Audit 393681

Criteria or Specific Requirement: Per 2 CFR 200.303 - Internal Controls and the OMB Compliance Supplement: Education Stabilization Fund, Reporting - The District is required to have internal controls, including segregation of duties, over reporting of quarterly expenditure reports. Condition: The same individual is responsible for preparing and submitting quarterly expenditure reports for the Education Stabilization Fund without an independent review or approval prior to submission. Questioned Costs: This condition resulted in no identified questioned costs. Context: Currently, one individual is responsible by preparing and submitting the quarterly expenditure reports. Effect: Quarterly expenditure reports could be submitted to the Illinois State Board of Education that do not accurately reflect the expenditures disbursed from the grant during the period. Consequently, the District could be over- or under- reimbursed by this grant program. Cause: Absence of formal internal control procedures resulted in one person performing all reporting functions. Recommendation: 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. The review should be supported with signatures or electronic approval logs. Management's Response: Managaement agrees with the finding and will implement a corrective action plan to remedy the control deficiency.