FAC Explorer

Audit 306717

FY End
2023-06-30
Total Expended
$18.72M
Findings
8
Programs
13
Organization: Pine Bluff School District (AR)
Year: 2023 Accepted: 2024-05-20
Auditor: Arkansas Legislative Audit

Organization Exclusion Status:

Findings

ID Ref Severity Repeat Requirement
398021 2023-001 Material Weakness - L
398022 2023-002 Significant Deficiency Yes B
398023 2023-003 Significant Deficiency - F
398024 2023-003 Significant Deficiency - F
974463 2023-001 Material Weakness - L
974464 2023-002 Significant Deficiency Yes B
974465 2023-003 Significant Deficiency - F
974466 2023-003 Significant Deficiency - F

Programs

ALN Program Spent Major Findings
84.010 Title I Grants to Local Educational Agencies $4.82M Yes 1
32.009 Emergency Connectivity Fund Program $863,649 - 0
84.367 Supporting Effective Instruction State Grants $750,425 - 0
10.553 School Breakfast Program $531,585 - 0
84.424 Student Support and Academic Enrichment Program $438,180 Yes 0
84.027 Special Education_grants to States $243,769 - 0
84.371 Comprehensive Literacy Development $220,625 - 0
10.555 National School Lunch Program $133,522 - 0
84.173 Special Education_preschool Grants $39,373 - 0
12.U01 Rotc $39,324 - 0
84.425 Covid-19 - Education Stabilization Fund $27,692 Yes 1
84.196 Education for Homeless Children and Youth $9,223 - 0
93.079 Cooperative Agreements to Promote Adolescent Health Through School-Based Hiv/std Prevention and School-Based Surveillance $616 - 0

Contacts

Name Title Type
GGYYGNDF4F85 Jamie Reid Auditee
8705434200 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 Pine Bluff School District No. 3 (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 $156,163 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 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 Pine Bluff School District No. 3 (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 Arkansas Department of Human Services.
Title: Federal ALN Not Available For A Certain Program (SEFA Note 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 Pine Bluff School District No. 3 (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) The Federal Assistance Listing Number was not available. An alternative identifying number was utilized.

