FAC Explorer

Audit 304663

FY End
2023-06-30
Total Expended
$5.98M
Findings
8
Programs
9
Organization: Helena-West Helena School District (AR)
Year: 2023 Accepted: 2024-04-26
Auditor: Arkansas Legislative Audit

Organization Exclusion Status:

Findings

ID Ref Severity Repeat Requirement
394808 2023-001 Material Weakness - F
394809 2023-001 Material Weakness - F
394810 2023-002 Significant Deficiency - B
394811 2023-003 Significant Deficiency - B
971250 2023-001 Material Weakness - F
971251 2023-001 Material Weakness - F
971252 2023-002 Significant Deficiency - B
971253 2023-003 Significant Deficiency - B

Programs

ALN Program Spent Major Findings
84.010 Title I Grants to Local Educational Agencies $1.41M Yes 0
84.425 Covid-19 - Education Stabilization Fund $1.33M Yes 2
10.553 School Breakfast Program $212,218 - 0
84.367 Supporting Effective Instruction State Grants $121,254 - 0
84.424 Student Support and Academic Enrichment Program $68,393 - 0
10.555 National School Lunch Program $62,255 - 0
84.027 Special Education_grants to States $41,723 Yes 0
84.173 Special Education_preschool Grants $36,639 Yes 0
84.358 Rural Education $13,862 - 0

