Marissa Community Unit School District No. 40

Title 1 - 2025 Finding; Criteria: The accounts used to record expenditures on the quarterly expenditure reports should match the general ledger accounts where the expenditures are recorded. Condition: It was noted that there was an inconsistency when comparing the general ledger to what was reported on the expenditure reports. Questioned costs: None; Context: The accounts used to record expenditures on the quarterly expenditure reports should match the general ledger accounts where the expenditures are recorded. An item budgeted and reported under 3000-400 was recorded in a 1250-400 account in the general ledger and another item budgeted and reported under 3000-400 was recorded in a 2900-400 account in the general ledger. Effect: The expenditures were not recorded/reported consistently between the financial records and the ISBE expenditure reports. Cause: A coding error was made when entering the expenditures into the general ledger. Recommendation: We recommend reviewing the general ledger to the expenditure reports before submitting for more accurate reporting. Management response: The District will review the general ledger to the expenditure reports before submitting.

Finding for IDEA Preschool -2025. Criteria: Reporting. All quarterly expenditure reports must be filed with the Illinois State Board of Eduation no later than 20 days after the end of the quarter (10/20, 1/20, 4/20 and 7/20). Condition: The District filed their 1st quarter expenditure report 12/4/2024. The budget was submitted 9/18/2024 and approved 10/7/2024. The reporting system was not open until after 10/20/2024, therefore, the District could not file by the 10/20 deadline due to the timing of the budget approval, but should have filed as soon as possible ater the system was open. Questioned costs: None. Context: The District filed their first quarter expenditure report late. Effect: The District was not in compliance by filing their expenditure report late. Cause: The District did not employ proper oversight to ensure that that quarterly expenditure reports were filed timely. Recommendation: We recommend that steps are taken, including oversight by a second employee, to ensure that all quarterly expenditure reports are filed by the due dates. Management response: The District will take the necessary steps to file all quarterly expenditure reports on time in the future.

Finding IDEA Flow Through -2025; Criteria: Allowable Costs/Activities Allowed. The District is required to report allowable costs/activities allowed based on the grant, the grant budget and for the period of the grant. Condition: An amount claimed on the 6/30/2025 expenditure report included an expense that had been claimed on the IDEA Preschool 6/30/2025 expenditure report. Questioned Costs: Total questioned costs of $2,301. Expense was claimed in two different grants. Context: The expense for the IDEA Flow Through and IDEA Preschool grants were maintained in the same expense account and when reporting expenses for the 6/30/2025 expenditure report, the same amount was mistakenly used in both grants. Effect: The District did not file an accurate expenditure report at 6/30/2025 resulting in $2,301 of expenses claimed across different grants. Cause: The District uses the same expense account for payments for IDEA Preschool and IDEA Flow Through for their special education cooperative and claimed the same expense twice. Recommendation: We recommend having separate accounts for expenses for grants and reviewing the general ledger for unallowable expenses before entering into the expenditure reports and submiting. Management response: The District will review the general ledger for unallowable expenses before submitting quarterly reports.

ESSER III Finding; Criteria: The accounts used to record expenditures on the quarterly expenditure reports should match the general ledger accounts where the expenditures are recorded. Condition: It was noted that there was an inconsistency when comparing the general ledger to what was reported on the expenditure reports. Questioned costs: None; Context: The accounts used to record expenditures on the quarterly expenditure reports should match the general ledger accounts where the expenditures are recorded. An item budgeted and reported under 1000-300 was recorded in a 2210-300 account in the general ledger and another item budgeted and reported under 2210-300 was recorded in a 1000-300 account in the general ledger. Effect: The expenditures were not recorded/reported consistently between the financial records and the ISBE expenditure reports. Cause: A coding error was made when entering the expenditures into the general ledger. Recommendation: We recommend reviewing the general ledger to the expenditure reports before submitting for more accurate reporting. Management response: The District will review the general ledger to the expenditure reports before submitting.

