Audit 45124

FY End
2022-06-30
Total Expended
$1.32M
Findings
8
Programs
5
Organization: The Montessori Network (IL)
Year: 2022 Accepted: 2023-03-29
Auditor: Porte Brown LLC

Organization Exclusion Status:

Checking exclusion status...

Findings

ID Ref Severity Repeat Requirement
50977 2022-002 Significant Deficiency - B
50978 2022-002 Significant Deficiency - B
50979 2022-001 Significant Deficiency Yes B
50980 2022-001 Significant Deficiency Yes B
627419 2022-002 Significant Deficiency - B
627420 2022-002 Significant Deficiency - B
627421 2022-001 Significant Deficiency Yes B
627422 2022-001 Significant Deficiency Yes B

Programs

ALN Program Spent Major Findings
93.600 Head Start $779,788 Yes 2
84.425 Education Stabilization Fund $320,197 Yes 2
84.010 Title I Grants to Local Educational Agencies $207,546 - 0
84.367 Improving Teacher Quality State Grants $7,500 - 0
84.424 Student Support and Academic Enrichment Program $3,214 - 0

Contacts

Name Title Type
CTNGYT2E1RL6 Maggie Mikuzis Auditee
7735359255 Genevra Knight Auditor
No contacts on file

Notes to SEFA

Title: BASIS OF PRESENTATION Accounting Policies: Expenditures reported on the Schedule are reported on the accrual basis of accounting. 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. De Minimis Rate Used: Y Rate Explanation: The auditee used the de minimis cost rate. The accompanying Schedule of Expenditures of Federal Awards (the Schedule) includes the federal award activity of The Montessori Network (the School). 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). Therefore, some amounts presented in this schedule may differ from amounts presented in, or used in the preparation of, the basic financial statements. Because the Schedule presents only a selected portion of the operations of the School, it is not intended to and does not present the financial position, changes in net assets, or cash flows of the School.
Title: SUBRECIPIENTS Accounting Policies: Expenditures reported on the Schedule are reported on the accrual basis of accounting. 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. De Minimis Rate Used: Y Rate Explanation: The auditee used the de minimis cost rate. There were no federal awards to subrecipients.
Title: NONCASH ASSISTANCE Accounting Policies: Expenditures reported on the Schedule are reported on the accrual basis of accounting. 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. De Minimis Rate Used: Y Rate Explanation: The auditee used the de minimis cost rate. There were no noncash assistance during the year ended June 30, 2022.
Title: LOANS OUTSTANDING Accounting Policies: Expenditures reported on the Schedule are reported on the accrual basis of accounting. 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. De Minimis Rate Used: Y Rate Explanation: The auditee used the de minimis cost rate. There were no loans outstanding at June 30, 2022.

