FAC Explorer

Audit 27784

FY End
2022-06-30
Total Expended
$1.15M
Findings
4
Programs
10
Organization: Strong-Huttig School District (AR)
Year: 2022 Accepted: 2023-07-17
Auditor: Arkansas Legislative Audit

Organization Exclusion Status:

Findings

ID Ref Severity Repeat Requirement
32361 2022-001 Material Weakness - F
32362 2022-001 Material Weakness - F
608803 2022-001 Material Weakness - F
608804 2022-001 Material Weakness - F

Programs

ALN Program Spent Major Findings
84.010 Title I Grants to Local Educational Agencies $352,367 - 0
84.425 Covid-19 - Education Stabilization Fund $139,527 Yes 1
10.553 School Breakfast Program $66,811 - 0
93.323 Epidemiology and Laboratory Capacity for Infectious Diseases (elc) $17,345 - 0
10.555 National School Lunch Program $17,203 - 0
84.027 Special Education_grants to States $17,169 Yes 0
84.367 Supporting Effective Instruction State Grants $14,163 - 0
84.371 Comprehensive Literacy Development $12,430 - 0
84.424 Student Support and Academic Enrichment Program $12,109 - 0
84.173 Special Education_preschool Grants $1,877 Yes 0

Contacts

Name Title Type
UXQTB13V4KD5 Kimberly Thomas Auditee
8707977322 Matt Fink, CPA Auditor
No contacts on file