Criteria: Reporting. All quarterly expenditure reports must be filed with the Illinois State Board of Education no later than 20 days after the end of the quarter (10/20, 1/20, 4/20, 7/20). Condition: 2nd quarter report for IDEA Flowthrough was filed 2 days after the 20 day deadline. 1st quarter report for COVID-19 ARP IDEA Flowthrough was filed 20 days after the 20 day deadline. 1st quarter report for COVID-19 ARP IDEA Preschool Flowthrough was filed 20 days after the 20 day deadline. Questioned Costs: No questioned costs. Context: The 2nd quarter report for IDEA Flowthrough and the 1st quarter reports filed for COVID-19 ARP IDEA Flowthrough and COVID-19 ARP Preschool Flowthrough ranged from 2 days to 20 days filed after the 20 day deadline. Effect: The District was not in compliance by filing their expenditure reports late. Cause: The District did not employ proper oversight to ensure that the quarterly expenditure reports were filed timely. Recommendation: We recommend that steps are taken, including oversight by a second employee, to ensure that all quarterly expenditure reports are filed by the due dates. Management's Response: The District will take the necessary steps to file all quarterly expenditure reports on time in the future.

Criteria: Allowable Costs/Activites Allowed. The District is required to report allowable costs/activities allowed based on the grant, the grant budget and for the period of the grant. In general, grantees are not allowed to begin an activity or obligate or expend funds that will be charged to a state or federal grant until a substantially approvable initial application (see 34 CFR 76.708) has been received at ISBE. At a minimum, a “substantially approvable application” is a complete grant application and supporting budget detail with assurances. Grantees that submit a state or federal initial application prior to the program begin date (usually July 1) will be granted an appropriate project begin date for the following fiscal year unless state appropriation authority has not been approved. Grantees that submit a state or federal initial application after July 1 will be assigned a project begin date no earlier than when the initial application was received at ISBE or the program begin date (whichever is later). Condition: It was noted that the Title I grant application was submitted late, establishing a grant start date of 12/19/23. Due to the late start date, any expenditures that were obligated or services that were provided prior to the submittal date were not grant allowable costs. The expenditure reports that were submitted and subsequently reimbursed included costs from 7/1/23 - 12/18/23, which occured prior to the grant start date. Per 2 CFR 200.403(h) and guidelines established above, costs must be incurred during the approved budget period. Questioned Costs: There are $114,912 questioned costs associated with this grant. Context: The Title I grant application was submitted late, establishing a grant start date of 12/19/23. The expenditure report submitted on 3/8/24 for expenditures through that date, included salaries, benefits, purchased services, and supplies that occurred before the grant start date of 12/19/23. There are seven employees who are paid through the grant, and approximately 7 paychecks and benefits from July through the first December paycheck, totaling $99,364.87, were allocated and claimed in the 3/8/24 expenditure report under Instruction Salaries. There were two expenditures claimed in Instruction Supplies in the 3/8/24 expenditure report that were purchased in August 2023, totaling $497.09. There was one expenditure claimed in Other Support Services Supplies in the 3/8/24 expenditure report that was purchased in August 2023, totaling $1,512.50. There were 8 expenditures claimed in Assessment & Testing Purchased Services in the 3/31/24 expenditure report that were all purchased in July 2023, totaling $13,537.50. This sum of these expenditures claimed represent a total questioned costs of $114,911.96. Effect: The District mistakenly claimed $114,912 of unallowable expenses. There is an increased risk that these funds will be subject to repayment as they were incorrectly submitted for reimbursement. Cause: This was an oversight by management personnel in the District when submitting the first expenditure report for the grant. The District mistakenly included expenses occuring before the application start-date. Recommendation: The District should take steps to submit grant applications in a timely manner to ensure that they are able to claim all expenses as budgeted. The District should ensure that expenditure reports filed in grants with begin dates occuring after the start of the fiscal year does not include expenses occuring before the begin date, including reconciling general ledger records against the expenditure reports prior to submission. Management's Response: The District will take steps to submit grant applications in a timely manner. The District will take all necessary steps to reconcile the general ledger to the expenditure reports to ensure ineligible costs are not included on the expenditure report.

