FAC Explorer

Audit 18152

FY End
2022-06-30
Total Expended
$19.40M
Findings
4
Programs
12
Organization: Pine Bluff School District (AR)
Year: 2022 Accepted: 2023-03-30
Auditor: Arkansas Legislative Audit

Organization Exclusion Status:

Findings

ID Ref Severity Repeat Requirement
12557 2022-002 Material Weakness - AB
12558 2022-002 Material Weakness - AB
588999 2022-002 Material Weakness - AB
589000 2022-002 Material Weakness - AB

Programs

ALN Program Spent Major Findings
84.010 Title I Grants to Local Educational Agencies $6.54M - 0
84.027 Special Education_grants to States $1.37M Yes 0
32.009 Emergency Connectivity Fund Program $1.28M Yes 0
10.553 School Breakfast Program $703,678 - 0
84.367 Supporting Effective Instruction State Grants $197,247 Yes 0
84.424 Student Support and Academic Enrichment Program $152,715 - 0
10.555 National School Lunch Program $121,191 - 0
84.425 Covid-19 - Education Stabilization Fund $103,054 Yes 1
12.U01 Rotc $46,513 - 0
10.582 Fresh Fruit and Vegetable Program $39,336 - 0
84.173 Special Education_preschool Grants $25,504 Yes 0
93.558 Temporary Assistance for Needy Families $302 - 0

Contacts

Name Title Type
GGYYGNDF4F85 Ashley Granberry Auditee
8705434200 Matt Fink, CPA Auditor
No contacts on file

Notes to SEFA

Title: Nonmonetary Assistance (SEFA Notes 3 and 4) Accounting Policies: Basis of Presentation (SEFA Note 1) - The accompanying Schedule of Expenditures of Federal Awards (the "Schedule") includes the federal award activity of Pine Bluff School District No. 3 (District) under programs of the federal government for the year ended June 30, 2022. The information in this Schedule is presented in accordance with the requirements of Title 2 U.S. Code of Federal Regulations (CFR) Part 200, Uniform Administrative Requirements, Cost Principles, and Audit Requirements for Federal Awards (Uniform Guidance). Because the Schedule presents only a selected portion of the operations of the District, it is not intended to and does not present the financial position or changes in financial position of the District. Summary of Significant Accounting Policies (SEFA Note 2) - Expenditures reported on the Schedule are reported on the regulatory basis of accounting. Such expenditures are recognized following the cost principles contained in the Uniform Guidance, wherein certain types of expenditures are not allowable or are limited as to reimbursement. De Minimis Rate Used: N Rate Explanation: The District has elected not to use the 10% de minimis indirect cost rate allowed under the Uniform Guidance (SEFA Note 6). Nonmonetary assistance is reported at the approximate value as provided by the U. S. Department of Defense through an agreement with the U. S. Department of Agriculture. Nonmonetary assistance is reported at the approximate value as provided by the Arkansas Department of Human Services.
Title: Federal ALN Not Available for Certain Program (SEFA Note 5) Accounting Policies: Basis of Presentation (SEFA Note 1) - The accompanying Schedule of Expenditures of Federal Awards (the "Schedule") includes the federal award activity of Pine Bluff School District No. 3 (District) under programs of the federal government for the year ended June 30, 2022. The information in this Schedule is presented in accordance with the requirements of Title 2 U.S. Code of Federal Regulations (CFR) Part 200, Uniform Administrative Requirements, Cost Principles, and Audit Requirements for Federal Awards (Uniform Guidance). Because the Schedule presents only a selected portion of the operations of the District, it is not intended to and does not present the financial position or changes in financial position of the District. Summary of Significant Accounting Policies (SEFA Note 2) - Expenditures reported on the Schedule are reported on the regulatory basis of accounting. Such expenditures are recognized following the cost principles contained in the Uniform Guidance, wherein certain types of expenditures are not allowable or are limited as to reimbursement. De Minimis Rate Used: N Rate Explanation: The District has elected not to use the 10% de minimis indirect cost rate allowed under the Uniform Guidance (SEFA Note 6). The Federal Assistance Listing Number was not available. An alternative identifying number was utilized.
Title: Medicaid Funding (SEFA Note 7) Accounting Policies: Basis of Presentation (SEFA Note 1) - The accompanying Schedule of Expenditures of Federal Awards (the "Schedule") includes the federal award activity of Pine Bluff School District No. 3 (District) under programs of the federal government for the year ended June 30, 2022. The information in this Schedule is presented in accordance with the requirements of Title 2 U.S. Code of Federal Regulations (CFR) Part 200, Uniform Administrative Requirements, Cost Principles, and Audit Requirements for Federal Awards (Uniform Guidance). Because the Schedule presents only a selected portion of the operations of the District, it is not intended to and does not present the financial position or changes in financial position of the District. Summary of Significant Accounting Policies (SEFA Note 2) - Expenditures reported on the Schedule are reported on the regulatory basis of accounting. Such expenditures are recognized following the cost principles contained in the Uniform Guidance, wherein certain types of expenditures are not allowable or are limited as to reimbursement. De Minimis Rate Used: N Rate Explanation: The District has elected not to use the 10% de minimis indirect cost rate allowed under the Uniform Guidance (SEFA Note 6). During the year ended June 30, 2022, the District received Medicaid funding of $67,382 from the Arkansas Department of Human Services. Such payments are not considered Federal awards expended, and therefore, are not included in the above Schedule.

