U.S. DEPARTMENT OF AGRICULTURE PASSED THROUGH ARKANSAS DEPARTMENT OF EDUCATION CHILD NUTRITION CLUSTER - AL NUMBERS 10.553 AND 10.555 PASS-THROUGH NUMBER 2903 AUDIT PERIOD - YEAR ENDED JUNE 30, 2022 2022-003. Reporting Criteria or specific requirement: Monthly claims for reimbursement are required to be submitted to the Division of Elementary and Secondary Education, Child Nutrition Unit (DESE, CNU). Reimbursement claim components include the total number of students eligible for and number of students participating in free, reduced price, and paid meals served. The total meals served by category are to be derived from the daily record forms. Condition: An Administrative Review for the District was completed by the Arkansas Division of Elementary and Secondary Education, Child Nutrition Unit (DESE, CNU) in November 2021. The review of the September 2021 Claim for Reimbursement resulted in a calculated over claim in the amount of $1,811 due to clerical errors in calculating meals served. In addition, $2,983 of the claim was disallowed due to meal pattern requirements not being met. Cause: The inaccurate reporting of meals served resulted from clerical errors in posting data from the daily record forms to the monthly claims for reimbursement. Effect: The District was not properly reimbursed for meals served during the year. Questioned costs: The amount of questioned costs was $4,794. Context: Results of an Administrative Review by the DESE, CNU. Recommendation: The District should exercise due care in the posting of data from the monthly account eligibility reports and daily record forms to the monthly claim for reimbursement. Views of responsible officials: We will not go in and add additional meals until the end of the month to keep the meals from being added twice. The Food Service Management Company Director handed out the right completed meals, but the paperwork did not back up the components in the meal. We will double check all paperwork to make sure the meal components are all listed on the production records.
U.S. DEPARTMENT OF AGRICULTURE PASSED THROUGH ARKANSAS DEPARTMENT OF EDUCATION CHILD NUTRITION CLUSTER - AL NUMBERS 10.553 AND 10.555 PASS-THROUGH NUMBER 2903 AUDIT PERIOD - YEAR ENDED JUNE 30, 2022 2022-003. Reporting Criteria or specific requirement: Monthly claims for reimbursement are required to be submitted to the Division of Elementary and Secondary Education, Child Nutrition Unit (DESE, CNU). Reimbursement claim components include the total number of students eligible for and number of students participating in free, reduced price, and paid meals served. The total meals served by category are to be derived from the daily record forms. Condition: An Administrative Review for the District was completed by the Arkansas Division of Elementary and Secondary Education, Child Nutrition Unit (DESE, CNU) in November 2021. The review of the September 2021 Claim for Reimbursement resulted in a calculated over claim in the amount of $1,811 due to clerical errors in calculating meals served. In addition, $2,983 of the claim was disallowed due to meal pattern requirements not being met. Cause: The inaccurate reporting of meals served resulted from clerical errors in posting data from the daily record forms to the monthly claims for reimbursement. Effect: The District was not properly reimbursed for meals served during the year. Questioned costs: The amount of questioned costs was $4,794. Context: Results of an Administrative Review by the DESE, CNU. Recommendation: The District should exercise due care in the posting of data from the monthly account eligibility reports and daily record forms to the monthly claim for reimbursement. Views of responsible officials: We will not go in and add additional meals until the end of the month to keep the meals from being added twice. The Food Service Management Company Director handed out the right completed meals, but the paperwork did not back up the components in the meal. We will double check all paperwork to make sure the meal components are all listed on the production records.