Finding Details

Condition : During the audit, we noted several instances where expense support items were not available for review/unable to be located. Criteria : The organization is required to maintain records to support the amounts requested for reimbursement as a federal award recipient. Cause : Management's internal controls lack a requirement for reconciling submitted reimbursement requests to the related support retained. Effect : As a federal award recipient, there is a possibility that an incorrect amount could be requested for reimbursement from a funding source. Recomendation : To prevent this from happening, it is recommended that procedures be implemented requiring the reconciliation of submitted reimbursement requests to the related support (such as bills, invoices, etc.) retained. Views of Responsible Officials and Planned Corrective Actions : Management will develop written procedures outlining the steps required to reconcile submitted reimbursement requests to related support retained, such as bills, invoices, receipts, etc. The procedures will include a review and approval process to ensure compliance with federal and other program regulations. All staff members and contractors responsible for preparing and submitting reimbursement requests will receive training on the new procedures. This will include instruction on the importance of reconciling reimbursement requests to supporting documentation. Management will assign a responsible staff member to regularly monitor the reimbursement request process to ensure compliance with established procedures. This individual will be responsible for reviewing a sample of reimbursement requests each month to ensure they are accurate and properly supported. Management will regularly review and evaluate the effectiveness of the new procedures and make necessary adjustments as needed.
Condition : During the audit, we noted several instances where expense support items were not available for review/unable to be located. Criteria : The organization is required to maintain records to support the amounts requested for reimbursement as a federal award recipient. Cause : Management's internal controls lack a requirement for reconciling submitted reimbursement requests to the related support retained. Effect : As a federal award recipient, there is a possibility that an incorrect amount could be requested for reimbursement from a funding source. Recomendation : To prevent this from happening, it is recommended that procedures be implemented requiring the reconciliation of submitted reimbursement requests to the related support (such as bills, invoices, etc.) retained. Views of Responsible Officials and Planned Corrective Actions : Management will develop written procedures outlining the steps required to reconcile submitted reimbursement requests to related support retained, such as bills, invoices, receipts, etc. The procedures will include a review and approval process to ensure compliance with federal and other program regulations. All staff members and contractors responsible for preparing and submitting reimbursement requests will receive training on the new procedures. This will include instruction on the importance of reconciling reimbursement requests to supporting documentation. Management will assign a responsible staff member to regularly monitor the reimbursement request process to ensure compliance with established procedures. This individual will be responsible for reviewing a sample of reimbursement requests each month to ensure they are accurate and properly supported. Management will regularly review and evaluate the effectiveness of the new procedures and make necessary adjustments as needed.
Condition : Cost allocations for salaries and related expenses allocated across program activities, including federal award programs were improperly submitted for reimbursement under the Head Start and Education Stabilization Fund programs. The identified errors represented underallocation of hours compared to the approved personnel activity reports and timecards. Criteria : Internal controls should be in place and consistently applied that provide reasonable assurance that cost allocations accurately represent the correct allocation of employee-related costs based on the time spent by the applicable employees. Cause : Personnel activity reports submitted by employees are not consisently reconciled to the vouchers submitted for federal and other programs. Effect : Because the reconciliation process in place was not consistently followed to agree to personnel activity reports to costs allocations, it is possible that an employee's time may be inappropriately allocated amongst functional activities, including federal award programs. Recomendation : Procedures should be consistently applied requiring the reconciliation of submitted personnel activity reports to the employees' actual costs allocated and charged to federal and other programs.Views of Responsible Officials and Planned Corrective Actions : This finding was initially identified during fiscal year 2020, and corrective actions were taken by the School in 2021. To address the issue, the School implemented new procedures that require a monthly review by management, which includes a detailed reconciliation of submitted personnel activity reports to vouchers prepared for federal and other programs. This reconciliation process helps to ensure that payroll cost allocation accurately reflects the submitted personnel activity reports. In addition, the School has made changes to its payroll system to ensure accurate time tracking for its various programs. This includes changing the service provider responsible for voucher submissions. These changes will help to prevent similar issues from occurring in the future and ensure that employee-related costs are accurately allocated to the appropriate programs. As of 2022, the School has successfully implemented these changes and continues to review and monitor its procedures to maintain compliance with federal and other program regulations.
Condition : Cost allocations for salaries and related expenses allocated across program activities, including federal award programs were improperly submitted for reimbursement under the Head Start and Education Stabilization Fund programs. The identified errors represented underallocation of hours compared to the approved personnel activity reports and timecards. Criteria : Internal controls should be in place and consistently applied that provide reasonable assurance that cost allocations accurately represent the correct allocation of employee-related costs based on the time spent by the applicable employees. Cause : Personnel activity reports submitted by employees are not consisently reconciled to the vouchers submitted for federal and other programs. Effect : Because the reconciliation process in place was not consistently followed to agree to personnel activity reports to costs allocations, it is possible that an employee's time may be inappropriately allocated amongst functional activities, including federal award programs. Recomendation : Procedures should be consistently applied requiring the reconciliation of submitted personnel activity reports to the employees' actual costs allocated and charged to federal and other programs.Views of Responsible Officials and Planned Corrective Actions : This finding was initially identified during fiscal year 2020, and corrective actions were taken by the School in 2021. To address the issue, the School implemented new procedures that require a monthly review by management, which includes a detailed reconciliation of submitted personnel activity reports to vouchers prepared for federal and other programs. This reconciliation process helps to ensure that payroll cost allocation accurately reflects the submitted personnel activity reports. In addition, the School has made changes to its payroll system to ensure accurate time tracking for its various programs. This includes changing the service provider responsible for voucher submissions. These changes will help to prevent similar issues from occurring in the future and ensure that employee-related costs are accurately allocated to the appropriate programs. As of 2022, the School has successfully implemented these changes and continues to review and monitor its procedures to maintain compliance with federal and other program regulations.
