OAK PARK ELEMENTARY SCHOOL DISTRICT 97

OAK PARK ELEMENTARY SCHOOL DISTRICT 97 06-016-0970-02 SCHEDULE OF FINDINGS AND QUESTIONED COSTS Year Ending June 30, 2024 SECTION III - FEDERAL AWARD FINDINGS AND QUESTIONED COSTS 1. FINDING NUMBER:14 2024 - 004 2. THIS FINDING IS: X New Repeat from Prior year? Year originally reported? 3. Federal Program Name and Year: SPECIAL EDUCATION CLUSTER (IDEA) 4. Project No.: 024-4620-00, 024-4625-00, 024-4998-ID, 024-4998-PS, 024-4600-00, 023-4600-00 5. AL No.: 84.173 & 84.027 6. Passed Through: Illinois State Board of Education 7. Federal Agency: U.S. Department of Education 8. Criteria or specific requirement (including statutory, regulatory, or other citation) "IDEA, Part B funds received by an LEA cannot be used, except under certain limited circumstances, to reduce the level of expenditures for the education of children with disabilities made by the LEA from local funds, or a combination of State and local funds, below the level of those expenditures for the preceding fiscal year. To meet this requirement, LEAs must meet (1) the eligibility standard of 34 CFR section 300.203(a)) and (2) the compliance standard of 34 CFR section 300.203(b)." 9. Condition15 The District did not meet its maintenance of effort on either the aggregate or the per capita basis for fiscal year 2024. The shortfall in maintenance of effort was $401,982. 10. Questioned Costs16 The District's maintenance of effort calculation identified a decrease in non-federally funded special education related expenditures from the prior year of $401,982 in addition to a per capita decrease of $2,591 from fiscal year 2023 amounts. 11. Context17 N/A- there is only one MOE requirement. The grant was out of compliance. This is not a transactional level requirement. 12. Effect As the District is out of compliance with the maintenance of effort requirements, it is at risk of having to return federal funds. 13. Cause The finding was caused by a lack of monitoring over the maintenance of effort requirement. 14. Recommendation It is recommended that the District monitor compliance with maintenance of effort throughout the fiscal year to ensure it is met at year end. 15. Management's response18 See corrective action plan. 14 See footnote 11. 15 Include facts that support the deficiency identified on the audit finding (§200.516 (b)(3)). 16 Identify questioned costs as required by §200.516 (a)(3 - 4). 17 See footnote 12. 18 To the extent practical, indicate when management does not agree with the finding, questioned cost, or both.

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.

Oak Park Elementary School District 97 06-016-0970-02 SCHEDULE OF FINDINGS AND QUESTIONED COSTS Year Ending June 30, 2022 SECTION III - FEDERAL AWARD FINDINGS AND QUESTIONED COSTS 1. FINDING NUMBER:14 2022 - 003 2. THIS FINDING IS: X New Repeat from Prior year? Year originally reported? 3. Federal Program Name and Year: National School Breakfast Program, National School Lunch Program - PY 2021 and 2022 and Summer Food Service Program - PY 21 4. Project No.: 21-4220-00, 22-4220-00, 21-4210-00, 22-4210-00, 21-4225-00 5. ASL No.: 10.553, 10.555, 10.559 6. Passed Through: Illinois State Board of Education 7. Federal Agency: Department of Agriculture 8. Criteria or specific requirement (including statutory, regulatory, or other citation) The District should have functional internal controls in place to ensure compliance with reporting requirements of the federal award. The submissions of monthly claims for reimbursement should be reviewed and approved by someone other than the preparer of the claim to ensure the claim is properly prepared and agrees to supporting documentation. 9. Condition15 The Food Service Coordinator, prepares and submits monthly reimbursement claims to ISBE and these submissions are not reviewed or approved by anyone else. 10. Questioned Costs16 The District has not designed and implemented and internal control process to ensure that monthly reimbursement claims submissions are reviewed and approved by someone outside the preparer. 11. Context17 The internal control deficiency is systemic in the District's process for submitting reimbursement claims. 12. Effect Inaccurate monthly claims reimbursements could be submitted for reimbursement which could lead to potential questioned costs under the award. 13. Cause The District has not designed and implemented an internal control process to ensure that monthly reimbursement claims submissions are reviewed and approved by someone outside the preparer. 14. Recommendation Proper review of ISBE reimbursement submissions by someone else other than the preparer. 15. Management's response18 See corrective action plan 14 See footnote 11. 15 Include facts that support the deficiency identified on the audit finding (?200.516 (b)(3)). 16 Identify questioned costs as required by ?200.516 (a)(3 - 4). 17 See footnote 12. 18 To the extent practical, indicate when management does not agree with the finding, questioned cost, or both.

