Audit 389838

National School Lunch Program - 2025- Project No. 4210 ALN 10.555 Passed through: ISBE Federal Agency: U.S. Department of Agriculture Criteria or specific requirement (including statutory, regulatory, or other citation): Grant agreements and applicable federal regulations (e.g., 2 CFR 200.403 and 2 CFR 200.404) require that all costs charged to a federal program be adequately documented, supported, and allowable. Supporting documentation such as invoices and employee timecards must be maintained to substantiate expenditures. Condition:The District was unable to provide documentation for three invoices charged to the program. The District was also unable to provide supporting documentation for one employee time card. Questioned Costs:$4,823.03 Context: During testing of expenditures under the Child Nutrition Cluster, a sample of invoices and payroll transactions was selected for review. We requested supporting documentation to verify the allowability and accuracy of the charges. The District was unable to provide documentation for three invoices and one employee timecard included in the sample. Effect:Without adequate supporting documentation, we are unable to determine whether the questioned costs are allowable, allocable, and reasonable under program requirements. As a result, these costs are considered unsupported and questioned. Cause:The District did not maintain or was unable to locate required supporting documentation for certain expenditures charged to the Child Nutrition Cluster, indicating weaknesses in record retention and documentation controls. Recommendation: We recommend that management strengthen internal controls over record retention to ensure all invoices and payroll documentation supporting program expenditures are properly maintained and readily accessible. Management should also review current documentation practices to ensure compliance with federal and grant requirements. Mangement's Response: Management agrees with this finding and response is included within the corrective action plan.

National School Lunch Program - 2025- Project No. 4210 ALN 10.555 Passed through: ISBE Federal Agency: U.S. Department of Agriculture Criteria or specific requirement (including statutory, regulatory, or other citation): In accordance with 7 CFR Part 245 and Child Nutrition Program regulations, school districts must maintain approved free and reduced-price meal applications to support student eligibility determinations. Benefits must be accurately determined and properly applied based on documented household eligibility information. Condition: The District could not provide free and reduced-price meal applications for two (2) students selected for testing. Additionally, two (2) students were provided free lunches when, based on eligibility information, they should have been classified and provided benefits at the reduced-price level. One (1) student was provided reduced lunches, when, based upon eligibility information, they should have been classified as free lunches. Questioned Costs: The monetary impact was not quantified; however, the difference between free and reduced lunch reimbursement rates represents the questioned amount associated with the two misclassified students. Context: During testing of eligibility determinations under the Child Nutrition Cluster, a sample of student applications was selected to verify proper classification and benefit issuance. The District was unable to provide applications for two students included in the sample. Further review identified two students who were incorrectly approved for free meals instead of reduced-price meals and one student was approved for reduced-price meals instead of free meals. Effect: Failure to maintain required applications and properly determine eligibility may result in incorrect reimbursement claims and noncompliance with Child Nutrition Program requirements. This increases the risk of overclaiming federal reimbursement. Cause: The errors appear to be due to weaknesses in documentation retention and review procedures related to student eligibility determinations and benefit issuance. Recommendation: We recommend that the District strengthen internal controls over eligibility documentation and review procedures to ensure: All student applications are properly maintained and readily accessible; and Eligibility determinations are reviewed for accuracy prior to benefit approval. Periodic internal reviews should be conducted to verify compliance with Child Nutrition Program requirements. Management's response: Management agrees with this finding and response is included within the corrective action plan.

COVID-19 Elementary and Secondary School Emergency Relief Grant - 2024 Passed through: ISBE Federal Agency: U.S. Department of Education Project Number: 2024-4998-E3 ALN 84.425U Criteria or specific requirement (including statutory, regulatory, or other citation): In accordance with 2 CFR 200.403, 2 CFR 200.404, and applicable ESSER grant requirements, all costs charged to federal awards must be adequately documented, supported, allowable, allocable, and reasonable. Supporting documentation, including vendor invoices, must be maintained to substantiate expenditures. Condition: The District could not provide supporting documentation for one (1) invoice charged to the program. Questioned Cost: $2,324.25 Context: During testing of ESSER program expenditures, a sample of disbursements was selected for review. We requested supporting documentation to verify the allowability and accuracy of the charges. The District was unable to provide documentation for one invoice included in the sample. Effect: Without adequate supporting documentation, we are unable to determine whether the expenditure is allowable, allocable, and reasonable under ESSER program requirements. As a result, the cost is considered unsupported and questioned. Cause:The District did not maintain or was unable to locate the required supporting documentation for the expenditure, indicating weaknesses in documentation retention and internal controls over grant expenditures. Recommendation: We recommend that management strengthen internal controls over documentation retention to ensure all expenditures charged to ESSER are properly supported and readily available for review. Management should also conduct a review of recordkeeping procedures to ensure compliance with federal grant requirements. Management's Response: Management agrees with this finding and response is included within the corrective action plan.