Finding 612547 (2022-005)

Significant Deficiency
Requirement
AB
Questioned Costs
-
Year
2022
Accepted
2023-01-30

AI Summary

  • Core Issue: The District's internal controls for reviewing and approving federal program expenditures were not followed, leading to potential compliance risks.
  • Impacted Requirements: Invoices must be reviewed and approved by the Senior Director of Finance before processing, as per established procedures.
  • Recommended Follow-Up: Implement a system for the Food Service Director to submit invoices for approval and ensure the accounts payable department only processes approved invoices.

Finding Text

Oak Park Elementary School District 97 06-016-0970-02 SCHEDULE OF FINDINGS AND QUESTIONED COSTS Year Ending June 30, 2022 SECTION III - FEDERAL AWARD FINDINGS AND QUESTIONED COSTS 1. FINDING NUMBER:14 2022 - 005 2. THIS FINDING IS: New Repeat from Prior year? Year originally reported? 3. Federal Program Name and Year: National School Breakfast Program, National School Lunch Program - PY 2021 and 2022 and Summer Food Service Program - PY 21 4. Project No.: 21-4220-00, 22-4220-00, 21-4210-00, 22-4210-00, 21-4225-00 5. ASL No.: 10.553, 10.555, 10.559 6. Passed Through: Illinois State Board of Education 7. Federal Agency: Department of Agriculture 8. Criteria or specific requirement (including statutory, regulatory, or other citation) The District should have operating internal controls in place regarding the review and approval of expenditures charged to the federal award to ensure compliance. 9. Condition15 The Food Service Director reviewed invoices and providing them directly to the accounts payable department for processing. The District's internal control procedures require invoices to be routed to the Senior Director of Finance for review and approval. 10. Questioned Costs16 No questioned costs identified. 11. Context17 The internal control deficiency is a systemic issue as all of the disbursements selected for testing in our sample were not reviewed and approved by the Senior Director of Finance prior to processing by the accounts payable department. 12. Effect Unallowable costs could be incurred by the District resulting in questioned costs. 13. Cause The Districts internal control procedures were not being followed as the accounts payable department was processing invoices for payment without the Senior Director of Finance approving the invoices. 14. Recommendation We recommend the District implement procedures to ensure that the Food Service Director provide all invoices for review and approval to the Senior Director of Finance by scanning these invoices and importing them into the Districts accounting software system and properly route these invoices for review and approval in the system. Furthermore, the accounts payable department should be directed to not process any invoices for payment that have not been properly reviewed and approved by the Senior Director of Finance. 15. Management's response18 See corrective action plan 14 See footnote 11. 15 Include facts that support the deficiency identified on the audit finding (?200.516 (b)(3)). 16 Identify questioned costs as required by ?200.516 (a)(3 - 4). 17 See footnote 12. 18 To the extent practical, indicate when management does not agree with the finding, questioned cost, or both.

Categories

Allowable Costs / Cost Principles School Nutrition Programs Internal Control / Segregation of Duties

Other Findings in this Audit

  • 36100 2022-003
    Significant Deficiency
  • 36101 2022-004
    Material Weakness
  • 36102 2022-005
    Significant Deficiency
  • 36103 2022-003
    Significant Deficiency
  • 36104 2022-004
    Material Weakness
  • 36105 2022-005
    Significant Deficiency
  • 36106 2022-003
    Significant Deficiency
  • 36107 2022-004
    Material Weakness
  • 36108 2022-005
    Significant Deficiency
  • 36109 2022-003
    Significant Deficiency
  • 36110 2022-004
    Material Weakness
  • 36111 2022-005
    Significant Deficiency
  • 36112 2022-006
    Material Weakness
  • 612542 2022-003
    Significant Deficiency
  • 612543 2022-004
    Material Weakness
  • 612544 2022-005
    Significant Deficiency
  • 612545 2022-003
    Significant Deficiency
  • 612546 2022-004
    Material Weakness
  • 612548 2022-003
    Significant Deficiency
  • 612549 2022-004
    Material Weakness
  • 612550 2022-005
    Significant Deficiency
  • 612551 2022-003
    Significant Deficiency
  • 612552 2022-004
    Material Weakness
  • 612553 2022-005
    Significant Deficiency
  • 612554 2022-006
    Material Weakness

Programs in Audit

ALN Program Name Expenditures
84.027 Special Education_grants to States $1.29M
32.009 Emergency Connectivity Fund Program $1.25M
84.425 Education Stabilization Fund $493,936
84.010 Title I Grants to Local Educational Agencies $275,600
84.367 Improving Teacher Quality State Grants $201,692
93.778 Medical Assistance Program $61,480
84.013 Title I State Agency Program for Neglected and Delinquent Children and Youth $33,210
84.173 Special Education_preschool Grants $32,781
10.553 School Breakfast Program $25,827
10.559 Summer Food Service Program for Children $20,140
10.555 National School Lunch Program $11,975
84.365 English Language Acquisition State Grants $7,520
10.649 Pandemic Ebt Administrative Costs $614
84.424 Student Support and Academic Enrichment Program $0