Finding 1172687 (2025-001)

Material Weakness Repeat Finding

Requirement

Questioned Costs

Year

2025

Accepted

2026-02-06

Audit: 385944

Organization: East Peoria Elementary School District No. 86 (IL)

Auditor: GORENZ AND ASSOCIATES LTD

AI Summary

Core Issue: One person is handling both the preparation and submission of monthly reimbursement claims, lacking independent review.
Impacted Requirements: This violates internal control requirements under 2 CFR 200.303, risking inaccurate meal claims.
Recommended Follow-Up: Establish a system where a second person reviews and approves claims before submission, ensuring proper 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, Reporting - 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 the 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 meal 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 correction plan will be developed and implemented. A secondary review of the meal claim to the supporting documents will be performed before the meal claim is submitted.

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 (superintendent or associate superintendent) compares the meal counts in the claim to the Skyward and RevTrak daily meal count reports, monthly participation summary, eligibility rosters (free, reduced, paid) and USDA reimbursement rates. The reviewer will then sign and date a reconciliation sheet before submission. Anticipated date of completion: June 30, 2026. Name of contact person: Tony Ingold, Superintendent. Management response: The corrective action plan was discussed with the employee responsible for filing the claim, the associate superintendent, and the superintendent. After discussion, the plan was approved and will be implemented.

Other Findings in this Audit

1172681 2025-001

Material Weakness Repeat
1172682 2025-001

Material Weakness Repeat
1172683 2025-001

Material Weakness Repeat
1172684 2025-001

Material Weakness Repeat
1172685 2025-001

Material Weakness Repeat
1172686 2025-001

Material Weakness Repeat

Programs in Audit

ALN	Program Name	Expenditures
84.010	TITLE I GRANTS TO LOCAL EDUCATIONAL AGENCIES	$486,245
84.425	EDUCATION STABILIZATION FUND	$217,952
10.553	SCHOOL BREAKFAST PROGRAM	$139,852
93.778	MEDICAL ASSISTANCE PROGRAM	$91,716
84.367	SUPPORTING EFFECTIVE INSTRUCTION STATE GRANTS (FORMERLY IMPROVING TEACHER QUALITY STATE GRANTS)	$59,720
84.027	SPECIAL EDUCATION GRANTS TO STATES	$23,040
84.173	SPECIAL EDUCATION PRESCHOOL GRANTS	$20,841
84.424	STUDENT SUPPORT AND ACADEMIC ENRICHMENT PROGRAM	$11,375
10.558	CHILD AND ADULT CARE FOOD PROGRAM	$3,256
10.555	NATIONAL SCHOOL LUNCH PROGRAM	$2,166