Finding 1104640 (2023-007)

Late Submission of Expenditure Report to the Illinois State Board of Education Federal Program Name and Year: McKinney Education for Homeless Children Project Number: 2022-4920-RF and 2023-4920-RF Assistance Listing #: 84.196 Passed Through: Illinois State Board of Education Federal Agency: U.S. Department of Education Criteria/Specific Requirements Title 2 U.S. Code of Federal Regulations Part 200, Uniform Administrative Requirements, Cost Principles, and Audit Requirements for Federal Awards (Uniform Guidance) requires that a non-federal entity’s financial management system, including records documenting compliance with federal statutes, regulations, and the terms and conditions of the federal award, must be sufficient to permit the preparation of reports required by general and program-specific terms and conditions; and the tracing of funds to a level of expenditures adequate to establish that such funds have been used according to the federal statutes, regulations, and the terms and conditions of the federal award. Furthermore, the non-federal entity must establish and maintain effective internal control over the federal award that provides reasonable assurance that the non-federal entity is managing the federal award in compliance with federal statutes, regulations, and the terms and conditions of the federal award. The Illinois State Board of Education (“ISBE”) requires monthly expenditure reports to be submitted within 20 days after the period end. Condition One out of five (20%) expenditure reports tested was submitted by the Regional Office of Education #56 to ISBE 63 days after the period end or 43 days late. Questioned Costs None Context The late submission was the first report submitted for the fiscal year and reported cumulative expenditures of $15,163. Total expenditures of this grant were $686,293. Effect The late submission of expenditure reports to ISBE represents a lack of compliance with their requirements and may effect future funding with grantors. Cause Regional Office of Education #56 management indicated that expenditures for this grant were not able to be entered into ISBE’s system until October resulting in a shorter time frame for submission compared to other quarters. Recommendation We recommend that the Regional Office of Education #56 establish procedures to ensure that reports are submitted on a timely basis. Management Response We agree with the finding. Procedures will be established to ensure that expenditure reports are filed on a timely basis.