Audit 383801

8. Criteria or specific requirement: Per Title 2 U.S. Code of Federal Regulations Part 200, Uniform Administrative Requirements, Cost Principles, and Audit Requirements for Federal Awards (2 CFR Part 200) Subpart D, Post Federal Award Requirements Section 200.303, Internal controls, the recipient must establish, document and maintain effective internal control over the Federal award that provides reasonable assurance that the recipient is managing the Federal award in compliance with Federal statutes, regulations and the terms and conditions of the Federal award. Per 7 CFR Section 210.8(a), the school food authority shall establish internal controls which ensure the accuracy of meal counts prior to the submission of the monthly claim for reimbursement. '9. Condition: Three (3) monthly claims for reimbursement reported meal counts in excess of those supported by records of the District. 10. Cause: The District's internal controls over compliance were not functioning effectively to ensure claims for reimbursement were accurately prepared. '11. Effect: The District was not in compliance with the reporting compliance requirement. '12. Questioned Costs: The following questioned costs were computed based on the excess meals claimed for reimbursement times the applicable reimbursement rate: $37 (Project No. 25-4220-00) $2,074 (Project No. 25-4210-00) '13. Context: From the population of eleven (11) monthly claims for reimbursement, a sample of four (4) claims were selected for testing. We noted three (3) months in which the claims for reimbursement reported meal counts in excess of those supported by records of the District as follows: October 2024: Actual breakfast meals served: 10,313; Breakfast meals claimed for reimbursement: 10,326. March 2025: Actual lunch meals served: 12,901; Lunch meals claimed for reimbursement: 12,911 April 2025: Actual lunch meals served: 10,087; Lunch meals claimed for reimbursement: 10,190 In addition, the District was unable to locate supporting documentation of the snack claim counts of 765 for October 2024 and 525 for April 2025, which contributed to the questioned cost total for program 25-4210-00. A statistically valid sample was not utilized. 14. Recommendation: We recommend that management review its policies and procedures and implement changes to strengthen internal control over compliance. 15. Management's response: The District agrees with the auditor's finding and recommendation.

8. Criteria or specific requirement: Per Title 2 U.S. Code of Federal Regulations Part 200, Uniform Administrative Requirements, Cost Principles, and Audit Requirements for Federal Awards (2 CFR Part 200) Subpart E, Cost Principles Section 200.403(b), Factors affecting allowability of costs, costs must conform to any limitations or exclusions set forth in these principles or in the Federal award as to types or amount of cost items. Per 2 CFR Section 200.308(b), Deviations from approved budget, the recipient must report deviations from the approved budget, project, or program scope, or objectives. The recipient must request prior approvals from the Federal agency or pass-through entity for budget and program plan revisions in accordance with this section. '9. Condition: Nine (9) employee payroll expenditures were claimed at an hourly rate greater than that approved by ISBE. 10. Cause: The District's internal controls over compliance were not functioning effectively to ensure claims for payroll expenditures were made at the approved hourly rate. '11. Effect: The District was not in compliance with the allowable costs/cost principles compliance requirement. '12. Questioned Costs: Questioned costs of $28,651 were computed based on the difference between the payroll expenditures claimed and the allowable amount calculated using the hourly rate approved by ISBE. '13. Context: From the population of one hundred (100) employees claimed under this grant, a sample of ten (10) employees were selected for testing. We noted nine (9) employee payroll expenditures were claimed at a rate greater than the rate allowable per the ISBE approved budget. A statistically valid sample was not utilized. 14. Recommendation: We recommend that management review its policies and procedures and implement changes to strengthen internal control over compliance. 15. Management's response: The District agrees with the auditor's finding and recommendation.