FAC Explorer

Audit 31057

FY End
2022-06-30
Total Expended
$3.50M
Findings
20
Programs
12
Organization: Pontiac Community Consolidated School District No. 429 (IL)
Year: 2022 Accepted: 2023-02-21
Auditor: Gorenz and Associates LTD

Organization Exclusion Status:

Findings

ID Ref Severity Repeat Requirement
30252 2022-002 Significant Deficiency Yes C
30253 2022-002 Significant Deficiency Yes C
30254 2022-002 Significant Deficiency Yes C
30255 2022-002 Significant Deficiency Yes C
30256 2022-002 Significant Deficiency Yes C
30257 2022-002 Significant Deficiency Yes C
30258 2022-002 Significant Deficiency Yes C
30259 2022-002 Significant Deficiency Yes C
30260 2022-002 Significant Deficiency Yes C
30261 2022-002 Significant Deficiency Yes C
606694 2022-002 Significant Deficiency Yes C
606695 2022-002 Significant Deficiency Yes C
606696 2022-002 Significant Deficiency Yes C
606697 2022-002 Significant Deficiency Yes C
606698 2022-002 Significant Deficiency Yes C
606699 2022-002 Significant Deficiency Yes C
606700 2022-002 Significant Deficiency Yes C
606701 2022-002 Significant Deficiency Yes C
606702 2022-002 Significant Deficiency Yes C
606703 2022-002 Significant Deficiency Yes C

Programs

ALN Program Spent Major Findings
84.425 Education Stabilization Fund $1.10M Yes 0
84.027 Special Education_grants to States $303,019 - 0
10.553 School Breakfast Program $179,970 - 1
84.010 Title I Grants to Local Educational Agencies $72,000 - 0
10.555 National School Lunch Program $51,068 - 1
84.424 Student Support and Academic Enrichment Program $18,785 - 0
84.367 Improving Teacher Quality State Grants $18,502 - 0
84.173 Special Education_preschool Grants $17,909 - 0
10.559 Summer Food Service Program for Children $7,803 - 1
84.358 Rural Education $4,119 - 0
10.649 Pandemic Ebt Administrative Costs $3,063 - 0
10.556 Special Milk Program for Children $244 - 1

Contacts

Name Title Type
PCHJYLCKYQH3 Brian Dukes Auditee
8158421533 Jason A Hohulin, CPA Auditor
No contacts on file

Notes to SEFA

Title: Note 3: Summary of Significant Accounting Policies Accounting Policies: The accompanying schedule of expenditures of federal awards (Schedule) includes the federal award activity of Pontiac Community Consolidated School District No. 429 (the District) under programs of the federal government for the year ended June 30, 2022. The information in this Schedule is presented in accordance with the requirements of Title 2 U.S. Code of Federal Regulations Part 200, Uniform Administrative Requirements, Cost Principles, and Audit Requirements for Federal Awards (Uniform Guidance). Because the Schedule presents only a selected portion of the operations of the District, it is not intended to and does not present the financial position or changes in net position of the District. De Minimis Rate Used: N Rate Explanation: The auditee did not use the de minimis cost rate. Expenditures reported on the schedule of expenditures of federal awards are reported on the cash basis of accounting. Such expenditures are recognized following the cost principles contained in the Uniform Guidance, wherein certain types of expenditures are not allowable or are limited as to reimbursement.
Title: Note 4: NonCash Assistance Accounting Policies: The accompanying schedule of expenditures of federal awards (Schedule) includes the federal award activity of Pontiac Community Consolidated School District No. 429 (the District) under programs of the federal government for the year ended June 30, 2022. The information in this Schedule is presented in accordance with the requirements of Title 2 U.S. Code of Federal Regulations Part 200, Uniform Administrative Requirements, Cost Principles, and Audit Requirements for Federal Awards (Uniform Guidance). Because the Schedule presents only a selected portion of the operations of the District, it is not intended to and does not present the financial position or changes in net position of the District. De Minimis Rate Used: N Rate Explanation: The auditee did not use the de minimis cost rate. Noncash assistance is reported in the schedule of federal awards at the fair market value of the nonmonetary assistance received and disbursed as follows. The District received nonmonetary assistance under Assistance Listing number 10.555 as noted in the accompanying schedule of expenditures of federal awards.
