 12. Effect Grant expenditures claimed cannot be easily reconciled to the general ledger. Consequently, determining the population of Education Stabilization Fund expenditures for Single Audit testing was difficult. 13. Cause Coding of grant expenditures and grant expenditure report preparation are assigned to two different employees and no review is done to ensure expenditures are coded to the functions in which they were budgeted and subsequently claimed on expenditure reports. 14. Recommendation Grant expenditures should be recorded in the same general ledger expenditure functions as are used for grant reporting and supporting general ledger reports should be maintained in District files for all expenditure reports filed. The employees assigned to code grant expenditures and prepare grant expenditure reports should work together to accomplish this. 15. Management's response Management will implement the auditor's recommendation for the year ended June 30, 2024.

PANA COMMUNITY UNIT SCHOOL DISTRICT 8 SCHEDULE OF FINDINGS AND QUESTIONED COSTS Year Ending June 30, 2023 SECTION III - FEDERAL AWARD FINDINGS AND QUESTIONED COSTS 1. FINDING NUMBER: 2023- 006 2. THIS FINDING IS: New X Repeat from Prior year? Year originally reported? 2022 3. Federal Program Name and Year: Education Stabilization Fund- 2022 & 2023 4. Project No.: 4998- ER, E3, D3, HL 5. CFDA No.: 84.425- COVID-19, 84.425D; 84.425- COVID-19, 84.425U; 84.425- COVID-19, 84.425W 6. Passed Through: Illinois State Board of Education 7. Federal Agency: Department of Education 8. Criteria or specific requirement (including statutory, regulatory, or other citation) Internal controls over compliance over reporting of federal expenditures require expenditures to be coded to the same expenditure functions and object codes in the district's general ledger as they are on grant expenditure reports and for complete general ledger support to be maintained by District personnel for all expenditure reports filed. 9. Condition Expenditure functions and objects used to record grant expenditures in the general ledger are not consistent with the expenditure functions and objects used for grant reporting. In addition, general ledger support for each expenditure report submitted is not complete and readily available. 10. Questioned Costs 11. Context A material amount of expenditures included in numerous accounts on the Education Stabilization Fund expenditure reports were not coded to the same function and object in the general ledger and complete general ledger support was not readily available. 12. Effect Grant expenditures claimed cannot be easily reconciled to the general ledger. Consequently, determining the population of Education Stabilization Fund expenditures for Single Audit testing was difficult. 13. Cause Coding of grant expenditures and grant expenditure report preparation are assigned to two different employees and no review is done to ensure expenditures are coded to the functions in which they were budgeted and subsequently claimed on expenditure reports. 14. Recommendation Grant expenditures should be recorded in the same general ledger expenditure functions as are used for grant reporting and supporting general ledger reports should be maintained in District files for all expenditure reports filed. The employees assigned to code grant expenditures and prepare grant expenditure reports should work together to accomplish this. 15. Management's response Management will implement the auditor's recommendation for the year ended June 30, 2024.

PANA COMMUNITY UNIT SCHOOL DISTRICT 8 SCHEDULE OF FINDINGS AND QUESTIONED COSTS Year Ending June 30, 2023 SECTION III - FEDERAL AWARD FINDINGS AND QUESTIONED COSTS 1. FINDING NUMBER: 2023- 006 2. THIS FINDING IS: New X Repeat from Prior year? Year originally reported? 2022 3. Federal Program Name and Year: Education Stabilization Fund- 2022 & 2023 4. Project No.: 4998- ER, E3, D3, HL 5. CFDA No.: 84.425- COVID-19, 84.425D; 84.425- COVID-19, 84.425U; 84.425- COVID-19, 84.425W 6. Passed Through: Illinois State Board of Education 7. Federal Agency: Department of Education 8. Criteria or specific requirement (including statutory, regulatory, or other citation) Internal controls over compliance over reporting of federal expenditures require expenditures to be coded to the same expenditure functions and object codes in the district's general ledger as they are on grant expenditure reports and for complete general ledger support to be maintained by District personnel for all expenditure reports filed. 9. Condition Expenditure functions and objects used to record grant expenditures in the general ledger are not consistent with the expenditure functions and objects used for grant reporting. In addition, general ledger support for each expenditure report submitted is not complete and readily available. 10. Questioned Costs 11. Context A material amount of expenditures included in numerous accounts on the Education Stabilization Fund expenditure reports were not coded to the same function and object in the general ledger and complete general ledger support was not readily available. 12. Effect Grant expenditures claimed cannot be easily reconciled to the general ledger. Consequently, determining the population of Education Stabilization Fund expenditures for Single Audit testing was difficult. 13. Cause Coding of grant expenditures and grant expenditure report preparation are assigned to two different employees and no review is done to ensure expenditures are coded to the functions in which they were budgeted and subsequently claimed on expenditure reports. 14. Recommendation Grant expenditures should be recorded in the same general ledger expenditure functions as are used for grant reporting and supporting general ledger reports should be maintained in District files for all expenditure reports filed. The employees assigned to code grant expenditures and prepare grant expenditure reports should work together to accomplish this. 15. Management's response Management will implement the auditor's recommendation for the year ended June 30, 2024.

PANA COMMUNITY UNIT SCHOOL DISTRICT 8 SCHEDULE OF FINDINGS AND QUESTIONED COSTS Year Ending June 30, 2023 SECTION III - FEDERAL AWARD FINDINGS AND QUESTIONED COSTS 1. FINDING NUMBER: 2023- 006 2. THIS FINDING IS: New X Repeat from Prior year? Year originally reported? 2022 3. Federal Program Name and Year: Education Stabilization Fund- 2022 & 2023 4. Project No.: 4998- ER, E3, D3, HL 5. CFDA No.: 84.425- COVID-19, 84.425D; 84.425- COVID-19, 84.425U; 84.425- COVID-19, 84.425W 6. Passed Through: Illinois State Board of Education 7. Federal Agency: Department of Education 8. Criteria or specific requirement (including statutory, regulatory, or other citation) Internal controls over compliance over reporting of federal expenditures require expenditures to be coded to the same expenditure functions and object codes in the district's general ledger as they are on grant expenditure reports and for complete general ledger support to be maintained by District personnel for all expenditure reports filed. 9. Condition Expenditure functions and objects used to record grant expenditures in the general ledger are not consistent with the expenditure functions and objects used for grant reporting. In addition, general ledger support for each expenditure report submitted is not complete and readily available. 10. Questioned Costs 11. Context A material amount of expenditures included in numerous accounts on the Education Stabilization Fund expenditure reports were not coded to the same function and object in the general ledger and complete general ledger support was not readily available. 12. Effect Grant expenditures claimed cannot be easily reconciled to the general ledger. Consequently, determining the population of Education Stabilization Fund expenditures for Single Audit testing was difficult. 13. Cause Coding of grant expenditures and grant expenditure report preparation are assigned to two different employees and no review is done to ensure expenditures are coded to the functions in which they were budgeted and subsequently claimed on expenditure reports. 14. Recommendation Grant expenditures should be recorded in the same general ledger expenditure functions as are used for grant reporting and supporting general ledger reports should be maintained in District files for all expenditure reports filed. The employees assigned to code grant expenditures and prepare grant expenditure reports should work together to accomplish this. 15. Management's response Management will implement the auditor's recommendation for the year ended June 30, 2024.