Title: SCOPE OF SINGLE AUDIT
Accounting Policies: General — The accompanying schedule of expenditures of federal awards (Schedule) includes the federal grant activity of CPS 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 the Uniform Guidance and the pass through requirements of ISBE. Because the Schedule presents only a selected portion of the operations of CPS, it is not intended to and does not present the financial position or changes in net position of CPS. Only federal programs considered active during the year ended June 30, 2024, are reflected in the Schedule. An active federal program is defined as a federal program that incurred expenditures (adjustments) of funds or accrued (deferred) grant revenue adjustments during the fiscal year or a federal program considered as not completed or closed out at the beginning of the fiscal year. The Schedule is prepared using the accrual basis of accounting. In addition, there is no federal insurance in effect during the year and no loan or loan guarantees
outstanding at year end.
Expenditures — For all expenditure-driven federal programs, expenditures included on the Schedule represent actual expenditures incurred (governmental fund basis) during the fiscal year ended June 30, 2024. In accordance with Uniform Guidance, pension costs are uniformly charged to all positions as a direct benefit cost in proportion to pensionable salary regardless of whether the funding source is local, state, or federal. For formula-driven federal programs, expenditures are presented on the Schedule as follows:
• The expenditures for the National School Lunch and Breakfast Program only reflect the portion funded by the Program.
• The expenditures for the Food Donation Program represent commodities received at amounts per the USDA standard price listings.
Disaster Grant - Public Assistance - FEMA Covid — The Federal Emergency Management Agency obligated the FEMA COVID grant on several dates ranging from August 2023 to June 2024. The funding period started on January 20, 2020 through May 11, 2023. In accordance with the obligation dates ranging from August 2023 to June 2024 and the grant period, CPS claimed $123.7 million of expenditures incurred in fiscal years 2021, 2022 and 2023. These expenditures are reported in the fiscal year 2024 Schedule.
De Minimis Rate Used: N
Rate Explanation: Indirect Cost Rate — The amount expended includes amounts claimed as indirect cost recovery using an approved indirect cost rate percent by the ISBE or as per the funding agencies approved budget. The Chicago Public Schools has not elected to use the 10-percent de minimis indirect cost rate allowed under the Uniform Guidance.
The Board of Education of the City of Chicago, or the Chicago Public Schools (CPS), is a body politic and corporate, and a school district of the State of Illinois having boundaries coterminous with the boundaries of the City of Chicago. All significant federal financial and compliance operations of CPS are included in the scope of Title 2 U.S. Code of Federal Regulations Part 200 Uniform Administrative Requirements, Cost Principles and Audit Requirements for Federal Awards (Uniform Guidance). The U.S. Department of Education (ED) is CPS’ cognizant federal agency for the Single Audit. Cognizant duties have been delegated to the Illinois State Board of Education (ISBE) by the ED, which, in turn, oversees the performance of such duties.
Title: NATURE OF FEDERAL FINANCIAL ASSISTANT
Accounting Policies: General — The accompanying schedule of expenditures of federal awards (Schedule) includes the federal grant activity of CPS 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 the Uniform Guidance and the pass through requirements of ISBE. Because the Schedule presents only a selected portion of the operations of CPS, it is not intended to and does not present the financial position or changes in net position of CPS. Only federal programs considered active during the year ended June 30, 2024, are reflected in the Schedule. An active federal program is defined as a federal program that incurred expenditures (adjustments) of funds or accrued (deferred) grant revenue adjustments during the fiscal year or a federal program considered as not completed or closed out at the beginning of the fiscal year. The Schedule is prepared using the accrual basis of accounting. In addition, there is no federal insurance in effect during the year and no loan or loan guarantees
outstanding at year end.
Expenditures — For all expenditure-driven federal programs, expenditures included on the Schedule represent actual expenditures incurred (governmental fund basis) during the fiscal year ended June 30, 2024. In accordance with Uniform Guidance, pension costs are uniformly charged to all positions as a direct benefit cost in proportion to pensionable salary regardless of whether the funding source is local, state, or federal. For formula-driven federal programs, expenditures are presented on the Schedule as follows:
• The expenditures for the National School Lunch and Breakfast Program only reflect the portion funded by the Program.
• The expenditures for the Food Donation Program represent commodities received at amounts per the USDA standard price listings.
Disaster Grant - Public Assistance - FEMA Covid — The Federal Emergency Management Agency obligated the FEMA COVID grant on several dates ranging from August 2023 to June 2024. The funding period started on January 20, 2020 through May 11, 2023. In accordance with the obligation dates ranging from August 2023 to June 2024 and the grant period, CPS claimed $123.7 million of expenditures incurred in fiscal years 2021, 2022 and 2023. These expenditures are reported in the fiscal year 2024 Schedule.
De Minimis Rate Used: N
Rate Explanation: Indirect Cost Rate — The amount expended includes amounts claimed as indirect cost recovery using an approved indirect cost rate percent by the ISBE or as per the funding agencies approved budget. The Chicago Public Schools has not elected to use the 10-percent de minimis indirect cost rate allowed under the Uniform Guidance.
Generally, federal awards are granted for the purpose of providing specific goods or services or aid to specific individuals. In addition to the purposes they serve, federal programs can be classified according to the basis under which the federal programs are funded. For certain federal programs, funds are received based upon actual qualified expenditures up to the total federal awards amount (expenditure-driven federal programs). For other federal programs, funds are received based on an approved formula such as a standard reimbursement rate applied to qualified unit of service provided (formula-driven federal program). The majority of CPS’ federal awards are passed through and received from the ISBE. For those passthrough federal awards, CPS’ direct reporting responsibility is to ISBE, which, in their capacity as subgrantors, oversee and monitor the utilization of such federal awards by CPS.
