Audit 318383

FY End
2024-06-30
Total Expended
$932,192
Findings
2
Programs
11
Year: 2024 Accepted: 2024-09-03

Organization Exclusion Status:

Checking exclusion status...

Findings

ID Ref Severity Repeat Requirement
485611 2024-002 Significant Deficiency Yes N
1062053 2024-002 Significant Deficiency Yes N

Programs

ALN Program Spent Major Findings
84.425 Education Stabilization Fund $378,735 Yes 1
10.553 School Breakfast Program $23,532 - 0
93.778 Medical Assistance Program $23,294 - 0
84.367 Improving Teacher Quality State Grants $21,921 - 0
84.424 Student Support and Academic Enrichment Program $10,334 - 0
84.173 Special Education_preschool Grants $9,315 - 0
84.358 Rural Education $9,165 - 0
10.555 National School Lunch Program $8,767 - 0
84.027 Special Education_grants to States $3,895 - 0
84.010 Title I Grants to Local Educational Agencies $1,820 - 0
10.649 Pandemic Ebt Administrative Costs $653 - 0

Contacts

Name Title Type
CJD2TBFD18U3 Angela Simmons-Kenser Auditee
3097858054 Mia Frommelt Auditor
No contacts on file

Notes to SEFA

Title: Note 1 Accounting Policies: Expenditures reported on the schedule are reported on the cash basis of accounting which is a basis of accounting other than accounting principles generally accepted in the United States of America. Accordingly, revenue is recognized and recorded in the account when cash is received. In the same manner, expenditures are recognized and recorded upon the disbursement of cash. The cash basis of accounting does not give effect to accounts receivable, accounts payable, accrued items, capital assets and depreciation, leases, subscription based information technology arrangements and related long term debt including pension and other postemployment benefit liabilities. De Minimis Rate Used: N Rate Explanation: The District has elected not to use the 10-percent de minimus indirect cost rate allowed under the Uniform Guidance. The accompanying schedule of expenditures of federal awards (the “schedule”) includes the federal grant activity of Fulton County Community Unit School District No. 3 under programs of the federal government for the year ended June 30, 2024. 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 Fulton County Community Unit School District No. 3, it is not intended to and does not present the financial position, changes in net position or cash flows of Fulton County Community Unit School District No. 3.

Finding Details

2024-002 U.S. Department of Education Pass-Through Illinois State Board of Education Education Stabilization Fund 84.425U COVID-19 American Rescue Plan- Elementary and Secondary School Emergency Relief (ARP-ESSER) Fund Federal Award Year: 2024, 2023, 2022 Finding: The District has insufficient reconciling processes for reporting the Education Stabilization Fund expenditures. Criteria: Title 2 U.S. Code of Federal Regulations Part 200, Uniform Administrative Requirements, Cost Principles, and Audit Requirements for Federal Awards Section 200.303 Internal Controls states: “The non-Federal entity must: (a) Establish and maintain effective internal control over the Federal Award that provides reasonable assurance that the non-Federal entity is managing the Federal award in compliance with Federal statutes, regulations, and the terms and conditions of the Federal award….” Condition: The expenditures reported to the Illinois State Board of Education for the ESSER III award did not agree to the District’s general ledger. Context: The District reported total program expenditures for year-end audit and to the Illinois State Board of Education as $378,735. The District provided general ledger detail for the program as of June 30, 2024, for $414,820. Effect: Federal awards are not properly reported to the state and the District is not ensuring federal expenditures incurred and amounts awarded are reconciled for timely reimbursement. Questioned Costs: $0 Identification as a repeat finding: This is a repeat finding. Cause: The District does separately code program expenditures on the general ledger. The District does not prepare monthly monitoring reports by program to ensure program expenditures, revenues, and reports are reconciled. Recommendation: We recommend the District code all expenditures charged to the program to a specific project code. If the District identifies costs initially charged to a non-program code, we recommend the District record adjustments to move the expenditures. We recommend the District require the submissions to the Illinois State Board of Education by reconciled by the Business Manager prior to the Superintendent submitting. We recommend the Business Manager monthly prepare a reconciliation to monitor the total award, the expenditures incurred, the totals reported to the state, and the amount received from the state. The report should incorporate a comparison of the award budget to actual to ensure any required budget adjustments are made before the next submission. Response and Corrective Action Plan: The District will review current processes for identifying, coding and reporting federal expenditures and implement processes to ensure amounts reported are supported by the District’s general ledger.
2024-002 U.S. Department of Education Pass-Through Illinois State Board of Education Education Stabilization Fund 84.425U COVID-19 American Rescue Plan- Elementary and Secondary School Emergency Relief (ARP-ESSER) Fund Federal Award Year: 2024, 2023, 2022 Finding: The District has insufficient reconciling processes for reporting the Education Stabilization Fund expenditures. Criteria: Title 2 U.S. Code of Federal Regulations Part 200, Uniform Administrative Requirements, Cost Principles, and Audit Requirements for Federal Awards Section 200.303 Internal Controls states: “The non-Federal entity must: (a) Establish and maintain effective internal control over the Federal Award that provides reasonable assurance that the non-Federal entity is managing the Federal award in compliance with Federal statutes, regulations, and the terms and conditions of the Federal award….” Condition: The expenditures reported to the Illinois State Board of Education for the ESSER III award did not agree to the District’s general ledger. Context: The District reported total program expenditures for year-end audit and to the Illinois State Board of Education as $378,735. The District provided general ledger detail for the program as of June 30, 2024, for $414,820. Effect: Federal awards are not properly reported to the state and the District is not ensuring federal expenditures incurred and amounts awarded are reconciled for timely reimbursement. Questioned Costs: $0 Identification as a repeat finding: This is a repeat finding. Cause: The District does separately code program expenditures on the general ledger. The District does not prepare monthly monitoring reports by program to ensure program expenditures, revenues, and reports are reconciled. Recommendation: We recommend the District code all expenditures charged to the program to a specific project code. If the District identifies costs initially charged to a non-program code, we recommend the District record adjustments to move the expenditures. We recommend the District require the submissions to the Illinois State Board of Education by reconciled by the Business Manager prior to the Superintendent submitting. We recommend the Business Manager monthly prepare a reconciliation to monitor the total award, the expenditures incurred, the totals reported to the state, and the amount received from the state. The report should incorporate a comparison of the award budget to actual to ensure any required budget adjustments are made before the next submission. Response and Corrective Action Plan: The District will review current processes for identifying, coding and reporting federal expenditures and implement processes to ensure amounts reported are supported by the District’s general ledger.