Condition : During the audit, we noted several instances where expense support items were not available for review/unable to be located. Criteria : The organization is required to maintain records to support the amounts requested for reimbursement as a federal award recipient. Cause : Management's internal controls lack a requirement for reconciling submitted reimbursement requests to the related support retained. Effect : As a federal award recipient, there is a possibility that an incorrect amount could be requested for reimbursement from a funding source. Recomendation : To prevent this from happening, it is recommended that procedures be implemented requiring the reconciliation of submitted reimbursement requests to the related support (such as bills, invoices, etc.) retained. Views of Responsible Officials and Planned Corrective Actions : Management will develop written procedures outlining the steps required to reconcile submitted reimbursement requests to related support retained, such as bills, invoices, receipts, etc. The procedures will include a review and approval process to ensure compliance with federal and other program regulations. All staff members and contractors responsible for preparing and submitting reimbursement requests will receive training on the new procedures. This will include instruction on the importance of reconciling reimbursement requests to supporting documentation. Management will assign a responsible staff member to regularly monitor the reimbursement request process to ensure compliance with established procedures. This individual will be responsible for reviewing a sample of reimbursement requests each month to ensure they are accurate and properly supported. Management will regularly review and evaluate the effectiveness of the new procedures and make necessary adjustments as needed.
Condition : During the audit, we noted several instances where expense support items were not available for review/unable to be located. Criteria : The organization is required to maintain records to support the amounts requested for reimbursement as a federal award recipient. Cause : Management's internal controls lack a requirement for reconciling submitted reimbursement requests to the related support retained. Effect : As a federal award recipient, there is a possibility that an incorrect amount could be requested for reimbursement from a funding source. Recomendation : To prevent this from happening, it is recommended that procedures be implemented requiring the reconciliation of submitted reimbursement requests to the related support (such as bills, invoices, etc.) retained. Views of Responsible Officials and Planned Corrective Actions : Management will develop written procedures outlining the steps required to reconcile submitted reimbursement requests to related support retained, such as bills, invoices, receipts, etc. The procedures will include a review and approval process to ensure compliance with federal and other program regulations. All staff members and contractors responsible for preparing and submitting reimbursement requests will receive training on the new procedures. This will include instruction on the importance of reconciling reimbursement requests to supporting documentation. Management will assign a responsible staff member to regularly monitor the reimbursement request process to ensure compliance with established procedures. This individual will be responsible for reviewing a sample of reimbursement requests each month to ensure they are accurate and properly supported. Management will regularly review and evaluate the effectiveness of the new procedures and make necessary adjustments as needed.
Condition : Cost allocations for salaries and related expenses allocated across program activities, including federal award programs were improperly submitted for reimbursement under the Head Start and Education Stabilization Fund programs. The identified errors represented underallocation of hours compared to the approved personnel activity reports and timecards. Criteria : Internal controls should be in place and consistently applied that provide reasonable assurance that cost allocations accurately represent the correct allocation of employee-related costs based on the time spent by the applicable employees. Cause : Personnel activity reports submitted by employees are not consisently reconciled to the vouchers submitted for federal and other programs. Effect : Because the reconciliation process in place was not consistently followed to agree to personnel activity reports to costs allocations, it is possible that an employee's time may be inappropriately allocated amongst functional activities, including federal award programs. Recomendation : Procedures should be consistently applied requiring the reconciliation of submitted personnel activity reports to the employees' actual costs allocated and charged to federal and other programs.Views of Responsible Officials and Planned Corrective Actions : This finding was initially identified during fiscal year 2020, and corrective actions were taken by the School in 2021. To address the issue, the School implemented new procedures that require a monthly review by management, which includes a detailed reconciliation of submitted personnel activity reports to vouchers prepared for federal and other programs. This reconciliation process helps to ensure that payroll cost allocation accurately reflects the submitted personnel activity reports. In addition, the School has made changes to its payroll system to ensure accurate time tracking for its various programs. This includes changing the service provider responsible for voucher submissions. These changes will help to prevent similar issues from occurring in the future and ensure that employee-related costs are accurately allocated to the appropriate programs. As of 2022, the School has successfully implemented these changes and continues to review and monitor its procedures to maintain compliance with federal and other program regulations.
Condition : Cost allocations for salaries and related expenses allocated across program activities, including federal award programs were improperly submitted for reimbursement under the Head Start and Education Stabilization Fund programs. The identified errors represented underallocation of hours compared to the approved personnel activity reports and timecards. Criteria : Internal controls should be in place and consistently applied that provide reasonable assurance that cost allocations accurately represent the correct allocation of employee-related costs based on the time spent by the applicable employees. Cause : Personnel activity reports submitted by employees are not consisently reconciled to the vouchers submitted for federal and other programs. Effect : Because the reconciliation process in place was not consistently followed to agree to personnel activity reports to costs allocations, it is possible that an employee's time may be inappropriately allocated amongst functional activities, including federal award programs. Recomendation : Procedures should be consistently applied requiring the reconciliation of submitted personnel activity reports to the employees' actual costs allocated and charged to federal and other programs.Views of Responsible Officials and Planned Corrective Actions : This finding was initially identified during fiscal year 2020, and corrective actions were taken by the School in 2021. To address the issue, the School implemented new procedures that require a monthly review by management, which includes a detailed reconciliation of submitted personnel activity reports to vouchers prepared for federal and other programs. This reconciliation process helps to ensure that payroll cost allocation accurately reflects the submitted personnel activity reports. In addition, the School has made changes to its payroll system to ensure accurate time tracking for its various programs. This includes changing the service provider responsible for voucher submissions. These changes will help to prevent similar issues from occurring in the future and ensure that employee-related costs are accurately allocated to the appropriate programs. As of 2022, the School has successfully implemented these changes and continues to review and monitor its procedures to maintain compliance with federal and other program regulations.