West Harvey-Dixmoor School District 147Local Government

8. Criteria or specific requirement: Per Title 2 U.S. Code of Federal Regulations Part 200, Uniform Administrative Requirements, Cost Principles, and Audit Requirements for Federal Awards (2 CFR Part 200) Subpart E, Cost Principles Section 200.403(b), Factors affecting allowability of costs, costs must conform to any limitations or exclusions set forth in these principles or in the Federal award as to types or amount of cost items. Per 2 CFR Section 200.308(b), Deviations from approved budget, the recipient must report deviations from the approved budget, project, or program scope, or objectives. The recipient must request prior approvals from the Federal agency or pass-through entity for budget and program plan revisions in accordance with this section. '9. Condition: Nine (9) employee payroll expenditures were claimed at an hourly rate greater than that approved by ISBE. 10. Cause: The District's internal controls over compliance were not functioning effectively to ensure claims for payroll expenditures were made at the approved hourly rate. '11. Effect: The District was not in compliance with the allowable costs/cost principles compliance requirement. '12. Questioned Costs: Questioned costs of $28,651 were computed based on the difference between the payroll expenditures claimed and the allowable amount calculated using the hourly rate approved by ISBE. '13. Context: From the population of one hundred (100) employees claimed under this grant, a sample of ten (10) employees were selected for testing. We noted nine (9) employee payroll expenditures were claimed at a rate greater than the rate allowable per the ISBE approved budget. A statistically valid sample was not utilized. 14. Recommendation: We recommend that management review its policies and procedures and implement changes to strengthen internal control over compliance. 15. Management's response: The District agrees with the auditor's finding and recommendation.

8. Criteria or specific requirement: Per Title 2 U.S. Code of Federal Regulations Part 200, Uniform Administrative Requirements, Cost Principles, and Audit Requirements for Federal Awards (2 CFR Part 200) Subpart D, Post Federal Award Requirements Section 200.303, Internal controls, the recipient must establish, document and maintain effective internal control over the Federal award that provides reasonable assurance that the recipient is managing the Federal award in compliance with Federal statutes, regulations and the terms and conditions of the Federal award. Per 7 CFR Section 210.8(a), the school food authority shall establish internal controls which ensure the accuracy of meal counts prior to the submission of the monthly claim for reimbursement. '9. Condition: Three (3) monthly claims for reimbursement reported meal counts in excess of those supported by records of the District. 10. Cause: The District's internal controls over compliance were not functioning effectively to ensure claims for reimbursement were accurately prepared. '11. Effect: The District was not in compliance with the reporting compliance requirement. '12. Questioned Costs: The following questioned costs were computed based on the excess meals claimed for reimbursement times the applicable reimbursement rate: $37 (Project No. 25-4220-00) $2,074 (Project No. 25-4210-00) '13. Context: From the population of eleven (11) monthly claims for reimbursement, a sample of four (4) claims were selected for testing. We noted three (3) months in which the claims for reimbursement reported meal counts in excess of those supported by records of the District as follows: October 2024: Actual breakfast meals served: 10,313; Breakfast meals claimed for reimbursement: 10,326. March 2025: Actual lunch meals served: 12,901; Lunch meals claimed for reimbursement: 12,911 April 2025: Actual lunch meals served: 10,087; Lunch meals claimed for reimbursement: 10,190 In addition, the District was unable to locate supporting documentation of the snack claim counts of 765 for October 2024 and 525 for April 2025, which contributed to the questioned cost total for program 25-4210-00. A statistically valid sample was not utilized. 14. Recommendation: We recommend that management review its policies and procedures and implement changes to strengthen internal control over compliance. 15. Management's response: The District agrees with the auditor's finding and recommendation.

Criteria or specific requirement (including statutory, regulatory, or other citation): The compliance requirements for "L.Reporting" generally requires that LEA's report financial information to the pass-through entity and that those reports are accurate and supported by the underlying accounting records. Condition: The District did not comply with the requirements of filing quarterly and period reports by the due dates set by ISBE. A total of 2 reports were filed late. Questioned Costs: N/A. Context: The District did not timely file expenditure reports for two grants. The report for the quarter ending 9/30/23, due 10/20/23 was submitted on 12/4/23 for grant 84.425D. The report for the period ending 10/31/2023, due 11/20/2023 was filed on 11/29/2023 for grant 84.425. Effect: The District was not compliant with reporting requirements. Due to the late filing of reports, ISBE could freeze the District's federal funds. Cause: Policies and procedures are in place that provide reasonable assurance that reports of federal awards submitted to ISBE are filed in a timely manner by the due dates provided by ISBE. The District did not follow this process. Recommendation: We recommend that management review its policies and procedures and implement changes to strengthen internal control over federal reporting. Management's Response: The District has agreed with the findings and recommendations as presented. The District will review the reporting deadlines and file reports moving forward on a timely manner by the due dates. See Corrective Action Plan provided by the District.

