Finding Text
Finding No. 2023-005 – Internal Controls over Compliance of Federal Awards
Federal Program Name: Coronavirus State and Local Recovery Funds
Project Number: N/A
CFDA Number: 21.027
Passed Through: Illinois State Board of Education
Federal Agency: U.S. Department of Education
Criteria/Specific Requirement:
2 CFR 200.303 – Internal Controls, requires the District to establish and maintain effective internal
controls over the federal awards that provide reasonable assurance that the entity is managing the
federal awards in compliance with federal statutes, regulations, and the terms and conditions of the
federal award.
Condition:
During testing of compliance over disbursements, we noted the following:
1) Five (5) instances where employees received pay rates in excess of three hundred
percent of their normal pay rates received from unrestricted funds.
2) Fifteen (15) instances were noted where salaries were allocated to this program
without documentation of time and effort.
Questioned Costs:
1) N/A
2) N/A
Context:
1) 5 exceptions of the total 40 payroll transactions tested
2) 15 exceptions of the total 40 payroll transactions tested
Effect:
1) The lack of proper internal controls of disbursements could result in the District paying for
unallowable expenditures from the grant funds.
2) Noncompliance with grant agreement. Cause:
Lack of proper oversight by District personnel.
Recommendation:
We recommend that the District appoint an individual that is knowledgeable, or provide the
appropriate training, of the federal compliance requirements set forth in the Code of Federal
Regulation to oversee the District’s federal programs to ensure the District is in compliance
with all applicable federal compliance requirements.
Management’s Response:
The District is working to implement that the auditor’s recommendation.