U.S. DEPARTMENT OF EDUCATION PASSED THROUGH ARKANSAS DEPARTMENT OF EDUCATION COVID-19 ELEMENTARY AND SECONDARY SCHOOL EMERGENCY RELIEF FUND - AL NUMBERS 84.425D and 84.425U PASS-THROUGH NUMBER 2903 AUDIT PERIOD - YEAR ENDED JUNE 30, 2022 2022-001. Equipment and Real Property Management Criteria or specific requirement: The Davis-Bacon Act requires all contractors and subcontractors performing work on construction contracts in excess of $2,000, financed by Federal funds, to pay their laborers and mechanics not less than the prevailing wage rates as determined by the Department of Labor. Non-federal entities are to include in the applicable construction contracts a requirement that the contractor or subcontractor comply with the provisions of the Davis-Bacon Act and the Department of Labor regulations. Such requirements included the submission of weekly certified payrolls, for each week in which any contract work is performed, to the non-federal entities. Also, property records should be maintained for real property and improvements made to real property acquired with federal awards as specified in OMB 2 CFR sections 200.311 and 200.313. Condition: The District paid $335,500 for installation of an HVAC system from the Education Stabilization Fund without obtaining a written contract that included the prevailing wage rate clause. Additionally, weekly certified payrolls were not submitted to the District. Also, neither the HVAC system nor a facility improvement project totaling $397,081 were recorded in the District's capital asset subsidiary records. Cause: Lack of internal controls and management oversight resulted in the Davis-Bacon Act provisions not being properly followed and the capital asset subsidiary records not being accurate. Effect: The District did not comply with the notification requirements regarding compliance with the Davis-Bacon Act and was unable to provide copies of weekly certified payrolls for workers paid on the projects. The District's capital assets subsidiary records were not accurate. Context: Examined all payments/contracts for facility repairs and improvements paid from the Education Stabilization Fund. Recommendation: The District should contact the Arkansas Division of Elementary and Secondary Education (DESE) for guidance regarding this matter and implement proper controls over program expenditures. Views of responsible officials: We will contact DESE for guidance regarding this matter and implement proper controls over program expenditures.
U.S. DEPARTMENT OF EDUCATION PASSED THROUGH ARKANSAS DEPARTMENT OF EDUCATION COVID-19 ELEMENTARY AND SECONDARY SCHOOL EMERGENCY RELIEF FUND - AL NUMBERS 84.425D and 84.425U PASS-THROUGH NUMBER 2903 AUDIT PERIOD - YEAR ENDED JUNE 30, 2022 2022-002. Equipment and Real Property Management Criteria or specific requirement: Proper records should be maintained for equipment acquired with federal awards as specified in 2 CFR section 200.313. Additionally, the District should ensure that disposition of such equipment is in accordance with federal requirements, including the federal awarding agency is appropriately compensated for its share of any property sold or converted to non-federal use. Condition: The District could not account for 2 of 28 Education Stabilization Fund equipment items purchased in previous years costing $4,341. Cause: Lack of internal controls over capital asset subsidiary records. Effect: The District's capital assets subsidiary records were not accurate. Context: Observation of 28 equipment items recorded on equipment subsidiary records at an initial cost of $493,581 from a total population of 277 items at an initial cost of $1,156,492. Recommendation: The District should maintain proper records for equipment acquired with federal awards. Views of responsible officials: The fever scanner had not been opened at the time of the equipment information submission from the facilities director?s secretary. The serial number had been submitted for the laptop that was purchased from a separate vendor and the cost was well below the capital assets threshold. Since fever scanners were no longer in use, the laptop had been given to an employee and could not be located. The fever scanners are all in storage but could not be identified because the serial number was for the laptop. The District will try and maintain proper records for all equipment.
U.S. DEPARTMENT OF EDUCATION PASSED THROUGH ARKANSAS DEPARTMENT OF EDUCATION COVID-19 ELEMENTARY AND SECONDARY SCHOOL EMERGENCY RELIEF FUND - AL NUMBERS 84.425D and 84.425U PASS-THROUGH NUMBER 2903 AUDIT PERIOD - YEAR ENDED JUNE 30, 2022 2022-001. Equipment and Real Property Management Criteria or specific requirement: The Davis-Bacon Act requires all contractors and subcontractors performing work on construction contracts in excess of $2,000, financed by Federal funds, to pay their laborers and mechanics not less than the prevailing wage rates as determined by the Department of Labor. Non-federal entities are to include in the applicable construction contracts a requirement that the contractor or subcontractor comply with the provisions of the Davis-Bacon Act and the Department of Labor regulations. Such requirements included the submission of weekly certified payrolls, for each week in which any contract work is performed, to the non-federal entities. Also, property records should be maintained for real property and improvements made to real property acquired with federal awards as specified in OMB 2 CFR sections 200.311 and 200.313. Condition: The District paid $335,500 for installation of an HVAC system from the Education Stabilization Fund without obtaining a written contract that included the prevailing wage rate clause. Additionally, weekly certified payrolls were not submitted to the District. Also, neither the HVAC system nor a facility improvement project totaling $397,081 were recorded in the District's capital asset subsidiary records. Cause: Lack of internal controls and management oversight resulted in the Davis-Bacon Act provisions not being properly followed and the capital asset subsidiary records not being accurate. Effect: The District did not comply with the notification requirements regarding compliance with the Davis-Bacon Act and was unable to provide copies of weekly certified payrolls for workers paid on the projects. The District's capital assets subsidiary records were not accurate. Context: Examined all payments/contracts for facility repairs and improvements paid from the Education Stabilization Fund. Recommendation: The District should contact the Arkansas Division of Elementary and Secondary Education (DESE) for guidance regarding this matter and implement proper controls over program expenditures. Views of responsible officials: We will contact DESE for guidance regarding this matter and implement proper controls over program expenditures.
