Finding 394363 (2023-002)

Significant Deficiency Repeat Finding

Requirement

Questioned Costs

Year

2023

Accepted

2024-04-24

Audit: 304371

Organization: Pontiac Community Consolidated School District No. 429 (IL)

Auditor: Gorenz and Associates LTD

AI Summary

Core Issue: The District lacks proper internal controls for monitoring net cash resources in the nonprofit school food service.
Impacted Requirements: This situation may lead to noncompliance with federal cash management requirements.
Recommended Follow-Up: Management should implement internal controls to ensure net cash resources do not exceed three months of average expenditures.

Finding Text

Condition The District has not adequately established internal controls to ensure that net cash resources are being properly monitored. Questioned Costs None. Context The District did not properly calculate a running balance of the net cash resources of the nonprofit school food service nor did they have an understanding of the significance of their calculation. Effect Noncompliance with the federal award program's resource (cash) management requirements could occur and not be detected and corrected timely. Cause Management had not developed an adequate system of internal control to ensure compliance with the Cash Management compliance requirement. Recommendation We recommend that the management establish internal controls related to the cash management compliance requirement to monitor and ensure that the net cash resources of the nonprofit school food service does not exceed 3 months average expenditures. Mangement's response There is no disagreement with this finding and internal controls will be developed to monitor the net cash resources of the nonprofit school food service.

Corrective Action Plan

Condition: The District has not adequately established internal controls to ensure that net cash resources are being properly monitored. Plan: Internal controls will be established and implemented related to the cash management compliance requirement, including monitoring accumulated cash balances and ensuring that balance does not exceed 3 months of the average progam expenditures. Anticipated Date of Completion: 6/30/2024 Name of Contact Person: Mike Weaver, Superintendent Management Response: There is no disagreement with this finding and internal controls will be developed to monitor the net cash resources of the nonprofit school food service.

Other Findings in this Audit

394364 2023-002

Significant Deficiency Repeat
394365 2023-002

Significant Deficiency Repeat
394366 2023-002

Significant Deficiency Repeat
394367 2023-002

Significant Deficiency Repeat
394368 2023-002

Significant Deficiency Repeat
394369 2023-002

Significant Deficiency Repeat
394370 2023-002

Significant Deficiency Repeat
970805 2023-002

Significant Deficiency Repeat
970806 2023-002

Significant Deficiency Repeat
970807 2023-002

Significant Deficiency Repeat
970808 2023-002

Significant Deficiency Repeat
970809 2023-002

Significant Deficiency Repeat
970810 2023-002

Significant Deficiency Repeat
970811 2023-002

Significant Deficiency Repeat
970812 2023-002

Significant Deficiency Repeat

Programs in Audit

ALN	Program Name	Expenditures
84.027	Special Education_grants to States	$294,405
93.778	Medical Assistance Program	$191,820
10.553	School Breakfast Program	$168,264
84.027	Covid-19 - Special Education_grants to States	$66,255
10.555	National School Lunch Program	$62,564
10.560	Covid-19 - State Administrative Expenses for Child Nutrition	$25,328
84.358	Rural Education	$23,422
84.424	Student Support and Academic Enrichment Program	$22,099
84.367	Improving Teacher Quality State Grants	$19,415
84.425	Covid-19 - Education Stabilization Fund	$18,785
84.173	Special Education_preschool Grants	$13,065
84.173	Covid-19 - Special Education_preschool Grants	$6,518
10.649	Covid-19 - Pandemic Ebt Administrative Costs	$3,135
84.010	Title I Grants to Local Educational Agencies	$2,056
10.556	Special Milk Program for Children	$1,784