FAC Explorer

Finding 970809 (2023-002)

Significant Deficiency Repeat Finding
Requirement
C
Questioned Costs
-
Year
2023
Accepted
2024-04-24
Audit: 304371
Organization: Pontiac Community Consolidated School District No. 429 (IL)
Auditor: Gorenz and Associates LTD

AI Summary

  • Core Issue: The District lacks proper internal controls for monitoring net cash resources in the nonprofit school food service.
  • Impacted Requirements: This situation may lead to noncompliance with federal cash management requirements.
  • Recommended Follow-Up: Management should implement internal controls to ensure net cash resources do not exceed three months of average expenditures.

Finding Text

Condition The District has not adequately established internal controls to ensure that net cash resources are being properly monitored. Questioned Costs None. Context The District did not properly calculate a running balance of the net cash resources of the nonprofit school food service nor did they have an understanding of the significance of their calculation. Effect Noncompliance with the federal award program's resource (cash) management requirements could occur and not be detected and corrected timely. Cause Management had not developed an adequate system of internal control to ensure compliance with the Cash Management compliance requirement. Recommendation We recommend that the management establish internal controls related to the cash management compliance requirement to monitor and ensure that the net cash resources of the nonprofit school food service does not exceed 3 months average expenditures. Mangement's response There is no disagreement with this finding and internal controls will be developed to monitor the net cash resources of the nonprofit school food service.

Categories

Cash Management Internal Control / Segregation of Duties

Other Findings in this Audit

  • 394363 2023-002
    Significant Deficiency Repeat
  • 394364 2023-002
    Significant Deficiency Repeat
  • 394365 2023-002
    Significant Deficiency Repeat
  • 394366 2023-002
    Significant Deficiency Repeat
  • 394367 2023-002
    Significant Deficiency Repeat
  • 394368 2023-002
    Significant Deficiency Repeat
  • 394369 2023-002
    Significant Deficiency Repeat
  • 394370 2023-002
    Significant Deficiency Repeat
  • 970805 2023-002
    Significant Deficiency Repeat
  • 970806 2023-002
    Significant Deficiency Repeat
  • 970807 2023-002
    Significant Deficiency Repeat
  • 970808 2023-002
    Significant Deficiency Repeat
  • 970810 2023-002
    Significant Deficiency Repeat
  • 970811 2023-002
    Significant Deficiency Repeat
  • 970812 2023-002
    Significant Deficiency Repeat

Programs in Audit

ALN Program Name Expenditures
84.027 Special Education_grants to States $294,405
93.778 Medical Assistance Program $191,820
10.553 School Breakfast Program $168,264
84.027 Covid-19 - Special Education_grants to States $66,255
10.555 National School Lunch Program $62,564
10.560 Covid-19 - State Administrative Expenses for Child Nutrition $25,328
84.358 Rural Education $23,422
84.424 Student Support and Academic Enrichment Program $22,099
84.367 Improving Teacher Quality State Grants $19,415
84.425 Covid-19 - Education Stabilization Fund $18,785
84.173 Special Education_preschool Grants $13,065
84.173 Covid-19 - Special Education_preschool Grants $6,518
10.649 Covid-19 - Pandemic Ebt Administrative Costs $3,135
84.010 Title I Grants to Local Educational Agencies $2,056
10.556 Special Milk Program for Children $1,784