Title: Note 5: Other Information Accounting Policies: The accompanying schedule of expenditures of federal awards (Schedule) includes the federal award activity of Pontiac Community Consolidated School District No. 429 (the District) under programs of the federal government for the year ended June 30, 2022. The information in this Schedule is presented in accordance with the requirements of Title 2 U.S. Code of Federal Regulations Part 200, Uniform Administrative Requirements, Cost Principles, and Audit Requirements for Federal Awards (Uniform Guidance). Because the Schedule presents only a selected portion of the operations of the District, it is not intended to and does not present the financial position or changes in net position of the District. De Minimis Rate Used: N Rate Explanation: The auditee did not use the de minimis cost rate. No federal funds were used to purchase insurance coverage during the fiscal year ended June 30, 2022. There were no loans or loan guarantees outstanding as of June 30, 2022. The District had no federal grants which required matching federal expenditures.

Finding Details

Finding 2022-002
FINDING NUMBER: 2022-002 THIS FINDING IS: Repeat from Prior year? Yes Year originally reported? 2020 FINDING TYPE: Internal Control DEFICIENCY TYPE: Significant Deficiency Federal Program Name and Year: Child Nutrition Cluster - 2022 Project No.: 21 & 22-4220, 4210, 4215, 4225 AL No.: 10.553, 10.555, 10.556, 10.559 Passed Through: Illinois State Board of Education Federal Agency: U.S Department of Agriculture Criteria or specific requirement (including statutory, regulatory, or other citation) The Code of Federal Regulations (CFR) Title 7, part 210.14(b) states the school food authority shall limit its net cash resources to an amount that does not exceed 3 months average expenditures for its nonprofit school food service. Condition: The District has not adequately established internal controls to ensure that net cash resources are being properly monitored. Questioned Costs: None. Context: The District did not properly calculate a running balance of the net cash resources of the nonprofit school food service nor did they have an understanding of the significance of their calculation. Effect: Noncompliance with the federal award program's resource (cash) management requirements could occur and not be detected and corrected timely. Cause: Management had not developed an adequate system of internal control to ensure compliance with the Cash Management compliance requirement. Recommendation: We recommend that the management establish internal controls related to the cash management compliance requirement to monitor and ensure that the net cash resources of the nonprofit school food service does not exceed 3 months average expenditures. Management's response: There is no disagreement with this finding and internal controls will be developed to monitor the net cash resources of the nonprofit school food service.
Finding 2022-002
FINDING NUMBER: 2022-002 THIS FINDING IS: Repeat from Prior year? Yes Year originally reported? 2020 FINDING TYPE: Internal Control DEFICIENCY TYPE: Significant Deficiency Federal Program Name and Year: Child Nutrition Cluster - 2022 Project No.: 21 & 22-4220, 4210, 4215, 4225 AL No.: 10.553, 10.555, 10.556, 10.559 Passed Through: Illinois State Board of Education Federal Agency: U.S Department of Agriculture Criteria or specific requirement (including statutory, regulatory, or other citation) The Code of Federal Regulations (CFR) Title 7, part 210.14(b) states the school food authority shall limit its net cash resources to an amount that does not exceed 3 months average expenditures for its nonprofit school food service. Condition: The District has not adequately established internal controls to ensure that net cash resources are being properly monitored. Questioned Costs: None. Context: The District did not properly calculate a running balance of the net cash resources of the nonprofit school food service nor did they have an understanding of the significance of their calculation. Effect: Noncompliance with the federal award program's resource (cash) management requirements could occur and not be detected and corrected timely. Cause: Management had not developed an adequate system of internal control to ensure compliance with the Cash Management compliance requirement. Recommendation: We recommend that the management establish internal controls related to the cash management compliance requirement to monitor and ensure that the net cash resources of the nonprofit school food service does not exceed 3 months average expenditures. Management's response: There is no disagreement with this finding and internal controls will be developed to monitor the net cash resources of the nonprofit school food service.
