Audit 393594

Criteria or Specific Requirement: Per 2 CFR 200.303 - Internal Controls and the OMB Complaince Supplement: Child Nutrition Cluster, Reporting - The District is required to have internal controls, including segregation of duties, over reporting of monthly reimbursement claims. Condition: The same individiual is responsible for preparing and submitting monthly reimbursement claims for the Child Nutrition Program without an independent review or approval before submission. Questioned Costs: The condition has resulted in no identified questioned costs. Context: Currently one individual is responsible for preparing and submitting the monthly reimbursement claims. Effect: Meal claims could be submitted to the Illinois State Board of Education that do not accurately reflect the number of meals served. Consequently, the District could be over- or under-reimbursed by this program. Cause: Abscense of formal internal control procedures resulted in one person performing all reporting functions. Recomendation: Implement segregation of duties by requiring one person to prepare the monthly claim and a second person (e.g., supervisor) to review and approve the claim before submission. The review should be suppported with signatures or electronic approval logs. Management's Reponse: A corrective action plan will be developed and implemented. A secondary review of the meal claim to the supporting documents will be performed before the meal claim is submitted.

Criteria or Specific Requirement: A federal agency or pass-through entity must collect financial reports no less than annually, 2 CFR 300.328(b). To comply with this reporting requirement the Illinois State Board of Education (ISBE) requires that grant subrecipients (i.e., the District) submit quarterly expenditure reports. Condition: The District did not comply with the reporting requirements with respect to filing accurate quarterly reports with the ISBE. Questioned Costs: None. Context: The noncompliance resulted from the District filing a September 30, 2024 quarterly report claiming $1,407,464 that had been expended in a previous period and reported on the schedule of Expenditures of Federal Awards for that period. Effect: Incorrect financial information was submitted to the ISBE for the quarter ended June 30, 2024 which may result in potential errors in analysis or other determinations. Cause: The District understood that the grant expenditures could be claimed through the project end date which was Septmeber 30, 2024. The District had controls in place to accumulate the grant expenditure amounts as well as the filing of expenditure reports. Recommendation: Management should submit accurate expenditure reports regardless of the project end date. Management's Response: Management concurs and has prepared a corrective action plan.