MINOOKA COMMUNITY HIGH SCHOOL DISTRICT 111

Condition: During audit fieldwork, our testing resulted in a restatement of net position in order to correct capital assets due to a new appraisal and to report Accumulated Depreciation. This appraisal was completed in response to previous recommendations. Criteria: A good system of internal controls would provide for accurate recording and reporting of capital assets on a regular basis in order to provide for accurate financial reporting. Cause: Year-end entries related to capital assets were required in order to accurately present the District’s financial statements. Effect: A material adjustment to the District’s beginning net position was required to properly state capital assets. Recommendation: We recommend the District implement effective internal controls in order to provide an accurate assessment of reporting requirements. This implementation of improved controls would result in the appropriate recognition for financial reporting requirements, including the reporting of Accumulated Depreciation. Corrective Action Plan: The District implemented a new capital asset appraisal in order to have accurate historical records of all assets owned by the District. These schedules will be updated on an annual basis to reflect accurate reporting requirements.

The District implemented a new capital asset appraisal in order to have accurate historical records of all assets owned by the District. These schedules will be updated on an annual basis to reflect accurate reporting requirements.

Condition: During audit fieldwork, our testing resulted in significant audit adjustments in order to present materially accurate financial statements for capital assets. Criteria: A good system of internal controls would provide for accurate representations of adjusted account balances for all District accounts prior to audit fieldwork, including the proper reporting of capital assets. Cause: Year-end entries related to capital assets were required in order to present the District’s capital assets records accurately. Effect: The District’s financial statements were not fully adjusted prior to audit fieldwork. Recommendation: We recommend that the District maintain an accurate capital asset schedule and review all additions, deletions, and accumulated depreciation. Corrective Action Plan: The Assistant Superintendent, along with staff, will review the capital asset schedules as part of the audit preparation process to prepare fully adjusted financial statements prior to audit fieldwork.

The Assistant Superintendent, along with staff, will review the capital asset schedules as part of the audit preparation process to prepare fully adjusted financial statements prior to audit fieldwork.

Condition: During our disbursements and payroll testing, we noted that the District does not have adequate procedures in place for reviewing the accuracy and timeliness of ESSER Fund financial information submitted to the Illinois State Board of Education. Criteria: It is the District’s responsibility to accurately report annual financial information to the Illinois State Board of Education by report deadlines. Cause: A uniform set of policies and procedures for reviewing grant supporting schedules and annual reports is lacking, causing annual reports to be submitted after the required deadlines which included expenses in previous years to be reported in the current year. Effect: Grant compliance with federal grants received in the year cannot be assured when there is not sufficient reviewing and approvals of grant schedules and annual reports. Recommendation: We recommend the District develop specific policy and procedures for reviewing and approving ESSER Fund grant schedules and annual reports to submit accurate reports for compliance with applicable requirements by report deadline dates. Corrective Action Plan: The District and Director of Finance will implement controls to properly report expenses to ISBE on a timely basis.

The District does have procedures in place for submitting accurate and timely reports to ISBE. The ESSER program was, hopefully, a one-time event in response to a national pandemic crisis. The District believes its expenses were accurately reported and appropriately used to address the needs of our students, especially with respect to addressing learning loss. To the extent that some expenses were considered not timely filed, we believe they met the intents and purposes of the program, and were filed in accordance with accepted protocols in place at the time. In any event, the District will reiterate with staff the necessity to follow procedures, including submission of timely expense reports with the ISBE. Anticipated Date of Completion: This will be ongoing for all further grant expenditure report submissions.