Finding 1172512 (2025-003)

Material Weakness Repeat Finding
Requirement
L
Questioned Costs
-
Year
2025
Accepted
2026-02-05

AI Summary

  • Core Issue: One person is handling both the preparation and submission of monthly reimbursement claims for the Child Nutrition Program, lacking independent review.
  • Impacted Requirements: This violates the requirement for internal controls and segregation of duties as outlined in 2 CFR 200.303.
  • Recommended Follow-Up: Establish a process where a second person reviews and approves claims before submission, ensuring documentation of this review.

Finding Text

Criteria or Specific Requirement: Per 2 CFR 200.303 - Internal Controls and the OMB Compliance Supplement: Child Nutrition Cluster - The District is required to have internal controls, including segregation of duties, over reporting of monthly reimbursement claims. Condition: The same individual is responsible for preparing and submitting monthly reimbursement claims for the Child Nutrition Program without an independent review or approval prior to submission. Questioned Costs: This condition resulted in no identified questioned costs. Context: Currently, one individual is responsible for preparing and submitting monthly reimbursement claims. Effect: Meal claims could be submitted to the Illinois State Board of Education that do not accurately reflect the number of meals served. Consequently, the District could be over- or under- reimbursed by this grant program. Cause: Absence of formal internal control procedures resulted in one person performing all reporting functions. Recommendation: Implement segregation of duties by requiring one person to prepare the monthly claim and a second person (e.g., supervisor) to review and approve the claim before submission. The review should be supported with signatures or electronic approval logs. Management's Response: A corrective action plan will be developed and implemented. A secondary review of the meal claim will be performed and documented.

Corrective Action Plan

Condition: The same individual is responsible for preparing and submitting monthly reimbursement claims for the Child Nutrition Program without an independent review or approval prior to submission. Plan: A second person will compare the meal counts in the claim to: (1) the daily meal counts prepared by cafeteria staff and (2) the monthly enrollment reports from the accounting software. The reviewer will then sign and date the supporting documentation before the meal claim is submitted. Anticipated date of completion: December 2025. Name of contact person: Jake Flowers, Superintendent. Management response: The corrective action plan was discussed with the employees responsible for filing the claim and the superintendent. After discussion, the plan was approved by the superintendent and will be adopted.

Categories

Internal Control / Segregation of Duties Cash Management Reporting School Nutrition Programs

Other Findings in this Audit

  • 1172506 2025-003
    Material Weakness Repeat
  • 1172507 2025-003
    Material Weakness Repeat
  • 1172508 2025-003
    Material Weakness Repeat
  • 1172509 2025-003
    Material Weakness Repeat
  • 1172510 2025-003
    Material Weakness Repeat
  • 1172511 2025-003
    Material Weakness Repeat

Programs in Audit

ALN Program Name Expenditures
84.425 EDUCATION STABILIZATION FUND $371,943
84.010 TITLE I GRANTS TO LOCAL EDUCATIONAL AGENCIES $164,790
16.710 PUBLIC SAFETY PARTNERSHIP AND COMMUNITY POLICING GRANTS $164,503
84.424 STUDENT SUPPORT AND ACADEMIC ENRICHMENT PROGRAM $133,959
84.027 SPECIAL EDUCATION GRANTS TO STATES $124,645
10.553 SCHOOL BREAKFAST PROGRAM $50,233
93.778 MEDICAL ASSISTANCE PROGRAM $46,819
84.367 SUPPORTING EFFECTIVE INSTRUCTION STATE GRANTS (FORMERLY IMPROVING TEACHER QUALITY STATE GRANTS) $28,404
84.173 SPECIAL EDUCATION PRESCHOOL GRANTS $8,158
10.555 NATIONAL SCHOOL LUNCH PROGRAM $566