Finding 948615 (2023-002)

1. FINDING NUMBER: 2023 - 002 2. THIS FINDING IS: New 3. Federal Program Name and Year: Elementary and Secondary School Emergency Relief (ESSER) Fund 4. Project No.: 22-4998-E2 & 22-4998-E3 5. AL No.: 84.425 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. Condition: The District claimed $136,026 of capital expenditures between their March 30, 2023 and June 30, 2023 reimbursement claim submitted to the Illinois State Board of Education that could not be supported by documentation. 10. Questioned Costs: Total questioned costs are $136,026. 11. Context: 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 received $136,026 of funding for costs that were not supported and did not materially comply with the provisions of the award. 13. Cause: The District's internal controls failed to detect that the expenditures claimed during the reimbursement request were not incurred and supported. 14. Recommendation: We recommend that the District implement additional procedures for review and approval of reimbursement claims prior to submission to ensure that expenditures are claimed and supported when a reimbursement claim is submitted. 15. Management's response: See corrective action plan.