Audit 358321

FY End
2023-06-30
Total Expended
$2.43M
Findings
12
Programs
4
Year: 2023 Accepted: 2025-06-09
Auditor: Eccezion

Organization Exclusion Status:

Checking exclusion status...

Findings

ID Ref Severity Repeat Requirement
564152 2023-003 Material Weakness - AB
564153 2023-003 Material Weakness - AB
564154 2023-004 - - F
564155 2023-004 - - F
564156 2023-005 - - AB
564157 2023-005 - - AB
1140594 2023-003 Material Weakness - AB
1140595 2023-003 Material Weakness - AB
1140596 2023-004 - - F
1140597 2023-004 - - F
1140598 2023-005 - - AB
1140599 2023-005 - - AB

Programs

ALN Program Spent Major Findings
84.425 Education Stabilization Fund $1.70M Yes 3
93.778 Medical Assistance Program $188,289 - 0
10.553 School Breakfast Program $71,195 - 0
10.555 National School Lunch Program $20,861 - 0

Contacts

Name Title Type
KPHSD3PK6HZ2 Stephen Johns Auditee
8475488472 Kevin Smith Auditor
No contacts on file

Notes to SEFA

Title: BASIS OF PRESENTATION Accounting Policies: Expenditures reported on the Schedule are reported on the accrual 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: Costs are charged as direct costs The Schedule of Expenditures of Federal Awards includes the federal award activity of Special Education District of Lake County under programs of the federal government for the year ended June 30, 2023. The information in this Schedule is presented in accordance with requirements of the Title 2 U.S. Code of Federal Regulations Part 200, Uniform Administrative Requirements, Cost Principles, and Audit Requirements for Federal Awards (Uniform Guidance). Therefore, some amounts presented in the schedule may offer from amounts presented in, and used in the preparation of, the basic financial statements.
Title: SUMMARY OF ACCOUNTING POLICIES Accounting Policies: Expenditures reported on the Schedule are reported on the accrual 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: Costs are charged as direct costs Expenditures reported on the Schedule are reported on the accrual 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: INDIRECT COST RATE Accounting Policies: Expenditures reported on the Schedule are reported on the accrual 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: Costs are charged as direct costs SEDOL has elected not to use the 10 percent de minimis indirect rate as allowed under the Uniform Guidance.
Title: SUBRECIPIENTS Accounting Policies: Expenditures reported on the Schedule are reported on the accrual 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: Costs are charged as direct costs SEDOL did not provide federal awards to subrecipients during the year ended June 30, 2023.
Title: FEDERAL LOANS Accounting Policies: Expenditures reported on the Schedule are reported on the accrual 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: Costs are charged as direct costs There were no federal loans or loan guarantees outstanding at year end.
Title: DONATED PERSONAL PROTECTIVE EQUIPMENT (PPE) (UNAUDITED) Accounting Policies: Expenditures reported on the Schedule are reported on the accrual 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: Costs are charged as direct costs SEDOL was not the recipient of federally donated PPE.

