Finding 19920 (2022-006)

Material Weakness
Requirement
L
Questioned Costs
$1
Year
2022
Accepted
2023-06-07

AI Summary

  • Core Issue: Grant expenditures are not consistently coded in the general ledger, leading to difficulties in reconciling $3,156 in questioned costs.
  • Impacted Requirements: Internal controls over compliance require that expenditures match between the general ledger and grant reports, which is currently not happening.
  • Recommended Follow-Up: Ensure that staff responsible for coding expenditures and preparing reports collaborate to maintain accurate records and support for all filed expenditure reports.

Finding Text

1. FINDING NUMBER: 2022- 006 2. THIS FINDING IS: X New Repeat from Prior year? Year originally reported? 3. Federal Program Name and Year: Education Stabilization Fund- 2021 & 2022 4. Project No.: 4998- DE, E2 & E3 5. CFDA No.: 84.425- COVID-19, 84.425D & 84.425- COVID-19, 84.425U 6. Passed Through: Illinois State Board of Education 7. Federal Agency: Department of Education 8. Criteria or specific requirement (including statutory, regulatory, or other citation) Internal controls over compliance over reporting of federal expenditures require expenditures to be coded to the same expenditure functions and object codes in the district's general ledger as they are on grant expenditure reports and for complete general ledger support to be maintained by District personnel for all expenditure reports filed. 9. Condition Expenditure functions and objects used to record grant expenditures in the general ledger are not consistent with the expenditure functions and objects used for grant reporting and general ledger support for each expenditure report filed is not complete and readily available. 10. Questioned Costs $3,156 11. Context A material amount of expenditures included in numerous accounts on the June 30, 2022 expenditure reports were not coded to the same function and object in the general ledger and complete general ledger support was not readily available for any Education Stabilization Fund grants. 12. Effect Grant expenditures claimed cannot be easily reconciled to the general ledger and $3,156 of expenditures were not able to be reconciled to the general ledger, resulting in questioned costs of that amount. Consequently, determining the population of Education Stabilization Fund expenditures for Single Audit testing was difficult. 13. Cause Coding of grant expenditures and grant expenditure report preparation are assigned to two different employees and no review is done to ensure expenditures are coded to the functions in which they were budgeted and subsequently claimed on expenditure reports. 14. Recommendation Grant expenditures should be recorded in the same general ledger expenditure functions as are used for grant reporting and supporting general ledger reports should be maintained in District files for all expenditure reports filed. The employees assigned to code grant expenditures and prepare grant expenditure reports should work together to accomplish this. 15. Management's response Management will implement the auditor's recommendation for the year ended June 30, 2023.

Categories

Questioned Costs Reporting Internal Control / Segregation of Duties

Other Findings in this Audit

Programs in Audit

ALN Program Name Expenditures
10.555 National School Lunch Program $665,360
84.425 Education Stabilization Fund $638,067
84.010 Title I Grants to Local Educational Agencies $441,257
10.553 School Breakfast Program $209,442
84.367 Improving Teacher Quality State Grants $79,877
84.027 Special Education_grants to States $63,616
93.778 Medical Assistance Program $52,720
84.173 Special Education_preschool Grants $27,222
84.048 Career and Technical Education -- Basic Grants to States $16,394
10.559 Summer Food Service Program for Children $2,388
84.424 Student Support and Academic Enrichment Program $173