Finding 2022-002
FINDING NUMBER: 2022-002 THIS FINDING IS: Repeat from Prior year? Yes Year originally reported? 2020 FINDING TYPE: Internal Control DEFICIENCY TYPE: Significant Deficiency Federal Program Name and Year: Child Nutrition Cluster - 2022 Project No.: 21 & 22-4220, 4210, 4215, 4225 AL No.: 10.553, 10.555, 10.556, 10.559 Passed Through: Illinois State Board of Education Federal Agency: U.S Department of Agriculture Criteria or specific requirement (including statutory, regulatory, or other citation) The Code of Federal Regulations (CFR) Title 7, part 210.14(b) states the school food authority shall limit its net cash resources to an amount that does not exceed 3 months average expenditures for its nonprofit school food service. Condition: The District has not adequately established internal controls to ensure that net cash resources are being properly monitored. Questioned Costs: None. Context: The District did not properly calculate a running balance of the net cash resources of the nonprofit school food service nor did they have an understanding of the significance of their calculation. Effect: Noncompliance with the federal award program's resource (cash) management requirements could occur and not be detected and corrected timely. Cause: Management had not developed an adequate system of internal control to ensure compliance with the Cash Management compliance requirement. Recommendation: We recommend that the management establish internal controls related to the cash management compliance requirement to monitor and ensure that the net cash resources of the nonprofit school food service does not exceed 3 months average expenditures. Management's response: There is no disagreement with this finding and internal controls will be developed to monitor the net cash resources of the nonprofit school food service.
Finding 2022-002
FINDING NUMBER: 2022-002 THIS FINDING IS: Repeat from Prior year? Yes Year originally reported? 2020 FINDING TYPE: Internal Control DEFICIENCY TYPE: Significant Deficiency Federal Program Name and Year: Child Nutrition Cluster - 2022 Project No.: 21 & 22-4220, 4210, 4215, 4225 AL No.: 10.553, 10.555, 10.556, 10.559 Passed Through: Illinois State Board of Education Federal Agency: U.S Department of Agriculture Criteria or specific requirement (including statutory, regulatory, or other citation) The Code of Federal Regulations (CFR) Title 7, part 210.14(b) states the school food authority shall limit its net cash resources to an amount that does not exceed 3 months average expenditures for its nonprofit school food service. Condition: The District has not adequately established internal controls to ensure that net cash resources are being properly monitored. Questioned Costs: None. Context: The District did not properly calculate a running balance of the net cash resources of the nonprofit school food service nor did they have an understanding of the significance of their calculation. Effect: Noncompliance with the federal award program's resource (cash) management requirements could occur and not be detected and corrected timely. Cause: Management had not developed an adequate system of internal control to ensure compliance with the Cash Management compliance requirement. Recommendation: We recommend that the management establish internal controls related to the cash management compliance requirement to monitor and ensure that the net cash resources of the nonprofit school food service does not exceed 3 months average expenditures. Management's response: There is no disagreement with this finding and internal controls will be developed to monitor the net cash resources of the nonprofit school food service.
Finding 2022-002
FINDING NUMBER: 2022-002 THIS FINDING IS: Repeat from Prior year? Yes Year originally reported? 2020 FINDING TYPE: Internal Control DEFICIENCY TYPE: Significant Deficiency Federal Program Name and Year: Child Nutrition Cluster - 2022 Project No.: 21 & 22-4220, 4210, 4215, 4225 AL No.: 10.553, 10.555, 10.556, 10.559 Passed Through: Illinois State Board of Education Federal Agency: U.S Department of Agriculture Criteria or specific requirement (including statutory, regulatory, or other citation) The Code of Federal Regulations (CFR) Title 7, part 210.14(b) states the school food authority shall limit its net cash resources to an amount that does not exceed 3 months average expenditures for its nonprofit school food service. Condition: The District has not adequately established internal controls to ensure that net cash resources are being properly monitored. Questioned Costs: None. Context: The District did not properly calculate a running balance of the net cash resources of the nonprofit school food service nor did they have an understanding of the significance of their calculation. Effect: Noncompliance with the federal award program's resource (cash) management requirements could occur and not be detected and corrected timely. Cause: Management had not developed an adequate system of internal control to ensure compliance with the Cash Management compliance requirement. Recommendation: We recommend that the management establish internal controls related to the cash management compliance requirement to monitor and ensure that the net cash resources of the nonprofit school food service does not exceed 3 months average expenditures. Management's response: There is no disagreement with this finding and internal controls will be developed to monitor the net cash resources of the nonprofit school food service.
