Finding Text
1. FINDING NUMBER: 2025 - 004 2. THIS FINDING IS: New X Repeat from Prior year? Year originally reported? 3. Federal Program Name and Year: Child Nutrition Cluster - 2024 and 2025 4. Project No.: 2024-4210, 2024-4210-SC, 2025-4210, 2025-4211, 2024-4220, 2025-4220, 2025-4999 5. AL No.: 10.533; 10.555 6. Passed Through: Illinois State Board of Education 7. Federal Agency: U.S. Department of Agriculture 8. Criteria or specific requirement (including statutory, regulatory, or other citation): Per 2 CFR 200.303a, "The recipient and subrecipient establish, document, and maintain effective internal control over the Federal award that provides reasonable assurance that the recipient or subrecipient is managing the Federal award in compliance with Federal statutes, regulations, and the terms and conditions of the Federal award." 9. Condition: The District is required to submit monthly claim information for the Child Nutrition Cluster to the Illinois State Board of Education (ISBE). The District was unable to produce support that the monthly claims were reviewed and internally approved prior to transmission to ISBE. This is deemed to be a material weakness in internal control over compliance for reporting requirements. 10. Questioned Costs: None 11. Contex: No instances of noncompliance were noted and the District indicated that the reports were informally reviewed prior to transmission to ISBE. 12. Effect: The lack of documentation is an indicator that the control structure implemented by the District is not effectively designed. Improperly designed internal controls can lead to instances of noncompliance with applicable requirements. 13. Cause: The District's internal control structure is missing the documentation of review and approval prior to transmission to ISBE. 14. Recommendation: We recommend that the District review the design of its internal control over compliance to ensure that documentation requirements are incorporated into the control design. 15. Management's response: To enhance internal controls and ensure the segregation of duties, the Assistant Director of Food Services will be responsible for the initial preparation and completion of all claims. Subsequently, a secondary review and final approval will be performed by either the Director or the Chief School Business Official (CSBO) prior to submission.