FAC Explorer

Audit 296996

FY End
2023-06-30
Total Expended
$4.72M
Findings
4
Programs
12
Organization: Stuttgart School District (AR)
Year: 2023 Accepted: 2024-03-25
Auditor: Arkansas Legislative Audit

Organization Exclusion Status:

Findings

ID Ref Severity Repeat Requirement
384001 2023-001 Material Weakness - L
384002 2023-001 Material Weakness - L
960443 2023-001 Material Weakness - L
960444 2023-001 Material Weakness - L

Programs

ALN Program Spent Major Findings
84.425 Covid-19 - Education Stabilization Fund $2.14M Yes 0
84.010 Title I Grants to Local Educational Agencies $504,424 - 0
10.553 School Breakfast Program $288,188 Yes 1
84.371 Comprehensive Literacy Development $160,000 - 0
84.027 Special Education_grants to States $71,626 - 0
10.582 Fresh Fruit and Vegetable Program $45,060 Yes 0
84.424 Student Support and Academic Enrichment Program $44,098 - 0
84.367 Supporting Effective Instruction State Grants $42,508 - 0
84.358 Rural Education $40,140 - 0
10.555 National School Lunch Program $38,573 Yes 0
84.011 Migrant Education_state Grant Program $12,057 - 0
84.173 Special Education_preschool Grants $13 - 0

