Finding Text
Finding 2024-002: Preparation of the Schedule of Expenditures of Federal Awards Material weakness/other matter noncompliance Federal Agency: U.S. Department of Education Pass-through Agency: Illinois State Board of Education Program Name: Education Stabilization Fund: COVID-19: American Rescue Plan - Elementary and Secondary School Emergency Relief ALN Number: 84.425 Award Number: 24-4998-E3 Award Year: 2024 Criteria: The Uniform Guidance (2 CFR 200.510b) requires that the auditee must prepare a Schedule of Expenditures of Federal Awards (SEFA) for the period covered by its financial statements which must include the total Federal Awards expended as determined in accordance with 2 CFR 200.502. Condition: The SEFA for the year ended June 30, 2024 excluded $2,592,649 in expenditures incurred for the Education Stabilization Fund: COVID-19: American Rescue Plan - Elementary and Secondary School Emergency Relief federal program (ALN 84.425U). Cause: The existing internal control procedures for reviewing amounts on the SEFA failed to detect an incorrect amount was reported for the program. While a process is in place, the final review failed to detect the error. Effect: The SEFA was materially misstated. Also, lack of a robust review process could result in misstatements in future years. Context: As a result of the omission of eligible expenditures, total federal awards and amounts for ALN 84.425, COVID-19: Education Stabilization Fund were understated by $2,592,649 due to the use of the cash draw amount instead of program expenditures. This understatement did not impact the major program determination. Question Costs: None Repeat Finding: No Recommendation: We recommend the District thoroughly review the schedule of expenditures of federal awards prior to issuance. Views of responsible officials: Management will review its year-end processes and its grant-related internal controls with a specific focus on accrual-basis auditing requirements to ensure that such errors do not occur in the future.