FAC Explorer

Finding 1172828 (2025-001)

Material Weakness Repeat Finding
Requirement
L
Questioned Costs
-
Year
2025
Accepted
2026-02-09
Audit: 386144
Organization: Belvidere Cusd No. 100 (IL)
Auditor: GORENZ AND ASSOCIATES LTD

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 2 CFR 200.303, which mandates internal controls and segregation of duties in reporting.
  • Recommended Follow-Up: Establish a process where a second person reviews and approves claims before submission, ensuring accountability through signatures or electronic logs.

Finding Text

Criteria or Specific Requirement: Per 2 CFR 200.303 - Internal Controls and the OMB Complaince 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 individiual is responsible for preparing and submitting monthly reimbursement claims for the Child Nutrition Program without an independent review or approval before submission. Questioned Costs: The condition has 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 program. Cause: Absence of formal internal control procedures resulted in one person performing all reporting functions. Recomendation: 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 suppported with signatures or electronic approval logs. Management's Reponse: A corrective action 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 (chief financial & operations officer) compares the meal counts in the claim to the Skyward 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: December 7, 2025. Name of contact person: Cassandra Schug, Superintendent. Management response: The corrective action plan was discussed with the business services coordinator and the chief financial & operations officer. After discussion, the plan was approved.

Categories

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

Other Findings in this Audit

  • 1172822 2025-001
    Material Weakness Repeat
  • 1172823 2025-001
    Material Weakness Repeat
  • 1172824 2025-001
    Material Weakness Repeat
  • 1172825 2025-001
    Material Weakness Repeat
  • 1172826 2025-001
    Material Weakness Repeat
  • 1172827 2025-001
    Material Weakness Repeat

Programs in Audit

ALN Program Name Expenditures
84.425 EDUCATION STABILIZATION FUND $4.55M
10.553 SCHOOL BREAKFAST PROGRAM $712,628
93.778 MEDICAL ASSISTANCE PROGRAM $665,923
84.367 SUPPORTING EFFECTIVE INSTRUCTION STATE GRANTS (FORMERLY IMPROVING TEACHER QUALITY STATE GRANTS) $263,524
84.424 STUDENT SUPPORT AND ACADEMIC ENRICHMENT PROGRAM $226,939
84.365 ENGLISH LANGUAGE ACQUISITION STATE GRANTS $78,154
84.173 SPECIAL EDUCATION PRESCHOOL GRANTS $61,336
84.027 SPECIAL EDUCATION GRANTS TO STATES $52,052
84.010 TITLE I GRANTS TO LOCAL EDUCATIONAL AGENCIES $41,090
10.579 CHILD NUTRITION DISCRETIONARY GRANTS LIMITED AVAILABILITY $39,890
10.185 LOCAL FOOD FOR SCHOOLS COOPERATIVE AGREEMENT PROGRAM $14,157
10.555 NATIONAL SCHOOL LUNCH PROGRAM $11,562