Finding Text
Criteria or specific requirement: The District is required to report grant expenditures in accordance with the Illinois State Board of Education State and Federal Grant Administration Policy, Fiscal Requirements, and Procedures in accordance with the Grant Accountability and Transparency Act (GATA), 30 ILCS 708/1 et seq and Title 2 Code of Federal Regulations Part 200?Uniform Administrative Requirements, Cost Principles, and Audit Requirements for Federal Awards. According to the State and Federal Grant Administration Policy, "Amendments are required when: There is a significant change in program scope (e.g., adding a new component - summer school); or the grantee intends to budget for more available funds (i.e., federal carryover); or the expense expenditures exceed the ISBE expenditure variance of 10 percent or $1,000 per an object total, whichever is greater without going over the total budget; or the grantee adds a new expenditure item." Additionally stated in the document "grantees that submit a state or federal budget amendment between the project begin and end date are not allowed to begin an activity, obligate or expend funds prior to the date of receipt at ISBE, provided the scope or intent of the approved project has not changed." Lastly stated in the document, "any amount reported in an expenditure account (cell) not budgeted or not within the acceptable expenditure variance, will not be accepted. Failure to submit an acceptable report will result in the delay of current payments. Expenditures and obligations in excess of the total project budget will not be allowed." Condition: Expenditures claimed on the project's cumulative June 30, 2022 quarterly report did not match the accounting records. Total expenditures reported in the district's accounting records were $2,128,915 and total expenditures reported on the ISBE June 30, 2022 expenditure report was $2,152,978. Difference of $24,063 was a result of a journal entry in which funds got moved within the grant from function 2210 object 300 to function 2230 object 300. The $24,063 was reported under function 2230 object 300 but was not removed from function 2210 object 300 on the June 30, 2022 expenditure report. The July 31, 2022 expenditure report, function 2210 object 300 was corrected by the District to report the proper amount of expenses so there will be no questioned cost, only an error in reporting. Questioned Costs: None. Context: Expenditures claimed on the project's cumulative June 30, 2022 quarterly report did not match the accounting records. Total expenditures reported in the district's accounting records were $2,128,915 and total expenditures reported on the ISBE June 30, 2022 expenditure report was $2,152,978. Difference of $24,063 was a result of a journal entry in which funds got moved within the grant from function 2210 object 300 to function 2230 object 300. The $24,063 was reported under function 2230 object 300 but was not removed from function 2210 object 300 on the June 30, 2022 expenditure report. The July 31, 2022 expenditure report, function 2210 object 300 was corrected by the District to report the proper amount of expenses so there will be no questioned cost, only an error in reporting. Effect: Expenditures on the cumulative quarterly report as of June 30, 2022, which should agree to expenses spent as of the fiscal year end, did not agree to the District's records. Cause: Discrepancy was due to a journal entry made in the general ledger. Recommendation: The District needs to ensure that all records accurately reflect the appropriate expenditures of the grant program and appropriate expenditure reports are filed. Management's response: The District is aware of the discrepancy and has already corrected the issue on their July 31, 2022 expenditure report filed with ISBE.