Chicago Heights School District 170Local Government

Criteria or specific requirement (including statutory, regulatory, or other citation) Compliance Requirements: A., B., L. Internal Controls over Allowability of Activities and Costs as well as Reporting are achieved when there is evidence of an independent review, such as initials or a signature, of daily meal count sheets by supervisory personnel at individual schools. Condition - Out of 88 daily meal counts reviewed, 16 (18%) did not feature an approving signature or initials by supervisory personnel. Addtionally, 6 (7%) of the 88 daily meal counts reviewed did not match the amount of claims submitted for reimbursement. In total, a net amount of 15 less meals were requested for reimbursement than what was reported on the daily meal counts. Questioned Costs - N/A. Context - Daily meal count documentation should be signed by a supervisory level employee outside of the data entry process to ensure accuracy and reasonableness of the amounts being reported for grant reimbursements. Effect - Potential errors in reporting to funding agencies may not be caught leading to potential improper or inaccurate reimbursements to the District. Cause - Failure to implement a control structure with appropriate significations of approval/review of daily count sheet documentation prior to requesting reimbursement for meals served as well as assurances that such amounts requested are accurate. Recommendation - The District should institute a control structure where daily count documents are reviewed by supervisory personnel not involved with data entry of the claims. Signification of such a review should be documented through a signature or initials. Additionally, the control structure should add steps to ensure that all documentation used to request reimbursement has been accurately entered by reconciling the amount requested to the amount documented. Management's response - The District recognizes the importance of supervisor review in ensuring the accuracy of meal count documentation and reimbursement claims. To address this, the District will implement a standardized review process across all schools, requiring supervisory personnel to sign or initial daily meal count sheets. In addition, we will institute a reconciliation step to verify that reported counts align with reimbursement claims. Training will be provided to ensure compliance with these procedures.

8. Criteria or specific requirement (including statutory, regulatory, or other citation) Compliance Requirements: A., B., L. Internal Controls over Allowability of Activities and Costs as well as Reporting are achieved when someone other than the requestor of the purchase or preparer of the report are reviewing the supporting documentation pertaining to each compliance area and signfying such a review with a signature. '9. Condition Out of 28 vouchers reviewed in relation to Title I expenditures, 16 did not feature an approving signature by a department head upon receipt of the goods or services, despite featuring an approved purchase order. Addtionally, out of 4 quarterly reports reviewed, 1 did not feature evidence of review and approval. '10. Questioned Costs N/A '11. Context Invoices paid with grant funding should be signed by a department head or another supervisory level employee to ensure that the purchase has been reviewed upon receipt of the goods or services and is for allowable grant activities. Additionally, copies of reports with signification of review by someone other than the preparer prior to filing should be maintained. '12. Effect Potential misuse of grant funding and errors in reporting to funding agencies may not be caught leading to potential improper reimbursements to the District. '13. Cause Failure to implement a control structure with appropriate significations of approval/review of invoices upon receipt of goods or services prior to payment and reports prior to submission to funding agencies. 14. Recommendation The District should institute a control structure where grant invoices are reviewed upon receipt of goods or services for allowable activiites and costs prior to disbursement of payment. Additionally, personnel other than the preparer should review and approve grant reports prior to submission to funding agencies. Copies of these signed reports should be retained. 15. Management's response The District will evaluate the procedures in place to ensure proper course of action is taken with respect to Title I.

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