Finding 2022-002
FINDING NUMBER: 2022-002 THIS FINDING IS: Repeat from Prior year? Yes Year originally reported? 2020 FINDING TYPE: Internal Control DEFICIENCY TYPE: Significant Deficiency Federal Program Name and Year: Child Nutrition Cluster - 2022 Project No.: 21 & 22-4220, 4210, 4215, 4225 AL No.: 10.553, 10.555, 10.556, 10.559 Passed Through: Illinois State Board of Education Federal Agency: U.S Department of Agriculture Criteria or specific requirement (including statutory, regulatory, or other citation) The Code of Federal Regulations (CFR) Title 7, part 210.14(b) states the school food authority shall limit its net cash resources to an amount that does not exceed 3 months average expenditures for its nonprofit school food service. Condition: The District has not adequately established internal controls to ensure that net cash resources are being properly monitored. Questioned Costs: None. Context: The District did not properly calculate a running balance of the net cash resources of the nonprofit school food service nor did they have an understanding of the significance of their calculation. Effect: Noncompliance with the federal award program's resource (cash) management requirements could occur and not be detected and corrected timely. Cause: Management had not developed an adequate system of internal control to ensure compliance with the Cash Management compliance requirement. Recommendation: We recommend that the management establish internal controls related to the cash management compliance requirement to monitor and ensure that the net cash resources of the nonprofit school food service does not exceed 3 months average expenditures. Management's response: There is no disagreement with this finding and internal controls will be developed to monitor the net cash resources of the nonprofit school food service.
Finding 2022-002
FINDING NUMBER: 2022-002 THIS FINDING IS: Repeat from Prior year? Yes Year originally reported? 2020 FINDING TYPE: Internal Control DEFICIENCY TYPE: Significant Deficiency Federal Program Name and Year: Child Nutrition Cluster - 2022 Project No.: 21 & 22-4220, 4210, 4215, 4225 AL No.: 10.553, 10.555, 10.556, 10.559 Passed Through: Illinois State Board of Education Federal Agency: U.S Department of Agriculture Criteria or specific requirement (including statutory, regulatory, or other citation) The Code of Federal Regulations (CFR) Title 7, part 210.14(b) states the school food authority shall limit its net cash resources to an amount that does not exceed 3 months average expenditures for its nonprofit school food service. Condition: The District has not adequately established internal controls to ensure that net cash resources are being properly monitored. Questioned Costs: None. Context: The District did not properly calculate a running balance of the net cash resources of the nonprofit school food service nor did they have an understanding of the significance of their calculation. Effect: Noncompliance with the federal award program's resource (cash) management requirements could occur and not be detected and corrected timely. Cause: Management had not developed an adequate system of internal control to ensure compliance with the Cash Management compliance requirement. Recommendation: We recommend that the management establish internal controls related to the cash management compliance requirement to monitor and ensure that the net cash resources of the nonprofit school food service does not exceed 3 months average expenditures. Management's response: There is no disagreement with this finding and internal controls will be developed to monitor the net cash resources of the nonprofit school food service.
Finding 2022-002
FINDING NUMBER: 2022-002 THIS FINDING IS: Repeat from Prior year? Yes Year originally reported? 2020 FINDING TYPE: Internal Control DEFICIENCY TYPE: Significant Deficiency Federal Program Name and Year: Child Nutrition Cluster - 2022 Project No.: 21 & 22-4220, 4210, 4215, 4225 AL No.: 10.553, 10.555, 10.556, 10.559 Passed Through: Illinois State Board of Education Federal Agency: U.S Department of Agriculture Criteria or specific requirement (including statutory, regulatory, or other citation) The Code of Federal Regulations (CFR) Title 7, part 210.14(b) states the school food authority shall limit its net cash resources to an amount that does not exceed 3 months average expenditures for its nonprofit school food service. Condition: The District has not adequately established internal controls to ensure that net cash resources are being properly monitored. Questioned Costs: None. Context: The District did not properly calculate a running balance of the net cash resources of the nonprofit school food service nor did they have an understanding of the significance of their calculation. Effect: Noncompliance with the federal award program's resource (cash) management requirements could occur and not be detected and corrected timely. Cause: Management had not developed an adequate system of internal control to ensure compliance with the Cash Management compliance requirement. Recommendation: We recommend that the management establish internal controls related to the cash management compliance requirement to monitor and ensure that the net cash resources of the nonprofit school food service does not exceed 3 months average expenditures. Management's response: There is no disagreement with this finding and internal controls will be developed to monitor the net cash resources of the nonprofit school food service.
