Finding 1101942 (2024-006)

Material Weakness
Requirement
AB
Questioned Costs
-
Year
2024
Accepted
2025-03-03

AI Summary

  • Core Issue: The District claimed $2,097,350 in expenditures for reimbursement that were not incurred until July/August 2024, violating federal guidelines.
  • Impacted Requirements: Expenditures must be recorded in the period incurred and must be necessary, reasonable, and well-documented as per 2 CFR Part 200.402-408.
  • Recommended Follow-Up: The District should enhance its review process for supporting documentation to ensure all claimed expenditures are allowable and incurred within the appropriate timeframe.

Finding Text

1. FINDING NUMBER:14 2024 - 006 2. THIS FINDING IS: X New Repeat from Prior year? Year originally reported? 3. Federal Program Name and Year: Education Stabilization Fund - PY 2023 4. Project No.: 23-4998-E3 5. AL 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) According to 2 CFR Part 200.402 through 200.408, expenditures must be recorded in the period in which they are incurred and must meet the criteria of being necessary, reasonable, and adequately documented. 9. Condition Audit procedures identified that the District claimed $2,097,350 of expenditures on their June 30, 2024 reimbursement claim submitted to the Ilinois State Board of Education, however these expenditures were not received and paid by the District until July/August 2024. 10. Questioned Costs No reportable questioned costs were identified as the District did incur allowable costs in July/August of 2024 that were within the approved federal award agreement. 11. Context Based upon the review of total expenditures claimed under the federal award and the results of testing procedures performed this appears to be an isolated instance. 12. Effect The District did not incur the cost associated with the allowable cost claimed until July/August of 2024. 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 within a reasonable period of time from the reimbursment request. 15. Management's response The district performs a review of supporting documentation for expenditures claimed during a reimbursement request to ensure that expenditures claimed for reimbursement occurred during the fiscal year for which they are being claimed.

Categories

Allowable Costs / Cost Principles Cash Management Internal Control / Segregation of Duties

Other Findings in this Audit

  • 525499 2024-006
    Material Weakness
  • 525500 2024-006
    Material Weakness
  • 525501 2024-006
    Material Weakness
  • 525502 2024-007
    Significant Deficiency
  • 525503 2024-007
    Significant Deficiency
  • 525504 2024-007
    Significant Deficiency
  • 525505 2024-004
    Material Weakness
  • 525506 2024-004
    Material Weakness
  • 525507 2024-004
    Material Weakness
  • 525508 2024-005
    Significant Deficiency
  • 525509 2024-005
    Significant Deficiency
  • 525510 2024-005
    Significant Deficiency
  • 1101941 2024-006
    Material Weakness
  • 1101943 2024-006
    Material Weakness
  • 1101944 2024-007
    Significant Deficiency
  • 1101945 2024-007
    Significant Deficiency
  • 1101946 2024-007
    Significant Deficiency
  • 1101947 2024-004
    Material Weakness
  • 1101948 2024-004
    Material Weakness
  • 1101949 2024-004
    Material Weakness
  • 1101950 2024-005
    Significant Deficiency
  • 1101951 2024-005
    Significant Deficiency
  • 1101952 2024-005
    Significant Deficiency

Programs in Audit

ALN Program Name Expenditures
84.010 Title I Grants to Local Educational Agencies $2.31M
10.555 National School Lunch Program $2.26M
10.553 School Breakfast Program $1.24M
84.027 Special Education Grants to States $963,920
93.778 Medical Assistance Program $377,799
84.367 Supporting Effective Instruction State Grants (formerly Improving Teacher Quality State Grants) $364,803
84.215 Innovative Approaches to Literacy; Promise Neighborhoods; Full-Service Community Schools; and Congressionally Directed Spending for Elementary and Secondary Education Community Projects $231,563
10.582 Fresh Fruit and Vegetable Program $205,387
84.365 English Language Acquisition State Grants $162,116
84.424 Student Support and Academic Enrichment Program $134,913
10.560 State Administrative Expenses for Child Nutrition $107,054
84.287 Twenty-First Century Community Learning Centers $104,562
84.425 Education Stabilization Fund $34,034
84.173 Special Education Preschool Grants $18,308
10.649 Pandemic Ebt Administrative Costs $3,256