Finding 1181890 (2025-002)

Material Weakness Repeat Finding
Requirement
L
Questioned Costs
-
Year
2025
Accepted
2026-03-23

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 practice violates internal control standards, risking inaccurate meal claims and potential financial discrepancies.
  • 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: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. Context: Currently one individual is responsible for preparing and submitting the monthly reimbursement claims. Effect: Some duties that would ideally be perofrmed by separate individuals are not segregated. Cause: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. Recommendation: Implement segregation of duties by requiring one person to prepare the monthly claim and a second person (e.g., supervisor) to review andapprove 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 compares the meal counts in the claim to the daily meal count reports. The reviewer will then sign and date both the meal count reports (prior to submission) and a printed copy of the meal claim (after submission). Anticipated Date of Completion - June 30, 2026; Name of Contact Person - Dr. Eric Heath, Superintendent; Management 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.

Categories

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

Other Findings in this Audit

  • 1181884 2025-002
    Material Weakness Repeat
  • 1181885 2025-002
    Material Weakness Repeat
  • 1181886 2025-002
    Material Weakness Repeat
  • 1181887 2025-002
    Material Weakness Repeat
  • 1181888 2025-002
    Material Weakness Repeat
  • 1181889 2025-002
    Material Weakness Repeat

Programs in Audit

ALN Program Name Expenditures
84.010 TITLE I GRANTS TO LOCAL EDUCATIONAL AGENCIES $328,059
84.425 EDUCATION STABILIZATION FUND $285,798
84.027 SPECIAL EDUCATION GRANTS TO STATES $279,853
10.553 SCHOOL BREAKFAST PROGRAM $82,306
84.424 STUDENT SUPPORT AND ACADEMIC ENRICHMENT PROGRAM $7,908
84.367 SUPPORTING EFFECTIVE INSTRUCTION STATE GRANTS (FORMERLY IMPROVING TEACHER QUALITY STATE GRANTS) $7,546
84.173 SPECIAL EDUCATION PRESCHOOL GRANTS $6,581
93.778 MEDICAL ASSISTANCE PROGRAM $3,415
10.555 NATIONAL SCHOOL LUNCH PROGRAM $1,149
10.556 SPECIAL MILK PROGRAM FOR CHILDREN $469