KNOXVILLE COMMUNITY UNIT #202Local Government

Data Collection Form Submission - Condition: The 2023 data collection form and audit package were not submitted timely. Criteria: 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. During 2023, this requirement is due on March 31, 2024. Cause: The late filing is due to confusion with prior auditors on responsibility submitting the final reports. Effect: The District is at risk of jeopardizing the continued funding provided by the federal agencies. Recommendation: We recommend the District implement policies and procedures related to the Uniform Guidance reporting requirements. Corrective Action Plan: The Superintendent, along with staff, will review and evaluate the reporting requirements of all grants to ensure timely reporting requirements.

This finding is recurring. CRITERIA: Financial Statements are the responsibility of the client and should be prepared by them including footnotes. CONDITION: The District does not have an internal control system available or the personnel with the needed expertise and knowledge to prepare the financial statements. The auditor's draft the financial statements and notes. The district's management reviews the draft financial statements. EFFECT: Management or employees in the normal course of performing their assigned functions may not prevent or detect financial statement misstatement in a timely manner. CAUSE: The District has no one with the necessary expertise to prepare the financial statements and footnotes. RECOMMENDATION: The District should retain an employee capable of preparing the financial statements and required footnotes. MANAGEMENT RESPONSE: Due to the size of the district, it is the decisionof management to accept this deficiency in light of the costs and other considerations.

This finding is recurring. CRITERIA: Per Illinois Compiled Statutes, the fund expenditures may not legally exceed the district's budgeted amounts. CONDITION: For the year ending 2023, actual expenditures for the Educational, Operations and Maintenance, Municipal Retirement/Social Security, and Tort funds exceeded the budget. CONTEXT: The approved budget established the authorized expenditures limitation in each fund. EFFECT: Actual expenditures exceeded the budget in the above named funds. CAUSE: Actual expenditures exceeded the budgeted amounts for the year RECOMMENDATION: A closer review of expenditures needs to be maintained and reflected in the amended budget. MANAGEMENT RESPONSE: The District will implement a better monitoring system between the budget and the actual expenditures to ensure that actual expenditrues do not exceed budgeted amounts. Principals are now assigned budgets. The principal approves expenditures to sent to Superintendent for secondary approval.

FINDING 2022-001 This Finding is recurring. CRITERIA: Financial Statements are the responsibility of the client and should be prepared by them including footnotes. CONDITION: The District does not have an internal control system available or the personnel with the needed expertise and knowledge to prepare the financial statements. The auditor's draft the financial statements and notes. The district's management reviews the draft financial statements. EFFECT: Management or employees in the normal course of performing their assigned functions may not prevent or detect financial statement misstatement in a timely manner. CAUSE: The District has no one with the necessary expertise to prepare the financial statements and required footnotes. RECOMMEDNDATION: The District should retain an employee capable of preparing the financial statements and required footnotes. MANAGEMENT RESPOENSE: Due to the size of the District, It is the decision of management to accept this deficiency in light of the costs and other considerations.

FINDING 2022-002. This finding is recurring. CRITERA: Per Illinois Compiled Statutes, the fund expenditures may not legally exceed the district's budgeted amounts. CONDITION: For the year ending 2022, actual expenditures for the Educational , Transportation, Tort, and Fire Prevention & Safety funds exceeded the budget. CONTEXT: The approved budget established the authorized expenditures limitation in each fund. EFFECT: Actual expenditures exceeded the budget in the above named funds. CAUSE: Actual expenditures exceeded the budgeted amounts for the year. RECOMMENDATION; A closer review of expenditures needs to be maintained and reflected in the amended budget. MANAGEMENT's RESPONSE: The District will implement a better monitoring system between the budget and the actual expenditures to ensure more oversight and amend the budget as needed.

