Finding 8755 (2023-002)

Material Weakness Repeat Finding
Requirement
L
Questioned Costs
-
Year
2023
Accepted
2024-01-17
Audit: 11977
Auditor: Skdo PC

AI Summary

  • Core Issue: Quarterly and final expenditure reports for grants were filed late, despite being materially accurate.
  • Impacted Requirements: Reports were due within 30 days per Uniform Guidance (2 CFR section 200.328), affecting multiple federal grant programs.
  • Recommended Follow-Up: Implement internal controls and allocate resources to ensure timely submission of all eligible grant expenditures.

Finding Text

Criteria or specific requirement (including statutory, regulatory, or other citation): The grant agreements require quarterly cumulative expenditure reports and a final completion report, consistent with the financial reporting provisions of the Uniform Guidance (2 CFR section 200.328). Condition: Quarterly cumulative expenditure reports and the final completion reports, which are typically due within 30 days of the period end, were materially accurate but were filed late, as noted below: ‐ ESSER I: 9/30/22 expenditures were filed 1/23/23 ‐ ESSER II: 12/31/22 expenditures were filed 7/27/23; 3/31/23 expenditures were filed 7/28/23 ‐ Community Partnership: 12/31/22 expenditures were filed 7/13/23; 3/31/23 expenditures were filed 7/15/23 Questioned Costs: None noted. Context: Late quarterly expenditure report submissions were also noted on several other federal grant programs, including Title I and Title III grants, in which reports were filed up to 12 months past the respective due dates. Effect: As these grants operate on a reimbursement basis, the District taxpayers had to carry the costs of the program for far longer than necessary. The District was unable to reconcile grant expenditures recorded in the general ledger with those that were to be claimed under these grants during the year, putting the District at risk of submitting claims for duplicated expenditures or of not claiming eligible expenditures. Cause: The District did not have internal controls in place or allocate adequate resources to ensure timely grant reporting could be achieved. Recommendation: The District should implement internal controls over grant expenditure reporting and allocate adequate resources to ensure that all eligible grant expenditures are appropriately submitted for reimbursement in a timely manner. Management's response: See Corrective Action Plan.

Corrective Action Plan

Although there was been improvement in the grant reporting from the prior year, specifically in the area of expenditures, there were delinquent reports. The improvement was a result of the following internal control factors: a. Personnel responsible for the grant reporting has been reassigned. b. Personnel responsible for grant reporting was directed to report to the district office to complete the reports. c. More frequent communication updates and action planning regarding the status of the grants and their respective reports. The District will continue to utilize the internal controls listed above to ensure that all eligible grant expenditures are appropriately submitted for reimbursement in a timely manner. Anticipated Completion of Corrective Actions: 12/19/2023 Contact: Dr. Lynette Thrasher, MCUSD#1 Grants Coordinator 400 N. Pine St. Momence, Il. 60954 815-472-3501

Categories

Cash Management Reporting Internal Control / Segregation of Duties Special Tests & Provisions

Other Findings in this Audit

  • 585197 2023-002
    Material Weakness Repeat

Programs in Audit

ALN Program Name Expenditures
10.555 National School Lunch Program $449,990
84.010 Title I Grants to Local Educational Agencies $303,431
10.553 School Breakfast Program $89,403
84.367 Improving Teacher Quality State Grants $57,694
84.027 Special Education_grants to States $50,614
10.560 State Administrative Expenses for Child Nutrition $34,226
93.778 Medical Assistance Program $33,689
84.424 Student Support and Academic Enrichment Program $11,500
84.365 English Language Acquisition State Grants $10,133
10.558 Child and Adult Care Food Program $10,025
84.173 Special Education_preschool Grants $4,996
10.559 Summer Food Service Program for Children $3,420
10.649 Pandemic Ebt Administrative Costs $628
84.425 Education Stabilization Fund $250