Oak Park Elementary School District 97 06-016-0970-02 SCHEDULE OF FINDINGS AND QUESTIONED COSTS Year Ending June 30, 2022 SECTION III - FEDERAL AWARD FINDINGS AND QUESTIONED COSTS 1. FINDING NUMBER:14 2022 - 004 2. THIS FINDING IS: X New Repeat from Prior year? Year originally reported? 3. Federal Program Name and Year: National School Breakfast Program, National School Lunch Program - PY 2021 and 2022 and Summer Food Service Program - PY 21 4. Project No.: 21-4220-00, 22-4220-00, 21-4210-00, 22-4210-00, 21-4225-00 5. ASL No.: 10.553, 10.555, 10.559 6. Passed Through: Illinois State Board of Education 7. Federal Agency: Department of Agriculture 8. Criteria or specific requirement (including statutory, regulatory, or other citation) Per section 200.320 in Subpart D of the code of federal regulations (CFR) the non-federal entity is responsible for complying with small purchase procedures for procurement. The acquisition of property or services, the aggregate dollar amount of which is higher than the micro-purchase threshold but does not exceed the simplified acquisition threshold. If small purchase procedures are used, price or rate quotations must be obtained from an adequate number of qualified sources as determined appropriate by the non-Federal entity. 9. Condition15 The District procured $125,877 in goods from a vendor and did not comply with their internal procurement policy. 10. Questioned Costs16 No reportable questioned costs were identified. 11. Context17 The District's Board policy for procurement requires that all contracts for the purchase of supplies, materials, or work, or contracts with private carriers for transportation of pupils, involving an expenditure in excess of $25,000, except those specifically exempted by Section 10-20.21 of the School Code, shall be subject to the bid process set forth in Section 10-20.21. The Assistant Superintendent for Finance and Operations or his/her designee shall guarantee due (e.g., sufficient and adequate) advertisement for bids for the sale of those goods and services required by the District. Furthermore the District's procurement policy requires that the Assistant Superintendent of Finance and Operations or his/her designee may enter into contracts for the purchase of goods, services, supplies, materials, or work involving an expenditure between $3,500 and $25,000 without prior Board approval. Prior to making the expenditure between $3,500 and $25,000, the Assistant Superintendent of Finance and Operations shall secure three price quotations or bids. 12. Effect The District did not follow appropriate procurement policy procedures for purchases made within the food service program and funded under the federal award. 13. Cause The District's internal controls over procurement did not properly determine that the procurement of goods from the vendor exceeded $25,000 and was required to be bid out and operate under a formal contract. 14. Recommendation We recommend that the District solicit bids for the goods procured for the vendor in compliance with internal policies and federal award requirements. 15. Management's response18 See corrective action plan. 14 See footnote 11. 15 Include facts that support the deficiency identified on the audit finding (?200.516 (b)(3)). 16 Identify questioned costs as required by ?200.516 (a)(3 - 4). 17 See footnote 12. 18 To the extent practical, indicate when management does not agree with the finding, questioned cost, or both.

