Audit 391489

4. Project No.: 24-4210-00, 25-4210-00, 24-4299-00, 24-4220-00, 25-4220-00, 25-4240-24, 25-4240-25 5. AL No.: 10.553, 10.555, 10.582 6. Passed Through: Illinois State Board of Education 7. Federal Agency: Department of Education 8. Criteria or specific requirement (including statutory, regulatory, or other citation) Expenditures made under the Child Nutrition Cluster are required to be for allowable activities and conform with the Basic Guidelines prescribed in 2 CFR Part 200.402 through .408 (be necessary and reasonable, be accorded consistent treatment, be adequately documented, etc.) 9. Condition It was noted during the audit that ineligible expenditures were charged to the food service expenditure function. These expenditures were for a back-to-school picnic and consisted of backpacks with school supplies that were provided to students, as well as a lunch provided to new teachers in June 2025. These expenditures should not have been charged to the food service function in the District’s general ledger system. 10. Questioned Costs No reportable questioned costs noted 11. Context The District did not have adequate controls in place to ensure expenditures recorded under the Child Nutrition Cluster account codes were for allowable activities. 12. Effect The incorrectly coded expenditures do not impact the reimbursement received by the District due to the Child Nutrition Cluster being an open-ended entitlement grant, meaning they provide reimbursements based on the number of eligible meals served rather than all food service expenditures incurred. However, incorrectly charging expenditures to the food service function can result in District overstating the expenditures charged to food service and reporting incorrect profit or loss from the food service program. 13. Cause The lack of proper review and approval processes for invoice entry and payment, led to errounously charging expenditures to the food service function. 14. Recommendation It is recommended that the school district implement stricter controls and training to ensure that all expenditures charged to the CNC grant are eligible and directly related to child nutrition programs. Additionally, the district should review and reallocate any ineligible expenditures identified during the audit. 15. Management's response The district is reviewing all expenditures monthly to ensure all of them are recorded with the proper account code. Any changes needed will get a journal entry through the Proviso Treasurer’s Office.