Finding Details

1. FINDING NUMBER: 2023 - 003 2. THIS FINDING IS: X New 3. Federal Program Name and Year: COVID-19 -ARP- LEA and COOP American Rescue Plan and COVID-19 - ARP -Community Partnership Grant 4. Project No.: 22-4998-CO and 22-4998-CP 5. CFDA No.: 84.425 6. Passed Through: Illinois State Board of Education 7. Federal Agency: U.S. Department of Education 8. Criteria or specific requirement (including statutory, regulatory, or other citation): The District is required to maintain detailed documentation that reconciles to expenditure amounts charged to grants. 9. Condition: The District submitted grant expenditure reports for reimbursement without having sufficient support for expenditures claimed, resulting in reimbursements greater than allowable costs. 10. Questioned Costs: $547,311 11. Context: The District was unable to provide adequate documentation for expenditure reports. No reconciliation was done between expenditures charged and general ledger expenditure accounts, and in some cases, budgeted amounts were claimed when expenditures did not occur as budgeted. 12. Effect: The District received reimbursements in excess of allowable costs. 13. Cause: Business office management lacked an understanding of grant requirements, and it did not appear there was oversight from a higher level of management. 14. Recommendation: We recommend the District implement a process for proper budgeting, tracking and monitoring of grant expenditures, including multiple layers of review and approval, to ensure only appropriate amounts are budgeted and allowable costs are claimed. 15. Management's response: Management will implement a process to properly budget, track and monitor grant expenditures and also create an improved review and oversight process.
1. FINDING NUMBER: 2023 - 003 2. THIS FINDING IS: X New 3. Federal Program Name and Year: COVID-19 -ARP- LEA and COOP American Rescue Plan and COVID-19 - ARP -Community Partnership Grant 4. Project No.: 22-4998-CO and 22-4998-CP 5. CFDA No.: 84.425 6. Passed Through: Illinois State Board of Education 7. Federal Agency: U.S. Department of Education 8. Criteria or specific requirement (including statutory, regulatory, or other citation): The District is required to maintain detailed documentation that reconciles to expenditure amounts charged to grants. 9. Condition: The District submitted grant expenditure reports for reimbursement without having sufficient support for expenditures claimed, resulting in reimbursements greater than allowable costs. 10. Questioned Costs: $547,311 11. Context: The District was unable to provide adequate documentation for expenditure reports. No reconciliation was done between expenditures charged and general ledger expenditure accounts, and in some cases, budgeted amounts were claimed when expenditures did not occur as budgeted. 12. Effect: The District received reimbursements in excess of allowable costs. 13. Cause: Business office management lacked an understanding of grant requirements, and it did not appear there was oversight from a higher level of management. 14. Recommendation: We recommend the District implement a process for proper budgeting, tracking and monitoring of grant expenditures, including multiple layers of review and approval, to ensure only appropriate amounts are budgeted and allowable costs are claimed. 15. Management's response: Management will implement a process to properly budget, track and monitor grant expenditures and also create an improved review and oversight process.
1. FINDING NUMBER: 2023 – 004 2. THIS FINDING IS: X 3. Federal Program Name and Year: COVID-19 -ARP- LEA and COOP American Rescue Plan and COVID-19 - ARP - Community Partnership Grant 4. Project No.: 22-4998-CO and 22-4998-CP 5. CFDA No.: 84.425 6. Passed Through: Illinois State Board of Education 7. Federal Agency: U.S. Department of Education 8. Criteria or specific requirement (including statutory, regulatory, or other citation): The District is required to maintain detailed inventory information for property purchased with federal funds. 9. Condition: The District was unable to provide sufficient support for inventory of equipment purchased with federal funds. 10. Questioned Costs: n/a 11. Context: The District was unable to provide adequate documentation in accordance with board policy and the compliance requirement under the federal program. 12. Effect: The District is not in compliance with the requirement to maintain complete detail inventory listing including identifying the funding source for equipment purchased and other information such as disposal of items and procedures used to ensure safeguarding of the inventory. 13. Cause: There appears to be a lack of coordination between the business office and the technology department to effectively document compliance with the board policy and the grant requirements. 14. Recommendation: We recommend the District implement a interdepartmental process for tracking equipment purchased with grant funds and maintaining required documentation to ensure compliance with board policy and grant requirements. 15. Management's response: Management will implement a process to properly track and monitor equipment expenditures.