U.S. DEPARTMENT OF EDUCATION PASSED THROUGH ARKANSAS DEPARTMENT OF EDUCATION COVID-19 ELEMENTARY AND SECONDARY SCHOOL EMERGENCY RELIEF FUND - AL NUMBERS 84.425D and 84.425U PASS-THROUGH NUMBER 2903 AUDIT PERIOD - YEAR ENDED JUNE 30, 2022 2022-002. Equipment and Real Property Management Criteria or specific requirement: Proper records should be maintained for equipment acquired with federal awards as specified in 2 CFR section 200.313. Additionally, the District should ensure that disposition of such equipment is in accordance with federal requirements, including the federal awarding agency is appropriately compensated for its share of any property sold or converted to non-federal use. Condition: The District could not account for 2 of 28 Education Stabilization Fund equipment items purchased in previous years costing $4,341. Cause: Lack of internal controls over capital asset subsidiary records. Effect: The District's capital assets subsidiary records were not accurate. Context: Observation of 28 equipment items recorded on equipment subsidiary records at an initial cost of $493,581 from a total population of 277 items at an initial cost of $1,156,492. Recommendation: The District should maintain proper records for equipment acquired with federal awards. Views of responsible officials: The fever scanner had not been opened at the time of the equipment information submission from the facilities director?s secretary. The serial number had been submitted for the laptop that was purchased from a separate vendor and the cost was well below the capital assets threshold. Since fever scanners were no longer in use, the laptop had been given to an employee and could not be located. The fever scanners are all in storage but could not be identified because the serial number was for the laptop. The District will try and maintain proper records for all equipment.
U.S. DEPARTMENT OF EDUCATION PASSED THROUGH ARKANSAS DEPARTMENT OF EDUCATION COVID-19 ELEMENTARY AND SECONDARY SCHOOL EMERGENCY RELIEF FUND - AL NUMBERS 84.425D and 84.425U PASS-THROUGH NUMBER 2903 AUDIT PERIOD - YEAR ENDED JUNE 30, 2022 2022-001. Equipment and Real Property Management Criteria or specific requirement: The Davis-Bacon Act requires all contractors and subcontractors performing work on construction contracts in excess of $2,000, financed by Federal funds, to pay their laborers and mechanics not less than the prevailing wage rates as determined by the Department of Labor. Non-federal entities are to include in the applicable construction contracts a requirement that the contractor or subcontractor comply with the provisions of the Davis-Bacon Act and the Department of Labor regulations. Such requirements included the submission of weekly certified payrolls, for each week in which any contract work is performed, to the non-federal entities. Also, property records should be maintained for real property and improvements made to real property acquired with federal awards as specified in OMB 2 CFR sections 200.311 and 200.313. Condition: The District paid $335,500 for installation of an HVAC system from the Education Stabilization Fund without obtaining a written contract that included the prevailing wage rate clause. Additionally, weekly certified payrolls were not submitted to the District. Also, neither the HVAC system nor a facility improvement project totaling $397,081 were recorded in the District's capital asset subsidiary records. Cause: Lack of internal controls and management oversight resulted in the Davis-Bacon Act provisions not being properly followed and the capital asset subsidiary records not being accurate. Effect: The District did not comply with the notification requirements regarding compliance with the Davis-Bacon Act and was unable to provide copies of weekly certified payrolls for workers paid on the projects. The District's capital assets subsidiary records were not accurate. Context: Examined all payments/contracts for facility repairs and improvements paid from the Education Stabilization Fund. Recommendation: The District should contact the Arkansas Division of Elementary and Secondary Education (DESE) for guidance regarding this matter and implement proper controls over program expenditures. Views of responsible officials: We will contact DESE for guidance regarding this matter and implement proper controls over program expenditures.
