Lincoln Elementary School District 156

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: Two (2) 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: $6 (Project No. 25-4220-00) $91 (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 two (2) months in which the claims for reimbursement reported meal counts in excess of those supported by records of the District as follows: November 2024: Actual meals served: 14,145; Meals claimed for reimbursement: 14,165 April 2025: Actual meals served: 17,200; Meals claimed for reimbursement: 17,202 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 School District did not comply with the requirements of filing one report by the due date set by ISBE. Questioned Costs: N/A. Context: The School District did not timely file one expenditure report. The report for the period ending 7/31/2023, due 8/20/2023, was submitted on 9/7/2023 for grant 84.425U. Effect: The District was not compliant with reporting requirements. Due to the late filing of reports, ISBE could freeze the School 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 School 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. See Corrective Action Plan provided by the School 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 School District did not comply with the requirements of filing two quarterly reports by the due date set by ISBE. Questioned Costs: N/A. Context: The School District did not timely file two quarterly expenditure reports. The reports for the quarter ending 9/30/2022, due 10/20/2022, were submitted on 11/3/2022 for grants 84.027X and 84.425W. Effect: The District was not compliant with reporting requirements. Due to the late filing of reports, ISBE could freeze the School 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 School 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. See Corrective Action Plan provided by the School 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 School District did not comply with the requirements of filing period and quarterly reports by the due date set by ISBE. Total reports filed late were 12. Questioned Costs: N/A. Context: The School District did not timely file multiple period and quarterly expenditure reports. The reports for the period ending 8/31/2022, due 9/20/2022, were submitted on 10/11/22 for grants 84.010, 84.424, and 84.367. The reports for the quarter ending 9/30/2022, due 10/20/2022, were submitted on 11/1/2022 for grants 84.425, 84.425D, 84.425U, and 84.425C. The reports for the quarter ending 9/30/2022, due 10/20/2022, were submitted on 11/3/2022 for grants 84.027X and 84.173. The report for the period ending 10/31/2022, due 11/20/2022, was submitted on 12/1/2022 for grant 84.365. Effect: The District was not compliant with reporting requirements. Due to the late filing of reports, ISBE could freeze the School 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 School 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. See Corrective Action Plan provided by the School District.

Criteria or specific requirement (including statutory, regulatory, or other citation): The compliance requirements for "L.Reporting", requires the District to maintain accurate accounting records for grant expenditures. In addition, per subpart D (Post Federal Award Requirements), § 200.302, the underlying accounting records must be adequately documented and consistent with the terms and conditions of the grant. 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 District overclaimed $516 of expenditures at 6/30/23. Questioned Costs: $516. Context: The District claimed expenditures on their 6/30/23 expenditure report but should have been reported as OS Obligations at 6/30/23 and claimed as allowable expenses at 8/31/23. (1000-100 $480; 1000-200 $36). Effect: Upon review of the general ledger at 6/30/23 and quarterly expenditure report at 6/30/23, it was determined that the District claimed $480 under 1000-100 and $36 under 1000-200 that were expenditures paid in July 2023 and allowable on the 8/31/23 report but not the 6/30/23 and they should have been reported as OS Obligations at 6/30/23. After reviewing the 8/31/23 general ledger, these expenditures were considered allowable. Cause: Policies and procedures are in place that provide reasonable assurance that reports of federal awards submitted to ISBE are supported by the underlying accounting records and are fairly presented in accordance with program requirements. These policies and procedures were not followed when the expenditure report was prepared and filed. Recommendation: We recommend that management review its policies and procedures and implement changes to strengthen internal control over federal reporting. Furthermore, we recommend the District to adequately document claimed expenditures that are consistent with the terms and conditions of each grant agreement. Management's response: The District has agreed with the findings and recommendations as presented. See Corrective Action Plan provided by the School District.