1. FINDING NUMBER: 2023 – 004 2. THIS FINDING IS: X 3. Federal Program Name and Year: COVID-19 -ARP- LEA and COOP American Rescue Plan and COVID-19 - ARP - Community Partnership Grant 4. Project No.: 22-4998-CO and 22-4998-CP 5. CFDA No.: 84.425 6. Passed Through: Illinois State Board of Education 7. Federal Agency: U.S. Department of Education 8. Criteria or specific requirement (including statutory, regulatory, or other citation): The District is required to maintain detailed inventory information for property purchased with federal funds. 9. Condition: The District was unable to provide sufficient support for inventory of equipment purchased with federal funds. 10. Questioned Costs: n/a 11. Context: The District was unable to provide adequate documentation in accordance with board policy and the compliance requirement under the federal program. 12. Effect: The District is not in compliance with the requirement to maintain complete detail inventory listing including identifying the funding source for equipment purchased and other information such as disposal of items and procedures used to ensure safeguarding of the inventory. 13. Cause: There appears to be a lack of coordination between the business office and the technology department to effectively document compliance with the board policy and the grant requirements. 14. Recommendation: We recommend the District implement a interdepartmental process for tracking equipment purchased with grant funds and maintaining required documentation to ensure compliance with board policy and grant requirements. 15. Management's response: Management will implement a process to properly track and monitor equipment expenditures.
1. FINDING NUMBER: 2023 - 005 2. THIS FINDING IS: X New 3. Federal Program Name and Year: COVID-19 -ARP- LEA and COOP American Rescue Plan and COVID-19 - ARP -Community Partnership Grant 4. Project No.: 22-4998-CO and 22-4998-CP 5. CFDA No.: 84.425 6. Passed Through: Illinois State Board of Education 7. Federal Agency: U.S. Department of Education 8. Criteria or specific requirement (including statutory, regulatory, or other citation): The District is required to maintain detailed documentation showing allocation of personnel costs charged to federally funded programs. 9. Condition: The District did not have sufficient support showing approved allocations for salary and benefits for individuals whose payroll costs were partially claimed under federal grants. 10. Questioned Costs: n/a 11. Context: The District was unable to provide adequate documentation showing an allocation of payroll costs between grant funded programs and non-grant funding. 12. Effect: The District could not provide evidence of having a process place to ensure allocated salary and benefit amounts were properly calculated with no overlap of payroll costs being charged to multiple grants. In addition it was not clear that payroll cost allocations were reviewed by management. 13. Cause: The lack of documented payroll procedures and business office turnover led to business office staff not having a clear understanding of how payroll costs were allocated and whether they were reviewed by management. 14. Recommendation: We recommend the District establish a formal process for documenting allocation of personnel costs, allowing for appropriate reconciliation, review, and monitoring of those allocations. 15. Management's response: Management will implement a process to properly document, review and monitor allocation of personnel costs.
1. FINDING NUMBER: 2023 - 005 2. THIS FINDING IS: X New 3. Federal Program Name and Year: COVID-19 -ARP- LEA and COOP American Rescue Plan and COVID-19 - ARP -Community Partnership Grant 4. Project No.: 22-4998-CO and 22-4998-CP 5. CFDA No.: 84.425 6. Passed Through: Illinois State Board of Education 7. Federal Agency: U.S. Department of Education 8. Criteria or specific requirement (including statutory, regulatory, or other citation): The District is required to maintain detailed documentation showing allocation of personnel costs charged to federally funded programs. 9. Condition: The District did not have sufficient support showing approved allocations for salary and benefits for individuals whose payroll costs were partially claimed under federal grants. 10. Questioned Costs: n/a 11. Context: The District was unable to provide adequate documentation showing an allocation of payroll costs between grant funded programs and non-grant funding. 12. Effect: The District could not provide evidence of having a process place to ensure allocated salary and benefit amounts were properly calculated with no overlap of payroll costs being charged to multiple grants. In addition it was not clear that payroll cost allocations were reviewed by management. 13. Cause: The lack of documented payroll procedures and business office turnover led to business office staff not having a clear understanding of how payroll costs were allocated and whether they were reviewed by management. 14. Recommendation: We recommend the District establish a formal process for documenting allocation of personnel costs, allowing for appropriate reconciliation, review, and monitoring of those allocations. 15. Management's response: Management will implement a process to properly document, review and monitor allocation of personnel costs.
