Finding 11168 (2023-003)

Significant Deficiency
Requirement
N
Questioned Costs
-
Year
2023
Accepted
2024-02-01

AI Summary

  • Core Issue: The District lacks effective processes to reconcile Education Stabilization Fund expenditures, leading to discrepancies between reported amounts and the general ledger.
  • Impacted Requirements: Compliance with Title 2 U.S. Code of Federal Regulations Part 200.303, which mandates effective internal controls over federal awards.
  • Recommended Follow-Up: Implement specific project coding for expenditures, ensure monthly reconciliations by the Business Manager, and verify all submissions to the Illinois State Board of Education are accurate before approval by the Superintendent.

Finding Text

U.S. Department of Education; Pass-Through Illinois State Board of Education; Education Stabilization Fund 84.425D COVID-19 Elementary and Secondary School Emergency Relief (ESSER II) Fund; 84.425U COVID-19 American Rescue Plan-Elementary and Secondary School Emergency Relief (ARP-ESSER) Fund; Federal Award Year 2022, 2023; Finding: The District has insufficient reconciling processes for reporting the Education Stabilization Fund expenditures. Criteria: Title 2 U.S. Code of Federal Regulations Part 200, Uniform Administrative Requirements, Cost Principles, and Audit Requirements for Federal Awards Section 200.303 Internal Controls states: The non-Federal entity must: (a) 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.... Condition: The expenditures reported to the Illinois State Board of Education for the ESSER II and ESSER III award did not agree to the District's general ledger. Context: The District reported total program expenditures for year-end audit and to the Illinois State Board of Education as $444,243. The District could only provide general ledger detail for the program as of June 30, 2023 for $443,368. Effect: Federal awards are not properly reported to the state and the District is not ensuring federal expenditures incurred and amounts awarded are reconciled for timely reimbursement. Questioned Costs: $875; Identification as a repeat finding: This is not a repeat finding. Cause: The District does separately code program expenditures on the general ledger. The District does not prepare monthly monitoring reports by program to ensure program expenditures, revenues, and reports are reconciled. Recommendation: We recommend the District code all expenditures charged to the program to a specific project code. If the District identifies costs initially charged to a non-program code, we recommend the District record adjustments to move the expenditures. We recommend the District require the submissions to the Illinois State Board of Education by reconciled by the Business Manager prior to the Superintendent submitting. We recommend the Business Manager monthly prepare a reconciliation to monitor the total award, the expenditures incurred, the totals reported to the state, and the amount received from the state. The report should incorporate a comparison of the award budget to actual to ensure any required budget adjustments are made before the next submission. Response and corrective action plan: The District will review current processes for identifying, coding, and reporting federal expenditures and implement processes to ensure amounts reported are supported by the District's general ledger.

Corrective Action Plan

Response and corrective action plan: The District will review current processes for identifying, coding, and reporting federal expenditures and implement processes to ensure amounts reported are supported by the District's general ledger.

Categories

Subrecipient Monitoring Allowable Costs / Cost Principles Cash Management Reporting Matching / Level of Effort / Earmarking Internal Control / Segregation of Duties

Other Findings in this Audit

  • 11169 2023-003
    Significant Deficiency
  • 587610 2023-003
    Significant Deficiency
  • 587611 2023-003
    Significant Deficiency

Programs in Audit

ALN Program Name Expenditures
84.425 Education Stabilization Fund $444,243
93.778 Medical Assistance Program $22,865
84.358 Rural Education $18,038
84.027 Special Education_grants to States $17,171
10.555 National School Lunch Program $16,879
84.424 Student Support and Academic Enrichment Program $9,951
84.173 Special Education_preschool Grants $9,369
10.560 State Administrative Expenses for Child Nutrition $8,767
84.367 Improving Teacher Quality State Grants $7,240
10.553 School Breakfast Program $3,944
84.010 Title I Grants to Local Educational Agencies $3,708
10.649 Pandemic Ebt Administrative Costs $628