Finding 2022-002
FINDING NUMBER: 2022-002 THIS FINDING IS: Repeat from Prior year? Yes Year originally reported? 2020 FINDING TYPE: Internal Control DEFICIENCY TYPE: Significant Deficiency Federal Program Name and Year: Child Nutrition Cluster - 2022 Project No.: 21 & 22-4220, 4210, 4215, 4225 AL No.: 10.553, 10.555, 10.556, 10.559 Passed Through: Illinois State Board of Education Federal Agency: U.S Department of Agriculture Criteria or specific requirement (including statutory, regulatory, or other citation) The Code of Federal Regulations (CFR) Title 7, part 210.14(b) states the school food authority shall limit its net cash resources to an amount that does not exceed 3 months average expenditures for its nonprofit school food service. Condition: The District has not adequately established internal controls to ensure that net cash resources are being properly monitored. Questioned Costs: None. Context: The District did not properly calculate a running balance of the net cash resources of the nonprofit school food service nor did they have an understanding of the significance of their calculation. Effect: Noncompliance with the federal award program's resource (cash) management requirements could occur and not be detected and corrected timely. Cause: Management had not developed an adequate system of internal control to ensure compliance with the Cash Management compliance requirement. Recommendation: We recommend that the management establish internal controls related to the cash management compliance requirement to monitor and ensure that the net cash resources of the nonprofit school food service does not exceed 3 months average expenditures. Management's response: There is no disagreement with this finding and internal controls will be developed to monitor the net cash resources of the nonprofit school food service.
Finding 2022-002
FINDING NUMBER: 2022-002 THIS FINDING IS: Repeat from Prior year? Yes Year originally reported? 2020 FINDING TYPE: Internal Control DEFICIENCY TYPE: Significant Deficiency Federal Program Name and Year: Child Nutrition Cluster - 2022 Project No.: 21 & 22-4220, 4210, 4215, 4225 AL No.: 10.553, 10.555, 10.556, 10.559 Passed Through: Illinois State Board of Education Federal Agency: U.S Department of Agriculture Criteria or specific requirement (including statutory, regulatory, or other citation) The Code of Federal Regulations (CFR) Title 7, part 210.14(b) states the school food authority shall limit its net cash resources to an amount that does not exceed 3 months average expenditures for its nonprofit school food service. Condition: The District has not adequately established internal controls to ensure that net cash resources are being properly monitored. Questioned Costs: None. Context: The District did not properly calculate a running balance of the net cash resources of the nonprofit school food service nor did they have an understanding of the significance of their calculation. Effect: Noncompliance with the federal award program's resource (cash) management requirements could occur and not be detected and corrected timely. Cause: Management had not developed an adequate system of internal control to ensure compliance with the Cash Management compliance requirement. Recommendation: We recommend that the management establish internal controls related to the cash management compliance requirement to monitor and ensure that the net cash resources of the nonprofit school food service does not exceed 3 months average expenditures. Management's response: There is no disagreement with this finding and internal controls will be developed to monitor the net cash resources of the nonprofit school food service.
Finding 2022-002
FINDING NUMBER: 2022-002 THIS FINDING IS: Repeat from Prior year? Yes Year originally reported? 2020 FINDING TYPE: Internal Control DEFICIENCY TYPE: Significant Deficiency Federal Program Name and Year: Child Nutrition Cluster - 2022 Project No.: 21 & 22-4220, 4210, 4215, 4225 AL No.: 10.553, 10.555, 10.556, 10.559 Passed Through: Illinois State Board of Education Federal Agency: U.S Department of Agriculture Criteria or specific requirement (including statutory, regulatory, or other citation) The Code of Federal Regulations (CFR) Title 7, part 210.14(b) states the school food authority shall limit its net cash resources to an amount that does not exceed 3 months average expenditures for its nonprofit school food service. Condition: The District has not adequately established internal controls to ensure that net cash resources are being properly monitored. Questioned Costs: None. Context: The District did not properly calculate a running balance of the net cash resources of the nonprofit school food service nor did they have an understanding of the significance of their calculation. Effect: Noncompliance with the federal award program's resource (cash) management requirements could occur and not be detected and corrected timely. Cause: Management had not developed an adequate system of internal control to ensure compliance with the Cash Management compliance requirement. Recommendation: We recommend that the management establish internal controls related to the cash management compliance requirement to monitor and ensure that the net cash resources of the nonprofit school food service does not exceed 3 months average expenditures. Management's response: There is no disagreement with this finding and internal controls will be developed to monitor the net cash resources of the nonprofit school food service.