1. FINDING NUMBER: 2023 - 003 2. THIS FINDING IS: X New 3. Federal Program Name and Year: COVID-19 -ARP- LEA and COOP American Rescue Plan and COVID-19 - ARP -Community Partnership Grant 4. Project No.: 22-4998-CO and 22-4998-CP 5. CFDA No.: 84.425 6. Passed Through: Illinois State Board of Education 7. Federal Agency: U.S. Department of Education 8. Criteria or specific requirement (including statutory, regulatory, or other citation): The District is required to maintain detailed documentation that reconciles to expenditure amounts charged to grants. 9. Condition: The District submitted grant expenditure reports for reimbursement without having sufficient support for expenditures claimed, resulting in reimbursements greater than allowable costs. 10. Questioned Costs: $547,311 11. Context: The District was unable to provide adequate documentation for expenditure reports. No reconciliation was done between expenditures charged and general ledger expenditure accounts, and in some cases, budgeted amounts were claimed when expenditures did not occur as budgeted. 12. Effect: The District received reimbursements in excess of allowable costs. 13. Cause: Business office management lacked an understanding of grant requirements, and it did not appear there was oversight from a higher level of management. 14. Recommendation: We recommend the District implement a process for proper budgeting, tracking and monitoring of grant expenditures, including multiple layers of review and approval, to ensure only appropriate amounts are budgeted and allowable costs are claimed. 15. Management's response: Management will implement a process to properly budget, track and monitor grant expenditures and also create an improved review and oversight process.
1. FINDING NUMBER: 2023 - 003 2. THIS FINDING IS: X New 3. Federal Program Name and Year: COVID-19 -ARP- LEA and COOP American Rescue Plan and COVID-19 - ARP -Community Partnership Grant 4. Project No.: 22-4998-CO and 22-4998-CP 5. CFDA No.: 84.425 6. Passed Through: Illinois State Board of Education 7. Federal Agency: U.S. Department of Education 8. Criteria or specific requirement (including statutory, regulatory, or other citation): The District is required to maintain detailed documentation that reconciles to expenditure amounts charged to grants. 9. Condition: The District submitted grant expenditure reports for reimbursement without having sufficient support for expenditures claimed, resulting in reimbursements greater than allowable costs. 10. Questioned Costs: $547,311 11. Context: The District was unable to provide adequate documentation for expenditure reports. No reconciliation was done between expenditures charged and general ledger expenditure accounts, and in some cases, budgeted amounts were claimed when expenditures did not occur as budgeted. 12. Effect: The District received reimbursements in excess of allowable costs. 13. Cause: Business office management lacked an understanding of grant requirements, and it did not appear there was oversight from a higher level of management. 14. Recommendation: We recommend the District implement a process for proper budgeting, tracking and monitoring of grant expenditures, including multiple layers of review and approval, to ensure only appropriate amounts are budgeted and allowable costs are claimed. 15. Management's response: Management will implement a process to properly budget, track and monitor grant expenditures and also create an improved review and oversight process.
1. FINDING NUMBER: 2023 – 004 2. THIS FINDING IS: X 3. Federal Program Name and Year: COVID-19 -ARP- LEA and COOP American Rescue Plan and COVID-19 - ARP - Community Partnership Grant 4. Project No.: 22-4998-CO and 22-4998-CP 5. CFDA No.: 84.425 6. Passed Through: Illinois State Board of Education 7. Federal Agency: U.S. Department of Education 8. Criteria or specific requirement (including statutory, regulatory, or other citation): The District is required to maintain detailed inventory information for property purchased with federal funds. 9. Condition: The District was unable to provide sufficient support for inventory of equipment purchased with federal funds. 10. Questioned Costs: n/a 11. Context: The District was unable to provide adequate documentation in accordance with board policy and the compliance requirement under the federal program. 12. Effect: The District is not in compliance with the requirement to maintain complete detail inventory listing including identifying the funding source for equipment purchased and other information such as disposal of items and procedures used to ensure safeguarding of the inventory. 13. Cause: There appears to be a lack of coordination between the business office and the technology department to effectively document compliance with the board policy and the grant requirements. 14. Recommendation: We recommend the District implement a interdepartmental process for tracking equipment purchased with grant funds and maintaining required documentation to ensure compliance with board policy and grant requirements. 15. Management's response: Management will implement a process to properly track and monitor equipment expenditures.
