Finding Text
Criteria: Reporting. To determine that an accurate 6/30/24 expenditure report was filed with the Illinois State Board of Education. The District reported expenses on the 6/30/24 report including costs that were paid after year-end. Condition: The District claimed expenses early on the 6/30/24 expenditure report that should have been reported as outstanding obligations. Questioned Costs: There are no questioned costs. Context: Per review of expenditures and client tracking sheets, $163,889 in 1000-400, $91,440 in 1000-500, and $4,770 in 2540-500 were expensed on the GL at 6/1/24, but the checks were disbursed in July 2024. These transactions were included on the ISBE 6/30/24 report, likely due to the difference in expense date and check date. Therefore, the sum of these expenditures, $260,099 should have been reported as outstanding obligations at 6/30/24 since the cash paid for it was actually disbursed in FY24. The expenses were allowable under the grant, but the District claimed the expenses too early. Effect: The District claimed expenses early and were reimbursed for expenses in the 6/30/24 report that were not paid until July 2024. Cause: The District uses two different dates in SDS: An expense date and a check date. The expense date is the date the expense is posted into SDS, and the check date is the date the cash is paid. The District mistakenly used the expense date on the general ledger instead of the check date to create expenditure reports. Recommendation: We recommend adding a verification process to reconcile the general ledger totals using the check dates to the ISBE expenditure reports before submitting. Management's response: The District will add a verification process to reconcile the general ledger totals using the check dates to the expenditure reports before submitting.