U.S. DEPARTMENT OF EDUCATION PASSED THROUGH ARKANSAS DEPARTMENT OF EDUCATION COVID-19 ELEMENTARY AND SECONDARY SCHOOL EMERGENCY RELIEF FUND - AL NUMBERS 84.425D and 84.425U PASS-THROUGH NUMBER 2903 AUDIT PERIOD - YEAR ENDED JUNE 30, 2022 2022-002. Equipment and Real Property Management Criteria or specific requirement: Proper records should be maintained for equipment acquired with federal awards as specified in 2 CFR section 200.313. Additionally, the District should ensure that disposition of such equipment is in accordance with federal requirements, including the federal awarding agency is appropriately compensated for its share of any property sold or converted to non-federal use. Condition: The District could not account for 2 of 28 Education Stabilization Fund equipment items purchased in previous years costing $4,341. Cause: Lack of internal controls over capital asset subsidiary records. Effect: The District's capital assets subsidiary records were not accurate. Context: Observation of 28 equipment items recorded on equipment subsidiary records at an initial cost of $493,581 from a total population of 277 items at an initial cost of $1,156,492. Recommendation: The District should maintain proper records for equipment acquired with federal awards. Views of responsible officials: The fever scanner had not been opened at the time of the equipment information submission from the facilities director?s secretary. The serial number had been submitted for the laptop that was purchased from a separate vendor and the cost was well below the capital assets threshold. Since fever scanners were no longer in use, the laptop had been given to an employee and could not be located. The fever scanners are all in storage but could not be identified because the serial number was for the laptop. The District will try and maintain proper records for all equipment.
U.S. DEPARTMENT OF AGRICULTURE PASSED THROUGH ARKANSAS DEPARTMENT OF EDUCATION CHILD NUTRITION CLUSTER - AL NUMBERS 10.553 AND 10.555 PASS-THROUGH NUMBER 2903 AUDIT PERIOD - YEAR ENDED JUNE 30, 2022 2022-003. Reporting Criteria or specific requirement: Monthly claims for reimbursement are required to be submitted to the Division of Elementary and Secondary Education, Child Nutrition Unit (DESE, CNU). Reimbursement claim components include the total number of students eligible for and number of students participating in free, reduced price, and paid meals served. The total meals served by category are to be derived from the daily record forms. Condition: An Administrative Review for the District was completed by the Arkansas Division of Elementary and Secondary Education, Child Nutrition Unit (DESE, CNU) in November 2021. The review of the September 2021 Claim for Reimbursement resulted in a calculated over claim in the amount of $1,811 due to clerical errors in calculating meals served. In addition, $2,983 of the claim was disallowed due to meal pattern requirements not being met. Cause: The inaccurate reporting of meals served resulted from clerical errors in posting data from the daily record forms to the monthly claims for reimbursement. Effect: The District was not properly reimbursed for meals served during the year. Questioned costs: The amount of questioned costs was $4,794. Context: Results of an Administrative Review by the DESE, CNU. Recommendation: The District should exercise due care in the posting of data from the monthly account eligibility reports and daily record forms to the monthly claim for reimbursement. Views of responsible officials: We will not go in and add additional meals until the end of the month to keep the meals from being added twice. The Food Service Management Company Director handed out the right completed meals, but the paperwork did not back up the components in the meal. We will double check all paperwork to make sure the meal components are all listed on the production records.