Criteria: Allowable Costs/Activites Allowed. The District is required to report allowable costs/activities allowed based on the grant, the grant budget and for the period of the grant. In general, grantees are not allowed to begin an activity or obligate or expend funds that will be charged to a state or federal grant until a substantially approvable initial application (see 34 CFR 76.708) has been received at ISBE. At a minimum, a “substantially approvable application” is a complete grant application and supporting budget detail with assurances. Grantees that submit a state or federal initial application prior to the program begin date (usually July 1) will be granted an appropriate project begin date for the following fiscal year unless state appropriation authority has not been approved. Grantees that submit a state or federal initial application after July 1 will be assigned a project begin date no earlier than when the initial application was received at ISBE or the program begin date (whichever is later). Condition: It was noted that the IDEA Preschool Flowthrough grant application was submitted late, establishing a grant start date of 12/19/23. Due to the late start date, any expenditures that were obligated or services that were provided prior to the submittal date were not grant allowable costs. The expenditure reports that were submitted and subsequently reimbursed included costs from 7/1/23 - 12/18/23, which occured prior to the grant start date. Per 2 CFR 200.403(h) and guidelines established above, costs must be incurred during the approved budget period. Questioned Costs: There are $4,646 questioned costs associated with this grant. Context: The IDEA Preschool Flowthrough grant application was submitted late, establishing a grant start date of 12/19/23. The expenditure report submitted 12/31/23 for expenditures through that date, included purchased services that occurred before the grant start date of 12/19/23. There were 2 expenditures claimed in Payments to Other Governmental Unit Purchased Services in the 12/19/23 expenditure report that were all purchased in September and November 2023, totaling $4,646, which represent the total questioned costs of for the grant years. Effect: The District mistakenly claimed $4,646 of unallowable expenses. There is an increased risk that these funds will be subject to repayment as they were incorrectly submitted for reimbursement. Cause: This was an oversight by management personnel in the District when submitting the first expenditure report for the grant. The District mistakenly included expenses occuring before the application start-date. Recommendation: The District should take steps to submit grant applications in a timely manner to ensure that they are able to claim all expenses as budgeted. The District should ensure that expenditure reports filed in grants with begin dates occuring after the start of the fiscal year does not include expenses occuring before the begin date, including reconciling general ledger records against the expenditure reports prior to submission. Management's Response: The District will take steps to submit grant applications in a timely manner. The District will take all necessary steps to reconcile the general ledger to the expenditure reports to ensure ineligible costs are not included on the expenditure report.

Criteria: Allowable Costs/Activites Allowed. The District is required to report allowable costs/activities allowed based on the grant, the grant budget and for the period of the grant. Condition: The amount claimed on the 11/30/23 final expenditure report for ESSER II included an expense that had been claimed on the ESSER III 6/30/24 expenditure report. The amount claimed on the 11/30/23 final expenditure report for ESSER II included an expense that had been claimed on the Digital Equity I (2021 Grant Year) 6/30/22 expenditure report. Questioned Costs: Total questioned costs of $43,447: $3,333 in 1000-100 double-reported in ESSER II and ESSER III; $4,800 in 1000-300 double reported in ESSER II and Digital Equity I (Grant Year 2021); $35,314 in 1000-400 double-reported in ESSER II and Digital Equity I (Grant Year 2021). Context: Various journal entries were made at year-end moving items out of ESSER II accounts and into other grant accounts, where they were included in grant expenditure reports and subsequently reimbursed. 3 employees had their last pay moved out of the ESSER II 1000-100 grant accounts ($2,655.71, $552.00, and $125.00 respectfully for a total of $3,332.71) and moved into an ESSER III 1000-100 grant account, where these amounts were included in the grant reports for ESSER III from 8/31/23 through 6/30/24. A manual journal entry moved $4,800 out of an ESSER II 1000-300 account and into a Digital Equity 1000-300 account, where this amount was included in the grant reports for Digital Equity I (Grant Year 2021) through 6/30/22. A journal entry moved $35,998.50 out of an ESSER II 1000-400 account and into a Digital Equity 1000-400 account, where a portion of this amount, totaling $35,414.74, was included in the grant reports for Digital Equity I (Grant Year 2021) through 6/30/22. Effect: The District did not file an accurate expenditure report at 11/30/23 resulting in $43,447.34 of expenses claimed across different grants. There is an increased risk that these funds will be subject to repayment as they were incorrectly submitted for reimbursement. Cause: The District claimed the same expenses for Digital Equity I (2021 Grant Year) and ESSER II. The District claimed the same expenses for ESSER II and ESSER III. The District's financial specialist started at the beginning of the year, and ESSER II and ESSER III claimed items from prior years (from 2021, 2022, and 2023, when the previous financial specialist was still working at the District. Recommendation: We recommend reviewing the general ledger and journal entries made at the end of the year for duplicate or unallowable expenses before entering into the expenditure report and submitting. Management's Response: The District will review the general ledger and end-of-year journal entries for duplicate or unallowable expenses before submitting quarterly reports.

