Finding 1200657 (2025-002)

Material Weakness Repeat Finding
Requirement
L
Questioned Costs
-
Year
2025
Accepted
2026-03-30
Audit: 395690
Organization: District 50 Schools (IL)

AI Summary

  • Core Issue: One person is handling both the preparation and submission of monthly reimbursement claims, violating internal control requirements.
  • Impacted Requirements: This situation breaches 2 CFR 200.303, which mandates segregation of duties to ensure accurate reporting.
  • Recommended Follow-Up: Establish a process where a second person reviews and approves claims before submission, with documented evidence of this review.

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: Abscense 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 (superintendent) compares the meal counts in the claim to the Skyward daily meal count reports, monthly participation summary, eligibility rosters (free, reduced, paid) and USDA reimursement rates. The reviewer will then sign and date a reconciliation sheet before submission.

Categories

No categories assigned yet.

Other Findings in this Audit

  • 1200651 2025-002
    Material Weakness Repeat
  • 1200652 2025-002
    Material Weakness Repeat
  • 1200653 2025-002
    Material Weakness Repeat
  • 1200654 2025-002
    Material Weakness Repeat
  • 1200655 2025-002
    Material Weakness Repeat
  • 1200656 2025-002
    Material Weakness Repeat

Programs in Audit

ALN Program Name Expenditures
84.027 SPECIAL EDUCATION GRANTS TO STATES $310,246
84.010 TITLE I GRANTS TO LOCAL EDUCATIONAL AGENCIES $250,326
10.553 SCHOOL BREAKFAST PROGRAM $100,551
93.778 MEDICAL ASSISTANCE PROGRAM $28,689
10.555 NATIONAL SCHOOL LUNCH PROGRAM $20,376
84.425 COVID-19 - EDUCATION STABILIZATION FUND $19,693
84.173 SPECIAL EDUCATION PRESCHOOL GRANTS $15,431
84.367 SUPPORTING EFFECTIVE INSTRUCTION STATE GRANTS (FORMERLY IMPROVING TEACHER QUALITY STATE GRANTS) $8,695
84.424 STUDENT SUPPORT AND ACADEMIC ENRICHMENT PROGRAM $966
10.558 CHILD AND ADULT CARE FOOD PROGRAM $698