Audit 408681

Assistance Listing, Federal Agency, and Program Name: 84.287, U.S. Department of Education, Twenty First Century Community Learning Centers Federal Award Identification Number and Year: 21st CCLC FY 2025 Pass through Entity: Illinois State Board of Education Finding Type: Material weakness Repeat Finding: No Criteria: Under 2 CFR 200.403, costs charged to a federal award must be allowable. Among other requirements, costs must be necessary and reasonable for the performance of the award, allocable to the award, conform to limitations or exclusions in the cost principles or the federal award as to the types or amounts of cost items, be consistent with applicable policies and procedures, be adequately documented, and be incurred during the approved budget period. Condition During the fiscal year ended December 31, 2025, the granting agency issued a monitoring visit report dated December 9, 2025 related to prior year expenses charged to the 21st Century Community Learning Centers grants. The monitoring visit report identified certain transactions and/or categories of expenses as unallowable under the grant terms and conditions and/or the approved grant budget. The identified unallowable items included human resources services claimed under professional development supplies and food costs claimed under instructional supplies. After receiving the monitoring visit report, the auditee did not modify its 2025 procedures to perform a look back review to specifically identify and evaluate whether similar transaction types or expense types were charged to the 2025 federal award prior to the report receipt. Questioned Costs: $12,179 If questioned costs are not determinable, description of why known questioned costs were undetermined or otherwise could not be reported: N/A Identification of How Questioned Costs Were Computed: Questioned costs were determined by reviewing a sample of transactions and reviewing supporting documentation and comparing against the grant budget. Context: Of the 40 transactions tested, 2 transactions totaling $12,179 represented transaction types and/or expense types that were similar to those identified by the granting agency in its December 9, 2025 monitoring visit report as unallowable under the grant terms and/or approved grant budget. The auditee did not provide evidence that these current year expenses were subjected to an enhanced allowability review that considered the specific determinations communicated by the granting agency. Cause and Effect: The monitoring visit report was not issued until December 2025, at which point the majority of fiscal year 2025 expenses were already submitted to the granting agency for reimbursement. The auditee's corrective action was focused on returning any questioned costs from the 2024 report and adjusting future reimbursement requests. Recommendation: We recommend that the auditee strengthen internal control over compliance for allowability of costs charged to review each expenditure against the approved budget before submitted for reimbursement. Views of Responsible Officials and Corrective Action Plan: Management agrees with the finding. Management will strengthen controls over allowability before potentially affected costs are charged to the award.