Audit 386055

Criteria: Allowable Costs/Activities Allowed. The District is required to report allowable costs/activities allowed based on the grant, the grant budget, and for the period of the grant. Condition: The District submitted budgeted expenditures for reimbursement instead of actual expenditures. Questioned Costs: The questioned cost $5,448. Context: The District claimed a total of $159,716 of salaries for cost object and function 1000-100. This is the total expenditures claimed across the 07/01/24 - 08/31/25 grant reporting period. Of the total, $16,503 were claimed in FY25. Per review of grant expenditures, the District could only locate $11,055 of eligible salaries with appropriate back-up. The difference of $5,448 is questioned costs. Effect: There is an increased risk that these funds will be subject to repayment as they were incorrectly submitted for reimbursement. Cause: This was an oversight by management personnel in the District. The District mistakenly reported the wrong total on the general ledger report used to claim expenses. Recommendation: We recommend reconciling the budgeted amount to the general ledger totals and reconciling those to expenditure reports before submitting. Management's Response: The District will review the budgeted cost of items and the amount recorded in the general ledger against the expenditure reports before submitting.

Criteria: Compliance Finding - Reporting. Grant expenditure reporting should be supported by the school's general ledger. Condition: The final report at 8/31/24 includes an expenditure that should have been claimed in the Q1 report. Questioned Costs: None. Context: The District reported $8,299 of expenditures in the final 2024 report in cost object & function 2230-300. Per review of actual expenditures, the District included $8,299 of expenses occuring in July and August of 2023. This should have been picked up on the Q1 2024-4300 report as a FY24 expenditures. Expense was allowable under the terms of the grant and occured during the grant period, but was picked up on the final report instead of the first report. Effect: The District 8/31/24 report included expenses occuring in the prior fiscal year. Cause: This was an oversight by management personnel in the District. The District mistakenly picked up the wrong total on the general ledger report used to claim expenses. Recommendation: We recommend reconciling the budgeted amount to the general ledger totals and reconciling those to expenditure reports before submitting. Management's Response: The District will review the budgeted cost of items and the amount recorded in the general ledger against the expenditure reports before submitting.

Criteria: Compliance Finding - Reporting. Grant expenditure reporting should be supported by the school's general ledger. Condition: Costs included on the 6/30/25 ISBE expenditure report included costs paid after 6/30/25. Questioned Costs: None. Context: The District claimed $152,413 of payroll in 1000-100. Per review of the accounting records, only $129,043 of claimable payroll was paid out by 6/30/25. The District included $23,369 of salaries on the 6/30/25 report that should have been reported in the 8/31/25 final report. The District did not over-claim expenses through 8/31/25; All expenses were for allowable costs - No questioned costs in finding. Effect: The actual costs for Title I function 1000 and cost object 100 paid out by the District through 6/30/25 were overstated on the ISBE expenditure report. Cause: This was an oversight by management personnel in the District. The District mistakenly picked up the wrong total on the general ledger report used to claim expenses. Recommendation: We recommend reconciling the budgeted amount to the general ledger totals and reconciling those to expenditure reports before submitting. Management's Response: The District will review the general ledger to the expenditure reports before submitting.