U.S. DEPARTMENT OF AGRICULTURE PASSED THROUGH ARKANSAS DEPARTMENT OF EDUCATION CHILD NUTRITION CLUSTER - AL NUMBERS 10.553 AND 10.555 PASS-THROUGH NUMBER 2903 AUDIT PERIOD - YEAR ENDED JUNE 30, 2022 2022-003. Reporting Criteria or specific requirement: Monthly claims for reimbursement are required to be submitted to the Division of Elementary and Secondary Education, Child Nutrition Unit (DESE, CNU). Reimbursement claim components include the total number of students eligible for and number of students participating in free, reduced price, and paid meals served. The total meals served by category are to be derived from the daily record forms. Condition: An Administrative Review for the District was completed by the Arkansas Division of Elementary and Secondary Education, Child Nutrition Unit (DESE, CNU) in November 2021. The review of the September 2021 Claim for Reimbursement resulted in a calculated over claim in the amount of $1,811 due to clerical errors in calculating meals served. In addition, $2,983 of the claim was disallowed due to meal pattern requirements not being met. Cause: The inaccurate reporting of meals served resulted from clerical errors in posting data from the daily record forms to the monthly claims for reimbursement. Effect: The District was not properly reimbursed for meals served during the year. Questioned costs: The amount of questioned costs was $4,794. Context: Results of an Administrative Review by the DESE, CNU. Recommendation: The District should exercise due care in the posting of data from the monthly account eligibility reports and daily record forms to the monthly claim for reimbursement. Views of responsible officials: We will not go in and add additional meals until the end of the month to keep the meals from being added twice. The Food Service Management Company Director handed out the right completed meals, but the paperwork did not back up the components in the meal. We will double check all paperwork to make sure the meal components are all listed on the production records.
U.S. DEPARTMENT OF EDUCATION PASSED THROUGH ARKANSAS DEPARTMENT OF EDUCATION COVID-19 ELEMENTARY AND SECONDARY SCHOOL EMERGENCY RELIEF FUND - AL NUMBERS 84.425D and 84.425U PASS-THROUGH NUMBER 2903 AUDIT PERIOD - YEAR ENDED JUNE 30, 2022 2022-001. Equipment and Real Property Management Criteria or specific requirement: The Davis-Bacon Act requires all contractors and subcontractors performing work on construction contracts in excess of $2,000, financed by Federal funds, to pay their laborers and mechanics not less than the prevailing wage rates as determined by the Department of Labor. Non-federal entities are to include in the applicable construction contracts a requirement that the contractor or subcontractor comply with the provisions of the Davis-Bacon Act and the Department of Labor regulations. Such requirements included the submission of weekly certified payrolls, for each week in which any contract work is performed, to the non-federal entities. Also, property records should be maintained for real property and improvements made to real property acquired with federal awards as specified in OMB 2 CFR sections 200.311 and 200.313. Condition: The District paid $335,500 for installation of an HVAC system from the Education Stabilization Fund without obtaining a written contract that included the prevailing wage rate clause. Additionally, weekly certified payrolls were not submitted to the District. Also, neither the HVAC system nor a facility improvement project totaling $397,081 were recorded in the District's capital asset subsidiary records. Cause: Lack of internal controls and management oversight resulted in the Davis-Bacon Act provisions not being properly followed and the capital asset subsidiary records not being accurate. Effect: The District did not comply with the notification requirements regarding compliance with the Davis-Bacon Act and was unable to provide copies of weekly certified payrolls for workers paid on the projects. The District's capital assets subsidiary records were not accurate. Context: Examined all payments/contracts for facility repairs and improvements paid from the Education Stabilization Fund. Recommendation: The District should contact the Arkansas Division of Elementary and Secondary Education (DESE) for guidance regarding this matter and implement proper controls over program expenditures. Views of responsible officials: We will contact DESE for guidance regarding this matter and implement proper controls over program expenditures.