Title: RELATIONSHIP TO THE FINANCIAL STATEMENTS INCLUDED IN THE ANNUAL COMPREHENSIVE FINANCIAL REPORT
Accounting Policies: General — The accompanying schedule of expenditures of federal awards (Schedule) includes the federal grant activity of CPS 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 the Uniform Guidance and the pass through requirements of ISBE. Because the Schedule presents only a selected portion of the operations of CPS, it is not intended to and does not present the financial position or changes in net position of CPS. Only federal programs considered active during the year ended June 30, 2024, are reflected in the Schedule. An active federal program is defined as a federal program that incurred expenditures (adjustments) of funds or accrued (deferred) grant revenue adjustments during the fiscal year or a federal program considered as not completed or closed out at the beginning of the fiscal year. The Schedule is prepared using the accrual basis of accounting. In addition, there is no federal insurance in effect during the year and no loan or loan guarantees
outstanding at year end.
Expenditures — For all expenditure-driven federal programs, expenditures included on the Schedule represent actual expenditures incurred (governmental fund basis) during the fiscal year ended June 30, 2024. In accordance with Uniform Guidance, pension costs are uniformly charged to all positions as a direct benefit cost in proportion to pensionable salary regardless of whether the funding source is local, state, or federal. For formula-driven federal programs, expenditures are presented on the Schedule as follows:
• The expenditures for the National School Lunch and Breakfast Program only reflect the portion funded by the Program.
• The expenditures for the Food Donation Program represent commodities received at amounts per the USDA standard price listings.
Disaster Grant - Public Assistance - FEMA Covid — The Federal Emergency Management Agency obligated the FEMA COVID grant on several dates ranging from August 2023 to June 2024. The funding period started on January 20, 2020 through May 11, 2023. In accordance with the obligation dates ranging from August 2023 to June 2024 and the grant period, CPS claimed $123.7 million of expenditures incurred in fiscal years 2021, 2022 and 2023. These expenditures are reported in the fiscal year 2024 Schedule.
De Minimis Rate Used: N
Rate Explanation: Indirect Cost Rate — The amount expended includes amounts claimed as indirect cost recovery using an approved indirect cost rate percent by the ISBE or as per the funding agencies approved budget. The Chicago Public Schools has not elected to use the 10-percent de minimis indirect cost rate allowed under the Uniform Guidance.
The following is a reconciliation of federal grant revenues as reflected in the Supplementary Schedule of Expenditures of Federal Awards in CPS’ ACFR:
Expenditures relating to individual federal programs are not represented separately from other CPS expenditures in CPS’ ACFR. Accordingly, a similar reconciliation of expenditures is not included herein.
Title: FINAL CLAIMS
Accounting Policies: General — The accompanying schedule of expenditures of federal awards (Schedule) includes the federal grant activity of CPS 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 the Uniform Guidance and the pass through requirements of ISBE. Because the Schedule presents only a selected portion of the operations of CPS, it is not intended to and does not present the financial position or changes in net position of CPS. Only federal programs considered active during the year ended June 30, 2024, are reflected in the Schedule. An active federal program is defined as a federal program that incurred expenditures (adjustments) of funds or accrued (deferred) grant revenue adjustments during the fiscal year or a federal program considered as not completed or closed out at the beginning of the fiscal year. The Schedule is prepared using the accrual basis of accounting. In addition, there is no federal insurance in effect during the year and no loan or loan guarantees
outstanding at year end.
Expenditures — For all expenditure-driven federal programs, expenditures included on the Schedule represent actual expenditures incurred (governmental fund basis) during the fiscal year ended June 30, 2024. In accordance with Uniform Guidance, pension costs are uniformly charged to all positions as a direct benefit cost in proportion to pensionable salary regardless of whether the funding source is local, state, or federal. For formula-driven federal programs, expenditures are presented on the Schedule as follows:
• The expenditures for the National School Lunch and Breakfast Program only reflect the portion funded by the Program.
• The expenditures for the Food Donation Program represent commodities received at amounts per the USDA standard price listings.
Disaster Grant - Public Assistance - FEMA Covid — The Federal Emergency Management Agency obligated the FEMA COVID grant on several dates ranging from August 2023 to June 2024. The funding period started on January 20, 2020 through May 11, 2023. In accordance with the obligation dates ranging from August 2023 to June 2024 and the grant period, CPS claimed $123.7 million of expenditures incurred in fiscal years 2021, 2022 and 2023. These expenditures are reported in the fiscal year 2024 Schedule.
De Minimis Rate Used: N
Rate Explanation: Indirect Cost Rate — The amount expended includes amounts claimed as indirect cost recovery using an approved indirect cost rate percent by the ISBE or as per the funding agencies approved budget. The Chicago Public Schools has not elected to use the 10-percent de minimis indirect cost rate allowed under the Uniform Guidance.
Some final claims for federal programs with a contractual funding period ended June 30, 2024, were filed prior to recording certain year-end adjustments and, therefore, do not agree with the related amounts accrued and reported in the Schedule. CPS plans to submit a program liquidation report to the respective grantor agencies, which will revise the outstanding obligation amounts per the final claim, thereby reflecting the appropriate year-end adjustments for these federal awards.