1. FINDING NUMBER: 2023 – 004 2. THIS FINDING IS: X 3. Federal Program Name and Year: COVID-19 -ARP- LEA and COOP American Rescue Plan and COVID-19 - ARP - Community Partnership Grant 4. Project No.: 22-4998-CO and 22-4998-CP 5. CFDA No.: 84.425 6. Passed Through: Illinois State Board of Education 7. Federal Agency: U.S. Department of Education 8. Criteria or specific requirement (including statutory, regulatory, or other citation): The District is required to maintain detailed inventory information for property purchased with federal funds. 9. Condition: The District was unable to provide sufficient support for inventory of equipment purchased with federal funds. 10. Questioned Costs: n/a 11. Context: The District was unable to provide adequate documentation in accordance with board policy and the compliance requirement under the federal program. 12. Effect: The District is not in compliance with the requirement to maintain complete detail inventory listing including identifying the funding source for equipment purchased and other information such as disposal of items and procedures used to ensure safeguarding of the inventory. 13. Cause: There appears to be a lack of coordination between the business office and the technology department to effectively document compliance with the board policy and the grant requirements. 14. Recommendation: We recommend the District implement a interdepartmental process for tracking equipment purchased with grant funds and maintaining required documentation to ensure compliance with board policy and grant requirements. 15. Management's response: Management will implement a process to properly track and monitor equipment expenditures.
1. FINDING NUMBER: 2023 - 005 2. THIS FINDING IS: X New 3. Federal Program Name and Year: COVID-19 -ARP- LEA and COOP American Rescue Plan and COVID-19 - ARP -Community Partnership Grant 4. Project No.: 22-4998-CO and 22-4998-CP 5. CFDA No.: 84.425 6. Passed Through: Illinois State Board of Education 7. Federal Agency: U.S. Department of Education 8. Criteria or specific requirement (including statutory, regulatory, or other citation): The District is required to maintain detailed documentation showing allocation of personnel costs charged to federally funded programs. 9. Condition: The District did not have sufficient support showing approved allocations for salary and benefits for individuals whose payroll costs were partially claimed under federal grants. 10. Questioned Costs: n/a 11. Context: The District was unable to provide adequate documentation showing an allocation of payroll costs between grant funded programs and non-grant funding. 12. Effect: The District could not provide evidence of having a process place to ensure allocated salary and benefit amounts were properly calculated with no overlap of payroll costs being charged to multiple grants. In addition it was not clear that payroll cost allocations were reviewed by management. 13. Cause: The lack of documented payroll procedures and business office turnover led to business office staff not having a clear understanding of how payroll costs were allocated and whether they were reviewed by management. 14. Recommendation: We recommend the District establish a formal process for documenting allocation of personnel costs, allowing for appropriate reconciliation, review, and monitoring of those allocations. 15. Management's response: Management will implement a process to properly document, review and monitor allocation of personnel costs.
1. FINDING NUMBER: 2023 - 005 2. THIS FINDING IS: X New 3. Federal Program Name and Year: COVID-19 -ARP- LEA and COOP American Rescue Plan and COVID-19 - ARP -Community Partnership Grant 4. Project No.: 22-4998-CO and 22-4998-CP 5. CFDA No.: 84.425 6. Passed Through: Illinois State Board of Education 7. Federal Agency: U.S. Department of Education 8. Criteria or specific requirement (including statutory, regulatory, or other citation): The District is required to maintain detailed documentation showing allocation of personnel costs charged to federally funded programs. 9. Condition: The District did not have sufficient support showing approved allocations for salary and benefits for individuals whose payroll costs were partially claimed under federal grants. 10. Questioned Costs: n/a 11. Context: The District was unable to provide adequate documentation showing an allocation of payroll costs between grant funded programs and non-grant funding. 12. Effect: The District could not provide evidence of having a process place to ensure allocated salary and benefit amounts were properly calculated with no overlap of payroll costs being charged to multiple grants. In addition it was not clear that payroll cost allocations were reviewed by management. 13. Cause: The lack of documented payroll procedures and business office turnover led to business office staff not having a clear understanding of how payroll costs were allocated and whether they were reviewed by management. 14. Recommendation: We recommend the District establish a formal process for documenting allocation of personnel costs, allowing for appropriate reconciliation, review, and monitoring of those allocations. 15. Management's response: Management will implement a process to properly document, review and monitor allocation of personnel costs.