FAC Explorer

Audit 295335

FY End
2023-06-30
Total Expended
$3.25M
Findings
4
Programs
13
Organization: Paris School District (AR)
Year: 2023 Accepted: 2024-03-15
Auditor: Arkansas Legislative Audit

Organization Exclusion Status:

Findings

ID Ref Severity Repeat Requirement
380550 2023-001 Significant Deficiency - FN
380551 2023-001 Significant Deficiency - FN
956992 2023-001 Significant Deficiency - FN
956993 2023-001 Significant Deficiency - FN

Programs

ALN Program Spent Major Findings
84.010 Title I Grants to Local Educational Agencies $396,265 - 0
10.553 School Breakfast Program $219,601 Yes 0
10.555 National School Lunch Program $60,563 Yes 0
84.367 Supporting Effective Instruction State Grants $39,103 - 0
32.009 Emergency Connectivity Fund Program $34,797 - 0
84.424 Student Support and Academic Enrichment Program $29,746 - 0
84.358 Rural Education $29,477 - 0
10.582 Fresh Fruit and Vegetable Program $22,365 Yes 0
93.981 Improving Student Health and Academic Achievement Through Nutrition, Physical Activity and the Management of Chronic Conditions in Schools $15,838 - 0
84.173 Special Education_preschool Grants $15,091 - 0
84.027 Special Education_grants to States $6,915 - 0
84.425 Covid-19 - Education Stabilization Fund $302 Yes 1
93.079 Cooperative Agreements to Promote Adolescent Health Through School-Based Hiv/std Prevention and School-Based Surveillance $266 - 0

Contacts

Name Title Type
JJ1AK2P6BK85 Susan Cope Auditee
8449633243 Matt Fink, CPA Auditor
No contacts on file

Notes to SEFA

Title: Medicaid Funding (SEFA Note 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 Paris School District No. 7 (District) under programs of the federal government for the year ended June 30, 2023. 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 3) During the year ended June 30, 2023, the District received Medicaid funding of $85,495 from the Arkansas Department of Human Services. Such payments are not considered Federal awards expended, and therefore, are not included in the above Schedule.
Title: Nonmonetary Assistance (SEFA Notes 5 and 6) Accounting Policies: Basis of Presentation (SEFA Note 1) - The accompanying Schedule of Expenditures of Federal Awards (the "Schedule") includes the federal award activity of Paris School District No. 7 (District) under programs of the federal government for the year ended June 30, 2023. 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 3) 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.

