Illinois Administrative Code › Title 23 - EDUCATION AND CULTURAL RESOURCES › Part 675 - PROVIDERS OF SUPPLEMENTAL EDUCATIONAL SERVICES › Subpart B - FINANCIAL REQUIREMENTS › Section 675.230 - Reports of Actual Costs

Current through Register Vol. 48, No. 28, July 12, 2024
a) Each
				provider shall report to the State Board of Education, no later than September
				30 following the end of the SES reporting period or 45 days after the end of
				the provider's fiscal year, whichever is later, and using a form provided by
				ISBE, the provider's district program cost for each district the provider
				served. The cost report shall also indicate the payments received or invoiced
				to the district for the SES reporting period, as well as the difference between
				these payments and the district program cost.
1) Each provider shall identify all
				transactions with related organizations and the actual cost of each
				transaction.
2) For purposes of
				this subsection (a)(2), a student "served" is one with respect to whom a
				provider performed any service that was billed to a district. Each
				non-governmental provider serving more than 50 students within a district must
				engage an independent Licensed Certified Public Accountant (CPA) who is a
				member of the American Institute of Certified Public Accountants to perform
				agreed-upon procedures on its reported information. An agreed-upon procedures
				report must be submitted with the district program cost report required by this
				subsection (a). The agreed-upon procedures must include the following.
A) Obtain the general ledger trial balance as
				of the reporting date and agree or reconcile the balances in the trial balance
				to the cost report;
B) Inquire of
				members of management who have responsibility for financial and accounting
				matters concerning:
i) whether the cost report
				has been prepared using the accrual basis;
ii) the procedures for recording,
				classifying, and summarizing transactions and accumulating
				information;
iii) the method used
				to allocate curriculum development and administrative and general expenses to
				the district;
iv) known
				transactions with related organizations and whether the actual cost of such
				transactions was accurately reported; and
v) the provider's procedures for identifying
				non-reimbursable expenses;
C) Identify and report on results from the
				following procedures:
i) compare the actual
				average cost per pupil as shown on the cost report to the average cost per
				pupil shown in the contract with the district, and report on management's
				explanation for any differences greater than 10 percent; and
ii) compare current-year and prior-year cost
				results by report line item, and report on management's explanations for any
				differences in line item amounts that exceed 10 percent of the prior year's
				amounts, or if the total cost for the reporting period exceeds the total cost
				for the prior year by more than 5 percent;
D) For providers serving more than 200
				students in a district, select a sample of program and curriculum and training
				expenses for source document testing. The sample must be representative of the
				population and represent no less than 25 percent of the expenses for each
				category. As a part of testing procedures, perform the following:
i) verify that the provider properly
				classified costs according to the categories and subcategories set forth in
				Section
				675.210 of
				this Part, and report on sampled items that were not classified in accordance
				with that Section;
ii) verify that
				sampled items are not non-reimbursable as defined in Section
				675.220
				of this Part, and report on sampled items that are non-reimbursable as defined
				in that Section; and
iii) verify
				that curriculum development and administrative and general expenses have been
				allocated to the district in an accurate and consistent manner and in
				accordance with Section
				675.210(b)
				of this Part, and report on allocations for any sampled items that are not in
				accordance with that Section; and
E) Report on whether, as determined by the
				procedures performed under subsection (a)(2)(D) of this Section, the sampled
				items contain errors, omissions, inconsistencies, or non-compliance with the
				cost reporting requirements set forth in this Section, and specify each
				material error, omission, or inconsistency.
3) An agreed-upon procedures report submitted
				pursuant to subsection (a)(2) of this Section shall indicate whether all
				elements of the provider's cost report comply with the requirements of this
				Subpart B. In addition to the specific items to be reported under subsection
				(a)(2) of this Section, the CPA shall also report on:
A) any unreconciled differences between the
				general ledger trial balance and the cost report;
B) any cost report that was not prepared on
				the accrual basis;
C) any entries
				that are not supported by or do not agree with documentation provided by
				management;
D) any cost allocation
				methods that are not in accordance with the requirements set forth in Section
				675.210(b)
				of this Part; and
E) any other
				material error, omission, inconsistency, or area of non-compliance that comes
				to the CPA's attention during the course of conducting the agreed-upon
				procedures required by subsection (a)(2) of this Section.