Finding Text
Criteria or specific requirement: The compliance requirements for "L.Reporting" generally requires that LEA's report financial information to the pass-through entity and that those reports are accurate and supported by the underlying accounting records. Condition: The District did not report cumulative expenditures when doing their quarterly claims under Project 2021 E2 grant. Questioned Costs: N/A. Context: The District's schedule of expenditures of federal awards at 6/30/2021 reported $2,719,124. When claiming expenditures during fiscal year 2022, the District failed to include these expenditures in the cumulative claim totals, as required. During the fiscal year ended 6/30/22, the District claimed a total of $2,775,082, which reflected only fiscal year 2022 expenditures. Total revenue recieved for the grant totaled $2,775,082, but there were allowable expenditures of $5,656,719 that could have been claimed. Effect: The District was not compliant with reporting requirements for allowable expenditures. Cause: While policies and procedures were in place that provide reasonable assurance that quarterly reports include cumulative expenditures when a grant period runs between two different school years, the District did not properly follow this process. The general ledger reports used were incorrect. Recommendation: We recommend that management review its policies and procedures and implement changes to strengthen internal control over federal reporting. Management's response: The Office of Federal and State Programs will enact stringent internal reviews to ensure that all documents reflect the current school years according to dates awarded by the Illinois State Board of Education. The process will entail multiple levels of accountability reviews from the Business Office and Federal Programs. This process will start during 2023-2024 school year.