Hillsboro Community Unit School District No. 3Local Government

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: The 2nd quarter ESSER 3 report was filed 3 days after the 20 day deadline. Questioned costs: None. Context: The 2nd quarter ESSER 3 report was filed 3 days 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 quartery 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 - 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 - The 2nd quarter Digital Equity 3 report was filed 3 days after the 20 day deadline. Questioned Costs - No questioned costs. Context - The 2nd quarter Ditigal Equity 3 report was filed 3 days after th 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.

Allowable Costs/Activites Allowed. The District is required to report allowable costs/activites allowed based on the grant, the grant budget and for th period of the grant. Condition: The amount claimed on the June 30, 2023 ESSER 3 expenditure report included an expense that had been claimed on the 6/30/22 ESSER 2 expenditure report. Questioned Costs - $$7,296.62; Salary in 1000-100 of $5,365.50 and benefits in 1000-200 of $1,931.12. Context: It was noted that a journal entry to reclassify expenses included an expense from June 2022 that were already claimed when reviewing the journal entries with the client. Effect: The District did not file an accurate expenditure report at June 30, 2023. Cause: The District claimed the same expense in 2022 and 2023. Recommedation: To review the general ledger for duplicate or unallowable epenses before entering into the expenditure report and submitting. Management's response: The District will review the general ledger for duplicate or unallowable expenses before submitting quarterly reports.

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 6/30/23 expenditure report that were paid after year end. Condition: It was noted that the District claimed a total of $94,359 at 6/30/23, however $57,85 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 reports 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 $57,850 in Juy 2023 that were not paid until August 2023. 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 verifiation process to reconile 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. The District reported expenses on the 6/30/23 expenditure report that were paiid after year end. Condition: It was noted that the District claimed a total of $271,874 at 6/30/23, however 22,157 of July and August 2023 salaries and $8,695 of July and August 2023 benefits 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 July and August 2023. The expenses were allowable under the grant, but the District claimed the expenses too early. Effect: The District claimed expenses early and were reimbursed for expenses of $30,852 in July 2023 that were not paid until July and August 2023. 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. The accounts used to record expenditures on the quarterly expenditure reports should match the budget. Condition: It was noted that there was an inconsistency when comparing the expenditure report to the budget. Questioned costs: None. Context: The District claimed expenses on the 6/30/23 expenditure report in account 1000-3000 that should be recorded in account 2210-300 per the budget. Effect: The expenditures were not recorded/reported consistently between the two reports. Cause: A coding errror was made when entering the expenditures into the general ledger and expenditure report. Recommendation: We recommend reviewing the general ledger to determine that expenses are coded appropriately per the budget. Management' response: The District will review the general ledger to the budget before submitting the expenditure reports.

Criteria: Reporting. All quarterly expenditure reports must be filed with the Illinois State Board of Education no later thanb 20 days after the end of the quarter (10/20, 1/20, 4/20 and 7/20). Condition: The 2nd quarter ESSER 2 report was filed 25 days after the 20 day deadline. Questioned costs: None. Context: The 2nd quarter ESSER 2 report was filed 25 days after the 20 day dealine. 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 timely filed. 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 necesary 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 and 7/20). Condition: Quarters 1 and 2 for ESSER - Digital Equity were not filed due to no expenses and quarter 3 was filed 85 days after the 20 days deadline. Quarter 4 of ESSER II was filed 7 days after the 20 days deadline. Quarter 1 of ESSER ER was filed 90 days after the 20 day deadline and quarter 2 was filed 11 days after the 20 day deadline. Questioned Costs: No questioned costs. Context: The quarterly reports for the federal grants ranged from 7 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. Management response: The District will take the necessary steps to file all quarterly expenditure reports on time in the future.

Criteria: Reporting. Condition: The District did not submit accurate total expenditure reports. The District miscoded an expense of $5,493 that should be reported in account 2110-400 and reported the expense in account 2130-100. Questioned costs: No questioned costs. Context: The quarterly expense report was under reported for account 2110-400 and over reported for account 2130-100. Effect: The District was over budget in the account 2130-100. Cause: The District did not employ proper oversight to ensure that the quarterly expenditure reports filed were in agreement with the general ledger. Recommendation: We recommend that steps are taken, including oversight by a second employee, to ensure that all quarterly expenditure reports are reconciled with the general ledger before submitting the reports. Management response: The District will take the necessary steps to file all quarterly expenditure reports accurately in the future.

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: The District did not submit accurate expenditure reports by claiming an expense before the grant start date. The grant start date was January 19, 2022 and the District claimed an expense in account 1000-300 that was paid September 17, 2021. Questioned costs: $1,160 in account 1000-300. Context: The District claimed an expense that was unallowed as it was before the grant start date. Effect: The District overstated their purchased services in account 1000-300 by claiming an expense before the grant start date. Cause: The District did not employ proper oversight to ensure that the quarterly expenditure reports claimed allowable expenses after the grant start date. Recommendation: We recommend that steps are taken, including oversight by a second employee, to ensure that expenditure reports are reviewed for allowable expenses and that all expenses are after the grant start date before submitting the reports. Management response: The District will take the necessary steps to claim allowable expenses on future expenditure reports.

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 1, 2 and 3 for Title I Low Income were filed between 1 and 9 days after the 20 day deadline. Quarters 2 and 3 for Title I Accountability were filed between 84 and 159 days after the 20 day deadline. Quarter 1, 2 and 3 for Title IV Student Support, IDEA Cluster and Title II Teacher Quality were filed between 1 and 6 days after the 20 day deadline. Quarter 3 for ESSER Digital Equity was filed 1 day after the 20 day deadline. Quarter 4 for ESSER II was file 1 day after the 20 day deadline. Quarters 1, 2 and 3 for ESSER I were filed 1 to 98 days after the 20 day deadline. Questioned Costs - $0; Context: The quarterly reports for the federal grants ranged from 1 day to 159 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.