Audit 333853

FY End
2024-06-30
Total Expended
$5.69M
Findings
2
Programs
11
Year: 2024 Accepted: 2024-12-19

Organization Exclusion Status:

Checking exclusion status...

Findings

ID Ref Severity Repeat Requirement
516068 2024-001 - - L
1092510 2024-001 - - L

Contacts

Name Title Type
XLGTNB44S8N5 Anita Rice Auditee
7088626625 Stephanie Blanco Auditor
No contacts on file

Notes to SEFA

Title: Note 4: Subrecipients Accounting Policies: The accompanying Schedule of Expenditures of Federal Awards includes the federal award activity of Lincoln Elementary School District No. 156 (District) 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 the District, it is not intended to and does not present the financial position, changes in net position or cash flows of the District. Expenditures reported on the Schedule are reported on the modified 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. De Minimis Rate Used: N Rate Explanation: The District has elected not to use the 10% de minimis indirect cost rate allowed under the Uniform Guidance. There are no amounts provided to subrecipients from each federal program listed on the accompanying Schedule of Expenditures of Federal Awards.
Title: Note 5: Non-Cash Assistance Accounting Policies: The accompanying Schedule of Expenditures of Federal Awards includes the federal award activity of Lincoln Elementary School District No. 156 (District) 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 the District, it is not intended to and does not present the financial position, changes in net position or cash flows of the District. Expenditures reported on the Schedule are reported on the modified 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. De Minimis Rate Used: N Rate Explanation: The District has elected not to use the 10% de minimis indirect cost rate allowed under the Uniform Guidance. The District expended $19,490 in the form of non-cash assistance and has been included in the Schedule of Expenditures of Federal Awards.
Title: Note 6: Other Information Accounting Policies: The accompanying Schedule of Expenditures of Federal Awards includes the federal award activity of Lincoln Elementary School District No. 156 (District) 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 the District, it is not intended to and does not present the financial position, changes in net position or cash flows of the District. Expenditures reported on the Schedule are reported on the modified 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. De Minimis Rate Used: N Rate Explanation: The District has elected not to use the 10% de minimis indirect cost rate allowed under the Uniform Guidance. The District did not have any federal insurance in effect during the year ended June 30, 2024. The District did not have any loans or loan guarantees outstanding as of June 30, 2024. The District had no federal grants requiring matching expenditures.
Title: Note 7: Major Program Determination Accounting Policies: The accompanying Schedule of Expenditures of Federal Awards includes the federal award activity of Lincoln Elementary School District No. 156 (District) 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 the District, it is not intended to and does not present the financial position, changes in net position or cash flows of the District. Expenditures reported on the Schedule are reported on the modified 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. De Minimis Rate Used: N Rate Explanation: The District has elected not to use the 10% de minimis indirect cost rate allowed under the Uniform Guidance. In accordance with the requirements of the Office of Management and Budget Uniform Requirements, Cost Principles, and Audit Requirements for Federal Awards, major programs for the District are individual programs or a cluster of programs determined using a risk-based analysis. The threshold for distinguishing Type A and Type B programs was $750,000.
Title: Note 8: Additional note on CURES-Freedom Schools Accounting Policies: The accompanying Schedule of Expenditures of Federal Awards includes the federal award activity of Lincoln Elementary School District No. 156 (District) 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 the District, it is not intended to and does not present the financial position, changes in net position or cash flows of the District. Expenditures reported on the Schedule are reported on the modified 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. De Minimis Rate Used: N Rate Explanation: The District has elected not to use the 10% de minimis indirect cost rate allowed under the Uniform Guidance. During FY24, the Illinois State Board of Education adjusted the expenditures claimed under the Cures- Freedom Schools grant 4998-FS at June 30, 2023 by $4,000 as a negative adjustment under indrect costs which lowered the expenditures reported on the June 30, 2023 schedule of expenditures of federal awards from $240,537 to $236,537. The 2023 amount was adjusted on the current year schedule of expenditures of federal awards.

Finding Details

Criteria or specific requirement (including statutory, regulatory, or other citation): The compliance requirements for "L. Reporting" generally requires that LEA's report financial information to the pass-through entity and that those reports are accurate and supported by the underlying accounting records. Condition: The School District did not comply with the requirements of filing one report by the due date set by ISBE. Questioned Costs: N/A. Context: The School District did not timely file one expenditure report. The report for the period ending 7/31/2023, due 8/20/2023, was submitted on 9/7/2023 for grant 84.425U. Effect: The District was not compliant with reporting requirements. Due to the late filing of reports, ISBE could freeze the School District's federal funds. Cause: Policies and procedures are in place that provide reasonable assurance that reports of federal awards submitted to ISBE are filed in a timely manner by the due dates provided by ISBE. The School District did not follow this process. Recommendation: We recommend that management review its policies and procedures and implement changes to strengthen internal control over federal reporting. Management's response: The District has agreed with the findings and recommendations as presented. See Corrective Action Plan provided by the School District.
Criteria or specific requirement (including statutory, regulatory, or other citation): The compliance requirements for "L. Reporting" generally requires that LEA's report financial information to the pass-through entity and that those reports are accurate and supported by the underlying accounting records. Condition: The School District did not comply with the requirements of filing one report by the due date set by ISBE. Questioned Costs: N/A. Context: The School District did not timely file one expenditure report. The report for the period ending 7/31/2023, due 8/20/2023, was submitted on 9/7/2023 for grant 84.425U. Effect: The District was not compliant with reporting requirements. Due to the late filing of reports, ISBE could freeze the School District's federal funds. Cause: Policies and procedures are in place that provide reasonable assurance that reports of federal awards submitted to ISBE are filed in a timely manner by the due dates provided by ISBE. The School District did not follow this process. Recommendation: We recommend that management review its policies and procedures and implement changes to strengthen internal control over federal reporting. Management's response: The District has agreed with the findings and recommendations as presented. See Corrective Action Plan provided by the School District.