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.