Notes to SEFA

Title: Nonmonetary Assistance (SEFA Note 3) Accounting Policies: Basis of Presentation (SEFA Note 1) - The accompanying Schedule of Expenditures of Federal Awards (the "Schedule") includes the federal award activity of Strong-Huttig School District No. 83 (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 4) Nonmonetary assistance is reported at the approximate value as provided by the Arkansas Department of Human Services.
Title: Medicaid Funding (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 Strong-Huttig School District No. 83 (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 4) During the year ended June 30, 2022, the District received Medicaid funding of $68,164 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 - AMERICAN RESUCE PLAN - ELEMENTARY AND SECONDARY SCHOOL EMERGENCY RELIEF FUND - AL NUMBER 84.425U PASS-THROUGH NUMBER 4602 AUDIT PERIOD - YEAR ENDED JUNE 30, 2022 2022-001. Equipment and Real Property Management Criteria or specific requirement: Property records should be maintained for equipment acquired with federal awards as specified in OMB 2 CFR section 200.313. Condition: A test of the Education Stabilization Fund disbursements and walkthrough procedures revealed that five equipment items purchased with a cost greater than $1,000 each were not recorded in the District's equipment subsidiary ledger. The total cost of the equipment was $61,553. Cause: Lack of internal controls over the equipment subsidiary ledger. Effect or potential effect: The District's equipment subsidiary records were not accurate. Context: As a result of an examination of 10 percent of equipment purchases and performing a walkthrough procedure on internal controls, it was determined that equipment purchases greater than $1,000 were not always properly added to the equipment subsidiary ledger, as a result we identified five pieces of equipment totaling $61,553. 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: The Strong-Huttig School District is commited to addressing and correcting these findings. The District will contact the Arkansas Division of Elementary and Secondary Education for guidance regarding this matter and implement proper controls over program expenditures. The District will also ensure all capital asset records are updated, and maintained moving forward.
Finding 2022-001
U.S. DEPARTMENT OF EDUCATION PASSED THROUGH ARKANSAS DEPARTMENT OF EDUCATION COVID-19 - AMERICAN RESUCE PLAN - ELEMENTARY AND SECONDARY SCHOOL EMERGENCY RELIEF FUND - AL NUMBER 84.425U PASS-THROUGH NUMBER 4602 AUDIT PERIOD - YEAR ENDED JUNE 30, 2022 2022-001. Equipment and Real Property Management Criteria or specific requirement: Property records should be maintained for equipment acquired with federal awards as specified in OMB 2 CFR section 200.313. Condition: A test of the Education Stabilization Fund disbursements and walkthrough procedures revealed that five equipment items purchased with a cost greater than $1,000 each were not recorded in the District's equipment subsidiary ledger. The total cost of the equipment was $61,553. Cause: Lack of internal controls over the equipment subsidiary ledger. Effect or potential effect: The District's equipment subsidiary records were not accurate. Context: As a result of an examination of 10 percent of equipment purchases and performing a walkthrough procedure on internal controls, it was determined that equipment purchases greater than $1,000 were not always properly added to the equipment subsidiary ledger, as a result we identified five pieces of equipment totaling $61,553. 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: The Strong-Huttig School District is commited to addressing and correcting these findings. The District will contact the Arkansas Division of Elementary and Secondary Education for guidance regarding this matter and implement proper controls over program expenditures. The District will also ensure all capital asset records are updated, and maintained moving forward.
Finding 2022-001
U.S. DEPARTMENT OF EDUCATION PASSED THROUGH ARKANSAS DEPARTMENT OF EDUCATION COVID-19 - AMERICAN RESUCE PLAN - ELEMENTARY AND SECONDARY SCHOOL EMERGENCY RELIEF FUND - AL NUMBER 84.425U PASS-THROUGH NUMBER 4602 AUDIT PERIOD - YEAR ENDED JUNE 30, 2022 2022-001. Equipment and Real Property Management Criteria or specific requirement: Property records should be maintained for equipment acquired with federal awards as specified in OMB 2 CFR section 200.313. Condition: A test of the Education Stabilization Fund disbursements and walkthrough procedures revealed that five equipment items purchased with a cost greater than $1,000 each were not recorded in the District's equipment subsidiary ledger. The total cost of the equipment was $61,553. Cause: Lack of internal controls over the equipment subsidiary ledger. Effect or potential effect: The District's equipment subsidiary records were not accurate. Context: As a result of an examination of 10 percent of equipment purchases and performing a walkthrough procedure on internal controls, it was determined that equipment purchases greater than $1,000 were not always properly added to the equipment subsidiary ledger, as a result we identified five pieces of equipment totaling $61,553. 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: The Strong-Huttig School District is commited to addressing and correcting these findings. The District will contact the Arkansas Division of Elementary and Secondary Education for guidance regarding this matter and implement proper controls over program expenditures. The District will also ensure all capital asset records are updated, and maintained moving forward.
Finding 2022-001
U.S. DEPARTMENT OF EDUCATION PASSED THROUGH ARKANSAS DEPARTMENT OF EDUCATION COVID-19 - AMERICAN RESUCE PLAN - ELEMENTARY AND SECONDARY SCHOOL EMERGENCY RELIEF FUND - AL NUMBER 84.425U PASS-THROUGH NUMBER 4602 AUDIT PERIOD - YEAR ENDED JUNE 30, 2022 2022-001. Equipment and Real Property Management Criteria or specific requirement: Property records should be maintained for equipment acquired with federal awards as specified in OMB 2 CFR section 200.313. Condition: A test of the Education Stabilization Fund disbursements and walkthrough procedures revealed that five equipment items purchased with a cost greater than $1,000 each were not recorded in the District's equipment subsidiary ledger. The total cost of the equipment was $61,553. Cause: Lack of internal controls over the equipment subsidiary ledger. Effect or potential effect: The District's equipment subsidiary records were not accurate. Context: As a result of an examination of 10 percent of equipment purchases and performing a walkthrough procedure on internal controls, it was determined that equipment purchases greater than $1,000 were not always properly added to the equipment subsidiary ledger, as a result we identified five pieces of equipment totaling $61,553. 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: The Strong-Huttig School District is commited to addressing and correcting these findings. The District will contact the Arkansas Division of Elementary and Secondary Education for guidance regarding this matter and implement proper controls over program expenditures. The District will also ensure all capital asset records are updated, and maintained moving forward.