Finding 36112 (2022-006)

Material Weakness
Requirement
AB
Questioned Costs
-
Year
2022
Accepted
2023-01-30

AI Summary

  • Core Issue: The District claimed $421,462 for HVAC improvements but did not pay for these costs until October 2022, after receiving reimbursement in April 2022.
  • Impacted Requirements: Internal controls failed to ensure that claimed expenditures were incurred within a reasonable timeframe as required by the federal award guidelines.
  • Recommended Follow-Up: The District should review documentation for claimed expenditures to confirm they are allowable and incurred timely according to the federal award agreement.

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 - 006 2. THIS FINDING IS: New Repeat from Prior year? Year originally reported? 3. Federal Program Name and Year: Elementary and Secondary School Emergency Relief (ESSER) Fund - PY22 4. Project No.: 22-4998-E2 5. ASL No.: 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) The District is required to effectively operate internal controls to ensure that expenditures claimed under the Education Stabilization Fund are for Activities Allowed under the award and that reimbursement for these costs are claimed within a reasonable period of time. 9. Condition15 The District claimed $421,462 of expenditures related to HVAC improvements on their March 31, 2022 reimbursement claim submitted to the Illinois State Board of Education, however these expenditures were not paid by the District until October 2022. 10. Questioned Costs16 No reportable questioned costs were identified as the District did incur allowable costs in October of 2022 for HVAC improvements that were within the approved federal award agreement. 11. Context17 Based upon the review of total expenditures claimed under the federal award and the results of testing procedures performed this appears to be an isolated instance. 12. Effect The District received a reimbursement for the federal award in April of 2022, however the District did not incur the cost associated with the allowable cost claimed until October of 2022. 13. Cause The District's internal controls failed to detect that the expenditures claimed during a reimbursement request was not paid by the District. 14. Recommendation We recommend that the District perform a review of supporting documentation for expenditures claimed during a reimbursement request to ensure that expenditures claimed for reimbursement are for allowable costs that are within the approved federal award agreement and incurred within a reasonable period of time from the reimbursement request. 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.

Corrective Action Plan

Oak Park Elementary School District 97 06-016-0970-02 CORRECTIVE ACTION PLAN FOR CURRENT YEAR AUDIT FINDINGS Year Ending June 30, 2022 Corrective Action Plan Finding No.: 2022 - 006 Condition: The District claimed $421,462 of expenditures related to HVAC improvements on their March 31, 2022 reimbursement claim submitted to the Illinois State Board of Education, however these expenditures were not paid by the District until October 2022. Plan: The District will implement additional procedures for review and approval of reimbursement claims prior to submission to ensure that expenditures are claimed within a reasonable period of time in relation to when a reimbursement claim is submitted. Anticipated Date of Completion: 6/30/2023 Name of Contact Person: Patrick King, Senior Director of Finance

Categories

Allowable Costs / Cost Principles Cash Management Internal Control / Segregation of Duties

Other Findings in this Audit

  • 36100 2022-003
    Significant Deficiency
  • 36101 2022-004
    Material Weakness
  • 36102 2022-005
    Significant Deficiency
  • 36103 2022-003
    Significant Deficiency
  • 36104 2022-004
    Material Weakness
  • 36105 2022-005
    Significant Deficiency
  • 36106 2022-003
    Significant Deficiency
  • 36107 2022-004
    Material Weakness
  • 36108 2022-005
    Significant Deficiency
  • 36109 2022-003
    Significant Deficiency
  • 36110 2022-004
    Material Weakness
  • 36111 2022-005
    Significant Deficiency
  • 612542 2022-003
    Significant Deficiency
  • 612543 2022-004
    Material Weakness
  • 612544 2022-005
    Significant Deficiency
  • 612545 2022-003
    Significant Deficiency
  • 612546 2022-004
    Material Weakness
  • 612547 2022-005
    Significant Deficiency
  • 612548 2022-003
    Significant Deficiency
  • 612549 2022-004
    Material Weakness
  • 612550 2022-005
    Significant Deficiency
  • 612551 2022-003
    Significant Deficiency
  • 612552 2022-004
    Material Weakness
  • 612553 2022-005
    Significant Deficiency
  • 612554 2022-006
    Material Weakness

Programs in Audit

ALN Program Name Expenditures
84.027 Special Education_grants to States $1.29M
32.009 Emergency Connectivity Fund Program $1.25M
84.425 Education Stabilization Fund $493,936
84.010 Title I Grants to Local Educational Agencies $275,600
84.367 Improving Teacher Quality State Grants $201,692
93.778 Medical Assistance Program $61,480
84.013 Title I State Agency Program for Neglected and Delinquent Children and Youth $33,210
84.173 Special Education_preschool Grants $32,781
10.553 School Breakfast Program $25,827
10.559 Summer Food Service Program for Children $20,140
10.555 National School Lunch Program $11,975
84.365 English Language Acquisition State Grants $7,520
10.649 Pandemic Ebt Administrative Costs $614
84.424 Student Support and Academic Enrichment Program $0