Finding Text
1. FINDING NUMBER:14 2024 - 006 2. THIS FINDING IS: X New Repeat from Prior year?
Year originally reported?
3. Federal Program Name and Year: Education Stabilization Fund - PY 2023
4. Project No.: 23-4998-E3 5. AL No.: 84.425
6. Passed Through: Illinois State Board of Education
7. Federal Agency: Department of Education
8. Criteria or specific requirement (including statutory, regulatory, or other citation)
According to 2 CFR Part 200.402 through 200.408, expenditures must be recorded in the period in which they are incurred and must meet the criteria of being necessary, reasonable, and adequately documented.
9. Condition
Audit procedures identified that the District claimed $2,097,350 of expenditures on their June 30, 2024 reimbursement claim submitted to the Ilinois State Board of Education, however these expenditures were not received and paid by the District until July/August 2024.
10. Questioned Costs
No reportable questioned costs were identified as the District did incur allowable costs in July/August of 2024 that were within the approved federal award agreement.
11. Context
Based upon the review of total expenditures claimed under the federal award and the results of testing procedures performed this appears to be an isolated instance.
12. Effect
The District did not incur the cost associated with the allowable cost claimed until July/August of 2024.
13. Cause
The District's internal controls failed to detect that the expenditures claimed during a reimbursement request was not paid by the District.
14. Recommendation
We recommend that the District perform a review of supporting documentation for expenditures claimed during a reimbursement request to ensure that expenditures claimed for reimbursement are for allowable costs that are within the approved federal award agreement and incurred within a reasonable period of time from the reimbursment request.
15. Management's response
The district performs a review of supporting documentation for expenditures claimed during a reimbursement request to ensure that expenditures claimed for reimbursement occurred during the fiscal year for which they are being claimed.