Unity Point Community Consolidated School District #140

UNITY POINT SCHOOL DISTRICT #140 30-039-1400-04 SCHEDULE OF FINDINGS AND QUESTIONED COSTS Year Ending June 30, 2025 SECTION III - FEDERAL AWARD FINDINGS AND QUESTIONED COSTS 1. FINDING NUMBER: 2025 - 002 2. THIS FINDING IS: X New Repeat from Prior year? Year originally reported? 3. Federal Program Name and Year: IDEA - Flow Through and IDEA - Pre-School Flow-Through 4. Project No.: 24-4620-00, 25-4620-00, 24-4600-00, 25-4600-00 5. AL No.: 84.027A, 84.173A 6. Passed Through: Illinois State Board of Education 7. Federal Agency: U.S. Department of Education 8. Criteria or specific requirement (including statutory, regulatory, or other citation) Title 2 U.S. Code of Federal Regulations Part 200, Uniform Administrative Requirements, Cost Principles, and Audit Requirements for Federal Awards (Uniform Guidance) requires that a non-federal entity’s financial management system, including records documenting compliance with federal statutes, regulations, and the terms and conditions of the federal award, must be sufficient to permit the preparation of reports required by general and program-specific terms and conditions; and the tracing of funds to a level of expenditures adequate to establish that such funds have been used according to the federal statutes, regulations, and the terms and conditions of the federal award. Furthermore, the non-federal entity must establish and maintain effective internal control over the federal award that provides reasonable assurance that the non-federal entity is managing the federal award in compliance with federal statutes, regulations, and the terms and conditions of the federal award. These internal controls should be in compliance with guidance in “Standards for Internal Controls in the Federal Government” issued by the Comptroller General of the United States or the “Internal Controls Integrated Framework” issued by the Committee of Sponsoring Organizations of the Treadway Commission (COSO). 9. Condition The District did not have adequate internal controls over the preparation of grant expenditure reports. The yearend expenditure report submitted to the Illinois State Board of Education to request reimbursement did not reconcile to the underlying accounting records. 10. Questioned Costs $1,808.00 11. Context The District overclaimed payments to other governments by $1,808. 12. Effect A lack of internal controls over expenditure reporting could result in over or understatements of expenditures to the granting agencies. A return of grant funds could be requested from the granting agency. 13. Cause Oversight. 14. Recommendation We recommend the District create a system of internal controls to ensure all expenditure reports are submitted accurately, are fully supported by adequate cost documentation records, and reconcile to the underlying accounting records. 15. Management's response Management agrees with the finding.

Management has implemented a year-end reconciliation for all grant funds. Due to the timing of this grant - the District was able to capture the overpayment in the August 2025 expenditure report and therefore, no overpayment was owed. The District does not expect this finding to repeat again.

UNITY POINT SCHOOL DISTRICT #140 30-039-1400-04 SCHEDULE OF FINDINGS AND QUESTIONED COSTS Year Ending June 30, 2024 SECTION III - FEDERAL AWARD FINDINGS AND QUESTIONED COSTS 1. FINDING NUMBER:14 2024 - 003 2. THIS FINDING IS: X New Repeat from Prior year? Year originally reported? 3. Federal Program Name and Year: Child Nutrition Cluster 4. Project No.: 23-4210-00, 24-4210-00, 23-4220-00, 24-4220-00 5. AL No.: 10.555, 10.553 6. Passed Through: Illinois State Board of Education 7. Federal Agency: U.S. Department of Agriculture 8. Criteria or specific requirement (including statutory, regulatory, or other citation) The District is responsible for the design and implementation of internal controls over federal programs in order to prevent or detect and correct misstatements in the financial statement as well as ensure program compliance. 9. Condition Two vendor disbursements made under the Child Nutrition Cluster were not included in the Board approved vendor listing for payment as required by the District's established internal control policies. 10. Questioned Costs None. 11. Context Exceptions were noted in two out of forty items tested. 12. Effect Unallowable/unapproved expenditures could be charged to the grant. 13. Cause Lack of oversight over the program. 14. Recommendation The District should take steps to ensure its internal control procedures are being followed at all times. 15. Management's response Management agrees with the finding.

ACTION STEPS: Every effort will be made to ensure payments are made in a timely manner while getting board approval. In the event that an invoice is received after the monthly board meeting, the bill will be included on the next month's Bills Payable Report even if the payment has already been made. CONTACT PERSON: Dr. Lori James-Gross, Superintendent ANTICIPATED COMPLETION DATE: September 1, 2024