Criteria or specific requirement (including statutory, regulatory, or other citation) The compliance requirements for "L.Reporting" generally requires that LEA's report financial information to the pass-through entity and that those reports are accurate and supported by the underlying accounting records. Questioned Costs N/A. Context The District did not timely file expenditure reports for multiple grants. The reports for the period ending 8/31/22, due 9/20/22 were submitted on 9/27/22 for grant 84.027X, on 10/20/22 for grant 84.425D, and on 11/17/22 for grant 84.425. The report for the quarter ending 9/30/22, due 10/20/22 were submitted on 10/26/22 for grant 84.425D, on 12/1/22 for grant 84.425, and on 4/18/23 for 84.010. The report for the period ending 11/30/22, due 12/20/22 was submitted on 1/20/23 for grant 84.365. The report for the quarter ending 12/31/22, due 1/20/23 was submitted on 2/15/23 for grant 84.365. The reports for the period ending 1/31/23, due 2/20/23 were submitted on 4/13/23 for grants 84.367 and 84.424, and on 4/20/23 for grant 84.010. The report for the quarter ending 3/31/23, due 4/20/23 was submitted on 4/21/23 for grant 84.010. The report for the period ending 4/30/23, due 5/20/23 was submitted on 6/13/23 for grant 84.010. Effort The District was not compliant with reporting requirements. Due to the late filing of reports, ISBE could freeze the District's federal funds. Cause Policies and procedures are in place that provide reasonable assurance that reports of federal awards submitted to ISBE are filed in a timely manner by the due dates provided by ISBE. The District did not follow this process. Recommendation We recommend that management review its policies and procedures and implement changes to strengthen internal control over federal reporting. Management's response The District has agreed with the findings and recommendations as presented. The District will review the reporting deadlines and file reports moving forward on a timely manner by the due dates. See Corrective Action Plan provided by the District.

Criteria or specific requirement (including statutory, regulatory, or other citation): The compliance requirements for "L.Reporting" generally requires that LEA's report financial information to the pass-through entity and that those reports are accurate and supported by the underlying accounting records. Condition: The District did not comply with the requirements of filing quarterly and final reports by the due dates set by ISBE for 20 reports. Questioned Costs: N/A. Context: The District did not timely file quarterly and final expenditure reports for multiple grants. The reports for the period ending 8/31/21, due 9/20/21 were submitted on 10/1/21 for grants 84.010, 84.173, 84.027, 84.365, and 84.367. The reports for the quarter ending 9/30/21, due 10/20/21 were submitted on 10/28/21 for grants 84.010, 84.173, 84.027, 84.425D, 84.424 and 84.367. The reports for the quarter ending 12/31/21, due 1/20/22 were submitted on 1/25/22 for grants 84.010 and 84.425D. The reports for the quarter ending 12/31/21, due 1/20/22 were submitted on 1/26/22 for grants 84.010, 84.425D, 84.173, and 84.027. Effect: The District was not compliant with reporting requirements. Due to the late filing of reports, ISBE could freeze the District's federal funds. Cause: Policies and procedures are in place that provide reasonable assurance that reports of federal awards submitted to ISBE are filed in a timely manner by the due dates provided by ISBE. The District did not follow this process. Recommendation: We recommend that management review its policies and procedures and implement changes to strengthen internal control over federal reporting. Management's response: The District has agreed with the findings and recommendations as presented. The District will review the reporting deadlines and file reports moving forward on a timely manner by the due dates. See Corrective Action Plan provided by the District.

Criteria or specific requirement (including statutory, regulatory, or other citation): The compliance requirements for "L.Reporting" generally requires that LEA's report financial information to the pass-through entity and that those reports are accurate and supported by the underlying accounting records. Condition: During compliance testing of the District's accounting records to the expenditure report filed with the Illinois State Board of Education, we noted the school district inadvertently claimed $8,226 of expenditures under 2530-300 and 2530-500 function codes for the same invoices. The correct claim was under 2530-300. Questioned Costs: $8,226. Context: The District claimed expenditures that were not allowable in the line item where they were submitted for the claim. Effect: The District was not compliant with reporting requirements. The District claimed expenditures under to separate function codes for the same invoices which resulted in a duplicate claim of $8,226. Cause: Policies and procedures are in place that provide reasonable assurance that the expenditures claimed to ISBE have underlying accounting records, but the expenditures were not accurately classified in the general ledger. Recommendation: We recommend that management review its policies and procedures and implement changes to strengthen internal control over federal reporting. Management's response: The District has agreed with the findings and recommendations as presented. See Corrective Action Plan provided by the District.

Criteria: As required by the Office of Management and Budget, auditees are required to submit a completed data collection form and audit package to the Federal Audit Clearinghouse on or before the earlier of 30 days after receipt of the auditor's report or nine months after the end of the audit period. During 2020, this requirement was extended by six months for audits due on March 31, 2021. Condition: The FY2020 data collection form and audit package were not submitted timely. Context: Due to the COVID-19 pandemic and other extenuating circumstances, the FY2020 data collection form and audit package were unable to be submitted to the Federal Audit Clearinghouse in a timely manner. Questioned Costs: To be determined by grantor. Effect: The District is at risk of jeopardizing the continued funding provided by the federal agencies. Cause: The lack of meeting the applicable reporting requirements was largely due to issues created by the COVID-19 pandemic and other extenuating circumstances.

Documentation of the District makes it difficult to trace individual timesheets of Title I salaries to the general ledger. The District does not currently prepare, and relies on upon the external auditor to prepare, the external financial statements and the schedule of expenditures of federal awards.

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