Finding 602691 (2022-004)

Significant Deficiency
Requirement
F
Questioned Costs
-
Year
2022
Accepted
2022-10-27

AI Summary

  • Core Issue: The District included items in capital outlay that were below the $5,000 capitalization threshold, violating its Fixed Asset Policy.
  • Impacted Requirements: Items under the threshold should not be reported in the general ledger or expenditure reports submitted to the Illinois State Board of Education.
  • Recommended Follow-Up: Implement the action plan to ensure compliance with the capitalization threshold when ordering items, and maintain separate accounts for equipment below the threshold.

Finding Text

Equipment/Real Property Management. The District budgeted for and included items in capital outlay objects in both the general ledger and Illinois State Board of Education expenditure reports that were below the District's capitalization threshold of $5,000. No questioned costs. Of the three ESSER grants included in the Education Stabilization Fund cluster for project year 2022, two of the grants included items below the capitalization threshold of $5,000 in capital outlay objects. The District did not follow its capitalization threshold as outlined in its Fixed Asset Policy. This was an oversight by management and the grant coordinator. The District should only include items greater than its $5,000 capitalization threshold in capital outlay objects in its general ledger, budgets, and expenditure reports filed with the Illinois State Board of Education. Management and the grant coordinator added the total cost of the project instead of the individual cost of items ordered. The grant coordinator and management have discussed and created an action plan to ensure that the threshold is considered when ordering individual items that may exceed $5,000 in total, but fall short of that amount when considered individually. Accounts have been established for equipment falling below the $5,000 threshold.

Categories

Equipment & Real Property Management

Other Findings in this Audit

  • 26248 2022-003
    Significant Deficiency
  • 26249 2022-004
    Significant Deficiency
  • 602690 2022-003
    Significant Deficiency

Programs in Audit

ALN Program Name Expenditures
84.010 Title I Grants to Local Educational Agencies $3.34M
32.009 Emergency Connectivity Fund Program $2.11M
84.425 Education Stabilization Fund $1.64M
10.553 School Breakfast Program $686,313
84.367 Improving Teacher Quality State Grants $279,476
84.287 Twenty-First Century Community Learning Centers $265,861
93.778 Medical Assistance Program $199,316
84.027 Special Education_grants to States $193,876
10.559 Summer Food Service Program for Children $129,077
10.560 State Administrative Expenses for Child Nutrition $108,475
84.184 Safe and Drug-Free Schools and Communities_national Programs $93,514
10.555 National School Lunch Program $90,345
84.048 Career and Technical Education -- Basic Grants to States $85,719
84.173 Special Education_preschool Grants $60,669
84.013 Title I State Agency Program for Neglected and Delinquent Children and Youth $9,042
10.649 Pandemic Ebt Administrative Costs $5,814