FAC Explorer

Audit 306963

FY End
2023-06-30
Total Expended
$2.96M
Findings
4
Programs
10
Organization: Dewitt School District (AR)
Year: 2023 Accepted: 2024-05-22
Auditor: Arkansas Legislative Audit

Organization Exclusion Status:

Findings

ID Ref Severity Repeat Requirement
398262 2023-001 Significant Deficiency - E
398263 2023-001 Significant Deficiency - E
974704 2023-001 Significant Deficiency - E
974705 2023-001 Significant Deficiency - E

Programs

ALN Program Spent Major Findings
84.425 Covid-19 - Education Stabilization Fund $612,645 Yes 0
84.010 Title I Grants to Local Educational Agencies $532,662 - 0
10.553 School Breakfast Program $134,708 Yes 1
84.367 Supporting Effective Instruction State Grants $83,810 - 0
84.027 Special Education_grants to States $62,907 - 0
93.323 Epidemiology and Laboratory Capacity for Infectious Diseases (elc) $53,928 - 0
10.555 National School Lunch Program $40,539 Yes 0
93.558 Temporary Assistance for Needy Families $9,338 - 0
84.173 Special Education_preschool Grants $6,591 - 0
93.079 Cooperative Agreements to Promote Adolescent Health Through School-Based Hiv/std Prevention and School-Based Surveillance $532 - 0