Criteria: Allowable Costs/Activites Allowed. The District is required to report allowable costs/activities allowed based on the grant, the grant budget and for the period of the grant. Condition: The District submitted budgeted expenditures for reimbursement instead of actual expenditures for ESSER II. Questioned Costs: The questioned cost is $7,875: $3,598 in 2540-300 and $4,277 in 2540-500. Context: The District budgeted $32,380 for 27 camera licenses in 2540-300 and $27,317 for 17 indoor cameras, 11 outdoor cameras, and $488 shipping and handling in 2540-500 for a total of $59,697. These budgeted items were present on one invoice. The actual total on the invoice was $51,822, as the District only purchased 24 camera licenses, 17 indoor cameras, 9 outdoor cameras, and the shipping and handling was only $408. The cost as estimated on the budget was the amount reported as of the 11/30/23 expenditure report, which is the final report. Effect: There is an increased risk that these funds will be subject to repayment as they were incorrectly submitted for reimbursement. The District did not file an accurate final expenditure report at 11/30/23. Cause: The District purchased less cameras and licenses than budgeted, but mistakenly picked up the budgeted total on the 11/30/23 expenditure report. Recommendation: We recommend reconciling the budgeted amount to the general ledger totals and reconciling those to expenditure reports before submitting. Management's Response: The District will review the budgeted cost of items and the amount recorded in the general ledger against the expenditure reports before submitting.

Criteria: Reporting. To determine that an accurate June 30, 2024 expenditure report was filed with the Illinois State Board of Education. The District reported expenses on the 6/30/24 expenditure report that were paid after year end. Condition: It was noted that the District claimed a total of $1,277,562 at 6/30/24, however $64 of these expenses were paid after year end and should be considered outstanding obligations at 6/30/24. Questioned Costs: No questioned costs. Context: The District claimed expenses on the 6/30/24 expenditure report that were not disbursed until July 2024. The expenses were allowable under the grant, but the District claimed the expense too early. Effect: The District claimed expenses early and were reimbursed for expenses of $64 for expenses that were not paid until July 2024. Cause: The District mistakenly picked up the wrong total on the general ledger report used to claim expenses. Recommendation: We recommend reconciling the general ledger AP totals to the expenditure reports before submitting. Management's Response: The District will add a verification process to reconcile the general ledger AP totals to the expenditure reports before submitting.