Contacts

Name Title Type
YM4VMJJHSL23 Sharon Miller-Mayville Auditee
8706741303 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 Stuttgart School District No. 22 (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 $79,241 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 Stuttgart School District No. 22 (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 AGRICULTURE PASSED THROUGH ARKANSAS DEPARTMENT OF EDUCATION CHILD NUTRITION CLUSTER - AL NUMBERS 10.553 and 10.555 PASS-THROUGH NUMBER 0104 AUDIT PERIOD - YEAR ENDED JUNE 30, 2023 2023-001. Reporting Criteria or specific requirement: Monthly claims for reimbursement are required to be submitted to the Arkansas Division of Elementary and Secondary Education, Child Nutrition Unit (DESE, CNU), as required by 7 CFR 210.8 and 7 CFR 220.11. Reimbursement claim components include the total number of free, reduced price, and paid meals served. The total meals served by category are to be derived from the District's point of sale system. Condition: An Administrative Review for Stuttgart School District was completed by the Arkansas Division of Elementary and Secondary Education, Child Nutrition Unit (DESE, CNU) in April 2023. The review noted the Community Eligibility Provision (CEP) claiming percentages were not applied to meals served at Park Avenue Elementary and Meekins Middle School for breakfast or lunch. All meals at these two sites were claimed as free meals. The claim for reimbursement in March 2023, had not been fully processed. The claim was deleted, and the district applied the correct CEP percentages for March 2023. Upon further investigation, it was found that the District had not implemented the CEP claiming percentages for the entire 2022-2023 school year through February 2023. The District immediately took corrective action and remitted the overpayment of funds totaling $125,122. Cause: Lack of management oversight and inaccurate reporting of meals served resulted in the District not applying the Community Eligibility Provision (CEP) claiming percentages for breakfast or lunch. Effect or potential effect: The District was not properly reimbursed for meals served during the year. Questioned costs: The amount of questioned costs totaled $125,122 (AL #10.553 Breakfast $35,795 and AL #10.555 Lunch $89,327. Context: Results of an Administrative Review by the DESE, CNU. Identification as a repeat finding: No Recommendation: The District should exercise greater care in the preparation of monthly claims for reimbursement. Views of responsible officials: Child Nutrition Director, claim approver and Superintendent have been made aware of the percentage claim requirement and will review all monthly claims going forward to ensure the correct allowable percentage is claimed for all campuses designation as CEP. A spreadsheet with formulas has been created to verify the monthly claim includes the correct percentage calculations. The data is reviewed by both the Child Nutrition Director and the Comptroller prior to submitting the official monthly claim to the Child Nutrition Unit. In addition, incorrect claims for the 2023 fiscal year were modified and corrected monthly forms were submitted to the Child Nutrition Unit before fiscal year 2023 end. Excess reimbursement amounts were also repaid to the Child Nutrition department during the same year.
Finding 2023-001
U.S. DEPARTMENT OF AGRICULTURE PASSED THROUGH ARKANSAS DEPARTMENT OF EDUCATION CHILD NUTRITION CLUSTER - AL NUMBERS 10.553 and 10.555 PASS-THROUGH NUMBER 0104 AUDIT PERIOD - YEAR ENDED JUNE 30, 2023 2023-001. Reporting Criteria or specific requirement: Monthly claims for reimbursement are required to be submitted to the Arkansas Division of Elementary and Secondary Education, Child Nutrition Unit (DESE, CNU), as required by 7 CFR 210.8 and 7 CFR 220.11. Reimbursement claim components include the total number of free, reduced price, and paid meals served. The total meals served by category are to be derived from the District's point of sale system. Condition: An Administrative Review for Stuttgart School District was completed by the Arkansas Division of Elementary and Secondary Education, Child Nutrition Unit (DESE, CNU) in April 2023. The review noted the Community Eligibility Provision (CEP) claiming percentages were not applied to meals served at Park Avenue Elementary and Meekins Middle School for breakfast or lunch. All meals at these two sites were claimed as free meals. The claim for reimbursement in March 2023, had not been fully processed. The claim was deleted, and the district applied the correct CEP percentages for March 2023. Upon further investigation, it was found that the District had not implemented the CEP claiming percentages for the entire 2022-2023 school year through February 2023. The District immediately took corrective action and remitted the overpayment of funds totaling $125,122. Cause: Lack of management oversight and inaccurate reporting of meals served resulted in the District not applying the Community Eligibility Provision (CEP) claiming percentages for breakfast or lunch. Effect or potential effect: The District was not properly reimbursed for meals served during the year. Questioned costs: The amount of questioned costs totaled $125,122 (AL #10.553 Breakfast $35,795 and AL #10.555 Lunch $89,327. Context: Results of an Administrative Review by the DESE, CNU. Identification as a repeat finding: No Recommendation: The District should exercise greater care in the preparation of monthly claims for reimbursement. Views of responsible officials: Child Nutrition Director, claim approver and Superintendent have been made aware of the percentage claim requirement and will review all monthly claims going forward to ensure the correct allowable percentage is claimed for all campuses designation as CEP. A spreadsheet with formulas has been created to verify the monthly claim includes the correct percentage calculations. The data is reviewed by both the Child Nutrition Director and the Comptroller prior to submitting the official monthly claim to the Child Nutrition Unit. In addition, incorrect claims for the 2023 fiscal year were modified and corrected monthly forms were submitted to the Child Nutrition Unit before fiscal year 2023 end. Excess reimbursement amounts were also repaid to the Child Nutrition department during the same year.
