Finding Text
Oak Park Elementary School District 97 06-016-0970-02 SCHEDULE OF FINDINGS AND QUESTIONED COSTS Year Ending June 30, 2022 SECTION III - FEDERAL AWARD FINDINGS AND QUESTIONED COSTS 1. FINDING NUMBER:14 2022 - 005 2. THIS FINDING IS: New Repeat from Prior year? Year originally reported? 3. Federal Program Name and Year: National School Breakfast Program, National School Lunch Program - PY 2021 and 2022 and Summer Food Service Program - PY 21 4. Project No.: 21-4220-00, 22-4220-00, 21-4210-00, 22-4210-00, 21-4225-00 5. ASL No.: 10.553, 10.555, 10.559 6. Passed Through: Illinois State Board of Education 7. Federal Agency: Department of Agriculture 8. Criteria or specific requirement (including statutory, regulatory, or other citation) The District should have operating internal controls in place regarding the review and approval of expenditures charged to the federal award to ensure compliance. 9. Condition15 The Food Service Director reviewed invoices and providing them directly to the accounts payable department for processing. The District's internal control procedures require invoices to be routed to the Senior Director of Finance for review and approval. 10. Questioned Costs16 No questioned costs identified. 11. Context17 The internal control deficiency is a systemic issue as all of the disbursements selected for testing in our sample were not reviewed and approved by the Senior Director of Finance prior to processing by the accounts payable department. 12. Effect Unallowable costs could be incurred by the District resulting in questioned costs. 13. Cause The Districts internal control procedures were not being followed as the accounts payable department was processing invoices for payment without the Senior Director of Finance approving the invoices. 14. Recommendation We recommend the District implement procedures to ensure that the Food Service Director provide all invoices for review and approval to the Senior Director of Finance by scanning these invoices and importing them into the Districts accounting software system and properly route these invoices for review and approval in the system. Furthermore, the accounts payable department should be directed to not process any invoices for payment that have not been properly reviewed and approved by the Senior Director of Finance. 15. Management's response18 See corrective action plan 14 See footnote 11. 15 Include facts that support the deficiency identified on the audit finding (?200.516 (b)(3)). 16 Identify questioned costs as required by ?200.516 (a)(3 - 4). 17 See footnote 12. 18 To the extent practical, indicate when management does not agree with the finding, questioned cost, or both.