Finding Details

Finding 2023-001
U.S. DEPARTMENT OF EDUCATION PASSED THROUGH ARKANSAS DEPARTMENT OF EDUCATION COVID-19 AMERICAN RESCUE PLAN - ELEMENTARY AND SECONDARY SCHOOL EMERGENCY RELIEF FUND - AL NUMBER 84.425U PASS-THROUGH NUMBER 4203 AUDIT PERIOD - YEAR ENDED JUNE 30, 2023 2023-001. Equipment and Real Property Management / Special Tests and Provisions Criteria or specific requirement (including statutory, regulatory, or other citation): 29 CFR 5.5 (Wage Rate Requirements) requires all contractors and subcontractors performing construction contracts in excess of $2,000, financed by federal assistance funds, to pay laborers and mechanics employed by the contractor or subcontractor not less than the prevailing wage rates established by the Department of Labor for the locality of the project. Non-federal entities shall include in the applicable construction contracts a provision that the contractor or subcontractor comply with those requirements. Such requirements include the submission of weekly certified payrolls for each week in which any contract work is performed, to the non-federal entities. Additionally, 2 CFR 200.326 and Ark. Code Ann. § 18-44-503 require a non-federal entity to obtain a performance bond for the public construction contract. Condition: The District paid two contractors $153,001 and $248,750 from the Education Stabilization Fund for two roofing projects without obtaining contracts that included the prevailing wage rate provision, and weekly certified payrolls were not submitted to the District. Additionally, the District did not obtain performance bonds for the two roofing projects, as required by Ark. Code Ann. § 18-44-503. Cause: Lack of internal controls and management oversight. Effect: The District did not comply with Wage Rate Requirements or Bonding Requirements. Context: The District had two construction contracts for facility repairs and improvements paid from the Education Stabilization Fund. Examined both contracts for compliance. Recommendation: The District should ensure that all applicable construction contracts contain the Wage Rate Requirements provision, obtain weekly certified payrolls from the contractor or subcontractor, and obtain performance bonds. The District should also contact the Arkansas Division of Elementary and Secondary Education (DESE) for further directives regarding this matter. Views of responsible officials: The District will ensure contracts are obtained and all applicable construction contracts contain the required notification regarding compliance with the Davis-Bacon Act. We will make sure to get copies of the weekly certified payrolls for applicable projects. We will be in contact with DESE for guidance and implementation of program controls over program expenditures by June 30, 2024.
Finding 2023-001
U.S. DEPARTMENT OF EDUCATION PASSED THROUGH ARKANSAS DEPARTMENT OF EDUCATION COVID-19 AMERICAN RESCUE PLAN - ELEMENTARY AND SECONDARY SCHOOL EMERGENCY RELIEF FUND - AL NUMBER 84.425U PASS-THROUGH NUMBER 4203 AUDIT PERIOD - YEAR ENDED JUNE 30, 2023 2023-001. Equipment and Real Property Management / Special Tests and Provisions Criteria or specific requirement (including statutory, regulatory, or other citation): 29 CFR 5.5 (Wage Rate Requirements) requires all contractors and subcontractors performing construction contracts in excess of $2,000, financed by federal assistance funds, to pay laborers and mechanics employed by the contractor or subcontractor not less than the prevailing wage rates established by the Department of Labor for the locality of the project. Non-federal entities shall include in the applicable construction contracts a provision that the contractor or subcontractor comply with those requirements. Such requirements include the submission of weekly certified payrolls for each week in which any contract work is performed, to the non-federal entities. Additionally, 2 CFR 200.326 and Ark. Code Ann. § 18-44-503 require a non-federal entity to obtain a performance bond for the public construction contract. Condition: The District paid two contractors $153,001 and $248,750 from the Education Stabilization Fund for two roofing projects without obtaining contracts that included the prevailing wage rate provision, and weekly certified payrolls were not submitted to the District. Additionally, the District did not obtain performance bonds for the two roofing projects, as required by Ark. Code Ann. § 18-44-503. Cause: Lack of internal controls and management oversight. Effect: The District did not comply with Wage Rate Requirements or Bonding Requirements. Context: The District had two construction contracts for facility repairs and improvements paid from the Education Stabilization Fund. Examined both contracts for compliance. Recommendation: The District should ensure that all applicable construction contracts contain the Wage Rate Requirements provision, obtain weekly certified payrolls from the contractor or subcontractor, and obtain performance bonds. The District should also contact the Arkansas Division of Elementary and Secondary Education (DESE) for further directives regarding this matter. Views of responsible officials: The District will ensure contracts are obtained and all applicable construction contracts contain the required notification regarding compliance with the Davis-Bacon Act. We will make sure to get copies of the weekly certified payrolls for applicable projects. We will be in contact with DESE for guidance and implementation of program controls over program expenditures by June 30, 2024.
