ORION COMMUNITY UNIT SCHOOL DISTRICT NO. 223Local Government

Federal Program Name and Year: Child Nutrition Cluster - 2021 Project No.: 20 & 21-4210, 4225 CFDA No.: 10.555, 10.559 Passed Through: ISBE Federal Agency: U.S. Department of Agriculture Criteria or specific requirement (including statutory, regulatory, or other citation): The Code of Federal Regulations (CFR) Title 7, part 210.14(b) states the school food authority shall limit its net cash resources to an amount that does not exceed 3 months average expenditures for its nonprofit school food service. Condition: The District has not monitored the net cash resources of the child nutrition program. Upon further review, it was determined that the net cash resources of the nonprofit school food service did not exceed 3 months average expenditures. Questioned Costs: None. Context: The District did not calculate the net cash resources of the nonprofit school food service. Effect: Noncompliance with the federal award program's resource (cash) management requirements could occur and not be detected and corrected timely. Cause: Management had not developed a system of internal control to ensure compliance with the Cash Management compliance requirement. Recommendation: We recommend that the management establish internal controls related to the cash management compliance requirement to ensure that the net cash resources of the nonprofit school food service does not exceed 3 months average expenditures. Management's response: There is no disagreement with this finding and internal controls will be developed to monitor the net cash resources of the nonprofit school food service.

Federal Program Name and Year: Education Stabilization Fund - 2021 Project No.: 20 & 21-4998 ER, E2 CFDA No.: 84.425 Passed Through: ISBE Federal Agency: U.S. Department of Education Criteria or specific requirement (including statutory, regulatory, or other citation): The Code of Federal Regulations (CFR) Title 2, part 200.313(d) states that the non-federal entity must maintain property records that include a description of the property, a serial number or other identification number, the source of funding, who holds title, the acquisition date, the cost of the property, percentage of Federal participation in the project costs for the Federal award under which the property was acquired, the location, use and condition of the property, and any ultimate disposition data including the date of disposal and sale price of the property. Condition: The District maintained property records that did not include all of the requirements listed in 2 CFR Section 200.313(d) (1). Questioned Costs: None. Context: "District maintained property records for equipment purchased under Federal awards, but were missing required items under 2 CFR Section 200.313(d)(1)." Effect: Noncompliance with the federal award program's Equipment and Real Property Management occurred. Cause: Minimum requirements under 2 CFR Section 200.313(d)(1) were not included in the District's property records for equipment purchased under Federal awards. Recommendation: We recommend that District property records be kept in compliance with requirements stated in 2 CFR Section 200.313. Management's response: There is no disagreement with this finding and the District will develop an updated listing of property purchased under Federal awards to comply with the Equipment and Real Property compliance requirements.