Criteria or specific requirement (including statutory, regulatory, or other citation): The compliance requirements for "L.Reporting", requires the District to maintain accurate accounting records for grant expenditures. In addition, per subpart D (Post Federal Award Requirements), § 200.302, the underlying accounts records must be adequately documented and consistent with the terms and conditions of the grant. 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 District overclaimed $4,000 of expenditures at 6/30/23. Questioned Costs: $4,000. Context: The Districts expenditures for 2210-300 at 6/30/23 were overclaimed by $4,000 due to a journal entry being made after expenditure report was submitted. Effect: The District has been in contact with ISBE and was approved to roll over the $4,000 as a prepayment to FY24 grant. Cause: Policies and procedures are in place that provide reasonable assurance that reports of federal awards submitted to ISBE are supported by the underlying accounting records and are fairly presented in accordance with program requirements. These policies and procedures were not followed when the expenditure report was prepared and filed. Recommendation: We recommend that management review its policies and procedures and implement changes to strengthen internal control over federal reporting. Furthermore, we recommend the District to adequately document claimed expenditures that are consistent with the terms and conditions of each grant agreement. Management's response: The District has agreed with the findings and recommendations as presented. See Corrective Action Plan provided by the School District.

Criteria or specific requirement (including statutory, regulatory, or other citation): The compliance requirements for "A. Activities Allowed and Unallowed", requires the District to conform to the itemized budgets which were filed with and approved by ISBE. Condition: The District did not claim expenditures in conformity with the approved detail budget. Questioned Costs: $1,500. Context: The District claimed an expenditure in error of which was not an allowable expenditure per approved budget. The amount in question (of which the district already received reimbursement for) was $1,500. Effect: The items purchased by the District were not included in the itemized budget and were not the intent of the budget line. Cause: Policies and procedures are in place that provide reasonable assurance that reports of federal awards submitted to ISBE are supported by the underlying accounting records and are fairly presented in accordance with program requirements. These policies and procedures were not followed when the expenditure report was prepared and filed. Recommendation: We recommend the District periodically review the itemized budget and file amendments as necessary for any changes. Management's response: The District has agreed with the findings and recommendations as presented. See Corrective Action Plan provided by the School 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 School District did not comply with the requirements of filing quarterly and final reports by the due date set by ISBE. Questioned Costs: N/A. Context: The School District did not timely file multiple quarterly and final expenditure reports. The report for the period ending 8/31/2021, due 9/20/2021, was submitted on 10/18/2021 for grant 84.365 (21-4905-00). The report for the period ending 8/31/2021, due 9/20/2021, was submitted on 10/20/2021 for grant 84.365 (21-4909-00). The report for the period ending 5/31/2022, due 6/20/2022, was submitted on 7/19/2022 for grants 84.173 (22-4600-00), 84.027 (22-4620-00), 84.027 (22-4620-EI) & 84.425W (22-4998-HL). The report for the quarter ending 6/30/2022, due 7/20/2022, was submitted on 8/11/2022 for grants 84.027X (22-4998-CE) & 84.425W (22-4998-HL). The report for the quarter ending 6/30/2022, due 7/20/2022, was submitted on 8/12/2022 for grants 84.173 (22-4600-00) & 84.027 (22-4620-00). The report for the quarter ending 6/30/2022, due 7/20/2022, was submitted on 8/18/2022 for grant 84.027 (22-4620-EI). Effect: The District was not compliant with reporting requirements. Due to the late filing of reports, ISBE could freeze the School 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 School 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. See Corrective Action Plan provided by the School District.

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.The School District did not comply with the requirements of filing quarterly reports that are accurate and supported by the underlying accounting records.The School District reported expenditures of $150,298 under line 1000-100. The accounting records only reflected $117,861, the difference being a questioned cost of $32,437. Policies and procedures are in place that provide reasonable assurance that reports of federal awards submitted to ECHO are supported by the underlying accounting records and are fairly presented in accordance with program requirements. These policies and procedures were not followed when the expenditure report was prepared and filed. We recommend that management review its policies and procedures and implement changes to strengthen internal control over federal reporting. The policies and procedures that are in place will be followed when expenditure reports are prepared and filed.

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. The School District did not comply with the requirements of filing quarterly reports by the due dates set by ISBE. The School District did not timely file one quarterly expenditure report. The report for the quarter ending 3/31/19, due on 4/20/19, was submitted on 5/10/19. The District was not compliant with reporting requirements. Due to the late filing of reports, ISBE could freeze the School District's federal funds. Policies and procedures are in place that provide reasonable assurance that reports of federal awards submitted to ISBE and filed in a timely manner by the due dates provided by ISBE. The School District did not follow this process. We recommend that management review its policies and procedures and implement changes to strength internal control over federal reporting. Policies and procedures are in place that provide reasonable assurance that reports of federal awards will be submitted to ISBE and filed in a timely manner by the due dates provided by ISBE. The School District will follow this process.

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