Criteria: Reporting. All quarterly expenditure reports must be filed with the Illinois State Board of Education no later than 20 days after the end of the quarter (10/20, 1/20, 4/20, 7/20). Condition: 1st quarter report for ESSER II was filed 32 days after the 20 day deadline. 2nd quarter report for ESSER III was filed 2 days after the 20 day deadline. 1st quarter, 2nd quarter, and fourth quarter reports for Digital Equity 3 were filed 25, 11, and 9 days, respectfully, after the 20 day deadline. Questioned Costs: None. Context: Multiple reports across different quarters in ESSER II, ESSER III, and Digital Equity 3 filed for those grants ranged from 2 days to 32 days filed after the 20 day deadline. Effect: The District was not in compliance by filing their expenditure reports late. Cause: The District did not employ proper oversight to ensure that the quarterly expenditure reports were filed timely. Recommendation: We recommend that steps are taken, including oversight by a second employee, to ensure that all quarterly expenditure reports are filed by the due dates. Management's Response: The District will take the necessary steps to file all quarterly expenditure reports on time in the future.

Criteria: Reporting. The accounts used to record expenditures on the quarterly expenditure reports should match the general ledger accounts where the expenditures are recorded. Condition: It was noted that there was an inconsistency when comparing the general ledger to what was reported on the expenditure reports. Questioned Costs: No questioned costs. Context: The accounts used to record expenditures on the quarterly expenditure reports should match the general ledger accounts where the expenditures are recorded. In ESSER III (2024-4998-E3), an item budgeted and reported under 2530-300 was recorded in a 2540-500 account. In Digital Equity 3 (2023-4998-D3), items budgeted and reported under 1000-300 were recorded in a 1000-400 account. In ESSER II (2024-4998-E2), items reported in 2540-300 and 2540-500 were recorded in account 1250-500; Items reported as 2550-100 were recorded in account 40-1600-100; Items were reported in 2550-100 were recorded in account 1000-100; Items were reported as 2900-400 and were recorded in account 1000-400. For Digital Equity 2 (2024-4998-D2), all items were recorded budgeted as 1000-300 and 1000-400, but recorded in 2210-400 and 2310-400 accounts. Effect: The expenditures were not recorded/reported consistently between the financial records and the ISBE expenditure reports. Cause: A coding error was made when entering the expenditures into the general ledger. Recommendation: We recommend reviewing the general ledger to the expenditure reports before submitting for more accurate reporting. Management's Response: The District will review the general ledger to the expenditure reports before submitting.

Criteria: Equipment property records must be maintained for equipment purchased with federal funds. Condition: Equipment records were not maintained for items purchased with federal funds. Questioned Costs: There are no questioned costs. Context: There were multiple items claimed as capital outlay items and added to the fixed asset listing in the year they were purchased, but there were no federal inventory log and property records maintained for them. Effect: The District did not comply with the equipment compliance requirement regarding the keeping of property records for equipment purchased with federal funds. Cause: The District was not aware of the compliance requirement. Recommendation: We will provide the ISBE equipment log guidelines and recommend that the District begins the process of maintaining a log going forward for all equipment purchased with federal funding. We recommend that the compliance supplement is obtained and read for all new grants, as well as grants that encompass a majority of grant spending in the District, to ensure that employees know the compliance requirements. We also recommend the District obtains an grant equipment spending policy. Management's Response: Management agrees to take the necessary steps to ensure compliance requirements are met and will discuss implementing an inventory record-keeping process.

Criteria: Reporting. All quarterly expenditure reports must be filed with the Illinois State Board of Education no later than 20 days after the end of the quarter (10/20, 1/20, 4/20, 7/20). Condition: No grant reports were filed for the 1st, 2nd and 3rd quarters for all grants. 4th quarter report for Title I - Low Income was filed 20 days after the 20 day deadline. 4th quarter report for the Title IVA - Student Support was filed 102 days after the 20 day deadline. 4th quarter report for IDEA Preschool was filed 85 days after the 20 day deadline. 4th quarter report for IDEA was filed 60 days after the 20 day deadline. 4th quarter report for Title II - Teacher Quality was filed 28 days after the 20 day deadline. Questioned Costs: None Context: No quarterly reports were filed for the first 3 quarters. The 4th quarter reports for the federal grants ranged from 20 days to 102 days filed after the 20 day deadline. Effect: The District was not in compliance by filing their expenditure reports late. Cause: The District did not employ proper oversight to ensure that the quarterly expenditure reports were filed timely. Recommendation: We recommend that steps are taken, including oversight by a second employee, to ensure that all quarterly expenditure reports are filed by the due dates. Managements response: The Distrit will take the necessary steps to file all quarterly expenditure reports on time in the future.

