Audit 379289

UNITY POINT SCHOOL DISTRICT #140 30-039-1400-04 SCHEDULE OF FINDINGS AND QUESTIONED COSTS Year Ending June 30, 2025 SECTION III - FEDERAL AWARD FINDINGS AND QUESTIONED COSTS 1. FINDING NUMBER: 2025 - 002 2. THIS FINDING IS: X New Repeat from Prior year? Year originally reported? 3. Federal Program Name and Year: IDEA - Flow Through and IDEA - Pre-School Flow-Through 4. Project No.: 24-4620-00, 25-4620-00, 24-4600-00, 25-4600-00 5. AL No.: 84.027A, 84.173A 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) Title 2 U.S. Code of Federal Regulations Part 200, Uniform Administrative Requirements, Cost Principles, and Audit Requirements for Federal Awards (Uniform Guidance) requires that a non-federal entity’s financial management system, including records documenting compliance with federal statutes, regulations, and the terms and conditions of the federal award, must be sufficient to permit the preparation of reports required by general and program-specific terms and conditions; and the tracing of funds to a level of expenditures adequate to establish that such funds have been used according to the federal statutes, regulations, and the terms and conditions of the federal award. Furthermore, the non-federal entity must 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. These internal controls should be in compliance with guidance in “Standards for Internal Controls in the Federal Government” issued by the Comptroller General of the United States or the “Internal Controls Integrated Framework” issued by the Committee of Sponsoring Organizations of the Treadway Commission (COSO). 9. Condition The District did not have adequate internal controls over the preparation of grant expenditure reports. The yearend expenditure report submitted to the Illinois State Board of Education to request reimbursement did not reconcile to the underlying accounting records. 10. Questioned Costs $1,808.00 11. Context The District overclaimed payments to other governments by $1,808. 12. Effect A lack of internal controls over expenditure reporting could result in over or understatements of expenditures to the granting agencies. A return of grant funds could be requested from the granting agency. 13. Cause Oversight. 14. Recommendation We recommend the District create a system of internal controls to ensure all expenditure reports are submitted accurately, are fully supported by adequate cost documentation records, and reconcile to the underlying accounting records. 15. Management's response Management agrees with the finding.