Finding Details

Finding 2022-002
U.S. DEPARTMENT OF EDUCATION PASSED THROUGH ARKANSAS DEPARTMENT OF EDUCATION COVID-19 ELEMENTARY AND SECONDARY SCHOOL EMERGENCY RELIEF FUND - AL NUMBER 84.425D PASS-THROUGH NUMBER 3505 AUDIT PERIOD - YEAR ENDED JUNE 30, 2022 2022-002. Allowable Cost/Cost Principles Criteria or specific requirement: Office of Management and Budget (OMB) 2 CFR section 200.430 established principles for determining the allowable costs incurred by the District under Federal awards. Such costs are to conform to the established written policy of the non-federal entity consistently applied to both federal and non-Federal activities. Condition: In our sample of payroll expenditures, we identified undocumented compensation of $7,685 and improperly awarded incentive pay of $4,700 paid from Federal funds without proper documentation or requirements. Cause: Lack of internal controls over program expenditures. Effect or potential effect: Unallowable costs of $12,385 were paid from COVID-19 Elementary and Secondary School Emergency Relief funds for additional hours and incentive pay. Questioned costs: The amount of questioned costs was $12,385. Context: An examination of COVID-19 Elementary and Secondary School Emergency Relief Fund payroll expenditures for 25 employees totaling $121,905 from a population of 609 employees totaling $3,869,314. Recommendation: The District should contact the Arkansas Division of Elementary and Secondary Education for guidance regarding this matter and implement proper controls over program expenditures. Views of responsible officials: The District acknowledges the finding and would take this opportunity to explain the circumstances surrounding this material weakness. While not an excuse, it in part explains the conditions under which these instances of undocumented compensation occurred. The District has been impacted by multiple staff changes in the Business Office. The District has employed and/or contracted for payroll services with four (4) persons and for the role of Business Manager with three (3) persons just during this calendar year alone. The District has taken steps to stabilize the workforce in the Business Office. In addition to addressing the human capital issues, the District will provide additional monitoring support to ensure the implementation of the existing internal controls over program expenditures. The District has already taken steps to recoup compensation that was improperly awarded and paid. As recommended, the District will contact Arkansas Division of Elementary and Secondary (DESE) for guidance regarding this matter.
Finding 2022-002
U.S. DEPARTMENT OF EDUCATION PASSED THROUGH ARKANSAS DEPARTMENT OF EDUCATION COVID-19 ELEMENTARY AND SECONDARY SCHOOL EMERGENCY RELIEF FUND - AL NUMBER 84.425D PASS-THROUGH NUMBER 3505 AUDIT PERIOD - YEAR ENDED JUNE 30, 2022 2022-002. Allowable Cost/Cost Principles Criteria or specific requirement: Office of Management and Budget (OMB) 2 CFR section 200.430 established principles for determining the allowable costs incurred by the District under Federal awards. Such costs are to conform to the established written policy of the non-federal entity consistently applied to both federal and non-Federal activities. Condition: In our sample of payroll expenditures, we identified undocumented compensation of $7,685 and improperly awarded incentive pay of $4,700 paid from Federal funds without proper documentation or requirements. Cause: Lack of internal controls over program expenditures. Effect or potential effect: Unallowable costs of $12,385 were paid from COVID-19 Elementary and Secondary School Emergency Relief funds for additional hours and incentive pay. Questioned costs: The amount of questioned costs was $12,385. Context: An examination of COVID-19 Elementary and Secondary School Emergency Relief Fund payroll expenditures for 25 employees totaling $121,905 from a population of 609 employees totaling $3,869,314. Recommendation: The District should contact the Arkansas Division of Elementary and Secondary Education for guidance regarding this matter and implement proper controls over program expenditures. Views of responsible officials: The District acknowledges the finding and would take this opportunity to explain the circumstances surrounding this material weakness. While not an excuse, it in part explains the conditions under which these instances of undocumented compensation occurred. The District has been impacted by multiple staff changes in the Business Office. The District has employed and/or contracted for payroll services with four (4) persons and for the role of Business Manager with three (3) persons just during this calendar year alone. The District has taken steps to stabilize the workforce in the Business Office. In addition to addressing the human capital issues, the District will provide additional monitoring support to ensure the implementation of the existing internal controls over program expenditures. The District has already taken steps to recoup compensation that was improperly awarded and paid. As recommended, the District will contact Arkansas Division of Elementary and Secondary (DESE) for guidance regarding this matter.
