Audit 358571

Federal Program Name and Year: COVID 19- Educational Stabilization Fund Project No.: 24-4998-E3 AL No.: 84.425U Passed Through: Illinois State Board of Education Federal Agency: United States Department of Education Criteria or specific requirement (including statutory, regulatory, or other citation): Property records must be maintained that include a description of the property, a serial number or other identification number, the source of funding for the property (including the federal award identification number), who holds title, the acquisition date, cost of the property, percentage of federal participation in the project costs for the federal award under which the property was acquired, the location, use and condition of the property, and any ultimate disposition data including the date of disposal and sales price of the property (2 CFR section 200.313(d)(1)). Condition: The District did not maintain adequate property records to comply with 2 CFR section 200.313(d)(1). Questioned Costs: None Context: The District last updated its property records in 2021. Since 2021, the District has relied upon non-audit services from its accounting firm to assist with compiling capital asset values for external reporting. These non-audit services are not detailed enough to comply with Federal regulations because they are meant to satisfy Accounting Principles Generally Accepted in the United States of America. Effect: The District was out of compliance with Federal Equipment and Real Property Management regulations. Cause: The cause of the condition was a lack of a business office policy and procedure to ensure annual updating of property records, including the tagging and marking of items or Federal origin. Recommendation: It is recommended that the business office establish a policy and procedure to ensure annual updating of property records, including the tagging and marking of items of Federal origin. Management Response: See corrective action plan.

Federal Program Name and Year: COVID 19- Educational Stabilization Fund Project No.: 24-4998-E3 AL No.: 84.425U Passed Through: Illinois State Board of Education Federal Agency: United States Department of Education Criteria or specific requirement (including statutory, regulatory, or other citation): Property records must be maintained that include a description of the property, a serial number or other identification number, the source of funding for the property (including the federal award identification number), who holds title, the acquisition date, cost of the property, percentage of federal participation in the project costs for the federal award under which the property was acquired, the location, use and condition of the property, and any ultimate disposition data including the date of disposal and sales price of the property (2 CFR section 200.313(d)(1)). Condition: The District did not maintain adequate property records to comply with 2 CFR section 200.313(d)(1). Questioned Costs: None Context: The District last updated its property records in 2021. Since 2021, the District has relied upon non-audit services from its accounting firm to assist with compiling capital asset values for external reporting. These non-audit services are not detailed enough to comply with Federal regulations because they are meant to satisfy Accounting Principles Generally Accepted in the United States of America. Effect: The District was out of compliance with Federal Equipment and Real Property Management regulations. Cause: The cause of the condition was a lack of a business office policy and procedure to ensure annual updating of property records, including the tagging and marking of items or Federal origin. Recommendation: It is recommended that the business office establish a policy and procedure to ensure annual updating of property records, including the tagging and marking of items of Federal origin. Management Response: See corrective action plan.

Federal Program Name and Year: COVID 19- Educational Stabilization Fund Project No.: 24-4998-E3 AL No.: 84.425U Passed Through: Illinois State Board of Education Federal Agency: United States Department of Education Criteria or specific requirement (including statutory, regulatory, or other citation): Property records must be maintained that include a description of the property, a serial number or other identification number, the source of funding for the property (including the federal award identification number), who holds title, the acquisition date, cost of the property, percentage of federal participation in the project costs for the federal award under which the property was acquired, the location, use and condition of the property, and any ultimate disposition data including the date of disposal and sales price of the property (2 CFR section 200.313(d)(1)). Condition: The District did not maintain adequate property records to comply with 2 CFR section 200.313(d)(1). Questioned Costs: None Context: The District last updated its property records in 2021. Since 2021, the District has relied upon non-audit services from its accounting firm to assist with compiling capital asset values for external reporting. These non-audit services are not detailed enough to comply with Federal regulations because they are meant to satisfy Accounting Principles Generally Accepted in the United States of America. Effect: The District was out of compliance with Federal Equipment and Real Property Management regulations. Cause: The cause of the condition was a lack of a business office policy and procedure to ensure annual updating of property records, including the tagging and marking of items or Federal origin. Recommendation: It is recommended that the business office establish a policy and procedure to ensure annual updating of property records, including the tagging and marking of items of Federal origin. Management Response: See corrective action plan.

Federal Program Name and Year: COVID 19- Educational Stabilization Fund Project No.: 24-4998-E3 AL No.: 84.425U Passed Through: Illinois State Board of Education Federal Agency: United States Department of Education Criteria or specific requirement (including statutory, regulatory, or other citation): Property records must be maintained that include a description of the property, a serial number or other identification number, the source of funding for the property (including the federal award identification number), who holds title, the acquisition date, cost of the property, percentage of federal participation in the project costs for the federal award under which the property was acquired, the location, use and condition of the property, and any ultimate disposition data including the date of disposal and sales price of the property (2 CFR section 200.313(d)(1)). Condition: The District did not maintain adequate property records to comply with 2 CFR section 200.313(d)(1). Questioned Costs: None Context: The District last updated its property records in 2021. Since 2021, the District has relied upon non-audit services from its accounting firm to assist with compiling capital asset values for external reporting. These non-audit services are not detailed enough to comply with Federal regulations because they are meant to satisfy Accounting Principles Generally Accepted in the United States of America. Effect: The District was out of compliance with Federal Equipment and Real Property Management regulations. Cause: The cause of the condition was a lack of a business office policy and procedure to ensure annual updating of property records, including the tagging and marking of items or Federal origin. Recommendation: It is recommended that the business office establish a policy and procedure to ensure annual updating of property records, including the tagging and marking of items of Federal origin. Management Response: See corrective action plan.