Contacts

Name Title Type
JT1KA28JX1D9 Leslie Anderson Auditee
8709463576 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 DeWitt School District No. 1 (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 $91,062 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 DeWitt School District No. 1 (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 0101 AUDIT PERIOD - YEAR ENDED JUNE 30, 2023 2023-001. Eligibility Criteria or specific requirement: The U.S. Department of Agriculture (USDA) guidelines require an entity to perform verification procedures for a specific number of applicants approved for free and reduced price meals. As part of this process, the applicant’s household must provide the District with written evidence confirming eligibility. Condition: An Administrative Review for DeWitt School District was completed by the Arkansas Division of Elementary and Secondary Education, Child Nutrition Unit (DESE, CNU) in January 2023. The review noted the following issues with the verification process: • The District pulled the incorrect number of applications for verification. • Households who were selected for verification were notified of selection over the phone instead of in writing. • Applications pulled for verification were not confirmed by the confirming official. • Six out of nine applications chosen for verification had missing or incorrect income documents submitted by the households. Subsequently, one application that was selected for verification testing was not reclassified from a free status to a reduced price status as required by the documentation submitted in the verification process. The amount of excess reimbursement could not be readily determined. In addition, the verification tracker form was not completed for the applications verified. Cause: District personnel did not properly review the supporting documentation provided during the verification process to determine eligibility. Effect or potential effect: Acceptable documentation was not obtained and income was not properly calculated to substantiate income used to determine proper classification of meal applications during the verification process. Context: Results of an Administrative Review by the DESE, CNU and audit examination of the verified applicants. Recommendation: The District should follow the guidelines outlined by the USDA during the verification process. Identification as a repeat finding: No Views of responsible officials: The following corrective actions have been put into place: • The District will follow all guidelines outlined by the USDA during the verification process. • A change in personnel was made. • Child nutrition specialists from the Department of Education Child Nutrition Unit have provided technical assistance to District employees on the verification process. This technical assistance included assistance in reviewing the correct number of applications, the process in which the confirming official confirms the applications, the correct documents that may be submitted for income documentation, the correct use of tracker forms, and the procedures for reclassifying applications after the verification process. This technical assistance was given in the spring semester this school year and will be repeated next year to ensure that the guidelines are followed. • District personnel will properly review the supporting documentation provided during the verification process which will include ensuring the correct number of applications are verified, that the confirming official confirms the applications, that the correct documentation of income is received, that the tracker forms are used correctly, and that the applications are reclassified after the verification process is completed, if necessary. This will be a multi layered review that will include the cafeteria managers, child nutrition director, director of federal programs, and superintendent.
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 0101 AUDIT PERIOD - YEAR ENDED JUNE 30, 2023 2023-001. Eligibility Criteria or specific requirement: The U.S. Department of Agriculture (USDA) guidelines require an entity to perform verification procedures for a specific number of applicants approved for free and reduced price meals. As part of this process, the applicant’s household must provide the District with written evidence confirming eligibility. Condition: An Administrative Review for DeWitt School District was completed by the Arkansas Division of Elementary and Secondary Education, Child Nutrition Unit (DESE, CNU) in January 2023. The review noted the following issues with the verification process: • The District pulled the incorrect number of applications for verification. • Households who were selected for verification were notified of selection over the phone instead of in writing. • Applications pulled for verification were not confirmed by the confirming official. • Six out of nine applications chosen for verification had missing or incorrect income documents submitted by the households. Subsequently, one application that was selected for verification testing was not reclassified from a free status to a reduced price status as required by the documentation submitted in the verification process. The amount of excess reimbursement could not be readily determined. In addition, the verification tracker form was not completed for the applications verified. Cause: District personnel did not properly review the supporting documentation provided during the verification process to determine eligibility. Effect or potential effect: Acceptable documentation was not obtained and income was not properly calculated to substantiate income used to determine proper classification of meal applications during the verification process. Context: Results of an Administrative Review by the DESE, CNU and audit examination of the verified applicants. Recommendation: The District should follow the guidelines outlined by the USDA during the verification process. Identification as a repeat finding: No Views of responsible officials: The following corrective actions have been put into place: • The District will follow all guidelines outlined by the USDA during the verification process. • A change in personnel was made. • Child nutrition specialists from the Department of Education Child Nutrition Unit have provided technical assistance to District employees on the verification process. This technical assistance included assistance in reviewing the correct number of applications, the process in which the confirming official confirms the applications, the correct documents that may be submitted for income documentation, the correct use of tracker forms, and the procedures for reclassifying applications after the verification process. This technical assistance was given in the spring semester this school year and will be repeated next year to ensure that the guidelines are followed. • District personnel will properly review the supporting documentation provided during the verification process which will include ensuring the correct number of applications are verified, that the confirming official confirms the applications, that the correct documentation of income is received, that the tracker forms are used correctly, and that the applications are reclassified after the verification process is completed, if necessary. This will be a multi layered review that will include the cafeteria managers, child nutrition director, director of federal programs, and superintendent.
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 0101 AUDIT PERIOD - YEAR ENDED JUNE 30, 2023 2023-001. Eligibility Criteria or specific requirement: The U.S. Department of Agriculture (USDA) guidelines require an entity to perform verification procedures for a specific number of applicants approved for free and reduced price meals. As part of this process, the applicant’s household must provide the District with written evidence confirming eligibility. Condition: An Administrative Review for DeWitt School District was completed by the Arkansas Division of Elementary and Secondary Education, Child Nutrition Unit (DESE, CNU) in January 2023. The review noted the following issues with the verification process: • The District pulled the incorrect number of applications for verification. • Households who were selected for verification were notified of selection over the phone instead of in writing. • Applications pulled for verification were not confirmed by the confirming official. • Six out of nine applications chosen for verification had missing or incorrect income documents submitted by the households. Subsequently, one application that was selected for verification testing was not reclassified from a free status to a reduced price status as required by the documentation submitted in the verification process. The amount of excess reimbursement could not be readily determined. In addition, the verification tracker form was not completed for the applications verified. Cause: District personnel did not properly review the supporting documentation provided during the verification process to determine eligibility. Effect or potential effect: Acceptable documentation was not obtained and income was not properly calculated to substantiate income used to determine proper classification of meal applications during the verification process. Context: Results of an Administrative Review by the DESE, CNU and audit examination of the verified applicants. Recommendation: The District should follow the guidelines outlined by the USDA during the verification process. Identification as a repeat finding: No Views of responsible officials: The following corrective actions have been put into place: • The District will follow all guidelines outlined by the USDA during the verification process. • A change in personnel was made. • Child nutrition specialists from the Department of Education Child Nutrition Unit have provided technical assistance to District employees on the verification process. This technical assistance included assistance in reviewing the correct number of applications, the process in which the confirming official confirms the applications, the correct documents that may be submitted for income documentation, the correct use of tracker forms, and the procedures for reclassifying applications after the verification process. This technical assistance was given in the spring semester this school year and will be repeated next year to ensure that the guidelines are followed. • District personnel will properly review the supporting documentation provided during the verification process which will include ensuring the correct number of applications are verified, that the confirming official confirms the applications, that the correct documentation of income is received, that the tracker forms are used correctly, and that the applications are reclassified after the verification process is completed, if necessary. This will be a multi layered review that will include the cafeteria managers, child nutrition director, director of federal programs, and superintendent.
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 0101 AUDIT PERIOD - YEAR ENDED JUNE 30, 2023 2023-001. Eligibility Criteria or specific requirement: The U.S. Department of Agriculture (USDA) guidelines require an entity to perform verification procedures for a specific number of applicants approved for free and reduced price meals. As part of this process, the applicant’s household must provide the District with written evidence confirming eligibility. Condition: An Administrative Review for DeWitt School District was completed by the Arkansas Division of Elementary and Secondary Education, Child Nutrition Unit (DESE, CNU) in January 2023. The review noted the following issues with the verification process: • The District pulled the incorrect number of applications for verification. • Households who were selected for verification were notified of selection over the phone instead of in writing. • Applications pulled for verification were not confirmed by the confirming official. • Six out of nine applications chosen for verification had missing or incorrect income documents submitted by the households. Subsequently, one application that was selected for verification testing was not reclassified from a free status to a reduced price status as required by the documentation submitted in the verification process. The amount of excess reimbursement could not be readily determined. In addition, the verification tracker form was not completed for the applications verified. Cause: District personnel did not properly review the supporting documentation provided during the verification process to determine eligibility. Effect or potential effect: Acceptable documentation was not obtained and income was not properly calculated to substantiate income used to determine proper classification of meal applications during the verification process. Context: Results of an Administrative Review by the DESE, CNU and audit examination of the verified applicants. Recommendation: The District should follow the guidelines outlined by the USDA during the verification process. Identification as a repeat finding: No Views of responsible officials: The following corrective actions have been put into place: • The District will follow all guidelines outlined by the USDA during the verification process. • A change in personnel was made. • Child nutrition specialists from the Department of Education Child Nutrition Unit have provided technical assistance to District employees on the verification process. This technical assistance included assistance in reviewing the correct number of applications, the process in which the confirming official confirms the applications, the correct documents that may be submitted for income documentation, the correct use of tracker forms, and the procedures for reclassifying applications after the verification process. This technical assistance was given in the spring semester this school year and will be repeated next year to ensure that the guidelines are followed. • District personnel will properly review the supporting documentation provided during the verification process which will include ensuring the correct number of applications are verified, that the confirming official confirms the applications, that the correct documentation of income is received, that the tracker forms are used correctly, and that the applications are reclassified after the verification process is completed, if necessary. This will be a multi layered review that will include the cafeteria managers, child nutrition director, director of federal programs, and superintendent.