Audit 37733

FY End
2022-06-30
Total Expended
$2.21M
Findings
2
Programs
14
Year: 2022 Accepted: 2022-12-12

Organization Exclusion Status:

Checking exclusion status...

Findings

ID Ref Severity Repeat Requirement
41461 2022-001 Significant Deficiency Yes L
617903 2022-001 Significant Deficiency Yes L

Contacts

Name Title Type
H2WYRJ12V522 Lindsey Adams Auditee
3095934075 Mia Frommelt Auditor
No contacts on file

Notes to SEFA

Accounting Policies: Note 1. Basis of PresentationThe accompanying schedule of expenditures of federal awards (the schedule) includes the federal grantactivity of Sherrard Community Unit School District #200 under programs of the federal government forthe year ended June 30, 2022. The information in this schedule is presented in accordance with therequirements 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 schedulepresents only a selected portion of the operations of Sherrard Community Unit School District #200, it isnot intended to and does not present the financial position, changes in net position or cash flows ofSherrard Community Unit School District #200.Note 2. Summary of Significant Accounting PoliciesExpenditures reported on the schedule are reported on the cash basis of accounting which is a basis ofaccounting 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 samemanner, expenditures are recognized and recorded upon the disbursement of cash. The cash basis ofaccounting does not give effect to accounts receivable, accounts payable and accrued items.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 auditee did not use the de minimis cost rate.

Finding Details

2022-001 U.S. Department of Education Pass-Through Illinois State Board of Education 84.425D COVID-19 (ESSER II) Education Stabilization Fund Federal Award Year: 2021 Finding: The District has insufficient reporting 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 Award 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 II award did not agree to the District?s general ledger. Context: The District reported total program expenditures for year-end audit and the Illinois State Board of Education as $171,556. The June 30, 2022 expenditures for the program was $375,120. 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 not 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.
2022-001 U.S. Department of Education Pass-Through Illinois State Board of Education 84.425D COVID-19 (ESSER II) Education Stabilization Fund Federal Award Year: 2021 Finding: The District has insufficient reporting 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 Award 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 II award did not agree to the District?s general ledger. Context: The District reported total program expenditures for year-end audit and the Illinois State Board of Education as $171,556. The June 30, 2022 expenditures for the program was $375,120. 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 not 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.