FINDING 2021-001 This Finding is recurring. CRITERIA: Financial Statements are the responsibility of the client and should be prepared by them including footnotes. CONDITION: The District does not have an internal control system available or the personnel with the needed expertise and knowledge to prepare the financial statements. The auditor's draft the financial statements and notes. The district's management reviews the draft financial statements. EFFECT: Management or employees in the normal course of performing their assigned functions may not prevent or detect financial statement misstatement in a timely manner. CAUSE: The District has no one wih the necessary experise to prepare the financial statements and required footnotes. RECOMMENDATION: The District should retain an employee capable of preparing the financial statements and required footnotes. MANAGEMENT RESPONSE: Due to the size of the District, it is the decision of management to accept this deficiency in light of the costs and other considerations.

FINDING 2021-002. This finding is a recurring. CRITERA: Per Illinois Compiled Statutes, total fund expenditures may not legally exceed the district's budgeted amounts. CONDITION: For the year ending 2021, actual expenditures for the Educational, Operation and Maintenance, Transportation, and Tort funds exceeded the budget. CONTEXT: The approved budget established the authorized expenditures limitation in each fund. EFFECT: Actual expenditures exceeded the budget in the above named funds. CAUSE: Actual expenditures exceeded the budgeted amounts for the year. RECOMMENDATION: closer review of expenditures needs to be maintained and reflected in the amended budget. MANAGEMENT'S RESPONSE: The District will implement a better monitoring system between the budget and actual expenditures to ensure more oversight.

FINDING 2020-001 This finding is? X Recurring CRITERIA: Duties of the school district personnel are to be segregated to reduce the risk of fraud so that no one individual controls all key aspects of a transaction. By doing this, the district ensures reliable financial reporting, effective operations, and compliance reviews accounting process. CONDITION: The district bookkeeper has substantial control over key aspects of the transactions and events within the internal control system. Duties have been segregated as much as possible due to the the size of the available staff. The Superintendent and the Board of Education reviews accounting processes. CONTEXT: The above condition is an ongoing issue for the school district. EFFECT: Transactions could be altered by District personnel in error or in an effort to commit fraud. CAUSE: The number of personnel performing accounting functions limit the ability of the district to have adequate segregation of duties over accounting transactions. RECOMENDATIONS: This type of weakness is common among school districts of this size and number of employees. The findings could be eliminated by hiring additional staff and separating accounting duties. However, this is not practical under current budget constraints. MANAGEMENT RESPONSE: This is an ongoing issue that will be continually monitored through review of financial information by the Superintendent and the Board of Education including development of additional segregation of duties among existing staff.

FINDING 2020-002 This Finding is? X Recurring CRITERIA: Financial Statements are the responsibility of the client and should be prepared by them including footnotes. CONDITION: The District does not have an internal control system available or the personnel with the needed expertise and knowledge to prepare the financial statements. The auditors draft the financial statements and notes. The district's management reviews the draft financial statements. EFFECT: Management or employees in the normal course of performing their assigned functions may not prevent or detect financial statement misstatement in a timely manner. CAUSE: The District has no one with the necessary expertise to prepare the financial statements and footnotes. RECOMMENDATION: The District should retain an employee capable of preparing the financial statements and required footnotes. MANAGEMENT RESPONSE: Due to the size of the District, it is the decision of management to accept this deficiency in light of costs and other considerations.

FINDING 2020-003. This finding is? X Recurring. CRITERIA: Per Illinois Compiled Statutes, total fund expenditures may not legally exceed the District's budgeted amounts. CONDITION: Per the year ending June 30, 2020 actual expenditures for the Operation and Maintenance fund and Tort funds exceeded the budget. CONTEXT: The approved budget established the authorized expenditures limitation in each fund. EFFECT: Actual expenditures exceeded the budget in the above named funds. CAUSE: Actual expenditures exceeded the budgeted amounts for the year. RECOMMENDATION: A closer review of expenditures needs to be maintained and reflected in the amended budget. MANAGEMENT'S RESPONSE: The district will implement a better monitoring system between the budget and actual expenditures to ensure more oversight.