Finding Details

Finding 2023-001
U.S. DEPARTMENT OF EDUCATION PASSED THROUGH ARKANSAS DEPARTMENT OF EDUCATION TITLE I GRANTS TO LOCAL EDUCATIONAL AGENCIES - AL NUMBER 84.010A PASS-THROUGH NUMBER 3505 AUDIT PERIOD - YEAR ENDED JUNE 30, 2023 2023-001. Reporting Criteria or specific requirement: The District is required to budget Title I expenditures and submit such information to the Arkansas Division of Elementary and Secondary Education (DESE). Actual expenditures may not exceed the budget amounts for specific categories by more than 10 percent without prior approval from the DESE and submission of budget amendments or adjustments. Condition: The District did not budget for functions 2210 (Improvement of Instructional Services) and 2230 (Instructional-related Technology) in the Title I program but expended $147,863 and $101,311, respectively, from these functions. Cause: The District failed to properly monitor expenditures against the approved budget. Effect or potential effect: The District did not submit applicable budget amendments or adjustments for DESE approval for the Title I program resulting in actual expenditures exceeding budgeted amounts. Context: Comparison of the entire program's budgeted expenditures to actual expenditures as reported on the annual financial report. Identification as a repeat finding: No Recommendation: The District should implement procedures to ensure expenditures are properly monitored and budgets are amended as necessary and consult with DESE for further guidance regarding this matter. Views of responsible officials: The District concurs with this finding. The District will follow the recommendations set forth by Arkansas Legislative Audit and implement procedures to ensure expenditures are properly monitored and budgets are amended as necessary and consult with DESE for further guidance regarding this matter.
Finding 2023-002
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 3505 AUDIT PERIOD - YEAR ENDED JUNE 30, 2023 Allowable Cost/Cost Principles Criteria: Office of Management and Budget (OMB) 2 CFR section 200, part E- Cost Principles established principles and standards for determining the allowable costs incurred by the District under Federal awards. Such costs are to conform to be necessary and reasonable for the performance of the Federal award and to be adequately documented. Condition: In our test of payroll expenditures, we identified unallowable costs totaling $3,000 were paid from the COVID-19 Education Stabilization Fund. The District paid two employees incentive pay that did not meet the requirements. A similar finding was reported in the previous audit. Cause: Lack of internal controls and management oversight over program expenditures. Effect or potential effect: Unallowable costs of $3,000 were paid from COVID-19 Education Stabilization funds for incentive pay. Questioned costs: The amount of questioned costs was $3,000. Context: An examination of COVID-19 Education Stabilization Fund payroll expenditures for 25 employees totaling $189,142 from a population of 620 employees totaling $4,755,642. Our sample was a statistically valid sample. Identification as a repeat finding: Yes 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 District concurs with this finding. District Management understands the importance of following approved policies and ensuring any incentive pay meets the approved guidelines within such policies. The District will follow the recommendation of Arkansas Legislative Audit and contact the Arkansas Division of Elementary and Secondary Education for guidance regarding this matter and implement proper controls over program expenditures.
Finding 2023-003
U.S. DEPARTMENT OF EDUCATION PASSED THROUGH ARKANSAS DEPARTMENT OF EDUCATION COVID-19 - AMERICAN RESCUE PLAN - ELEMENTARY AND SECONDARY SCHOOL EMERGENCY RELIEF FUND AND HOMELESS CHILDREN AND YOUTH - AL NUMBERS 84.425U AND 84.425W PASS-THROUGH NUMBER 3505 AUDIT PERIOD - YEAR ENDED JUNE 30, 2023 2023-003. 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 COVID-19 Education Stabilization Fund disbursements and walkthrough procedures revealed that three 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 $45,468. Cause: Lack of internal controls over the equipment subsidiary ledger. Effect or potential effect: The District's equipment subsidiary records were not accurate. Context: All equipment purchases (3) from the federal program were reviewed. The total population consisted of two invoices totaling $47,927 that contained three equipment items. 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 District concurs with this finding. Deficiencies in the internal control activities adversely affected the District's ability to record program expenditures in the District's equipment subsidiary ledger. District management recognizes the importance of recording such expenditures so that these assets can accurately be traced over time.
Finding 2023-003
U.S. DEPARTMENT OF EDUCATION PASSED THROUGH ARKANSAS DEPARTMENT OF EDUCATION COVID-19 - AMERICAN RESCUE PLAN - ELEMENTARY AND SECONDARY SCHOOL EMERGENCY RELIEF FUND AND HOMELESS CHILDREN AND YOUTH - AL NUMBERS 84.425U AND 84.425W PASS-THROUGH NUMBER 3505 AUDIT PERIOD - YEAR ENDED JUNE 30, 2023 2023-003. 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 COVID-19 Education Stabilization Fund disbursements and walkthrough procedures revealed that three 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 $45,468. Cause: Lack of internal controls over the equipment subsidiary ledger. Effect or potential effect: The District's equipment subsidiary records were not accurate. Context: All equipment purchases (3) from the federal program were reviewed. The total population consisted of two invoices totaling $47,927 that contained three equipment items. 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 District concurs with this finding. Deficiencies in the internal control activities adversely affected the District's ability to record program expenditures in the District's equipment subsidiary ledger. District management recognizes the importance of recording such expenditures so that these assets can accurately be traced over time.
