Finding Text
1. Finding Number: 2022-005 2. This Finding is: New 3. Federal Program Name and Year: Special Education Cluster (Special Education Preschool Grants)- 2022 & Education Stabilization Fund (ESSER II)- 2021 4. Project No.: 4600 & 4998- E2 5. CFDA No.: 84.173 & 84.425- COVID-19, 84.425D 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 for reporting federal expenditures require the review of expenditure reports by someone independent of the preparer before their submission to ensure proper cutoff of expenditures. 9. Condition The District's expenditure reports were not reviewed by someone independent of the preparer and the District's June 30, 2022 expenditure reports included expenditures paid subsequent to June 30, 2022. 10. Questioned Costs $9,750 11. Context This condition occurred on the June 30, 2022 expenditure reports and the questioned costs listed above are not material to the Special Education Cluster or the Education Stabilization Fund. 12. Effect The District was reimbursed for expenditures more quickly than they were eligible for reimbursement. 13. Cause Despite using the modified cash basis of accounting, the District believed they could claim the expenditures on the June 30, 2022 expenditure report because they were contractually obligated to purchase. However, they did not receive the invoice until subsequent to June 30, 2022. 14. Recommendation The District should assign an employee independent of the preparer to review the District's expenditure reports prior to submission to ensure that expenditures are only claimed for reimbursement subsequent to their payment. 15. Management's response Management will implement the auditor's recommendation for the year ended June 30, 2023.