Finding 2022-002
FINDING NUMBER: 2022-002 THIS FINDING IS: Repeat from Prior year? Yes Year originally reported? 2020 FINDING TYPE: Internal Control DEFICIENCY TYPE: Significant Deficiency Federal Program Name and Year: Child Nutrition Cluster - 2022 Project No.: 21 & 22-4220, 4210, 4215, 4225 AL No.: 10.553, 10.555, 10.556, 10.559 Passed Through: Illinois State Board of Education Federal Agency: U.S Department of Agriculture Criteria or specific requirement (including statutory, regulatory, or other citation) The Code of Federal Regulations (CFR) Title 7, part 210.14(b) states the school food authority shall limit its net cash resources to an amount that does not exceed 3 months average expenditures for its nonprofit school food service. Condition: The District has not adequately established internal controls to ensure that net cash resources are being properly monitored. Questioned Costs: None. Context: The District did not properly calculate a running balance of the net cash resources of the nonprofit school food service nor did they have an understanding of the significance of their calculation. Effect: Noncompliance with the federal award program's resource (cash) management requirements could occur and not be detected and corrected timely. Cause: Management had not developed an adequate system of internal control to ensure compliance with the Cash Management compliance requirement. Recommendation: We recommend that the management establish internal controls related to the cash management compliance requirement to monitor and ensure that the net cash resources of the nonprofit school food service does not exceed 3 months average expenditures. Management's response: There is no disagreement with this finding and internal controls will be developed to monitor the net cash resources of the nonprofit school food service.
Finding 2022-002
FINDING NUMBER: 2022-002 THIS FINDING IS: Repeat from Prior year? Yes Year originally reported? 2020 FINDING TYPE: Internal Control DEFICIENCY TYPE: Significant Deficiency Federal Program Name and Year: Child Nutrition Cluster - 2022 Project No.: 21 & 22-4220, 4210, 4215, 4225 AL No.: 10.553, 10.555, 10.556, 10.559 Passed Through: Illinois State Board of Education Federal Agency: U.S Department of Agriculture Criteria or specific requirement (including statutory, regulatory, or other citation) The Code of Federal Regulations (CFR) Title 7, part 210.14(b) states the school food authority shall limit its net cash resources to an amount that does not exceed 3 months average expenditures for its nonprofit school food service. Condition: The District has not adequately established internal controls to ensure that net cash resources are being properly monitored. Questioned Costs: None. Context: The District did not properly calculate a running balance of the net cash resources of the nonprofit school food service nor did they have an understanding of the significance of their calculation. Effect: Noncompliance with the federal award program's resource (cash) management requirements could occur and not be detected and corrected timely. Cause: Management had not developed an adequate system of internal control to ensure compliance with the Cash Management compliance requirement. Recommendation: We recommend that the management establish internal controls related to the cash management compliance requirement to monitor and ensure that the net cash resources of the nonprofit school food service does not exceed 3 months average expenditures. Management's response: There is no disagreement with this finding and internal controls will be developed to monitor the net cash resources of the nonprofit school food service.
Finding 2022-002
FINDING NUMBER: 2022-002 THIS FINDING IS: Repeat from Prior year? Yes Year originally reported? 2020 FINDING TYPE: Internal Control DEFICIENCY TYPE: Significant Deficiency Federal Program Name and Year: Child Nutrition Cluster - 2022 Project No.: 21 & 22-4220, 4210, 4215, 4225 AL No.: 10.553, 10.555, 10.556, 10.559 Passed Through: Illinois State Board of Education Federal Agency: U.S Department of Agriculture Criteria or specific requirement (including statutory, regulatory, or other citation) The Code of Federal Regulations (CFR) Title 7, part 210.14(b) states the school food authority shall limit its net cash resources to an amount that does not exceed 3 months average expenditures for its nonprofit school food service. Condition: The District has not adequately established internal controls to ensure that net cash resources are being properly monitored. Questioned Costs: None. Context: The District did not properly calculate a running balance of the net cash resources of the nonprofit school food service nor did they have an understanding of the significance of their calculation. Effect: Noncompliance with the federal award program's resource (cash) management requirements could occur and not be detected and corrected timely. Cause: Management had not developed an adequate system of internal control to ensure compliance with the Cash Management compliance requirement. Recommendation: We recommend that the management establish internal controls related to the cash management compliance requirement to monitor and ensure that the net cash resources of the nonprofit school food service does not exceed 3 months average expenditures. Management's response: There is no disagreement with this finding and internal controls will be developed to monitor the net cash resources of the nonprofit school food service.
