Finding Text
Criteria or specific requirement (including statutory, regulatory, or other citation): The compliance requirements for "L.Reporting" generally requires that LEA's report financial information to the pass-through entity and that those reports are accurate and supported by the underlying accounting records. Condition: During compliance testing of the District's accounting records to the expenditure report filed with the Illinois State Board of Education, we noted the school district inadvertently claimed $8,226 of expenditures under 2530-300 and 2530-500 function codes for the same invoices. The correct claim was under 2530-300. Questioned Costs: $8,226. Context: The District claimed expenditures that were not allowable in the line item where they were submitted for the claim. Effect: The District was not compliant with reporting requirements. The District claimed expenditures under to separate function codes for the same invoices which resulted in a duplicate claim of $8,226. Cause: Policies and procedures are in place that provide reasonable assurance that the expenditures claimed to ISBE have underlying accounting records, but the expenditures were not accurately classified in the general ledger. Recommendation: We recommend that management review its policies and procedures and implement changes to strengthen internal control over federal reporting. Management's response: The District has agreed with the findings and recommendations as presented. See Corrective Action Plan provided by the District.