Finding 612849 (2022-003)

Significant Deficiency
Requirement
AB
Questioned Costs
-
Year
2022
Accepted
2023-03-21

AI Summary

  • Core Issue: The District claimed $48,150 for equipment expenses in June 2022, but these costs were not incurred until July 2022, indicating a failure in internal controls.
  • Impacted Requirements: The District must ensure that claimed expenditures are for allowable costs and incurred within a reasonable timeframe as per federal guidelines.
  • Recommended Follow-Up: Implement a review process for reimbursement claims and establish a tracking system to verify that expenses are documented and aligned with receipt dates.

Finding Text

Maywood Melrose Park Broadview School District 89 06-016-0890-02 SCHEDULE OF FINDINGS AND QUESTIONED COSTS Year Ending June 30, 2022 SECTION III - FEDERAL AWARD FINDINGS AND QUESTIONED COSTS 1. FINDING NUMBER:14 2022 - 003 2. THIS FINDING IS: X New Repeat from Prior year? Year originally reported? 3. Federal Program Name and Year: Elementary and Secondary School Emergency Relief (ESSER) Fund - PY 2022 4. Project No.: 22-4998-ER 5. CFDA No.: 84.425D 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) The District is required to effectively operate internal controls to ensure that expenditures claimed under the Education Stabilization Fund are for Activities Allowed under the award and that reimbursement for these costs are claimed within a reasonable period of time. 9. Condition15 Audit procedures identified that the District claimed $48,150 of expenditures related to equipment on their June 30, 2022 reimbursement claim submitted to the Illinois State Board of Education, however these expenditures were not received and paid by the District until July 2022. 10. Questioned Costs16 No reportable questioned costs were identified as the District did incur allowable costs in July/August of 2022 for equipment that were within the approved federal award agreement. 11. Context17 Based upon the review of total expenditures claimed under the federal award and the results of testing procedures performed this appears to be an isolated instance. 12. Effect The District did not incur the cost associated with the allowable cost claimed until July of 2022. 13. Cause The District's internal controls failed to detect that the expenditures claimed during a reimbursement request was not paid by the District. 14. Recommendation We recommend that the District perform a review of supporting documentation for expenditures claimed during a reimbursement request to ensure that expenditures claimed for reimbursement are for allowable costs that are within the approved federal award agreement and incurred within a reasonable period of time from the reimbursement request. 15. Management's response18 The District will implement an expenditure tracking system that will require all supporting documentation be uploaded to an electronic filing sharing system (OneDrive) for all quarterly reporting periods. The District will review submittals against dates for which goods and services were actually received. In addition, the District will implement a receiving protocol to coordinate payables against the receipt of materials. 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 Cash Management Reporting Equipment & Real Property Management Matching / Level of Effort / Earmarking Internal Control / Segregation of Duties

Other Findings in this Audit

  • 36407 2022-003
    Significant Deficiency

Programs in Audit

ALN Program Name Expenditures
84.010 Title I Grants to Local Educational Agencies $2.75M
84.425 Education Stabilization Fund $1.86M
10.553 School Breakfast Program $1.52M
84.027 Special Education_grants to States $1.04M
84.367 Improving Teacher Quality State Grants $400,623
93.778 Medical Assistance Program $267,528
10.555 National School Lunch Program $142,008
10.582 Fresh Fruit and Vegetable Program $117,391
84.424 Student Support and Academic Enrichment Program $51,475
84.173 Special Education_preschool Grants $25,517
10.649 Pandemic Ebt Administrative Costs $3,063
84.365 English Language Acquisition State Grants $1,500