Finding Text
3. Federal Program Name and Year: Child Nutrition Cluster - 2023
4. Project No.: 23-4210-00 and 23-4220-00 5. AL No.: 10.553, 10.555
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 functional internal controls in place to ensure compliance with reporting requirements of the federal award. The submissions of monthly claims for reimbursement should be reviewed and approved by someone other than the preparer of the claim to ensure the claim is properly prepared and agrees to supporting documentation.
9. Condition15
During our audit testing we noted that the District Cashier prepares and submits monthly reimbursement claims to ISBE and that these submissions are not reviewed or approved by anyone else. No formal documentation of the review.
10. Questioned Costs16
N/A
11. Context17
The internal control deficiency is systemic in the District's process for submitting reimbursement claims.
12. Effect
Inaccurate monthly claims reimbursements could be submitted for reimbursement which could lead to potential questioned costs under the award.
13. Cause
The District has not designed and implemented an internal control process to ensure that monthly reimbursement claims submissions are reviewed and approved by someone outside the preparer.
14. Recommendation
Proper review of ISBE reimbursement submission by someone other than the preparer and or formal documentation of the review.
15. Management's response18
The District will implement a process in which the Business Manager will review and approve monthly reimbursement claim submissions prior to them being submitted.
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.