Contacts

Name Title Type
J8QWMPM9J7T8 Dr. Keith McGee Auditee
8703384425 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 Helena-West Helena School District No. 2 (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 $6,378 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 Helena-West Helena School District No. 2 (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 EDUCATION STABILIZATION FUND - AL NUMBERS 84.425D AND 84.425U PASS-THROUGH NUMBER 5403 AUDIT PERIOD - YEAR ENDED JUNE 30, 2023" 2023-001. Equipment and Real Property Management Criteria or specific requirement: Purchases of real property and/or construction for improvements require the prior written approval of the Federal awarding agency or pass-through entity, as specified in OMB 2 CFR section 200.439. Condition: During our examination of real property and construction improvements from the Education Stabilization Fund, we identified a facilities improvement project that was denied prior approval of Education Stabilization funding by the Arkansas Division of Elementary and Secondary Education. Expenditures paid from Education Stabilization Fund for this project totaled $622,511. Cause: Lack of internal controls and management oversight over program expenditures. Effect or potential effect: Unallowable costs of $622,511 were paid from COVID-19-Education Stabilization Fund. Questioned costs: The amount of questioned costs was $622,511. Context: Examination of all payments for construction for improvements to land, buildings, and equipment totaling $1,577,417. Identification as a repeat finding: No 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 issue related to this finding is being resolved by reclassifying the fund to the appropriate fund source. The District sought the guidance of Division of Elementary and Secondary Education (DESE) to confirm the reclassification along with returning the funds to the Arkansas Department of Education. A system of checks and balances has been established for approval of all purchases including contract services.
Finding 2023-001
"U.S. DEPARTMENT OF EDUCATION PASSED THROUGH ARKANSAS DEPARTMENT OF EDUCATION EDUCATION STABILIZATION FUND - AL NUMBERS 84.425D AND 84.425U PASS-THROUGH NUMBER 5403 AUDIT PERIOD - YEAR ENDED JUNE 30, 2023" 2023-001. Equipment and Real Property Management Criteria or specific requirement: Purchases of real property and/or construction for improvements require the prior written approval of the Federal awarding agency or pass-through entity, as specified in OMB 2 CFR section 200.439. Condition: During our examination of real property and construction improvements from the Education Stabilization Fund, we identified a facilities improvement project that was denied prior approval of Education Stabilization funding by the Arkansas Division of Elementary and Secondary Education. Expenditures paid from Education Stabilization Fund for this project totaled $622,511. Cause: Lack of internal controls and management oversight over program expenditures. Effect or potential effect: Unallowable costs of $622,511 were paid from COVID-19-Education Stabilization Fund. Questioned costs: The amount of questioned costs was $622,511. Context: Examination of all payments for construction for improvements to land, buildings, and equipment totaling $1,577,417. Identification as a repeat finding: No 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 issue related to this finding is being resolved by reclassifying the fund to the appropriate fund source. The District sought the guidance of Division of Elementary and Secondary Education (DESE) to confirm the reclassification along with returning the funds to the Arkansas Department of Education. A system of checks and balances has been established for approval of all purchases including contract services.
Finding 2023-002
"U.S. DEPARTMENT OF EDUCATION PASSED THROUGH ARKANSAS DEPARTMENT OF EDUCATION EDUCATION STABILIZATION FUND - AL NUMBER 84.425U PASS-THROUGH NUMBER 5403 AUDIT PERIOD - YEAR ENDED JUNE 30, 2023" 2023-002. Allowable Costs/Cost Principles Criteria or specific requirement: Office of Management and Budget (OMB) 2 CFR part 200, subpart E – Cost Principles, establishes principles and standards for determining allowable costs incurred by the District under federal awards. Such costs are to be necessary and reasonable for the performance of the federal award and adequately documented. Condition: During our examination of Education Stabilization Fund payroll expenditures, we noted one employee was overpaid $430. Cause: Lack of internal controls and management oversight over program expenditures. Effect or potential effect: Unallowable costs of $430 were paid from COVID-19-Education Stabilization Fund. Questioned costs: The amount of questioned costs was $430. Context: An examination of Education Stabilization Fund payroll expenditures for 19 employees totaling $100,210 from a population of 183 employees totaling $1,077,990. Our sample was a statistically valid sample. Identification as a repeat finding: No Recommendation: The District should contact the Arkansas Division of Elementary and Secondary Education (DESE) for resolution regarding this matter and implement proper controls over program payroll expenditures. Views of responsible officials: We have revised our internal policies and procedures that includes a system of checks and balances including payroll. This system will allow the district to review purchases, payroll, and the fund source to ensure alignment.
Finding 2023-003
U.S. DEPARTMENT OF EDUCATION PASSED THROUGH ARKANSAS DEPARTMENT OF EDUCATION SPECIAL EDUCATION - GRANTS TO STATES - AL NUMBER 84.027A PASS-THROUGH NUMBER 5403 AUDIT PERIOD - YEAR ENDED JUNE 30, 2023 2023-003. Allowable Costs/Cost Principles Criteria or specific requirement: Office of Management and Budget (OMB) 2 CFR part 200, subpart E – Cost Principles, establishes principles and standards for determining allowable costs incurred by the District under federal awards. Such costs are to be necessary and reasonable for the performance of the federal award. District employee' salaries should be based on the applicable salary schedule included in the District's written personnel polices, as required by Ark. Code Ann. §6-17-201. Condition: A Special Education employee's contracted salary amount did not agree to the approved salary schedule for the position resulting in $6,646 in unallowable costs. Cause: Lack of internal controls to ensure employee contracts are prepared in accordance with the applicable approved salary schedule. Effect or potential effect: Unallowable costs of $6,646 were paid from the Special Education Cluster.Questioned costs: The amount of questioned costs was $6,646. Context: An examination of Special Education program payroll expenditures for 1 employee totaling $75,678 from a population of 4 employees totaling $185,744. Our sample was a statistically valid sample. Identification as a repeat finding: No Recommendation: The District should contact the Arkansas Division of Elementary and Secondary Education (DESE) for resolution regarding this matter and implement proper controls over program payroll expenditures. Views of responsible officials: We have revised our internal process and procedures that will review all employee contracts with the salary schedule. A system of checks and balances has been established that include reviewing payout of all employees according to the contract periodically.
