Finding 516222 (2024-004)

Significant Deficiency
Requirement
L
Questioned Costs
-
Year
2024
Accepted
2024-12-20
Audit: 334032
Auditor: Scheffel Boyle

AI Summary

  • Core Issue: The District reported expenses too early on the 6/30/24 expenditure report, leading to inconsistencies with the general ledger.
  • Impacted Requirements: The District's claims included payroll expenses that were not actually incurred until after the report date, affecting accuracy.
  • Recommended Follow-Up: Implement a verification process to reconcile general ledger accounts payable with expenditure reports prior to submission.

Finding Text

Criteria: Reporting. To determine that an accurate 6/30/24 expenditure report was filed with the Illinois State Board of Education. The District reported expenses on the 6/30/24 report including costs that were paid after year-end. Condition: The District's general ledger totals for account 2300-100 are inconsistent with the expenditure reports as a result of claiming expenses too early. It was noted that on the 3/31/24 expenditure report the District claimed $15,000 in payroll expenses with actual payroll of $9,583 resulting in $5,417 claimed early. Then on the 6/30/24 expenditure report the District claimed $15,000 in payroll expenses with actual payroll of $13,333, resulting in $1,667 claimed early. The $1,667 should be considered outstanding obligations at 6/30/24. Questioned Costs: No questioned costs. Context: The District claimed expenses on the 3/31/24 and 6/30/24 expenditure reports that were paid after the expenditure report date. The expenses were allowable under the grant, but the District claimed the expenses too early. Effect: The District claimed expenses early and were reimbursed for expenses in April 2024 that were not paid until April through August 2024. Cause: The District mistakenly reported the full budgeted amount in 2300-100 versus the actual expenses. Recommendation: We recommend reconciling the general ledger AP totals to the expenditure reports before submitting. Management's Response: The District will add a verification process to reconcile the general ledger AP totals to the expenditure reports before submitting.

Corrective Action Plan

Condition: The District's general ledger totals are inconsistent with the ISBE reports due to timing errors, resulting in certain expenses being claimed too early and other expenses claimed too late on the IDEA Flow Through and Preschool grants. Recommendation: We recommend reconciling the general ledger totals to the expenditure reports before submitting. Management's Response: The District will add a verification process to reconcile the general ledger totals to the expenditure reports before submitting.

Categories

Reporting

Other Findings in this Audit

  • 516220 2024-005
    Significant Deficiency
  • 516221 2024-003
    Significant Deficiency
  • 516223 2024-005
    Significant Deficiency
  • 516224 2024-002
    Significant Deficiency Repeat
  • 1092662 2024-005
    Significant Deficiency
  • 1092663 2024-003
    Significant Deficiency
  • 1092664 2024-004
    Significant Deficiency
  • 1092665 2024-005
    Significant Deficiency
  • 1092666 2024-002
    Significant Deficiency Repeat

Programs in Audit

ALN Program Name Expenditures
10.553 School Breakfast Program $111,299
84.010 Title I Grants to Local Educational Agencies $107,000
93.778 Medical Assistance Program $49,192
84.367 Supporting Effective Instruction State Grants (formerly Improving Teacher Quality State Grants) $37,656
10.555 National School Lunch Program $32,762
84.027 Special Education Grants to States $32,509
84.424 Student Support and Academic Enrichment Program $18,942
84.173 Special Education Preschool Grants $4,949
84.425 Education Stabilization Fund $896
10.649 Pandemic Ebt Administrative Costs $653