Oak Park Elementary School District 97 06-016-0970-02 SCHEDULE OF FINDINGS AND QUESTIONED COSTS Year Ending June 30, 2022 SECTION III - FEDERAL AWARD FINDINGS AND QUESTIONED COSTS 1. FINDING NUMBER:14 2022 - 005 2. THIS FINDING IS: New Repeat from Prior year? Year originally reported? 3. Federal Program Name and Year: National School Breakfast Program, National School Lunch Program - PY 2021 and 2022 and Summer Food Service Program - PY 21 4. Project No.: 21-4220-00, 22-4220-00, 21-4210-00, 22-4210-00, 21-4225-00 5. ASL No.: 10.553, 10.555, 10.559 6. Passed Through: Illinois State Board of Education 7. Federal Agency: Department of Agriculture 8. Criteria or specific requirement (including statutory, regulatory, or other citation) The District should have operating internal controls in place regarding the review and approval of expenditures charged to the federal award to ensure compliance. 9. Condition15 The Food Service Director reviewed invoices and providing them directly to the accounts payable department for processing. The District's internal control procedures require invoices to be routed to the Senior Director of Finance for review and approval. 10. Questioned Costs16 No questioned costs identified. 11. Context17 The internal control deficiency is a systemic issue as all of the disbursements selected for testing in our sample were not reviewed and approved by the Senior Director of Finance prior to processing by the accounts payable department. 12. Effect Unallowable costs could be incurred by the District resulting in questioned costs. 13. Cause The Districts internal control procedures were not being followed as the accounts payable department was processing invoices for payment without the Senior Director of Finance approving the invoices. 14. Recommendation We recommend the District implement procedures to ensure that the Food Service Director provide all invoices for review and approval to the Senior Director of Finance by scanning these invoices and importing them into the Districts accounting software system and properly route these invoices for review and approval in the system. Furthermore, the accounts payable department should be directed to not process any invoices for payment that have not been properly reviewed and approved by the Senior Director of Finance. 15. Management's response18 See corrective action plan 14 See footnote 11. 15 Include facts that support the deficiency identified on the audit finding (?200.516 (b)(3)). 16 Identify questioned costs as required by ?200.516 (a)(3 - 4). 17 See footnote 12. 18 To the extent practical, indicate when management does not agree with the finding, questioned cost, or both.

Oak Park Elementary School District 97 06-016-0970-02 SCHEDULE OF FINDINGS AND QUESTIONED COSTS Year Ending June 30, 2022 SECTION III - FEDERAL AWARD FINDINGS AND QUESTIONED COSTS 1. FINDING NUMBER:14 2022 - 006 2. THIS FINDING IS: New Repeat from Prior year? Year originally reported? 3. Federal Program Name and Year: Elementary and Secondary School Emergency Relief (ESSER) Fund - PY22 4. Project No.: 22-4998-E2 5. ASL No.: 84.425D 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. Condition15 The District claimed $421,462 of expenditures related to HVAC improvements on their March 31, 2022 reimbursement claim submitted to the Illinois State Board of Education, however these expenditures were not paid by the District until October 2022. 10. Questioned Costs16 No reportable questioned costs were identified as the District did incur allowable costs in October of 2022 for HVAC improvements that were within the approved federal award agreement. 11. Context17 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 a reimbursement for the federal award in April of 2022, however the District did not incur the cost associated with the allowable cost claimed until October of 2022. 13. Cause The District's internal controls failed to detect that the expenditures claimed during a reimbursement request was not paid by the District. 14. Recommendation We recommend that the District perform a review of supporting documentation for expenditures claimed during a reimbursement request to ensure that expenditures claimed for reimbursement are for allowable costs that are within the approved federal award agreement and incurred within a reasonable period of time from the reimbursement request. 15. Management's response18 See corrective action plan. 14 See footnote 11. 15 Include facts that support the deficiency identified on the audit finding (?200.516 (b)(3)). 16 Identify questioned costs as required by ?200.516 (a)(3 - 4). 17 See footnote 12. 18 To the extent practical, indicate when management does not agree with the finding, questioned cost, or both.

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