Finding Text
Criteria or specific requirement (including statutory, regulatory, or other citation) - Per 2 CFR Part 200.303(a) states that "the non-federal entity must establish and maintain effective internal control over the Federal award that provides reasonable assurance that the non-Federal entity is managing the Federal award in compliance with Federal statutes, regulations, and the terms and conditions of the Federal award". Condition - The Special Education District claimed grant expenditures which were not specifically included in the grant budget as approved by the cognizant agency (Illinois State Board of Education). The Special Education District's approved budget included wages, however the grant expenditures claimed were for payments/reimbursements to member districts. Questioned Costs - Unknown. Context - The Special Education District's internal controls did not identify grant expenditures which were not included in the grant budget. Effect - Grant expenditures were claimed which were not specifically in the approved grant budget. Cause - Grant expenditures were not compared to the grant budget approved by the cognizant agency. Recommendation - The Special Education District should compare grant expenditures to the approved budget. When circumstances change the Special Education District should pursue an amended grant budget. Management's response - Management does not agree with this finding. Management reached out to the cognizant agency which provided the following response - "The ESSER III Cooperative grant was state set-aside funds that were originally awarded to ISBE. ISBE determined that to meet the stipulations of Learning Loss-Summer Enrichment-After School Program reservations, the most efficient way to reach the maximum number of students would be through the cooperatives providing for their member districts. Henry-Stark County Special Education District met those requirements and fulfilled their financial obligations by providing evidence-based activities through their member districts"