FAC Explorer

Finding 46138 (2022-002)

Material Weakness
Requirement
L
Questioned Costs
$1
Year
2022
Accepted
2022-10-30
Audit: 40647
Organization: Oglesby Esd No. 125 (IL)
Auditor: Newkirk & Associates INC

AI Summary

  • Core Issue: $13,612.46 in payroll expenses was mistakenly counted twice, leading to an overclaim.
  • Impacted Requirements: This violates 2 CFR section 200.302(b)(3-4), which mandates accurate financial records and effective control over funds.
  • Recommended Follow-Up: Review and improve payroll processing procedures to prevent future clerical errors and ensure compliance with federal regulations.

Finding Text

2 CFR section 200.302(b)(3-4) states ?The financial management system of each non-Federal entity must provide for the following? (3) Records that identify adequately the source and application of funds for federally-funded activities. These records must contain information pertaining to Federal awards, authorizations, financial obligations, unobligated balances, assets, expenditures, income and interest and be supported by source documentation. (4) Effective control over, and accountability for, all funds, property, and other assets. The non-Federal entity must adequately safeguard all assets and assure that they are used solely for authorized purposes.? During our audit we noted $13,612.46 of payroll expenditures were counted twice on the June 30, 2022. $13,612.46 was over claimed. This is the actual amount. We believe this was a clerical error and extrapolation wasn?t practical because of the nature of discrepancy it was difficult to quantify them against all grant expenditures as this appears to be an isolated clerical error.

Corrective Action Plan

The District will create general ledger accounts to better segregate and track expenditures specific to grant programs. The District will also have grant expenditures reports reviewed by someone other than the preparer before submission.

Categories

Questioned Costs Matching / Level of Effort / Earmarking

Other Findings in this Audit

  • 46137 2022-001
    Material Weakness Repeat
  • 622579 2022-001
    Material Weakness Repeat
  • 622580 2022-002
    Material Weakness

Programs in Audit

ALN Program Name Expenditures
84.425 Education Stabilization Fund $580,784
10.555 National School Lunch Program $181,217
84.027 Special Education_grants to States $134,720
84.010 Title I Grants to Local Educational Agencies $108,925
10.553 School Breakfast Program $38,160
84.367 Improving Teacher Quality State Grants $16,768
93.778 Medical Assistance Program $14,135
10.560 State Administrative Expenses for Child Nutrition $13,124
10.555 Commodities $12,899
10.555 Dept. of Defense- Fresh Fruits and Vegetables $9,387
84.173 Special Education_preschool Grants $4,795
10.556 Special Milk Program for Children $1,771
10.649 Pandemic Ebt Administrative Costs $614