U.S. DEPARTMENT OF EDUCATION PASSED THROUGH ARKANSAS DEPARTMENT OF EDUCATION COVID-19 ELEMENTARY AND SECONDARY SCHOOL EMERGENCY RELIEF FUND - AL NUMBERS 84.425D and 84.425U PASS-THROUGH NUMBER 2903 AUDIT PERIOD - YEAR ENDED JUNE 30, 2022 2022-002. Equipment and Real Property Management Criteria or specific requirement: Proper records should be maintained for equipment acquired with federal awards as specified in 2 CFR section 200.313. Additionally, the District should ensure that disposition of such equipment is in accordance with federal requirements, including the federal awarding agency is appropriately compensated for its share of any property sold or converted to non-federal use. Condition: The District could not account for 2 of 28 Education Stabilization Fund equipment items purchased in previous years costing $4,341. Cause: Lack of internal controls over capital asset subsidiary records. Effect: The District's capital assets subsidiary records were not accurate. Context: Observation of 28 equipment items recorded on equipment subsidiary records at an initial cost of $493,581 from a total population of 277 items at an initial cost of $1,156,492. Recommendation: The District should maintain proper records for equipment acquired with federal awards. Views of responsible officials: The fever scanner had not been opened at the time of the equipment information submission from the facilities director?s secretary. The serial number had been submitted for the laptop that was purchased from a separate vendor and the cost was well below the capital assets threshold. Since fever scanners were no longer in use, the laptop had been given to an employee and could not be located. The fever scanners are all in storage but could not be identified because the serial number was for the laptop. The District will try and maintain proper records for all equipment.
U.S. DEPARTMENT OF EDUCATION PASSED THROUGH ARKANSAS DEPARTMENT OF EDUCATION COVID-19 ELEMENTARY AND SECONDARY SCHOOL EMERGENCY RELIEF FUND - AL NUMBERS 84.425D and 84.425U PASS-THROUGH NUMBER 2903 AUDIT PERIOD - YEAR ENDED JUNE 30, 2022 2022-001. Equipment and Real Property Management Criteria or specific requirement: The Davis-Bacon Act requires all contractors and subcontractors performing work on construction contracts in excess of $2,000, financed by Federal funds, to pay their laborers and mechanics not less than the prevailing wage rates as determined by the Department of Labor. Non-federal entities are to include in the applicable construction contracts a requirement that the contractor or subcontractor comply with the provisions of the Davis-Bacon Act and the Department of Labor regulations. Such requirements included the submission of weekly certified payrolls, for each week in which any contract work is performed, to the non-federal entities. Also, property records should be maintained for real property and improvements made to real property acquired with federal awards as specified in OMB 2 CFR sections 200.311 and 200.313. Condition: The District paid $335,500 for installation of an HVAC system from the Education Stabilization Fund without obtaining a written contract that included the prevailing wage rate clause. Additionally, weekly certified payrolls were not submitted to the District. Also, neither the HVAC system nor a facility improvement project totaling $397,081 were recorded in the District's capital asset subsidiary records. Cause: Lack of internal controls and management oversight resulted in the Davis-Bacon Act provisions not being properly followed and the capital asset subsidiary records not being accurate. Effect: The District did not comply with the notification requirements regarding compliance with the Davis-Bacon Act and was unable to provide copies of weekly certified payrolls for workers paid on the projects. The District's capital assets subsidiary records were not accurate. Context: Examined all payments/contracts for facility repairs and improvements paid from the Education Stabilization Fund. Recommendation: The District should contact the Arkansas Division of Elementary and Secondary Education (DESE) for guidance regarding this matter and implement proper controls over program expenditures. Views of responsible officials: We will contact DESE for guidance regarding this matter and implement proper controls over program expenditures.
U.S. DEPARTMENT OF EDUCATION PASSED THROUGH ARKANSAS DEPARTMENT OF EDUCATION COVID-19 ELEMENTARY AND SECONDARY SCHOOL EMERGENCY RELIEF FUND - AL NUMBERS 84.425D and 84.425U PASS-THROUGH NUMBER 2903 AUDIT PERIOD - YEAR ENDED JUNE 30, 2022 2022-002. Equipment and Real Property Management Criteria or specific requirement: Proper records should be maintained for equipment acquired with federal awards as specified in 2 CFR section 200.313. Additionally, the District should ensure that disposition of such equipment is in accordance with federal requirements, including the federal awarding agency is appropriately compensated for its share of any property sold or converted to non-federal use. Condition: The District could not account for 2 of 28 Education Stabilization Fund equipment items purchased in previous years costing $4,341. Cause: Lack of internal controls over capital asset subsidiary records. Effect: The District's capital assets subsidiary records were not accurate. Context: Observation of 28 equipment items recorded on equipment subsidiary records at an initial cost of $493,581 from a total population of 277 items at an initial cost of $1,156,492. Recommendation: The District should maintain proper records for equipment acquired with federal awards. Views of responsible officials: The fever scanner had not been opened at the time of the equipment information submission from the facilities director?s secretary. The serial number had been submitted for the laptop that was purchased from a separate vendor and the cost was well below the capital assets threshold. Since fever scanners were no longer in use, the laptop had been given to an employee and could not be located. The fever scanners are all in storage but could not be identified because the serial number was for the laptop. The District will try and maintain proper records for all equipment.
