Calhoun Community Unit School District 40

Finding Number 2024-006: Criteria or specific requirement: The accounting function should be controlled by a sufficient number of individuals in order to have adequate segregation of duties. Condition: The District's accounting function is controlled by a limited number of individuals resulting in the inadequate segregation of duties. Context: The District's accounting function is mainly controlled by two individuals. Effect: The limited number of personnel limits the overall effectiveness of internal control. Cause: The District is unable to hire an adequate number of staff to increase the effectiveness of internal control. Recommendation: The District needs to segregate duties where possible and create checks and balances. The Board should be aware of this issue and closely review and approve all financial related information. Management's Response: The District is reviewing its financial policies and procedures to better segregate duties where possible. The Superintendent will make the Board aware of their responsibility in regards to reviewing and approving financial items and asking questions.

Finding Number 2024-007: Criteria or specific requirement: The accounting function should be controlled by a sufficient number of individuals in order to have adequate segregation of duties. Condition: The District's accounting function is controlled by a limited number of individuals resulting in the inadequate segregation of duties. Context: The District's accounting function is mainly controlled by two individuals. Effect: The limited number of personnel limits the overall effectiveness of internal control. Cause: The District is unable to hire an adequate number of staff to increase the effectiveness of internal control. Recommendation: The District needs to segregate duties where possible and create checks and balances. The Board should be aware of this issue and closely review and approve all financial related information. Management's Response: The District is reviewing its financial policies and procedures to better segregate duties where possible. The Superintendent will make the Board aware of their responsibility in regards to reviewing and approving financial items and asking questions.

Finding Number 2023-004: Criteria or specific requirement: The accounting function should be controlled by a sufficient number of individuals in order to have adequate segregation of duties. Condition: The District's accounting function is controlled by a limited number of individuals resulting in the inadequate segregation of duties. Context: The District's accounting function is mainly controlled by two individuals. Effect: The limited number of personnel limits the overall effectiveness of internal control. Cause: The District is unable to hire an adequate number of staff to increase the effectiveness of internal control. Recommendation: The District needs to segregate duties where possible and create checks and balances. The Board should be aware of this issue and closely review and approve all financial related information. Management's Response: The District is reviewing its financial policies and procedures to better segregate duties where possible. The Superintendent will make the Board aware of their responsibility in regards to reviewing and approving financial items and asking questions.

Criteria or specific requirement: The accounting function should be controlled by a sufficient number of individuals in order to have adequate segregation of duties. Condition: The District's accounting function is controlled by a limited number of individuals resulting in the inadequate segregation of duties. Context: The District's accounting function is mainly controlled by two individuals. Effect: The limited number of personnel limits the overall effectiveness of internal control. Cause: The District is unable to hire an adequate number of staff to increase the effectiveness of internal control. Recommendation: The District needs to segregate duties where possible and create checks and balances. The Board should be aware of this issue and closely review and approve all financial related information. Management's response: The District is reviewing its financial policies and procedures to better segregate duties where possible. The Superintendent will make the Board aware of their responsibility in regards to reviewing and approving financial items and asking questions.

Criteria or specific requirement: The accounting function should be controlled by a sufficient number of individuals in order to have adequate segregation of duties. Condition: The District's accounting function is controlled by a limited number of individuals resulting in the inadequate segregation of duties. Context: The District's accounting function is mainly controlled by two individuals. Effect: The limited number of personnel limits the overall effectiveness of internal control. Cause: The District is unable to hire an adequate number of staff to increase the effectiveness of internal control. Recommendation: The District needs to segregate duties where possible and create checks and balances. The Board should be aware of this issue and closely review and approve all financial related information. Management's response: The District is reviewing its financial policies and procedures to better segregate duties where possible. The Superintendent will make the Board aware of their responsibility in regards to reviewing and approving financial items and asking questions.

Criteria or specific requirement: The accounting function should be controlled by a sufficient number of individuals in order to have adequate segregation of duties. Condition: The District's accounting function is controlled by a limited number of individuals resulting in the inadequate segregation of duties. Context: The District's accounting function is mainly controlled by two individuals. Effect: The limited number of personnel limits the overall effectiveness of internal control. Cause: The District is unable to hire an adequate number of staff to increase the effectiveness of internal control. Recommendation: The District needs to segregate duties where possible and create checks and balances. The Board should be aware of this problem and closely review and approve all financial related information. Management's response: The District is reviewing its financial policies and procedures to better segregate duties where possible. The Superintendent will make the Board aware of their responsibility in regards to reviewing and approving financial items and asking questions.

Criteria or specific requirement: The accounting function should be controlled by a sufficient number of individuals in order to have adequate segregation of duties. Condition: The District's accounting function is controlled by a limited number of individuals resulting in the inadequate segregation of duties. Context: The District's accounting function is mainly controlled by two individuals. Effect: The limited number of personnel limits the overall effectiveness of internal control. Cause: The District is unable to hire an adequate number of staff to increase the effectiveness of internal control. Recommendation: The District needs to segregate duties where possible and create checks and balances. The Board should be aware of this problem and closely review and approve all financial related information. Management's response: The District is reviewing its financial policies and procedures to better segregate duties where possible. The Superintendent will make the Board aware of their responsibility in regards to reviewing and approving financial items and asking questions.

Criteria or specific requirement: Internal controls should be in place to ensure federal expenditures are reported in the correct month on expenditure reports submitted to ISBE. Condition: July 2021 expenditures were allowed to be reported on the June 30, 2021 cumulative federal expenditure report submitted to ISBE. Questioned Costs: No questioned costs since the July expenditures claimed were allowable grant costs. Context: The District reported July 2021 federal expenditures as actual expenditures instead of obligations on the June 30, 2021 cumulative federal expenditure report submitted to ISBE. Effect: This condition resulted in fiscal year 2021 federal expenditures reported on the schedule of expenditures of federal awards to be overstated. Cause: The District did not ensure that actual federal expenditures reported on the June 30, 2021 cumulative federal expenditure report agreed with the general ledger for the same time period. Recommendation: The District should compare federal expenditures reported on expenditure reports to the general ledger for the period being reported on to ensure that future expenditures/obligations are not reported as actual expenditures before they are actually expended. Management's response: The District will monitor federal expenditures reported on expenditure reports more closely in the future to ensure that expenditures are not reported before they are actually expended.