Finding 2023-001
U.S. DEPARTMENT OF EDUCATION PASSED THROUGH ARKANSAS DEPARTMENT OF EDUCATION TITLE I GRANTS TO LOCAL EDUCATIONAL AGENCIES - AL NUMBER 84.010A PASS-THROUGH NUMBER 3505 AUDIT PERIOD - YEAR ENDED JUNE 30, 2023 2023-001. Reporting Criteria or specific requirement: The District is required to budget Title I expenditures and submit such information to the Arkansas Division of Elementary and Secondary Education (DESE). Actual expenditures may not exceed the budget amounts for specific categories by more than 10 percent without prior approval from the DESE and submission of budget amendments or adjustments. Condition: The District did not budget for functions 2210 (Improvement of Instructional Services) and 2230 (Instructional-related Technology) in the Title I program but expended $147,863 and $101,311, respectively, from these functions. Cause: The District failed to properly monitor expenditures against the approved budget. Effect or potential effect: The District did not submit applicable budget amendments or adjustments for DESE approval for the Title I program resulting in actual expenditures exceeding budgeted amounts. Context: Comparison of the entire program's budgeted expenditures to actual expenditures as reported on the annual financial report. Identification as a repeat finding: No Recommendation: The District should implement procedures to ensure expenditures are properly monitored and budgets are amended as necessary and consult with DESE for further guidance regarding this matter. Views of responsible officials: The District concurs with this finding. The District will follow the recommendations set forth by Arkansas Legislative Audit and implement procedures to ensure expenditures are properly monitored and budgets are amended as necessary and consult with DESE for further guidance regarding this matter.
Finding 2023-002
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 3505 AUDIT PERIOD - YEAR ENDED JUNE 30, 2023 Allowable Cost/Cost Principles Criteria: Office of Management and Budget (OMB) 2 CFR section 200, part E- Cost Principles established principles and standards for determining the allowable costs incurred by the District under Federal awards. Such costs are to conform to be necessary and reasonable for the performance of the Federal award and to be adequately documented. Condition: In our test of payroll expenditures, we identified unallowable costs totaling $3,000 were paid from the COVID-19 Education Stabilization Fund. The District paid two employees incentive pay that did not meet the requirements. A similar finding was reported in the previous audit. Cause: Lack of internal controls and management oversight over program expenditures. Effect or potential effect: Unallowable costs of $3,000 were paid from COVID-19 Education Stabilization funds for incentive pay. Questioned costs: The amount of questioned costs was $3,000. Context: An examination of COVID-19 Education Stabilization Fund payroll expenditures for 25 employees totaling $189,142 from a population of 620 employees totaling $4,755,642. Our sample was a statistically valid sample. Identification as a repeat finding: Yes 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 District concurs with this finding. District Management understands the importance of following approved policies and ensuring any incentive pay meets the approved guidelines within such policies. The District will follow the recommendation of Arkansas Legislative Audit and contact the Arkansas Division of Elementary and Secondary Education for guidance regarding this matter and implement proper controls over program expenditures.
Finding 2023-003
U.S. DEPARTMENT OF EDUCATION PASSED THROUGH ARKANSAS DEPARTMENT OF EDUCATION COVID-19 - AMERICAN RESCUE PLAN - ELEMENTARY AND SECONDARY SCHOOL EMERGENCY RELIEF FUND AND HOMELESS CHILDREN AND YOUTH - AL NUMBERS 84.425U AND 84.425W PASS-THROUGH NUMBER 3505 AUDIT PERIOD - YEAR ENDED JUNE 30, 2023 2023-003. 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 COVID-19 Education Stabilization Fund disbursements and walkthrough procedures revealed that three 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 $45,468. Cause: Lack of internal controls over the equipment subsidiary ledger. Effect or potential effect: The District's equipment subsidiary records were not accurate. Context: All equipment purchases (3) from the federal program were reviewed. The total population consisted of two invoices totaling $47,927 that contained three equipment items. 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 District concurs with this finding. Deficiencies in the internal control activities adversely affected the District's ability to record program expenditures in the District's equipment subsidiary ledger. District management recognizes the importance of recording such expenditures so that these assets can accurately be traced over time.
Finding 2023-003
U.S. DEPARTMENT OF EDUCATION PASSED THROUGH ARKANSAS DEPARTMENT OF EDUCATION COVID-19 - AMERICAN RESCUE PLAN - ELEMENTARY AND SECONDARY SCHOOL EMERGENCY RELIEF FUND AND HOMELESS CHILDREN AND YOUTH - AL NUMBERS 84.425U AND 84.425W PASS-THROUGH NUMBER 3505 AUDIT PERIOD - YEAR ENDED JUNE 30, 2023 2023-003. 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 COVID-19 Education Stabilization Fund disbursements and walkthrough procedures revealed that three 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 $45,468. Cause: Lack of internal controls over the equipment subsidiary ledger. Effect or potential effect: The District's equipment subsidiary records were not accurate. Context: All equipment purchases (3) from the federal program were reviewed. The total population consisted of two invoices totaling $47,927 that contained three equipment items. 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 District concurs with this finding. Deficiencies in the internal control activities adversely affected the District's ability to record program expenditures in the District's equipment subsidiary ledger. District management recognizes the importance of recording such expenditures so that these assets can accurately be traced over time.