PLEASANT HILL GRADE SCHOOL, DISTRICT 69Local Government

Pleasant Hill Grade School District No. 69 48-072-0690-02 SCHEDULE OF FINDINGS AND QUESTIONED COSTS Year Ending June 30, 2022 SECTION III - FEDERAL AWARD FINDINGS AND QUESTIONED COSTS 1. FINDING NUMBER:14 2022- 003 2. THIS FINDING IS: x New Repeat from Prior year? Year originally reported? 3. Federal Program Name and Year: All federal programs 4. Project No.: 4998-ER, 4998-E2, 4998-E3, 4998-D2 5. CFDA No.: 84.425 6. Passed Through: Illinois State Board of Education 7. Federal Agency: US Department of Education 8. Criteria or specific requirement (including statutory, regulatory, or other citation) Reporting - Effective internal controls should be implemented to ensure that an adequate segregation of duties over the accounting function exists. Responsibilities for authorizing, approving, executing and recording transactions in the general ledger should be segregated between two or more individuals. 9. Condition Effective internal controls should be implemented to ensure that an adequate segregation of duties over the accounting function exists. Responsibilities for authorizing, approving, executing and recording transactions in the general ledger should be segregated between two or more individuals. 10. Questioned Costs None 11. Context One employee is responsible for most aspects of the cash receipts, cash disbursements and payroll functions. This individual is also responsible for recording these transactions in the general ledger and signing checks. In addition, the Superintendent initiates and approves all expenditures charged to the grants. There is no independent review of expenditures to ensure they are allowable under the grant. 12. Effect This condition increases the possibility that errors or fraud may occur and not be detected on a timely basis. 13. Cause Due to the small size of the District and economic constraints, it is not practical to hire additional personnel to further segregate duties over the accounting functions. Duties have been assigned based on the experience and schedules of office personnel. 14. Recommendation When this condition exists, the Superintendent?s and Board of Education's close oversight and review of accounting information on a regular basis is the best means of preventing or detecting errors or fraud. We also recommend that all checks be reviewed and signed by the Superintendent rather than the bookkeeper. 15. Management's response Due to the small size of the District, it is not practical to hire additional personnel solely for the purpose of achieving an ideal segregation of duties over the accounting function. Some segregation of duties has occurred as an outside individual has been contracted to perform the monthly bank reconciliations. In addition, the Superintendent will review and sign all checks.