Finding Text
SECTION III - FEDERAL AWARD FINDINGS AND QUESTIONED COSTS 1. FINDING NUMBER: 2022- 002 2. THIS FINDING IS: X New Repeat from Prior year? Year originally reported? 3. Federal Program Name and Year: COVID 19: Education Stabilization Fund (2021 & 2022) 4. Project No.: 4998-ER, E2, E3 5. CFDA No.: 84.425D-COVID 19, 84.425U-COVID 19 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) Internal controls over compliance over reporting of federal expenditures require expenditures to be coded to the same expenditure functions and object codes in the District's general ledger as they are on grant expenditure reports. Additionally, the source of funds used for federal expenditures should be identified in the underlying accounting records. 9. Condition Expenditure functions used to record grant expenditures in the general ledger are not consistent with the expenditure functions used for grant reporting and the general ledger account number did not identify which federal funds were being utilized. Numerous expenditures were coded to the grant general ledger accounts via journal entry reclassification. 10. Questioned Costs None 11. Context Numerous expenditures in the District's general ledger which were claimed on grant expenditure reports were not coded to accounts which identified the source of federal funds nor to the same function and object codes as reported on the grant expenditure reports. 12. Effect Grant expenditures claimed cannot be easily reconciled to the general ledger totals. 13. Cause Coding of grant expenditures was not reviewed to ensure expenditures are coded to functions in which they are budgeted and to general ledger accounts that clearly identify which federal funds or other funds were utilized. 14. Recommendation Grant expenditures should be recorded in the same general ledger expenditure functions as are used for grant reporting and should identify the federal funds being utilized. 15. Management's response Management will implement the auditor's recommendation in the year ended June 30, 2023.