SPECIAL EDUCATION SERVICESNon-Profit

Finding 2020-001: Significant Deficiency - Controls Over Financial Reporting Process Criteria: Internal controls should be in place to provide reasonable assurance to the Organzation that prepare, monitor, and report annual financial activity without auditor intervention. Condition: Personnel responsible for financial reporting are unable to allocate the time and internal expense necessary to prepare the financial statements and related footnotes. The Organization's accounting staffing does understand all information included in the annual financial statements, but prefers to obtain assistance in the preparation. Cause: The Organization determined that it is more cost effective to outsource preparation of its financial statements to auditors, and, as a result, does not incur the time and expense necessary to prepare full disclosure financial statements in compliance with GAAP internally. Effect: The effect of this condition places a reliance on the independent auditor to be part of the Organization's internal controls over financial reporting. Recommendation: The Organization should review and implement the necessary education and procedural activities to monitor and report annual financial activity. Questioned Costs: None Management Response: Management agrees with this finding. See Schedule of Correction Action Plans.

Finding 2020-002: Receipt of Food Claims Criteria: Auditing standards generally accepted in the United States of America and the standards applicable to financial audits contained in Government Auditing Standards, issued by the Comptroller General of the United States; and the audit requirements of Title 2 U.S. Code of Federal Regulations Part 200, Uniform Administrative Requirements, Cost Principles, and Audit Requirements for Federal Awards (Uniform Guidance) require internal controls to be in place and operating effectively. Specifically, free meals served, reduced-price meals served, and paid meals served should be accurately totaled at the school site and reported to the federal awarding agency for payment. Condition: For one out of four monthly claims reports tested, the total number of meals claimed did not agree to Special Education Services records of receipts from the State of Illinois. Cause: Internal control over the accounting of meals claimed were not consistently adhered to. Effect: Special Education Services reported meals claimed but were not consistently followed up on a monthly basis, resulting in a potential for net underpayment of federal funds. Recommendation: Management should review its internal controls with all involved parties to help ensure that all applicable meal claims are properly claimed, reported and received by the federal awarding agency on a monthly basis. Questioned Costs: None Management Response: Management agrees with this finding. See Schedule of Correction Action Plans.