FAC Explorer

Audit 20960

FY End
2022-06-30
Total Expended
$15.02M
Findings
4
Programs
16
Organization: Texarkana Arkansas School District (AR)
Year: 2022 Accepted: 2023-03-28
Auditor: Arkansas Legislative Audit

Organization Exclusion Status:

Findings

ID Ref Severity Repeat Requirement
20735 2022-001 Significant Deficiency - F
20736 2022-001 Significant Deficiency - F
597177 2022-001 Significant Deficiency - F
597178 2022-001 Significant Deficiency - F

Programs

ALN Program Spent Major Findings
84.010 Title I Grants to Local Educational Agencies $2.53M - 0
84.165 Magnet Schools Assistance $1.89M - 0
84.425 Covid-19 - Education Stabilization Fund $948,841 Yes 1
10.553 School Breakfast Program $647,248 - 0
84.424 Student Support and Academic Enrichment Program $287,927 Yes 0
93.243 Substance Abuse and Mental Health Services_projects of Regional and National Significance $211,437 - 0
84.367 Supporting Effective Instruction State Grants $186,715 - 0
10.555 National School Lunch Program $185,952 - 0
84.027 Special Education_grants to States $136,013 Yes 0
84.048 Career and Technical Education -- Basic Grants to States $68,472 - 0
10.579 Child Nutrition Discretionary Grants Limited Availability $49,412 - 0
84.371 Comprehensive Literacy Development $48,238 - 0
12.U01 Rotc $33,709 - 0
93.323 Epidemiology and Laboratory Capacity for Infectious Diseases (elc) $25,967 - 0
16.710 Public Safety Partnership and Community Policing Grants $7,176 - 0
84.173 Special Education_preschool Grants $5,036 Yes 0

