Moline-Coal Valley School District No. 40

Criteria: The District must prepare a Schedule of Expenditures of Federal Awards (SEFA) for the period covered by the District's financial statements which must include the total Federal awards expenditured in accordance with requirements 2 CFR 200.502. Condition: The District's internal controls over the preparation of the SEFA failed to recongize the IDEA grant expenditures within the Special Education Cluster were overreported by $263,520. The District reported expenditures related to the IDEA program greater than the grant allotment in the current year and those expenditures over the allotment amount were included in the intial amount reported in the SEFA for the IDEA grant. After management's identification of the error subsequent to teh completion of the audit but prior to the release of the audit, the District subsequently adjusted its SEFA to reduce the total reported expenditures for the IDEA grant and Special Education Cluster by $263,520. Questioned Costs: $263,520 Context: There were grant expenditures improperly reported on the initial Schedule of Expenditures of Federal Awards for the fiscal year ended June 30, 2021 of $263,520 for the IDEA grant. Effect: Reissuance of the SEFA. Cause: Grant expenditures were not reconciled to the grant allotment on a timely basis. Recommendation: We recommend a review process of the reconciliation of expenditures to the available funding of each grant take place on a timely basis after year end. Management?s Response: Management has reviewed the finding and agrees.