Finding 22684 (2022-003)

Material Weakness
Requirement
B
Questioned Costs
-
Year
2022
Accepted
2023-07-09
Audit: 21865
Organization: Okaw Valley Cusd 302 (IL)

AI Summary

  • Core Issue: The June 30, 2022 ESSER II grant report included $70,642 in expenses that were also reimbursed by ERATE, leading to questioned costs.
  • Impacted Requirements: Internal controls over compliance were not followed, as grant expenditures were not properly reconciled with supporting records.
  • Recommended Follow-Up: Assign independent personnel to review grant expenditure reports for accurate coding before submission to prevent future discrepancies.

Finding Text

SECTION III - FEDERAL AWARD FINDINGS AND QUESTIONED COSTS 1. FINDING NUMBER: 2022- 003 2. THIS FINDING IS: X New Repeat from Prior year? Year originally reported? 3. Federal Program Name and Year: COVID 19: Education Stabilization Fund (2021 & 2022) 4. Project No.: 4998-ER, E2, E3 5. CFDA No.: 84.425D-COVID 19, 84.425U-COVID 19 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 related to reporting require periodic comparison of grant expenditure reports to supporting records. 9. Condition Purchased services and supplies and materials reported on the June 30, 2022 ESSER II grant expenditure report did not reconcile to supporting records. 10. Questioned Costs $70,642 11. Context Purchased services and supplies and materials claimed on the June 30, 2022 ESSER II grant expenditure report were also reimbursed by ERATE, resulting in $70,642 of questioned costs. 12. Effect The District reported purchased services and supplies and materials in the amount of $70,642 on the June 30, 2022 ESSER II grant expenditure report that were paid with ERATE funds. 13. Cause Coding of grant expenditures was not reviewed to ensure expenditures are coded to functions in which they are budgeted and to general ledger accounts that clearly identify which federal funds or other funds were utilized. 14. Recommendation The District should assign personnel independent of the grant expenditure report preparer to review the grant expenditure reports for proper coding of grant expenditures prior to submission of the grant expenditure reports. 15. Management's response Corrective action has been taken by the District prior to completion of the Single Audit. The District has been in contact with the Illinois State Board of Education (ISBE) Funding and Disbursements Division. In conjunction with ISBE, the District will apply for a fiscal year 2024 ESSER II grant in the amount of $70,642. The District will pay for the grant expenditures and file quarterly grant expenditure reports; however, ISBE will not reimburse the District for those expenditures. Additionally, the District will assign personnel independent of the grant expenditure report preparer to review the grant expenditure reports for proper coding of grant expenditures prior to submission of the grant expenditure reports.

Corrective Action Plan

11-070-3020-26 CORRECTIVE ACTION PLAN FOR CURRENT YEAR AUDIT FINDINGS Year Ending June 30, 2022 Corrective Action Plan Finding No.: 2022-_ 003_ Condition: Purchased services and supplies and materials reported on the June 30, 2022 ESSER II grant expenditure report did not reconcile to supporting records. Plan: The District will assign personnel independent of the grant expenditure report preparer to review the grant expenditure reports for proper coding of grant expenditures prior to submission of the grant expenditure reports. Anticipated Date of Completion: 06/30/2023 Name of Contact Person: Kent Stauder Management Response: Management will implement the auditor's recommendation in the year ended June 30, 2023.

Categories

Procurement, Suspension & Debarment Reporting Internal Control / Segregation of Duties

Other Findings in this Audit

  • 22683 2022-002
    Material Weakness
  • 22685 2022-002
    Material Weakness
  • 22686 2022-003
    Material Weakness
  • 599125 2022-002
    Material Weakness
  • 599126 2022-003
    Material Weakness
  • 599127 2022-002
    Material Weakness
  • 599128 2022-003
    Material Weakness

Programs in Audit

ALN Program Name Expenditures
84.425 Education Stabilization Fund $388,274
10.555 National School Lunch Program $199,159
84.027 Special Education_grants to States $155,431
84.010 Title I Grants to Local Educational Agencies $100,683
10.553 School Breakfast Program $55,173
84.358 Rural Education $39,457
97.036 Disaster Grants - Public Assistance (presidentially Declared Disasters) $28,163
93.778 Medical Assistance Program $12,840
84.173 Special Education_preschool Grants $6,398
84.367 Improving Teacher Quality State Grants $6,294
84.048 Career and Technical Education -- Basic Grants to States $1,100
10.649 Pandemic Ebt Administrative Costs $614