Finding Text
CRITERIA/SPECIFIC REQUIREMENT:
The grant award agreement between the Regional Office of Education No. 39 (ROE) and Illinois State Board of Education requires the ROE to complete and submit expenditure reports quarterly and performance reports semi-annually. The quarterly expenditure reports are due 20 calendar days after the end of the reporting quarter while the semi-annual performance reports are due 30 calendar days after the reporting semi-annual period. The ROE is also required to submit an annual performance report describing how the ROE used the awarded funds during the performance period. The annual reports are due March 17, 2023.
The Code of Federal Regulations (Code) (2 CFR. §200.303 (a)) requires the ROE to establish and maintain effective internal control over the federal award to provide reasonable assurance the ROE is managing the federal award in compliance with federal statutes, regulations, and the terms and conditions of the federal award. Effective internal controls should include procedures to ensure compliance with grant reporting requirements.
CONDITION:
The ROE did not submit or timely submit the required reports to the Illinois State Board of Education in compliance with the grant award agreement.
CONTEXT:
During testing of the ROE’s compliance with the grant reporting requirements, we noted the following:
• Thirty four of 38 (89%) quarterly expenditure reports were submitted 20 to 342 days late.
• Three of 38 (8%) quarterly expenditure reports were not submitted.
• Four of six (67%) semi-annual reports were not submitted.
• One of six (17%) semi-annual report was submitted 158 days late.
• Three of three (100%) annual reports were not submitted.
EFFECT:
Failure to meet grant reporting requirements is a noncompliance with the related grant agreement and could result in loss of grant funding in future years.
CAUSE:
ROE management indicated required reports were not submitted or timely submitted due to oversight and competing priorities.
RECOMMENDATION:
We recommend the ROE implement procedures to ensure adherence to the grant reporting requirements.
MANAGEMENT’S RESPONSE:
The ROE agrees with this finding. Previous management did not monitor grant compliance.