Audit 383519

2025-003: Reporting Federal Agency: U.S. Department of Agriculture Federal Program Name: Child Nutrition Cluster Assistance Listing Number: 10.553, 10.555 Federal Award Identification Number and Year: 252IL058N1099-2024, 252IL058N1199-2024, 252IL058N1099-2025, 252IL058N1199-2025 Pass-Through Agency: Illinois State Board of Education Pass-Through Number(s): 25-4210-00, 25-4220-00, 24-4210-00, 24-4220-00 Award Period: July 1, 2024 – June 30, 2025 Type of Finding: Significant Deficiency in Internal Control over Compliance Criteria or Specific Requirement: Uniform Grant Guidance (2 CFR 200.303) requires non-federal entities receiving Federal awards establish and maintain internal controls designed to reasonably ensure compliance with Federal Laws, regulations and program compliance requirements. Effective internal controls should include formal documentation of review and approval for reports submitted under the program. Condition: There is no formal documentation of review and approval of reports submitted by an individual other than the preparer. Questioned Costs: None Context: 5 of 5 financial reports tested. Cause: The District has not implemented adequate internal controls to ensure independent review and approval of submitted reports. Effect: Noncompliance with reporting requirements. Repeat Finding: No Recommendation: We recommend the District strengthen its internal control procedures by ensuring that all reports are reviewed and approved by someone other than the individual responsible for preparing and submitting them. This review should be formally documented. Views of Responsible Officials: There is no disagreement with the audit finding.

2025-004: Procurement Federal Agency: U.S. Department of Agriculture Federal Program Name: Child Nutrition Cluster Assistance Listing Number: 10.553, 10.555 Federal Award Identification Number and Year: 252IL058N1099-2024, 252IL058N1199-2024, 252IL058N1099-2025, 252IL058N1199-2025 Pass-Through Agency: Illinois State Board of Education Pass-Through Number(s): 25-4210-00, 25-4220-00, 24-4210-00, 24-4220-00 Award Period: July 1, 2024 – June 30, 2025 Type of Finding: Significant Deficiency in Internal Control over Compliance Criteria or Specific Requirement: Uniform Grant Guidance (2 CFR 200.303) requires non-federal entities receiving Federal awards establish and maintain internal controls designed to reasonably ensure compliance with Federal Laws, regulations and program compliance requirements. Effective internal controls should include formal documentation of review and approval by the board for procurements over the small purchases threshold. Condition: Procurement methods for certain purchases made with federal award funds were not adequately documented or approved in accordance with the District’s procurement policy. Questioned Costs: None Context: 3 of the 4 procurements tested. Cause: The District did not follow its established internal control procedures for procurement. Effect: May result in a disallowed cost if grant requirements are not followed. Repeat Finding: No Recommendation: We recommend the District review federal procurement requirements to ensure proper documentation and authorization procedures are followed. The District should consider implementing a federal procurement checklist to support compliance. Views of Responsible Officials: There is no disagreement with the audit finding.

2025-005: Suspension and Debarment Federal Agency: U.S. Department of Agriculture Federal Program Name: Child Nutrition Cluster Assistance Listing Number: 10.553, 10.555 Federal Award Identification Number and Year: 252IL058N1099-2024, 252IL058N1199-2024, 252IL058N1099-2025, 252IL058N1199-2025 Pass-Through Agency: Illinois State Board of Education Pass-Through Number(s): 25-4210-00, 25-4220-00, 24-4210-00, 24-4220-00 Award Period: July 1, 2024 – June 30, 2025 Type of Finding: Significant Deficiency in Internal Control over Compliance Criteria or Specific Requirement: Uniform Grant Guidance (2 CFR 200.303) requires non-federal entities receiving Federal awards establish and maintain internal controls designed to reasonably ensure compliance with Federal Laws, regulations and program compliance requirements. Effective internal controls should include verification the vendor is not suspended or debarred through the SAMs exclusion list, collecting of certification from the entity, or by adding a clause or condition to the covered transaction with the entity. Condition: The District did not retain documentation verifying that vendors were not suspended or debarred prior to entering into the transactions. Questioned Costs: None Context: 2 of 3 vendors tested did not have supporting documentation retained. Cause: The District lacks an effective internal control system to verify and document suspension and debarment status of vendors prior to contract execution. Effect: May result in a disallowed cost if grant requirements are not followed. Repeat Finding: No Recommendation: We recommend the District review federal procurement requirements and implement procedures to ensure proper documentation of suspension and debarment checks of vendors, prior to contracts and purchases over the covered transaction threshold. The District should consider using a federal procurement checklist to support compliance. Views of Responsible Officials: There is no disagreement with the audit finding.