Finding 2022-002
FINDING NUMBER: 2022-002 THIS FINDING IS: Repeat from Prior year? Yes Year originally reported? 2020 FINDING TYPE: Internal Control DEFICIENCY TYPE: Significant Deficiency Federal Program Name and Year: Child Nutrition Cluster - 2022 Project No.: 21 & 22-4220, 4210, 4215, 4225 AL No.: 10.553, 10.555, 10.556, 10.559 Passed Through: Illinois State Board of Education Federal Agency: U.S Department of Agriculture Criteria or specific requirement (including statutory, regulatory, or other citation) The Code of Federal Regulations (CFR) Title 7, part 210.14(b) states the school food authority shall limit its net cash resources to an amount that does not exceed 3 months average expenditures for its nonprofit school food service. Condition: The District has not adequately established internal controls to ensure that net cash resources are being properly monitored. Questioned Costs: None. Context: The District did not properly calculate a running balance of the net cash resources of the nonprofit school food service nor did they have an understanding of the significance of their calculation. Effect: Noncompliance with the federal award program's resource (cash) management requirements could occur and not be detected and corrected timely. Cause: Management had not developed an adequate system of internal control to ensure compliance with the Cash Management compliance requirement. Recommendation: We recommend that the management establish internal controls related to the cash management compliance requirement to monitor and ensure that the net cash resources of the nonprofit school food service does not exceed 3 months average expenditures. Management's response: There is no disagreement with this finding and internal controls will be developed to monitor the net cash resources of the nonprofit school food service.
Finding 2022-002
FINDING NUMBER: 2022-002 THIS FINDING IS: Repeat from Prior year? Yes Year originally reported? 2020 FINDING TYPE: Internal Control DEFICIENCY TYPE: Significant Deficiency Federal Program Name and Year: Child Nutrition Cluster - 2022 Project No.: 21 & 22-4220, 4210, 4215, 4225 AL No.: 10.553, 10.555, 10.556, 10.559 Passed Through: Illinois State Board of Education Federal Agency: U.S Department of Agriculture Criteria or specific requirement (including statutory, regulatory, or other citation) The Code of Federal Regulations (CFR) Title 7, part 210.14(b) states the school food authority shall limit its net cash resources to an amount that does not exceed 3 months average expenditures for its nonprofit school food service. Condition: The District has not adequately established internal controls to ensure that net cash resources are being properly monitored. Questioned Costs: None. Context: The District did not properly calculate a running balance of the net cash resources of the nonprofit school food service nor did they have an understanding of the significance of their calculation. Effect: Noncompliance with the federal award program's resource (cash) management requirements could occur and not be detected and corrected timely. Cause: Management had not developed an adequate system of internal control to ensure compliance with the Cash Management compliance requirement. Recommendation: We recommend that the management establish internal controls related to the cash management compliance requirement to monitor and ensure that the net cash resources of the nonprofit school food service does not exceed 3 months average expenditures. Management's response: There is no disagreement with this finding and internal controls will be developed to monitor the net cash resources of the nonprofit school food service.
Finding 2022-002
FINDING NUMBER: 2022-002 THIS FINDING IS: Repeat from Prior year? Yes Year originally reported? 2020 FINDING TYPE: Internal Control DEFICIENCY TYPE: Significant Deficiency Federal Program Name and Year: Child Nutrition Cluster - 2022 Project No.: 21 & 22-4220, 4210, 4215, 4225 AL No.: 10.553, 10.555, 10.556, 10.559 Passed Through: Illinois State Board of Education Federal Agency: U.S Department of Agriculture Criteria or specific requirement (including statutory, regulatory, or other citation) The Code of Federal Regulations (CFR) Title 7, part 210.14(b) states the school food authority shall limit its net cash resources to an amount that does not exceed 3 months average expenditures for its nonprofit school food service. Condition: The District has not adequately established internal controls to ensure that net cash resources are being properly monitored. Questioned Costs: None. Context: The District did not properly calculate a running balance of the net cash resources of the nonprofit school food service nor did they have an understanding of the significance of their calculation. Effect: Noncompliance with the federal award program's resource (cash) management requirements could occur and not be detected and corrected timely. Cause: Management had not developed an adequate system of internal control to ensure compliance with the Cash Management compliance requirement. Recommendation: We recommend that the management establish internal controls related to the cash management compliance requirement to monitor and ensure that the net cash resources of the nonprofit school food service does not exceed 3 months average expenditures. Management's response: There is no disagreement with this finding and internal controls will be developed to monitor the net cash resources of the nonprofit school food service.
