Finding 558140 (2024-001)

Significant Deficiency
Requirement
L
Questioned Costs
-
Year
2024
Accepted
2025-04-30

AI Summary

  • Core Issue: The District failed to maintain effective internal controls over the schedule of expenditures of federal awards, leading to an error in the assistance listing number (ALN) for grant IL-2023-028-00.
  • Impacted Requirements: This lapse violates 2 CFR 200.303(a), which mandates proper identification and presentation of federal awards in compliance with federal regulations.
  • Recommended Follow-Up: The District should enhance control procedures for preparing and reviewing the schedule, including implementing an independent review of ALN numbers against grant agreements.

Finding Text

Criteria: Nonfederal entities in receipt of federal funds must comply with the requirements of 2 CFR 200.303(a), which require an entity to establish and maintain effective internal control over the federal award to ensure compliance with federal statutes, regulations, and the terms and conditions of the federal award. This includes properly identifying all federal awards subject to the Uniform Guidance and fairly presenting the required information, including the assistance listing number (ALN), in the schedule of expenditures of federal awards (SEFA). Condition: The schedule of expenditures of federal awards was reissued after an error was identified by management in the schedule of expenditures of federal awards, specifically in the assistance listing number (ALN) under grant IL-2023-028-00, after the report was originally issued. Cause: The District had a minor lapse in internal controls related to the preparation and review of the schedule of expenditures of federal awards. Management detected the error in the ALN number of grant IL-2023-028-00; however, the audit report had already been issued. Effect: Without adequate internal controls over preparation and review of the schedule of expenditures of federal awards, it is possible that material errors would not be detected in a timely manner and could be reported. Questioned Costs: None noted. Recommendation: We recommend that the District review the control procedures around preparation and review of the schedule of expenditures of federal awards and implement an independent review of the ALN numbers per the grant agreements in the initial review of the SEFA.

Corrective Action Plan

We have reviewed the control procedures around preparation and review of the schedule of expenditures of federal awards (SEFA) and implemented an independent review of the assistance listing numbers (ALN) per the grant agreements in the initial review of the SEFA. The improved procedures will provide the needed structure to fulfill management's responsibility to accurately report the grantor agency / pass-through grantor, assistance listing number, federal program name and number, and expenditures. Identification of major programs, utilizing the guidelines in the Office of Management and Budget's (OMB) Uniform Administrative Requirements, Cost Principles, and Audit Requirements for Federal Awards (Uniform Guidance) are the responsibility of the auditor.

Categories

Reporting Matching / Level of Effort / Earmarking

Other Findings in this Audit

  • 1134582 2024-001
    Significant Deficiency

Programs in Audit

ALN Program Name Expenditures
20.507 Federal Transit Formula Grants $8.05M
20.534 Community Project Funding Congressionally Directed Spending $3.79M
20.509 Formula Grants for Rural Areas and Tribal Transit Program $305,300