Criteria: Reporting. All quarterly expenditure reports must be filed with the Illinois State Board of Education no later than 20 days after the end of the quarter (10/20, 1/20, 4/20, 7/20). Condition: No grant reports were filed for the 1st, 2nd and 3rd quarters for the COVID 19 ESSER 3 grant. 4th quarter report for COVID 19 ESSER 3 was filed 35 days after the 20 deadline. No grant reports were filed for the 1st and 2nd quarter for the COVID 19 McKinney Vento ARP Homeless. 3rd quarter report for COVID 19 McKinney Vento ARP Homeless was filed 90 days after the 20 day dealine. 4th quarter report for COVID 19 McKinney Vento ARP Homeless was filed 5 days after the 20 day deadline. Questioned Costs: None Context: No reports were filed the 1st, 2nd nd 3rd quarter for COVID 19 ESSER 3. No reports were filed for the 1st and 2nd quarter for COVID 19 McKinney Vento ARP Homeless. The 3rd and 4th quarter reports for the federal grants granted from 5 days to 90 days filed after the 20 day deadline. Effect: The District was not in compliance by filing their expenditure reports late. Cause: The District did not employ proper oversight to ensure that the quarterly expenditure reports were filed timely. Recommendation: We recommend that steps are taken, including oversight by a second employee, to ensure that all quarterly expenditure reports are filed by the due dates. Managements response: The Distrit will take the necessary steps to file all quarterly expenditure reports on time in the future.

Criteria: Reporting. The accounts used to record expenditures on the quarterly expenditure reports should match the general ledger accounts where the expenditures are recorded. Condition: It was noted that there was an inconsistency when comparing the general ledger to what was reported on the expenditure reports. Quesstioned costs: None Context: Tied out all the expenditure account numbers in the general ledger versus the 6/30/23 expenditure reports. Noted that the expenditures recorded in 2540-500 in the general ledger but were not reported in 2540-300 in the expenditure report. Effect: The expenditures were not recorded/reported consistently between the two reports. Cause: A coding error was made when entering the expenditure into the general ledger. Recommendation: We recommend reviewing the general ledger to the expenditure reports before submitting for more accurate reporting. Managements response: The District will review the general ledger to the expenditure reports before submitting.

Criteria: Reporting. To determine that an accurate June 30, 2023 expenditure report was filed with the Illinois State Board of Education. The District reported expenses on the June 30, 2023 expenditure report that were paid after year end. Condition: It was noted that the District claimed a total of $18,658 at 6/30/23, however, $1,860 of these expenses were paid after year end and should be considered outstanding obligations at 6/30/23. Questioned costs: None Context: The District claimed expenses on the 6/30/23 expenditure report that were not paid until August 2023. The expenses were allowable under the grant, but the District claimed the expense too early. Effect: The District claimed expenses early and were reimbursed for expenses of $1,860 in July 2023 that were not paid until August 2023. Cause: The District mistakenly picked up the wrong total on the general ledger used to claim expenses. Recommendation: We recommend reconiling the general ledger AP totals to the expenditure reports before submitting. Managements response: The District will add a vertification process to reconcile the general ledger AP totals to the expenditure reports before submitting.

Criteria: Reporting: To determine that an accurate June 30, 2023 expenditure report was filed with the Illinois State Board of Education based on guidelines prescribed by the Illinois State Board of Education. Condition: The amounts claimed on the June 30, 2023 expenditure reports included an expense that was claimed twice. Questioned Costs: $1,022 expense in 2130-400 was claimed twice. Context: It was noted that $1,022 was claimed twice, when comparing the expenditure reports filed to the general ledger detail. Effect: The District did not file an accurate expenditure report at June 30, 2023. Cause: The District had the same expense in the general ledger report twice. Recommendation: To review the general ledger for duplicate or unallowable expenses before entering into the expenditure report and submitting. Management's Response; The District will review the general ledger for duplicate or unallowale expenses before submitting quarterly reports.

