FAC Explorer

Audit 306056

FY End
2023-06-30
Total Expended
$4.75M
Findings
4
Programs
11
Organization: McGehee School District (AR)
Year: 2023 Accepted: 2024-05-13
Auditor: Arkansas Legislative Audit

Organization Exclusion Status:

Findings

ID Ref Severity Repeat Requirement
396479 2023-001 Material Weakness - I
396480 2023-001 Material Weakness - I
972921 2023-001 Material Weakness - I
972922 2023-001 Material Weakness - I

Programs

ALN Program Spent Major Findings
84.010 Title I Grants to Local Educational Agencies $607,021 - 0
10.553 School Breakfast Program $255,992 Yes 1
84.367 Supporting Effective Instruction State Grants $53,610 - 0
84.424 Student Support and Academic Enrichment Program $43,290 - 0
84.027 Special Education_grants to States $40,126 - 0
84.358 Rural Education $33,613 - 0
10.582 Fresh Fruit and Vegetable Program $28,893 Yes 0
84.173 Special Education_preschool Grants $25,437 - 0
10.555 National School Lunch Program $17,566 Yes 0
84.371 Comprehensive Literacy Development $15,368 - 0
84.425 Covid-19 - Education Stabilization Fund $15 Yes 0

Contacts

Name Title Type
LBAALCK8L777 Becky McCallie Auditee
8702223670 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 McGehee School District No. 17 (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 $52,355 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 McGehee School District No. 17 (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 2105 AUDIT PERIOD - YEAR ENDED JUNE 30, 2023 2023-001. Procurement and Suspension and Debarment Criteria or specific requirement: Office of Management and Budget (OMB) 2 CFR 200.320 establishes the methods of procurement to be followed by non-federal entities. In compliance with this regulation, Ark. Code Ann. § 6-21-304 requires solicitation of bids on the purchase of commodities with an estimated purchase price equal to or exceeding $23,100. Condition: A Procurement Review completed by the Arkansas Division of Elementary and Secondary Education, Child Nutrition Unit (DESE, CNU) reported that a purchase totaling $71,520 did not solicit bids, as required by Ark. Code Ann. § 6-21-304. Cause: Lack of internal controls and management oversight over the procurement of supplies and services. Effect or potential effect: The District expended Child Nutrition program funds of $71,250 without soliciting bids as required by state law for purchases with an estimated purchase price equal to or exceeding $23,100. Context: Review of Procurement Review completed by the DESE, CNU for the purchases in the 2022-2023 school year. Identification as a repeat finding: No Recommendation: The District should implement controls and monitor child nutrition purchases for compliance with applicable procurement requirements. Views of responsible officials: The district updated and strengthened the procurement plan to follow formal purchase procedures. The updated procurement plan was implemented on 11/14/2023.
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 2105 AUDIT PERIOD - YEAR ENDED JUNE 30, 2023 2023-001. Procurement and Suspension and Debarment Criteria or specific requirement: Office of Management and Budget (OMB) 2 CFR 200.320 establishes the methods of procurement to be followed by non-federal entities. In compliance with this regulation, Ark. Code Ann. § 6-21-304 requires solicitation of bids on the purchase of commodities with an estimated purchase price equal to or exceeding $23,100. Condition: A Procurement Review completed by the Arkansas Division of Elementary and Secondary Education, Child Nutrition Unit (DESE, CNU) reported that a purchase totaling $71,520 did not solicit bids, as required by Ark. Code Ann. § 6-21-304. Cause: Lack of internal controls and management oversight over the procurement of supplies and services. Effect or potential effect: The District expended Child Nutrition program funds of $71,250 without soliciting bids as required by state law for purchases with an estimated purchase price equal to or exceeding $23,100. Context: Review of Procurement Review completed by the DESE, CNU for the purchases in the 2022-2023 school year. Identification as a repeat finding: No Recommendation: The District should implement controls and monitor child nutrition purchases for compliance with applicable procurement requirements. Views of responsible officials: The district updated and strengthened the procurement plan to follow formal purchase procedures. The updated procurement plan was implemented on 11/14/2023.
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 2105 AUDIT PERIOD - YEAR ENDED JUNE 30, 2023 2023-001. Procurement and Suspension and Debarment Criteria or specific requirement: Office of Management and Budget (OMB) 2 CFR 200.320 establishes the methods of procurement to be followed by non-federal entities. In compliance with this regulation, Ark. Code Ann. § 6-21-304 requires solicitation of bids on the purchase of commodities with an estimated purchase price equal to or exceeding $23,100. Condition: A Procurement Review completed by the Arkansas Division of Elementary and Secondary Education, Child Nutrition Unit (DESE, CNU) reported that a purchase totaling $71,520 did not solicit bids, as required by Ark. Code Ann. § 6-21-304. Cause: Lack of internal controls and management oversight over the procurement of supplies and services. Effect or potential effect: The District expended Child Nutrition program funds of $71,250 without soliciting bids as required by state law for purchases with an estimated purchase price equal to or exceeding $23,100. Context: Review of Procurement Review completed by the DESE, CNU for the purchases in the 2022-2023 school year. Identification as a repeat finding: No Recommendation: The District should implement controls and monitor child nutrition purchases for compliance with applicable procurement requirements. Views of responsible officials: The district updated and strengthened the procurement plan to follow formal purchase procedures. The updated procurement plan was implemented on 11/14/2023.
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 2105 AUDIT PERIOD - YEAR ENDED JUNE 30, 2023 2023-001. Procurement and Suspension and Debarment Criteria or specific requirement: Office of Management and Budget (OMB) 2 CFR 200.320 establishes the methods of procurement to be followed by non-federal entities. In compliance with this regulation, Ark. Code Ann. § 6-21-304 requires solicitation of bids on the purchase of commodities with an estimated purchase price equal to or exceeding $23,100. Condition: A Procurement Review completed by the Arkansas Division of Elementary and Secondary Education, Child Nutrition Unit (DESE, CNU) reported that a purchase totaling $71,520 did not solicit bids, as required by Ark. Code Ann. § 6-21-304. Cause: Lack of internal controls and management oversight over the procurement of supplies and services. Effect or potential effect: The District expended Child Nutrition program funds of $71,250 without soliciting bids as required by state law for purchases with an estimated purchase price equal to or exceeding $23,100. Context: Review of Procurement Review completed by the DESE, CNU for the purchases in the 2022-2023 school year. Identification as a repeat finding: No Recommendation: The District should implement controls and monitor child nutrition purchases for compliance with applicable procurement requirements. Views of responsible officials: The district updated and strengthened the procurement plan to follow formal purchase procedures. The updated procurement plan was implemented on 11/14/2023.