Finding Text
Proper Cut-Off of Expenditures Federal Agency: U.S. Department of Education Federal Program Name: Twenty – First Century Community Learning Center and After School Programs Grant – Non-School Districts Assistance Listing Number: 84.287 Pass-Through Agencies: Illinois Alliance of Boys and Girls Clubs and Illinois State Board of Education Pass-Through Numbers: 21st CCLC FY 2024, 21st CCLC FY 2025 Award Periods: Various July 1, 2024 through August 30, 2025 Type of Finding: Significant Deficiency in Internal Control over Compliance Other Matters Criteria or specific requirement: ULBGC has noted in the summary of significant accounting policies that they report expenditures on the SEFA on the accrual basis of accounting. In testing two month’s voucher in our cash management sample and one expenditure in our general disbursement sample we identified expenditures that were reported on the cash basis and not accrual basis of accounting. Condition: In testing a sample of ten monthly vouchers for our cash management sample and five expenditures in our general disbursement sample. We noted the following: o August 2024 voucher included eight expenditures from September – November 2023 totaling $4,411. o October 2024 voucher included prepayment of nine months of services that related to fiscal year-end 2025 totaling $9,375. o One general disbursement from October 2023 totaling $3,060. These three items were incorrectly expensed in the year-end 2024. Questioned Costs: None. Context: Vouchers are not properly reporting expenditures on an accrual basis. Cause: Monthly vouchers need to be monitored to ensure proper cut-off and recording on the accrual basis in accordance with ULBGC’s accounting policies. Effect: Inaccurate general disbursements may be charged to the SEFA in the incorrect year. Repeat Finding: This is a repeat finding. Recommendation: Policies and procedures over monthly vouchers should include preparation and review of the voucher to ensure completion in accordance with the accrual basis to ensure expenditures are being recorded and reported in the proper period. Views of responsible officials and planned corrective actions: There is no disagreement with the audit finding. The corrective action plan to address this deficiency includes the following action: Outside Accounting Firm will oversee the monthly voucher process to ensure completion in accordance with the accrual basis to ensure expenditures are recorded and reported in the proper period. Name(s) of the contact person(s) responsible for corrective action: Mary Ann Mahon Huels, President and CEO Planned completion date for corrective action plan: The corrective action plan detailed above is being implemented immediately.