Finding Text
8. Criteria or specific requirement (including statutory, regulatory, or other citation): The compliance requirements for "L.Reporting", requires the District to maintain accurate accounting records for grant expenditures. In addition, per subpart D (Post Federal Award Requirements), § 200.302, the underlying accounts records must be adequately documented and consistent with the terms and conditions of the grant. 9. Condition: During compliance testing of the District's accounting records to the expenditure report filed with the Illinois State Board of Education, we noted the District overclaimed $134,309 of expenditures at 6/30/23. 10. Questioned Costs: $134,309. 11. Context: The District claimed expenditures that did not agree with their underlying accounting records. 12. Effect: The District was not compliant with reporting requirements. Inaccurate reporting resulted in the District being reimbursed for an additional $134,309 as of 6/30/23. As a result of the overclaim, federal expenditures were reduced on the SEFA from $739,399 to $605,090. 13. Cause: Upon review of the general ledger and quarterly expenditure report, it was determined that the District erroneously overstated their claim amount on two function object codes by a cumulative amount of $134,309. Under 1000-400, total expenditures were $9,298 but District claimed $9,399, resulting in an overclaim of $101. Under 2530-500, total expenditures were $595,792 but District claimed $730,000, resulting in an overclaim of $134,208. 14. Recommendation: We recommend that management review its policies and procedures and implement changes to strengthen internal control over federal reporting. Furthermore, we recommend the District to adequately document claimed expenditures that are consistent with the terms and conditions of each grant agreement. 15. Management's response: The District has agreed with the findings and recommendations as presented. See Corrective Action Plan provided by the District.