Finding 2023-001
U.S. DEPARTMENT OF EDUCATION PASSED THROUGH ARKANSAS DEPARTMENT OF EDUCATION COVID-19 AMERICAN RESCUE PLAN - ELEMENTARY AND SECONDARY SCHOOL EMERGENCY RELIEF FUND - AL NUMBER 84.425U PASS-THROUGH NUMBER 4203 AUDIT PERIOD - YEAR ENDED JUNE 30, 2023 2023-001. Equipment and Real Property Management / Special Tests and Provisions Criteria or specific requirement (including statutory, regulatory, or other citation): 29 CFR 5.5 (Wage Rate Requirements) requires all contractors and subcontractors performing construction contracts in excess of $2,000, financed by federal assistance funds, to pay laborers and mechanics employed by the contractor or subcontractor not less than the prevailing wage rates established by the Department of Labor for the locality of the project. Non-federal entities shall include in the applicable construction contracts a provision that the contractor or subcontractor comply with those requirements. Such requirements include the submission of weekly certified payrolls for each week in which any contract work is performed, to the non-federal entities. Additionally, 2 CFR 200.326 and Ark. Code Ann. § 18-44-503 require a non-federal entity to obtain a performance bond for the public construction contract. Condition: The District paid two contractors $153,001 and $248,750 from the Education Stabilization Fund for two roofing projects without obtaining contracts that included the prevailing wage rate provision, and weekly certified payrolls were not submitted to the District. Additionally, the District did not obtain performance bonds for the two roofing projects, as required by Ark. Code Ann. § 18-44-503. Cause: Lack of internal controls and management oversight. Effect: The District did not comply with Wage Rate Requirements or Bonding Requirements. Context: The District had two construction contracts for facility repairs and improvements paid from the Education Stabilization Fund. Examined both contracts for compliance. Recommendation: The District should ensure that all applicable construction contracts contain the Wage Rate Requirements provision, obtain weekly certified payrolls from the contractor or subcontractor, and obtain performance bonds. The District should also contact the Arkansas Division of Elementary and Secondary Education (DESE) for further directives regarding this matter. Views of responsible officials: The District will ensure contracts are obtained and all applicable construction contracts contain the required notification regarding compliance with the Davis-Bacon Act. We will make sure to get copies of the weekly certified payrolls for applicable projects. We will be in contact with DESE for guidance and implementation of program controls over program expenditures by June 30, 2024.
Finding 2023-001
U.S. DEPARTMENT OF EDUCATION PASSED THROUGH ARKANSAS DEPARTMENT OF EDUCATION COVID-19 AMERICAN RESCUE PLAN - ELEMENTARY AND SECONDARY SCHOOL EMERGENCY RELIEF FUND - AL NUMBER 84.425U PASS-THROUGH NUMBER 4203 AUDIT PERIOD - YEAR ENDED JUNE 30, 2023 2023-001. Equipment and Real Property Management / Special Tests and Provisions Criteria or specific requirement (including statutory, regulatory, or other citation): 29 CFR 5.5 (Wage Rate Requirements) requires all contractors and subcontractors performing construction contracts in excess of $2,000, financed by federal assistance funds, to pay laborers and mechanics employed by the contractor or subcontractor not less than the prevailing wage rates established by the Department of Labor for the locality of the project. Non-federal entities shall include in the applicable construction contracts a provision that the contractor or subcontractor comply with those requirements. Such requirements include the submission of weekly certified payrolls for each week in which any contract work is performed, to the non-federal entities. Additionally, 2 CFR 200.326 and Ark. Code Ann. § 18-44-503 require a non-federal entity to obtain a performance bond for the public construction contract. Condition: The District paid two contractors $153,001 and $248,750 from the Education Stabilization Fund for two roofing projects without obtaining contracts that included the prevailing wage rate provision, and weekly certified payrolls were not submitted to the District. Additionally, the District did not obtain performance bonds for the two roofing projects, as required by Ark. Code Ann. § 18-44-503. Cause: Lack of internal controls and management oversight. Effect: The District did not comply with Wage Rate Requirements or Bonding Requirements. Context: The District had two construction contracts for facility repairs and improvements paid from the Education Stabilization Fund. Examined both contracts for compliance. Recommendation: The District should ensure that all applicable construction contracts contain the Wage Rate Requirements provision, obtain weekly certified payrolls from the contractor or subcontractor, and obtain performance bonds. The District should also contact the Arkansas Division of Elementary and Secondary Education (DESE) for further directives regarding this matter. Views of responsible officials: The District will ensure contracts are obtained and all applicable construction contracts contain the required notification regarding compliance with the Davis-Bacon Act. We will make sure to get copies of the weekly certified payrolls for applicable projects. We will be in contact with DESE for guidance and implementation of program controls over program expenditures by June 30, 2024.