Audit 9844

Federal Program Name: Coronavirus Response and Relief Supplemental Appropriation Act; Project Number: 10-4998-E2; AL Number: 84.425; Pass Through Entity: Illinois State Board of Education; Criteria/Specific Requirement: Per OMB Compliance Supplement, Part 3 - Compliance Requirements, Section L - Reporting, one of the audit objectives is to "Determine whether the required reports for federal awards included all activity of the reporting period, are supported by applicable accounting or performance records, and are fairly presented in accordance with governing requirements."; Condition: While the District accounting system was effectively designed to allow for proper functional classification of expenditures, the expenditure classifications were not used appropriately. As a result, functions did not match that were reported to ISBE for drawing down funds creating misstatements in the expenditure reports; Questioned Costs: N/A; Context: Expenditure reports were submitted to ISBE with incorrect data; Effect: Failure to report expenditures in the same function used to report expenditures to ISBE causes misstatements in the reports and incorrect reimbursements; Cause: While expenditures were correctly approved through the grant program, misclassifications of expenditures led to improper reimbursement requests; Recommendation: The District needs to ensure that all expenditures are properly recorded in the function that is ultimately reported to ISBE. Management's Response: The District has instituted review procedures and made staffing changes to facilitate preparing correct expenditure reports to ISBE.

Federal Program Name: Coronavirus Response and Relief Supplemental Appropriation Act; Project Number: 10-4998-E3; AL Number: 84.425; Pass Through Entity: Illinois State Board of Education; Criteria/Specific Requirement: Per OMB Compliance Supplement, Part 3 - Compliance Requirements, Section L - Reporting, one of the audit objectives is to "Determine whether the required reports for federal awards included all activity of the reporting period, are supported by applicable accounting or performance records, and are fairly presented in accordance with governing requirements."; Condition: While the District accounting system was effectively designed to allow for proper functional classification of expenditures, the expenditure classifications were not used appropriately. As a result, functions did not match that were reported to ISBE for drawing down funds creating misstatements in the expenditure reports; Questioned Costs: There were $19,428 of duplicate expenditures resulting in overclaimed expenditures; Context: Expenditure reports were submitted to ISBE with incorrect data; Effect: Failure to record expenditures in the same function used to report expenditures to ISBE causes misstatements in the reports and incorrect reimbursements; Cause: While expenditures were correctly approved through the grant program, misclassifications of expenditures led to improper reimbursement requests; Recommendation: The District needs to ensure that all expenditures are properly recorded in the function that is ultimately reported to ISBE; Management's Response: The District has instituted review procedures and made staffing changes to facilitate preparing correct expenditure reports to ISBE.

Federal Program Name: Coronavirus Response and Relief Supplemental Appropriation Act; Project Number: 10-4998-E2; AL Number: 84.425; Pass Through Entity: Illinois State Board of Education; Criteria/Specific Requirement: Per OMB Compliance Supplement, Part 3 - Compliance Requirements, Section L - Reporting, one of the audit objectives is to "Determine whether the required reports for federal awards included all activity of the reporting period, are supported by applicable accounting or performance records, and are fairly presented in accordance with governing requirements."; Condition: While the District accounting system was effectively designed to allow for proper functional classification of expenditures, the expenditure classifications were not used appropriately. As a result, functions did not match that were reported to ISBE for drawing down funds creating misstatements in the expenditure reports; Questioned Costs: N/A; Context: Expenditure reports were submitted to ISBE with incorrect data; Effect: Failure to report expenditures in the same function used to report expenditures to ISBE causes misstatements in the reports and incorrect reimbursements; Cause: While expenditures were correctly approved through the grant program, misclassifications of expenditures led to improper reimbursement requests; Recommendation: The District needs to ensure that all expenditures are properly recorded in the function that is ultimately reported to ISBE. Management's Response: The District has instituted review procedures and made staffing changes to facilitate preparing correct expenditure reports to ISBE.

Federal Program Name: Coronavirus Response and Relief Supplemental Appropriation Act; Project Number: 10-4998-E3; AL Number: 84.425; Pass Through Entity: Illinois State Board of Education; Criteria/Specific Requirement: Per OMB Compliance Supplement, Part 3 - Compliance Requirements, Section L - Reporting, one of the audit objectives is to "Determine whether the required reports for federal awards included all activity of the reporting period, are supported by applicable accounting or performance records, and are fairly presented in accordance with governing requirements."; Condition: While the District accounting system was effectively designed to allow for proper functional classification of expenditures, the expenditure classifications were not used appropriately. As a result, functions did not match that were reported to ISBE for drawing down funds creating misstatements in the expenditure reports; Questioned Costs: There were $19,428 of duplicate expenditures resulting in overclaimed expenditures; Context: Expenditure reports were submitted to ISBE with incorrect data; Effect: Failure to record expenditures in the same function used to report expenditures to ISBE causes misstatements in the reports and incorrect reimbursements; Cause: While expenditures were correctly approved through the grant program, misclassifications of expenditures led to improper reimbursement requests; Recommendation: The District needs to ensure that all expenditures are properly recorded in the function that is ultimately reported to ISBE; Management's Response: The District has instituted review procedures and made staffing changes to facilitate preparing correct expenditure reports to ISBE.