Finding Text
1.FINDING NUMBER: 2024 - 004S
2.THIS FINDING IS: x New
3. Federal Program Name and Year: ELEMENTARY AND SECONDARY EMERGENCY RELIEF FUND
4. Project No.: 5. CFDA No.: 23-4998-D3, 25-4998-EB, 24-4998-E2, 24-4998-E3
5. CFDA No.: 84.425
6. Passed Through: ILLINOIS STATE BOARD OF EDUCATION
7. Federal Agency: U.S. DEPARTMENT OF EDUCATION
8. Criteria or specific requirement (including statutory, regulatory, or other citation): The District can only submit costs for reimbursements that have been incurred for purposes of the grant.
9. Condition: Some of the expenditures submitted for reimbursement were incorrect due to the District using purchase orders to prepare the expenditure reports, not amounts invoiced and paid, as well as reports not being reviewed properly.
10. Questioned Costs: $21,232.50
11. Context: During the audit it was noted that quarterly expenditure reports are not reviewed properly before being submitted for reimbursement. We noted that expenditure reports are prepared based on purchase orders, not actual invoices. This resulted in some purchase orders being claimed multiple times, amounts being claimed for expenditures that were not paid yet, or amounts invoiced/paid being less than the amounts claimed based on the purchase orders.
12. Effect: Grant expenditures submitted for reimbursement were materially misstated.
13. Cause: Quarterly expenditures are not reviewed properly before being submitted for reimbursement.
14. Recommendation: The District should prepare claims based on actual amounts invoiced and paid, and not use purchase orders in the preparation of expenditure reports. Reports should be reviewed carefully before being submitted.
15. Management's response: Management plans to implement procedures to ensure that expenditure reports are prepared based on invoices paid and there is careful review of reports.