Finding 2022-002
FINDING NUMBER: 2022-002 THIS FINDING IS: Repeat from Prior year? Yes Year originally reported? 2020 FINDING TYPE: Internal Control DEFICIENCY TYPE: Significant Deficiency Federal Program Name and Year: Child Nutrition Cluster - 2022 Project No.: 21 & 22-4220, 4210, 4215, 4225 AL No.: 10.553, 10.555, 10.556, 10.559 Passed Through: Illinois State Board of Education Federal Agency: U.S Department of Agriculture Criteria or specific requirement (including statutory, regulatory, or other citation) The Code of Federal Regulations (CFR) Title 7, part 210.14(b) states the school food authority shall limit its net cash resources to an amount that does not exceed 3 months average expenditures for its nonprofit school food service. Condition: The District has not adequately established internal controls to ensure that net cash resources are being properly monitored. Questioned Costs: None. Context: The District did not properly calculate a running balance of the net cash resources of the nonprofit school food service nor did they have an understanding of the significance of their calculation. Effect: Noncompliance with the federal award program's resource (cash) management requirements could occur and not be detected and corrected timely. Cause: Management had not developed an adequate system of internal control to ensure compliance with the Cash Management compliance requirement. Recommendation: We recommend that the management establish internal controls related to the cash management compliance requirement to monitor and ensure that the net cash resources of the nonprofit school food service does not exceed 3 months average expenditures. Management's response: There is no disagreement with this finding and internal controls will be developed to monitor the net cash resources of the nonprofit school food service.
Finding 2022-002
FINDING NUMBER: 2022-002 THIS FINDING IS: Repeat from Prior year? Yes Year originally reported? 2020 FINDING TYPE: Internal Control DEFICIENCY TYPE: Significant Deficiency Federal Program Name and Year: Child Nutrition Cluster - 2022 Project No.: 21 & 22-4220, 4210, 4215, 4225 AL No.: 10.553, 10.555, 10.556, 10.559 Passed Through: Illinois State Board of Education Federal Agency: U.S Department of Agriculture Criteria or specific requirement (including statutory, regulatory, or other citation) The Code of Federal Regulations (CFR) Title 7, part 210.14(b) states the school food authority shall limit its net cash resources to an amount that does not exceed 3 months average expenditures for its nonprofit school food service. Condition: The District has not adequately established internal controls to ensure that net cash resources are being properly monitored. Questioned Costs: None. Context: The District did not properly calculate a running balance of the net cash resources of the nonprofit school food service nor did they have an understanding of the significance of their calculation. Effect: Noncompliance with the federal award program's resource (cash) management requirements could occur and not be detected and corrected timely. Cause: Management had not developed an adequate system of internal control to ensure compliance with the Cash Management compliance requirement. Recommendation: We recommend that the management establish internal controls related to the cash management compliance requirement to monitor and ensure that the net cash resources of the nonprofit school food service does not exceed 3 months average expenditures. Management's response: There is no disagreement with this finding and internal controls will be developed to monitor the net cash resources of the nonprofit school food service.
Finding 2022-002
FINDING NUMBER: 2022-002 THIS FINDING IS: Repeat from Prior year? Yes Year originally reported? 2020 FINDING TYPE: Internal Control DEFICIENCY TYPE: Significant Deficiency Federal Program Name and Year: Child Nutrition Cluster - 2022 Project No.: 21 & 22-4220, 4210, 4215, 4225 AL No.: 10.553, 10.555, 10.556, 10.559 Passed Through: Illinois State Board of Education Federal Agency: U.S Department of Agriculture Criteria or specific requirement (including statutory, regulatory, or other citation) The Code of Federal Regulations (CFR) Title 7, part 210.14(b) states the school food authority shall limit its net cash resources to an amount that does not exceed 3 months average expenditures for its nonprofit school food service. Condition: The District has not adequately established internal controls to ensure that net cash resources are being properly monitored. Questioned Costs: None. Context: The District did not properly calculate a running balance of the net cash resources of the nonprofit school food service nor did they have an understanding of the significance of their calculation. Effect: Noncompliance with the federal award program's resource (cash) management requirements could occur and not be detected and corrected timely. Cause: Management had not developed an adequate system of internal control to ensure compliance with the Cash Management compliance requirement. Recommendation: We recommend that the management establish internal controls related to the cash management compliance requirement to monitor and ensure that the net cash resources of the nonprofit school food service does not exceed 3 months average expenditures. Management's response: There is no disagreement with this finding and internal controls will be developed to monitor the net cash resources of the nonprofit school food service.