Criteria: Reporting. All quarterly expenditure reports must be filed with the Illinois State Board of Education no later than 20 days after the end of the quarter (10/20, 1/20, 4/20 and 7/20). Condition: No reports were filed for Quarters 2 and 3 and Quarter 4 was filed 16 days after the 20 day deadline for Title I - Low Income. No reports were filed for Quarters 2 and 3 and Quarter 4 was filed 21 days after the 20 day deadline for Title II - Teacher Quality. No report was filed for Quarter 2 and Quarter 3 was filed 41 days after the 20 day deadline for the IDEA Cluster. Quarter 4 for ESSER was filed 8 days after the 20 day deadline. Questioned Costs: No questioned costs. Context: The quarterly reports for the federal grants ranged from 16 days to 41 days filed after the 20 day deadline. Effect: The District was not in compliance by filing their expenditure reports late. Cause: The District did not employ proper oversight to ensure that the quarterly expenditure reports were filed timely. Recommendation: We recommend that steps are taken, including oversight by a second employee, to ensure that all quarterly expenditure reports are filed by the due dates. Management response: The District will take the necessary steps to file all quarterly expenditure reports on time in the future.

Criteria: All quarterly expenditure reports must be filed with the Illinois State Board of Education no later than 20 days after the end of the quarter (10/20, 1/20, 4/20, 7/20). Condition: Quarters 2, 3 and 4 for Title I Low Income and Title II Teacher Quality were filed between 49 and 92 days after the 20 day deadline. Quarters 1, 2, 3 and 4 for IDEA Cluster were filed between 19 and 160 days after the 20 day deadline. Quarter 3 for ESSER Digital Equity was filed 54 days after the 20 day deadline. Quarter 2 and 3 for ESSER I were file 41 to 64 days after the 20 day deadline. Questioned Costs - $0; Context: The quarterly reports for the federal grants ranged from 1 day to 160 days filed after the 20 day deadline. Effect: The District was not in compliance by filing their expenditure reports late. Cause: The District did not employ proper oversight to ensure that the quarterly expenditure reports were filed timely. Recommendation: We recommend that steps are taken, including oversight by a second employee, to ensure that all quarterly expenditure reports are filed by the due dates. Managements response: The District will take the necessary steps to file all quarterly expenditure reports on time in the future.

Criteria: To determine that an accurate June 30, 2020 expenditure report was filed with the Illinois State Board of Education based on guidelines prescribed by the Illinois State Board of Education. Condition: The amounts claimed on the June 30, 2020 expenditure report did not match the general ledger reports. The expenditure report filed with the Illinois State Board of Education included expenses paid in July 2020, instead of listing them as outstanding obligations. Questioned costs: $44,399 out of $51,130 claimed at June 30, 2020 was paid for after June 30, 2020. The expenses were allowable under the grant and for reimbursement, but claimed early. The expenditure report was filed in August 2020 after all of the expenses had been paid. Context: When comparing the expenditure report filed with the Illinois State Board of Education to the general ledger, it was noted that $44,399 of the $51,130 claimed was paid in July 2020 and not before June 30, 2020. The expense was an allowable expense under the grant, but the School District claimed the expense to early. Effect: the School District did not file an accurate expenditure report at June 30, 2020. The School District did not file the expenditure report until August 2020 and did not receive reimbursement until September 2020, therefore not receiving reimbursement early. Cause: The School District used the purchase order date for claiming expense instead of the check date. Recommendation: To reconcile the expenditure reports filed with the Illinois State Board of Education with the general ledger before submitting. Management Response: Management agrees to amend their procedures to reconcile the expenditure reports to the general ledger before submitting.

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