Finding 2022-002
U.S. DEPARTMENT OF EDUCATION PASSED THROUGH ARKANSAS DEPARTMENT OF EDUCATION COVID-19 ELEMENTARY AND SECONDARY SCHOOL EMERGENCY RELIEF FUND - AL NUMBER 84.425D PASS-THROUGH NUMBER 3505 AUDIT PERIOD - YEAR ENDED JUNE 30, 2022 2022-002. Allowable Cost/Cost Principles Criteria or specific requirement: Office of Management and Budget (OMB) 2 CFR section 200.430 established principles for determining the allowable costs incurred by the District under Federal awards. Such costs are to conform to the established written policy of the non-federal entity consistently applied to both federal and non-Federal activities. Condition: In our sample of payroll expenditures, we identified undocumented compensation of $7,685 and improperly awarded incentive pay of $4,700 paid from Federal funds without proper documentation or requirements. Cause: Lack of internal controls over program expenditures. Effect or potential effect: Unallowable costs of $12,385 were paid from COVID-19 Elementary and Secondary School Emergency Relief funds for additional hours and incentive pay. Questioned costs: The amount of questioned costs was $12,385. Context: An examination of COVID-19 Elementary and Secondary School Emergency Relief Fund payroll expenditures for 25 employees totaling $121,905 from a population of 609 employees totaling $3,869,314. Recommendation: The District should contact the Arkansas Division of Elementary and Secondary Education for guidance regarding this matter and implement proper controls over program expenditures. Views of responsible officials: The District acknowledges the finding and would take this opportunity to explain the circumstances surrounding this material weakness. While not an excuse, it in part explains the conditions under which these instances of undocumented compensation occurred. The District has been impacted by multiple staff changes in the Business Office. The District has employed and/or contracted for payroll services with four (4) persons and for the role of Business Manager with three (3) persons just during this calendar year alone. The District has taken steps to stabilize the workforce in the Business Office. In addition to addressing the human capital issues, the District will provide additional monitoring support to ensure the implementation of the existing internal controls over program expenditures. The District has already taken steps to recoup compensation that was improperly awarded and paid. As recommended, the District will contact Arkansas Division of Elementary and Secondary (DESE) for guidance regarding this matter.
Finding 2022-002
U.S. DEPARTMENT OF EDUCATION PASSED THROUGH ARKANSAS DEPARTMENT OF EDUCATION COVID-19 ELEMENTARY AND SECONDARY SCHOOL EMERGENCY RELIEF FUND - AL NUMBER 84.425D PASS-THROUGH NUMBER 3505 AUDIT PERIOD - YEAR ENDED JUNE 30, 2022 2022-002. Allowable Cost/Cost Principles Criteria or specific requirement: Office of Management and Budget (OMB) 2 CFR section 200.430 established principles for determining the allowable costs incurred by the District under Federal awards. Such costs are to conform to the established written policy of the non-federal entity consistently applied to both federal and non-Federal activities. Condition: In our sample of payroll expenditures, we identified undocumented compensation of $7,685 and improperly awarded incentive pay of $4,700 paid from Federal funds without proper documentation or requirements. Cause: Lack of internal controls over program expenditures. Effect or potential effect: Unallowable costs of $12,385 were paid from COVID-19 Elementary and Secondary School Emergency Relief funds for additional hours and incentive pay. Questioned costs: The amount of questioned costs was $12,385. Context: An examination of COVID-19 Elementary and Secondary School Emergency Relief Fund payroll expenditures for 25 employees totaling $121,905 from a population of 609 employees totaling $3,869,314. Recommendation: The District should contact the Arkansas Division of Elementary and Secondary Education for guidance regarding this matter and implement proper controls over program expenditures. Views of responsible officials: The District acknowledges the finding and would take this opportunity to explain the circumstances surrounding this material weakness. While not an excuse, it in part explains the conditions under which these instances of undocumented compensation occurred. The District has been impacted by multiple staff changes in the Business Office. The District has employed and/or contracted for payroll services with four (4) persons and for the role of Business Manager with three (3) persons just during this calendar year alone. The District has taken steps to stabilize the workforce in the Business Office. In addition to addressing the human capital issues, the District will provide additional monitoring support to ensure the implementation of the existing internal controls over program expenditures. The District has already taken steps to recoup compensation that was improperly awarded and paid. As recommended, the District will contact Arkansas Division of Elementary and Secondary (DESE) for guidance regarding this matter.