Audit 53507

PROVISO AREA FOR EXCEPTIONAL CHILDREN DISTRICT SEJA 803 06-016-0870-02 SCHEDULE OF FINDINGS AND QUESTIONED COSTS Year Ending June 30, 2022 SECTION III - FEDERAL AWARD FINDINGS AND QUESTIONED COSTS 1. FINDING NUMBER:14 2022 - 002 2. THIS FINDING IS: X New Repeat from Prior year? Year originally reported? 3. Federal Program Name and Year: Education Stabilization Fund 4. Project No.: 22-4998-CO 5. ASL No.: 84.425 6. Passed Through: Illinois State Board of Education 7. Federal Agency: Department of Education 8. Criteria or specific requirement (including statutory, regulatory, or other citation) The District is required to effectively operate internal controls to ensure that expenditures claimed under the Education Stablization Fund are for Activities Allowed under the award and that reimbursement for these costs are claimed within a reasonable period of time. 9. Condition15 The District claimed $76,017 of expenditures related to supplies and equipment on their June 30, 2022 reimbursement claim submitted to the Illinois State Board of Education, however these expenditures were not incurred by the District until July/August 2022. 10. Questioned Costs16 No reportable questioned costs were identified as the District did incurr allowable costs in July and paid them in August of 2022 that were within the approved federal award agreement. 11. Context17 Based upon the review of total expenditures claimed under the federal award and the results of testing procedures performed the District claimed material amount of costs prior to incurring expenditures. 12. Effect The District received a reimbursment for the federal award in July of 2022, however the District did not incur the cost associated with the allowable cost claimed until August 2022. 13. Cause The District's internal controls failed to detect that the expenditures claimed during a reimbursement request was not paid by the District. 14. Recommendation We recommend that the District perform a review of supporting documentation for expenditures claimed during a reimbursement request to ensure that expenditures claimed for reimbursement are for allowable costs that are within the approved federal award agreement and incurred in the same period as the reimbursment request. 15. Management's response18 The District will implement additional procedures for review and approval of reimbursement claims prior to submission to ensure that expenditures are claimed within a reasonable period of time in relation to when a reimbursement claim is submitted. The Staff Accountant will verify the expensed items were received and paid, print the support, and have the Business Manager/CSBO sign the report for reimbursement. 14 See footnote 11. 15 Include facts that support the deficiency identified on the audit finding (?200.516 (b)(3)). 16 Identify questioned costs as required by ?200.516 (a)(3 - 4). 17 See footnote 12. 18 To the extent practical, indicate when management does not agree with the finding, questioned cost, or both.

PROVISO AREA FOR EXCEPTIONAL CHILDREN DISTRICT SEJA 803 06-016-0870-02 SCHEDULE OF FINDINGS AND QUESTIONED COSTS Year Ending June 30, 2022 SECTION III - FEDERAL AWARD FINDINGS AND QUESTIONED COSTS 1. FINDING NUMBER:14 2022 - 002 2. THIS FINDING IS: X New Repeat from Prior year? Year originally reported? 3. Federal Program Name and Year: Education Stabilization Fund 4. Project No.: 22-4998-CO 5. ASL No.: 84.425 6. Passed Through: Illinois State Board of Education 7. Federal Agency: Department of Education 8. Criteria or specific requirement (including statutory, regulatory, or other citation) The District is required to effectively operate internal controls to ensure that expenditures claimed under the Education Stablization Fund are for Activities Allowed under the award and that reimbursement for these costs are claimed within a reasonable period of time. 9. Condition15 The District claimed $76,017 of expenditures related to supplies and equipment on their June 30, 2022 reimbursement claim submitted to the Illinois State Board of Education, however these expenditures were not incurred by the District until July/August 2022. 10. Questioned Costs16 No reportable questioned costs were identified as the District did incurr allowable costs in July and paid them in August of 2022 that were within the approved federal award agreement. 11. Context17 Based upon the review of total expenditures claimed under the federal award and the results of testing procedures performed the District claimed material amount of costs prior to incurring expenditures. 12. Effect The District received a reimbursment for the federal award in July of 2022, however the District did not incur the cost associated with the allowable cost claimed until August 2022. 13. Cause The District's internal controls failed to detect that the expenditures claimed during a reimbursement request was not paid by the District. 14. Recommendation We recommend that the District perform a review of supporting documentation for expenditures claimed during a reimbursement request to ensure that expenditures claimed for reimbursement are for allowable costs that are within the approved federal award agreement and incurred in the same period as the reimbursment request. 15. Management's response18 The District will implement additional procedures for review and approval of reimbursement claims prior to submission to ensure that expenditures are claimed within a reasonable period of time in relation to when a reimbursement claim is submitted. The Staff Accountant will verify the expensed items were received and paid, print the support, and have the Business Manager/CSBO sign the report for reimbursement. 14 See footnote 11. 15 Include facts that support the deficiency identified on the audit finding (?200.516 (b)(3)). 16 Identify questioned costs as required by ?200.516 (a)(3 - 4). 17 See footnote 12. 18 To the extent practical, indicate when management does not agree with the finding, questioned cost, or both.