Finding 1172846 (2025-001)

Material Weakness Repeat Finding
Requirement
L
Questioned Costs
-
Year
2025
Accepted
2026-02-09

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 one person prepares the claim and another reviews and approves it, ensuring proper documentation of the 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 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 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) compares the meal counts in the claim to the SDS 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: Brett Elliott, Superintendent. Management response: The corrective action plan was discussed with the employee responsible for filing the claim, the business manager, and the superintendent. After discussion, the plan was approved by the superintendent.

Categories

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

Other Findings in this Audit

  • 1172840 2025-001
    Material Weakness Repeat
  • 1172841 2025-001
    Material Weakness Repeat
  • 1172842 2025-001
    Material Weakness Repeat
  • 1172843 2025-001
    Material Weakness Repeat
  • 1172844 2025-001
    Material Weakness Repeat
  • 1172845 2025-001
    Material Weakness Repeat

Programs in Audit

ALN Program Name Expenditures
84.027 SPECIAL EDUCATION GRANTS TO STATES $195,141
84.010 TITLE I GRANTS TO LOCAL EDUCATIONAL AGENCIES $181,215
10.553 SCHOOL BREAKFAST PROGRAM $73,038
81.086 CONSERVATION RESEARCH AND DEVELOPMENT $57,500
84.367 SUPPORTING EFFECTIVE INSTRUCTION STATE GRANTS (FORMERLY IMPROVING TEACHER QUALITY STATE GRANTS) $26,106
10.555 NATIONAL SCHOOL LUNCH PROGRAM $22,211
84.424 STUDENT SUPPORT AND ACADEMIC ENRICHMENT PROGRAM $16,878
84.173 SPECIAL EDUCATION PRESCHOOL GRANTS $10,366
93.778 MEDICAL ASSISTANCE PROGRAM $10,151
10.185 LOCAL FOOD FOR SCHOOLS COOPERATIVE AGREEMENT PROGRAM $657