Finding 1175868 (2025-001)

Material Weakness Repeat Finding
Requirement
A
Questioned Costs
-
Year
2025
Accepted
2026-03-02

AI Summary

  • Core Issue: The District failed to provide necessary documentation for three invoices and one employee timecard, totaling $4,823.03.
  • Impacted Requirements: This lack of documentation violates federal regulations requiring all costs to be adequately supported and allowable.
  • Recommended Follow-Up: Management should enhance internal controls for record retention and review documentation practices to ensure compliance with federal and grant requirements.

Finding Text

National School Lunch Program - 2025- Project No. 4210 ALN 10.555 Passed through: ISBE Federal Agency: U.S. Department of Agriculture Criteria or specific requirement (including statutory, regulatory, or other citation): Grant agreements and applicable federal regulations (e.g., 2 CFR 200.403 and 2 CFR 200.404) require that all costs charged to a federal program be adequately documented, supported, and allowable. Supporting documentation such as invoices and employee timecards must be maintained to substantiate expenditures. Condition:The District was unable to provide documentation for three invoices charged to the program. The District was also unable to provide supporting documentation for one employee time card. Questioned Costs:$4,823.03 Context: During testing of expenditures under the Child Nutrition Cluster, a sample of invoices and payroll transactions was selected for review. We requested supporting documentation to verify the allowability and accuracy of the charges. The District was unable to provide documentation for three invoices and one employee timecard included in the sample. Effect:Without adequate supporting documentation, we are unable to determine whether the questioned costs are allowable, allocable, and reasonable under program requirements. As a result, these costs are considered unsupported and questioned. Cause:The District did not maintain or was unable to locate required supporting documentation for certain expenditures charged to the Child Nutrition Cluster, indicating weaknesses in record retention and documentation controls. Recommendation: We recommend that management strengthen internal controls over record retention to ensure all invoices and payroll documentation supporting program expenditures are properly maintained and readily accessible. Management should also review current documentation practices to ensure compliance with federal and grant requirements. Mangement's Response: Management agrees with this finding and response is included within the corrective action plan.

Corrective Action Plan

Finding Number 2025-001 Condition: The District was unable to provide documentation for three invoices charged to the program. The District was also unable to provide supporting documentation for one employee time card. Management Response/Plan: The District acknowledges the finding and has strengthened internal controls over disbursements by implementing centralized invoice retention procedures and requiring verification of supporting documentation prior to payment approval. Staff have been retrained on documentation requirements, and periodic monitoring will be conducted to ensure all expenditures are properly supported and maintained. Anticipated Date of completion: June 2026 Name of Contact Person: Dr. Joe Mullikin

Categories

Allowable Costs / Cost Principles School Nutrition Programs

Other Findings in this Audit

  • 1175864 2025-001
    Material Weakness Repeat
  • 1175865 2025-001
    Material Weakness Repeat
  • 1175866 2025-001
    Material Weakness Repeat
  • 1175867 2025-001
    Material Weakness Repeat
  • 1175869 2025-003
    Material Weakness Repeat
  • 1175870 2025-003
    Material Weakness Repeat
  • 1175871 2025-003
    Material Weakness Repeat
  • 1175872 2025-003
    Material Weakness Repeat
  • 1175873 2025-003
    Material Weakness Repeat
  • 1175874 2025-002
    Material Weakness Repeat

Programs in Audit

ALN Program Name Expenditures
84.425 COVID-19 ELEMENTARY AND SECONDARY SCHOOL EMERGENCY RELIEF GRANT $731,114
84.027 SPECIAL EDUCATION - IDEA FLOW-THROUGH $379,707
10.555 NATIONAL SCHOOL LUNCH PROGRAM $290,568
84.010 TITLE I - LOW INCOME $288,984
93.778 MEDICAID - ADMINISTRATIVE OUTREACH $56,145
84.367 TITLE II - TEACHER QUALITY $37,330
10.555 DEPARTMENT OF DEFENSE FRUITS & VEGETABLES (NONCASH) $28,811
10.555 NONCASH USDA FOODS $28,367
84.424 TITLE IVA- STUDENT SUPPORT & ACADEMIC ENRICHMENT $17,600
84.173 SPECIAL EDUCATION - IDEA PRESCHOOL FLOW-THROUGH $9,800
84.365 TITLE II - LANG INST PROG-LIMITED ENG LIPLEP $9,511
84.010 TITLE I - SCHOOL IMPROVEMENT AND ACCOUNTABILITY $1,834