Finding Text
FINDING NUMBER: 2022 - 002 THIS FINDING IS: X Repeat from Prior year? Year originally reported? 2020 Federal Program Name and Year: Elementary and Secondary School Emergency Relief Fund Project No.: 2022-4998 CFDA No.:84.425D Passed Through: Illinois State Board of Education Federal Agency: US Department of Education Criteria or specific requirement (including statutory, regulatory, or other citation) Allowable Costs & Reporting - Direct federal costs should be supported by adequate documentation, given consistent treatment, not be used as a cost or meet cost sharing requirements for other federal programs and be supported by audited accounting records. Condition - Cumulative expenditures reported to the granting agency to show use of funds could not be reconciled, by function & object, to detailed general ledger postings used to track allowable expenditures by funding type. Questioned Costs - N/A Context - Without proper controls over allowable costs and reporting, expenditures may be incorrectly reported to the granting agency as an allowable expenditure used to spend federal awards according to an approved award budget. Effect - Expenditures reported to the granting agency as allowable were not supported by actual general ledger postings by function & object, which could result in reported expenditures later to be deemed unallowable, resulting in unspent federal funds. Cause - Proper internal controls over allowable costs and reporting either do not adequately detail procedures to determine allowable costs used to prepare required reports or are not routinely being adhered to. Recommendation - Review all policies over allowable costs and reporting to determine if they provide adequate guidance. Revise policies if deemed necessary. Additionally make sure all responsible individuals are aware of such policies and that they are being adhered to. Management's response - Management is in agreement with this finding.