Audit 408477

FY End
2024-06-30
Total Expended
$11.84M
Findings
4
Programs
9
Year: 2024 Accepted: 2026-08-04
Auditor: RSM US LLP

Organization Exclusion Status:

Checking exclusion status...

Findings

ID Ref Severity Repeat Requirement
1225596 2024-002 Material Weakness Yes P
1225597 2024-002 Material Weakness Yes P
1225598 2024-002 Material Weakness Yes P
1225599 2024-002 Material Weakness Yes P

Contacts

Name Title Type
KLX9KL2RT8A8 Anthony Corsi Auditee
7084242000 Tino Robledo Auditor
No contacts on file

Notes to SEFA

The accompanying schedule of expenditures of federal awards (the Schedule) includes the federal award activity of Community High School District 218 (the District) under programs of the federal government for the year ended June 30, 2024. The information in this Schedule is presented in accordance with the requirements of Title 2 U.S. Code of Federal Regulations Part 200, Uniform Administrative Requirements, Cost Principles and Audit Requirements for Federal Awards (Uniform Guidance). Because the Schedule presents only a selected portion of the operations of the District, it is not intended to and does not present the financial position, changes in net position or cash flows of the District.
Expenditures reported on the Schedule have been prepared using the modified accrual basis of accounting which is the same basis used in preparing the basic financial statements of the District. Such expenditures are recognized following the cost principles contained in the Uniform Guidance, wherein certain types of expenditures are not allowable or are limited as to reimbursement. No funds were identified as having been provided to subrecipients by the District under the meaning of the Uniform Guidance, and accordingly, no funds identified in the Schedule are attributable to subrecipient entities as required under the Uniform Guidance. There were no federal awards expended for insurance or any loans or loan guarantees outstanding for the year ended June 30, 2024. For the year ended June 30, 2024, the District received $109,466 of noncash assistance in the form of food commodities that is included under the Department of Agriculture passed through the Illinois State Board of Education (ALN #10.555). For the year ended June 30, 2024, the District received $71,728 of noncash assistance in the form of food commodities that is also included under the Department of Agriculture passed through the Illinois State Board of Education (ALN #10.555).
The District has elected not to use the de minimis indirect cost rate as allowed under the Uniform Guidance.
Subsequent to the issuance of the District's original SEFA for the year ended June 30, 2024, the District identified errors in the presentation of the schedule. The SEFA excluded expenditures for federal programs incurred during fiscal year 2024 that were later internally determined to be allowable. The effects of the restatement on federal expenditures reported in the accompanying schedule are summarized as follows: The total fiscal year 2024 expenditures of federal awards increased by $2,592,649, from $9,250,245 to $11,842,894.

Finding Details

Finding 2024-002: Preparation of the Schedule of Expenditures of Federal Awards Material weakness/other matter noncompliance Federal Agency: U.S. Department of Education Pass-through Agency: Illinois State Board of Education Program Name: Education Stabilization Fund: COVID-19: American Rescue Plan - Elementary and Secondary School Emergency Relief ALN Number: 84.425 Award Number: 24-4998-E3 Award Year: 2024 Criteria: The Uniform Guidance (2 CFR 200.510b) requires that the auditee must prepare a Schedule of Expenditures of Federal Awards (SEFA) for the period covered by its financial statements which must include the total Federal Awards expended as determined in accordance with 2 CFR 200.502. Condition: The SEFA for the year ended June 30, 2024 excluded $2,592,649 in expenditures incurred for the Education Stabilization Fund: COVID-19: American Rescue Plan - Elementary and Secondary School Emergency Relief federal program (ALN 84.425U). Cause: The existing internal control procedures for reviewing amounts on the SEFA failed to detect an incorrect amount was reported for the program. While a process is in place, the final review failed to detect the error. Effect: The SEFA was materially misstated. Also, lack of a robust review process could result in misstatements in future years. Context: As a result of the omission of eligible expenditures, total federal awards and amounts for ALN 84.425, COVID-19: Education Stabilization Fund were understated by $2,592,649 due to the use of the cash draw amount instead of program expenditures. This understatement did not impact the major program determination. Question Costs: None Repeat Finding: No Recommendation: We recommend the District thoroughly review the schedule of expenditures of federal awards prior to issuance. Views of responsible officials: Management will review its year-end processes and its grant-related internal controls with a specific focus on accrual-basis auditing requirements to ensure that such errors do not occur in the future.