Finding 2023-001
U.S. DEPARTMENT OF AGRICULTURE PASSED THROUGH ARKANSAS DEPARTMENT OF EDUCATION CHILD NUTRITION CLUSTER - AL NUMBERS 10.553 and 10.555 PASS-THROUGH NUMBER 0104 AUDIT PERIOD - YEAR ENDED JUNE 30, 2023 2023-001. Reporting Criteria or specific requirement: Monthly claims for reimbursement are required to be submitted to the Arkansas Division of Elementary and Secondary Education, Child Nutrition Unit (DESE, CNU), as required by 7 CFR 210.8 and 7 CFR 220.11. Reimbursement claim components include the total number of free, reduced price, and paid meals served. The total meals served by category are to be derived from the District's point of sale system. Condition: An Administrative Review for Stuttgart School District was completed by the Arkansas Division of Elementary and Secondary Education, Child Nutrition Unit (DESE, CNU) in April 2023. The review noted the Community Eligibility Provision (CEP) claiming percentages were not applied to meals served at Park Avenue Elementary and Meekins Middle School for breakfast or lunch. All meals at these two sites were claimed as free meals. The claim for reimbursement in March 2023, had not been fully processed. The claim was deleted, and the district applied the correct CEP percentages for March 2023. Upon further investigation, it was found that the District had not implemented the CEP claiming percentages for the entire 2022-2023 school year through February 2023. The District immediately took corrective action and remitted the overpayment of funds totaling $125,122. Cause: Lack of management oversight and inaccurate reporting of meals served resulted in the District not applying the Community Eligibility Provision (CEP) claiming percentages for breakfast or lunch. Effect or potential effect: The District was not properly reimbursed for meals served during the year. Questioned costs: The amount of questioned costs totaled $125,122 (AL #10.553 Breakfast $35,795 and AL #10.555 Lunch $89,327. Context: Results of an Administrative Review by the DESE, CNU. Identification as a repeat finding: No Recommendation: The District should exercise greater care in the preparation of monthly claims for reimbursement. Views of responsible officials: Child Nutrition Director, claim approver and Superintendent have been made aware of the percentage claim requirement and will review all monthly claims going forward to ensure the correct allowable percentage is claimed for all campuses designation as CEP. A spreadsheet with formulas has been created to verify the monthly claim includes the correct percentage calculations. The data is reviewed by both the Child Nutrition Director and the Comptroller prior to submitting the official monthly claim to the Child Nutrition Unit. In addition, incorrect claims for the 2023 fiscal year were modified and corrected monthly forms were submitted to the Child Nutrition Unit before fiscal year 2023 end. Excess reimbursement amounts were also repaid to the Child Nutrition department during the same year.
Finding 2023-001
U.S. DEPARTMENT OF AGRICULTURE PASSED THROUGH ARKANSAS DEPARTMENT OF EDUCATION CHILD NUTRITION CLUSTER - AL NUMBERS 10.553 and 10.555 PASS-THROUGH NUMBER 0104 AUDIT PERIOD - YEAR ENDED JUNE 30, 2023 2023-001. Reporting Criteria or specific requirement: Monthly claims for reimbursement are required to be submitted to the Arkansas Division of Elementary and Secondary Education, Child Nutrition Unit (DESE, CNU), as required by 7 CFR 210.8 and 7 CFR 220.11. Reimbursement claim components include the total number of free, reduced price, and paid meals served. The total meals served by category are to be derived from the District's point of sale system. Condition: An Administrative Review for Stuttgart School District was completed by the Arkansas Division of Elementary and Secondary Education, Child Nutrition Unit (DESE, CNU) in April 2023. The review noted the Community Eligibility Provision (CEP) claiming percentages were not applied to meals served at Park Avenue Elementary and Meekins Middle School for breakfast or lunch. All meals at these two sites were claimed as free meals. The claim for reimbursement in March 2023, had not been fully processed. The claim was deleted, and the district applied the correct CEP percentages for March 2023. Upon further investigation, it was found that the District had not implemented the CEP claiming percentages for the entire 2022-2023 school year through February 2023. The District immediately took corrective action and remitted the overpayment of funds totaling $125,122. Cause: Lack of management oversight and inaccurate reporting of meals served resulted in the District not applying the Community Eligibility Provision (CEP) claiming percentages for breakfast or lunch. Effect or potential effect: The District was not properly reimbursed for meals served during the year. Questioned costs: The amount of questioned costs totaled $125,122 (AL #10.553 Breakfast $35,795 and AL #10.555 Lunch $89,327. Context: Results of an Administrative Review by the DESE, CNU. Identification as a repeat finding: No Recommendation: The District should exercise greater care in the preparation of monthly claims for reimbursement. Views of responsible officials: Child Nutrition Director, claim approver and Superintendent have been made aware of the percentage claim requirement and will review all monthly claims going forward to ensure the correct allowable percentage is claimed for all campuses designation as CEP. A spreadsheet with formulas has been created to verify the monthly claim includes the correct percentage calculations. The data is reviewed by both the Child Nutrition Director and the Comptroller prior to submitting the official monthly claim to the Child Nutrition Unit. In addition, incorrect claims for the 2023 fiscal year were modified and corrected monthly forms were submitted to the Child Nutrition Unit before fiscal year 2023 end. Excess reimbursement amounts were also repaid to the Child Nutrition department during the same year.