Contacts

Name Title Type
DK9KYEZRTPQ5 Andrew Hill Auditee
8707723371 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 Texarkana Arkansas School District No. 7 (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 Texarkana Arkansas School District No. 7 (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 Texarkana Arkansas School District No. 7 (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 $127,660 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 2022-001
U.S. DEPARTMENT OF EDUCATION PASSED THROUGH ARKANSAS DEPARTMENT OF EDUCATION COVID - 19 - EDUCATION STABILIZATION FUND - AL NUMBER 84.425D PASS-THROUGH NUMBER 4605 AUDIT PERIOD - YEAR ENDED JUNE 30, 2022" 2022-001. Equipment and Real Property Management Criteria: 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 three equipment items, costing $4,079, purchased from the COVID-19 - Education Stabilization Funds. Cause: Lack of internal controls over equipment subsidiary records. Effect or potential effect: The District's equipment subsidiary records were not accurate. Context: Selected 21 items with a total initial cost of $93,791 for inspection purposes from a population of 206 equipment items with a total initial cost of $4,283,051 recorded in the equipment subsidiary records for the Education Stabilization program. Recommendation: Proper records should be maintained for equipment acquired with federal awards. Views of responsible officials: District will more closely monitor the inventories of fixed assets and equipment and supplies purchased with Federal and non-Federal funding. More indepth training will be provided to campus leadership and departmental heads on the disposal process of fixed assets and items purchased under Federal funding. The District will take every precaution necessary to ensure that fixed assets and items purchased with Federal funds will be handled appropriately throughout the life-cycle and assure that proper records are maintained for equipment in accordance with Arkansas Department of Elementary and Secondary Education, as well as Federal, guidelines and procedures for program expenditures.
Finding 2022-001
U.S. DEPARTMENT OF EDUCATION PASSED THROUGH ARKANSAS DEPARTMENT OF EDUCATION COVID - 19 - EDUCATION STABILIZATION FUND - AL NUMBER 84.425D PASS-THROUGH NUMBER 4605 AUDIT PERIOD - YEAR ENDED JUNE 30, 2022" 2022-001. Equipment and Real Property Management Criteria: 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 three equipment items, costing $4,079, purchased from the COVID-19 - Education Stabilization Funds. Cause: Lack of internal controls over equipment subsidiary records. Effect or potential effect: The District's equipment subsidiary records were not accurate. Context: Selected 21 items with a total initial cost of $93,791 for inspection purposes from a population of 206 equipment items with a total initial cost of $4,283,051 recorded in the equipment subsidiary records for the Education Stabilization program. Recommendation: Proper records should be maintained for equipment acquired with federal awards. Views of responsible officials: District will more closely monitor the inventories of fixed assets and equipment and supplies purchased with Federal and non-Federal funding. More indepth training will be provided to campus leadership and departmental heads on the disposal process of fixed assets and items purchased under Federal funding. The District will take every precaution necessary to ensure that fixed assets and items purchased with Federal funds will be handled appropriately throughout the life-cycle and assure that proper records are maintained for equipment in accordance with Arkansas Department of Elementary and Secondary Education, as well as Federal, guidelines and procedures for program expenditures.
Finding 2022-001
U.S. DEPARTMENT OF EDUCATION PASSED THROUGH ARKANSAS DEPARTMENT OF EDUCATION COVID - 19 - EDUCATION STABILIZATION FUND - AL NUMBER 84.425D PASS-THROUGH NUMBER 4605 AUDIT PERIOD - YEAR ENDED JUNE 30, 2022" 2022-001. Equipment and Real Property Management Criteria: 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 three equipment items, costing $4,079, purchased from the COVID-19 - Education Stabilization Funds. Cause: Lack of internal controls over equipment subsidiary records. Effect or potential effect: The District's equipment subsidiary records were not accurate. Context: Selected 21 items with a total initial cost of $93,791 for inspection purposes from a population of 206 equipment items with a total initial cost of $4,283,051 recorded in the equipment subsidiary records for the Education Stabilization program. Recommendation: Proper records should be maintained for equipment acquired with federal awards. Views of responsible officials: District will more closely monitor the inventories of fixed assets and equipment and supplies purchased with Federal and non-Federal funding. More indepth training will be provided to campus leadership and departmental heads on the disposal process of fixed assets and items purchased under Federal funding. The District will take every precaution necessary to ensure that fixed assets and items purchased with Federal funds will be handled appropriately throughout the life-cycle and assure that proper records are maintained for equipment in accordance with Arkansas Department of Elementary and Secondary Education, as well as Federal, guidelines and procedures for program expenditures.
Finding 2022-001
U.S. DEPARTMENT OF EDUCATION PASSED THROUGH ARKANSAS DEPARTMENT OF EDUCATION COVID - 19 - EDUCATION STABILIZATION FUND - AL NUMBER 84.425D PASS-THROUGH NUMBER 4605 AUDIT PERIOD - YEAR ENDED JUNE 30, 2022" 2022-001. Equipment and Real Property Management Criteria: 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 three equipment items, costing $4,079, purchased from the COVID-19 - Education Stabilization Funds. Cause: Lack of internal controls over equipment subsidiary records. Effect or potential effect: The District's equipment subsidiary records were not accurate. Context: Selected 21 items with a total initial cost of $93,791 for inspection purposes from a population of 206 equipment items with a total initial cost of $4,283,051 recorded in the equipment subsidiary records for the Education Stabilization program. Recommendation: Proper records should be maintained for equipment acquired with federal awards. Views of responsible officials: District will more closely monitor the inventories of fixed assets and equipment and supplies purchased with Federal and non-Federal funding. More indepth training will be provided to campus leadership and departmental heads on the disposal process of fixed assets and items purchased under Federal funding. The District will take every precaution necessary to ensure that fixed assets and items purchased with Federal funds will be handled appropriately throughout the life-cycle and assure that proper records are maintained for equipment in accordance with Arkansas Department of Elementary and Secondary Education, as well as Federal, guidelines and procedures for program expenditures.