Finding 2023-001
"U.S. DEPARTMENT OF EDUCATION PASSED THROUGH ARKANSAS DEPARTMENT OF EDUCATION EDUCATION STABILIZATION FUND - AL NUMBERS 84.425D AND 84.425U PASS-THROUGH NUMBER 5403 AUDIT PERIOD - YEAR ENDED JUNE 30, 2023" 2023-001. Equipment and Real Property Management Criteria or specific requirement: Purchases of real property and/or construction for improvements require the prior written approval of the Federal awarding agency or pass-through entity, as specified in OMB 2 CFR section 200.439. Condition: During our examination of real property and construction improvements from the Education Stabilization Fund, we identified a facilities improvement project that was denied prior approval of Education Stabilization funding by the Arkansas Division of Elementary and Secondary Education. Expenditures paid from Education Stabilization Fund for this project totaled $622,511. Cause: Lack of internal controls and management oversight over program expenditures. Effect or potential effect: Unallowable costs of $622,511 were paid from COVID-19-Education Stabilization Fund. Questioned costs: The amount of questioned costs was $622,511. Context: Examination of all payments for construction for improvements to land, buildings, and equipment totaling $1,577,417. Identification as a repeat finding: No 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 issue related to this finding is being resolved by reclassifying the fund to the appropriate fund source. The District sought the guidance of Division of Elementary and Secondary Education (DESE) to confirm the reclassification along with returning the funds to the Arkansas Department of Education. A system of checks and balances has been established for approval of all purchases including contract services.
Finding 2023-001
"U.S. DEPARTMENT OF EDUCATION PASSED THROUGH ARKANSAS DEPARTMENT OF EDUCATION EDUCATION STABILIZATION FUND - AL NUMBERS 84.425D AND 84.425U PASS-THROUGH NUMBER 5403 AUDIT PERIOD - YEAR ENDED JUNE 30, 2023" 2023-001. Equipment and Real Property Management Criteria or specific requirement: Purchases of real property and/or construction for improvements require the prior written approval of the Federal awarding agency or pass-through entity, as specified in OMB 2 CFR section 200.439. Condition: During our examination of real property and construction improvements from the Education Stabilization Fund, we identified a facilities improvement project that was denied prior approval of Education Stabilization funding by the Arkansas Division of Elementary and Secondary Education. Expenditures paid from Education Stabilization Fund for this project totaled $622,511. Cause: Lack of internal controls and management oversight over program expenditures. Effect or potential effect: Unallowable costs of $622,511 were paid from COVID-19-Education Stabilization Fund. Questioned costs: The amount of questioned costs was $622,511. Context: Examination of all payments for construction for improvements to land, buildings, and equipment totaling $1,577,417. Identification as a repeat finding: No 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 issue related to this finding is being resolved by reclassifying the fund to the appropriate fund source. The District sought the guidance of Division of Elementary and Secondary Education (DESE) to confirm the reclassification along with returning the funds to the Arkansas Department of Education. A system of checks and balances has been established for approval of all purchases including contract services.
Finding 2023-002
"U.S. DEPARTMENT OF EDUCATION PASSED THROUGH ARKANSAS DEPARTMENT OF EDUCATION EDUCATION STABILIZATION FUND - AL NUMBER 84.425U PASS-THROUGH NUMBER 5403 AUDIT PERIOD - YEAR ENDED JUNE 30, 2023" 2023-002. Allowable Costs/Cost Principles Criteria or specific requirement: Office of Management and Budget (OMB) 2 CFR part 200, subpart E – Cost Principles, establishes principles and standards for determining allowable costs incurred by the District under federal awards. Such costs are to be necessary and reasonable for the performance of the federal award and adequately documented. Condition: During our examination of Education Stabilization Fund payroll expenditures, we noted one employee was overpaid $430. Cause: Lack of internal controls and management oversight over program expenditures. Effect or potential effect: Unallowable costs of $430 were paid from COVID-19-Education Stabilization Fund. Questioned costs: The amount of questioned costs was $430. Context: An examination of Education Stabilization Fund payroll expenditures for 19 employees totaling $100,210 from a population of 183 employees totaling $1,077,990. Our sample was a statistically valid sample. Identification as a repeat finding: No Recommendation: The District should contact the Arkansas Division of Elementary and Secondary Education (DESE) for resolution regarding this matter and implement proper controls over program payroll expenditures. Views of responsible officials: We have revised our internal policies and procedures that includes a system of checks and balances including payroll. This system will allow the district to review purchases, payroll, and the fund source to ensure alignment.
Finding 2023-003
U.S. DEPARTMENT OF EDUCATION PASSED THROUGH ARKANSAS DEPARTMENT OF EDUCATION SPECIAL EDUCATION - GRANTS TO STATES - AL NUMBER 84.027A PASS-THROUGH NUMBER 5403 AUDIT PERIOD - YEAR ENDED JUNE 30, 2023 2023-003. Allowable Costs/Cost Principles Criteria or specific requirement: Office of Management and Budget (OMB) 2 CFR part 200, subpart E – Cost Principles, establishes principles and standards for determining allowable costs incurred by the District under federal awards. Such costs are to be necessary and reasonable for the performance of the federal award. District employee' salaries should be based on the applicable salary schedule included in the District's written personnel polices, as required by Ark. Code Ann. §6-17-201. Condition: A Special Education employee's contracted salary amount did not agree to the approved salary schedule for the position resulting in $6,646 in unallowable costs. Cause: Lack of internal controls to ensure employee contracts are prepared in accordance with the applicable approved salary schedule. Effect or potential effect: Unallowable costs of $6,646 were paid from the Special Education Cluster.Questioned costs: The amount of questioned costs was $6,646. Context: An examination of Special Education program payroll expenditures for 1 employee totaling $75,678 from a population of 4 employees totaling $185,744. Our sample was a statistically valid sample. Identification as a repeat finding: No Recommendation: The District should contact the Arkansas Division of Elementary and Secondary Education (DESE) for resolution regarding this matter and implement proper controls over program payroll expenditures. Views of responsible officials: We have revised our internal process and procedures that will review all employee contracts with the salary schedule. A system of checks and balances has been established that include reviewing payout of all employees according to the contract periodically.