U.S. DEPARTMENT OF EDUCATION PASSED THROUGH ARKANSAS DEPARTMENT OF EDUCATION COVID-19 ELEMENTARY AND SECONDARY SCHOOL EMERGENCY RELIEF FUND - AL NUMBERS 84.425D and 84.425U PASS-THROUGH NUMBER 2903 AUDIT PERIOD - YEAR ENDED JUNE 30, 2022 2022-001. Equipment and Real Property Management Criteria or specific requirement: The Davis-Bacon Act requires all contractors and subcontractors performing work on construction contracts in excess of $2,000, financed by Federal funds, to pay their laborers and mechanics not less than the prevailing wage rates as determined by the Department of Labor. Non-federal entities are to include in the applicable construction contracts a requirement that the contractor or subcontractor comply with the provisions of the Davis-Bacon Act and the Department of Labor regulations. Such requirements included the submission of weekly certified payrolls, for each week in which any contract work is performed, to the non-federal entities. Also, property records should be maintained for real property and improvements made to real property acquired with federal awards as specified in OMB 2 CFR sections 200.311 and 200.313. Condition: The District paid $335,500 for installation of an HVAC system from the Education Stabilization Fund without obtaining a written contract that included the prevailing wage rate clause. Additionally, weekly certified payrolls were not submitted to the District. Also, neither the HVAC system nor a facility improvement project totaling $397,081 were recorded in the District's capital asset subsidiary records. Cause: Lack of internal controls and management oversight resulted in the Davis-Bacon Act provisions not being properly followed and the capital asset subsidiary records not being accurate. Effect: The District did not comply with the notification requirements regarding compliance with the Davis-Bacon Act and was unable to provide copies of weekly certified payrolls for workers paid on the projects. The District's capital assets subsidiary records were not accurate. Context: Examined all payments/contracts for facility repairs and improvements paid from the Education Stabilization Fund. Recommendation: The District should contact the Arkansas Division of Elementary and Secondary Education (DESE) for guidance regarding this matter and implement proper controls over program expenditures. Views of responsible officials: We will contact DESE for guidance regarding this matter and implement proper controls over program expenditures.
U.S. DEPARTMENT OF EDUCATION PASSED THROUGH ARKANSAS DEPARTMENT OF EDUCATION COVID-19 ELEMENTARY AND SECONDARY SCHOOL EMERGENCY RELIEF FUND - AL NUMBERS 84.425D and 84.425U PASS-THROUGH NUMBER 2903 AUDIT PERIOD - YEAR ENDED JUNE 30, 2022 2022-002. Equipment and Real Property Management Criteria or specific requirement: Proper records should be maintained for equipment acquired with federal awards as specified in 2 CFR section 200.313. Additionally, the District should ensure that disposition of such equipment is in accordance with federal requirements, including the federal awarding agency is appropriately compensated for its share of any property sold or converted to non-federal use. Condition: The District could not account for 2 of 28 Education Stabilization Fund equipment items purchased in previous years costing $4,341. Cause: Lack of internal controls over capital asset subsidiary records. Effect: The District's capital assets subsidiary records were not accurate. Context: Observation of 28 equipment items recorded on equipment subsidiary records at an initial cost of $493,581 from a total population of 277 items at an initial cost of $1,156,492. Recommendation: The District should maintain proper records for equipment acquired with federal awards. Views of responsible officials: The fever scanner had not been opened at the time of the equipment information submission from the facilities director?s secretary. The serial number had been submitted for the laptop that was purchased from a separate vendor and the cost was well below the capital assets threshold. Since fever scanners were no longer in use, the laptop had been given to an employee and could not be located. The fever scanners are all in storage but could not be identified because the serial number was for the laptop. The District will try and maintain proper records for all equipment.