APTAKISIC-TRIPP COMMUNITY CONSOLIDATED SCHOOL DISTRICT #102Local Government

1. FINDING NUMBER:14 2025 - 003 2. THIS FINDING IS: New 3. Federal Program Name and Year: Special Education Cluster 4. Project No.: 24-4620-EI,25-4620-00,25-4620-EI,24-4625-00,25-4625-00,24-4600-00,25-4600-00 5. AL No.: 84.027,84.173 6. Passed Through: Illinois State Board of Education 7. Federal Agency: U.S. Department of Education 8. Criteria or specific requirement (including statutory, regulatory, or other citation): Per Uniform Guidance (2 CFR §200.302 and §200.303), non-Federal entities are required to maintain effective internal controls over Federal awards and maintain records that adequately identify the source and application of funds for federally funded activities. Financial management systems should provide accurate, current, and complete disclosure of financial results and adequately support expenditures charged to Federal programs. Expenditures submitted for reimbursement should be readily traceable to the accounting records and supported by appropriate documentation. 9. Condition: During our testing of expenditures submitted for reimbursement under the Special Education Grant, we noted that expenditures included in reimbursement requests were difficult to reconcile to supporting documentation and the District's accounting records. Specifically, amounts recorded within the general ledger for certain purchased services and supplies and materials expenditures were incomplete and could not independently support the amounts claimed for reimbursement. District personnel were required to provide additional grant tracking schedules and other supporting records to reconcile the expenditures reported for reimbursement. 10. Questioned Costs: None 11. Context: As part of our Uniform Guidance compliance testing, we reviewed expenditures charged to and reimbursed under the Special Education Grant. During testing, we noted instances in which expenditure amounts reported for reimbursement could not be directly traced to the general ledger and required reconciliation to separate grant tracking documentation maintained outside the accounting system. 12. Effect: The lack of a complete and accurate grant tracking process increases the risk that unsupported, inaccurate, duplicate, or unallowable expenditures could be included in reimbursement requests and charged to the Federal program. Inadequate documentation also impairs management's ability to effectively monitor grant activity and increases the risk of noncompliance with Federal grant requirements. 13. Cause: The District's procedures for tracking and recording grant expenditures were not sufficient to ensure that amounts reported for reimbursement were fully supported by and readily traceable to the general ledger. The District relied on supplemental grant tracking records to compile reimbursement requests because expenditures recorded in the accounting records were not maintained in a manner that allowed for complete and efficient reconciliation of grant activity. 14. Recommendation: We recommend the District strengthen its grant accounting and monitoring procedures by: 1. Ensuring all Special Education Grant expenditures are accurately and completely recorded within the general ledger, 2. Maintaining a clear audit trail between reimbursement requests, supporting invoices, payroll records (if applicable), grant tracking schedules, and the general ledger, 3. Performing periodic reconciliations between grant reimbursement requests and accounting records prior to submission, 4. Establishing documented review procedures to verify the completeness and accuracy of expenditures charged to Federal programs, and 5. Providing training to personnel responsible for grant accounting and reimbursement preparation to ensure compliance with Uniform Guidance documentation requirements. Implementation of these procedures will improve accountability over Federal funds, strengthen compliance with Uniform Guidance requirements, and reduce the risk of unsupported costs being charged to Federal programs. 15. Management's response: Management agrees with the finding and will strengthen grant tracking and reconciliation procedures to ensure expenditures submitted for reimbursement are fully supported, accurately recorded in the general ledger, and readily traceable to the underlying documentation.

Criteria or specific requirement: As required by the Office of Management and Budget, auditees are required to submit a completed data collection form and audit package to the Federal Audit Clearinghouse on or before the earlier of 30 days after receipt of the auditor's report or nine months after the end of the audit period. Condition: The 2024 data collection form and audit package were not submitted timely. Questioned Costs: To be determined by grantor. Context: Due to extenuating circumstances related to personnel changes, the 2024 data collection form and audit package were unable to be submitted to the Federal Audit Clearinghouse in a timely manner. Effect: The District is at risk of jeopardizing the continued funding provided by the federal agencies. Cause: The lack of meeting the applicable reporting requirements was largely due to extenuating circumstances related to personnel changes. Recommendation: We recommend that the District implement policies and procedures related to the Uniform Guidance reporting requirements. Management's response: The District will implement a process to track the submission time of the data collection form and audit package

Criteria or specific requirement: As required by the Office of Management and Budget, auditees are required to submit a completed data collection form and audit package to the Federal Audit Clearinghouse on or before the earlier of 30 days after receipt of the auditor's report or nine months after the end of the audit period. Condition: The 2022 data collection form and audit package were not submitted timely. Context: Due to extenuating circumstances related to personnel changes, the 2022 data collection form and audit package were unable to be submitted to the Federal Audit Clearinghouse in a timely manner. Questioned Costs: To be determined by grantor. Effect: The District is at risk of jeopardizing the continued funding provided by the federal agencies. Cause: The lack of meeting the applicable reporting requirements was largely due to issues created by extenuating circumstances related to personnel changes.

Criteria or specific requirement: As required by the Office of Management and Budget, auditees are required to submit a completed data collection form and audit package to the Federal Audit Clearinghouse on or before the earlier of 30 days after receipt of the auditor's report or nine months after the end of the audit period. Condition: The FY2021 data collection form and audit package were not submitted timely. Context: Due to extenuating circumstances related to the COVID-19 pandemic, the FY2021 data collection form and audit package were unable to be submitted to the Federal Audit Clearinghouse in a timely manner. Questioned Costs: To be determined by grantor. Effect: The District is at risk of jeopardizing the continued funding provided by the federal agencies. Cause: The lack of meeting the applicable reporting requirements was largely due to issues created by extenuating circumstances related to the COVID-19 pandemic.