FAC Explorer

Audit 307003

FY End
2023-06-30
Total Expended
$21.67M
Findings
6
Programs
15
Organization: Texarkana Arkansas School District (AR)
Year: 2023 Accepted: 2024-05-23
Auditor: Arkansas Legislative Audit

Organization Exclusion Status:

Findings

ID Ref Severity Repeat Requirement
398333 2023-001 Material Weakness - N
398334 2023-001 Material Weakness - N
398335 2023-002 Significant Deficiency - L
974775 2023-001 Material Weakness - N
974776 2023-001 Material Weakness - N
974777 2023-002 Significant Deficiency - L

Programs

ALN Program Spent Major Findings
84.425 Covid-19 - Education Stabilization Fund $8.84M Yes 1
84.010 Title I Grants to Local Educational Agencies $2.59M Yes 0
84.165 Magnet Schools Assistance $1.91M - 0
10.553 School Breakfast Program $539,397 Yes 0
84.367 Supporting Effective Instruction State Grants $386,017 - 0
16.710 Public Safety Partnership and Community Policing Grants $381,294 - 0
10.555 National School Lunch Program $241,114 Yes 0
93.243 Substance Abuse and Mental Health Services_projects of Regional and National Significance $234,429 Yes 1
84.048 Career and Technical Education -- Basic Grants to States $122,243 - 0
84.424 Student Support and Academic Enrichment Program $67,208 - 0
84.027 Special Education_grants to States $58,096 - 0
12.U01 Rotc $55,607 - 0
93.323 Epidemiology and Laboratory Capacity for Infectious Diseases (elc) $34,411 - 0
84.371 Comprehensive Literacy Development $10,644 - 0
84.173 Special Education_preschool Grants $8,900 - 0

Contacts

Name Title Type
DK9KYEZRTPQ5 Carol Miller Nix Auditee
8707723371 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 Texarkana Arkansas School District No. 7 (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 $128,163 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 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 Texarkana Arkansas School District No. 7 (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.
Title: Federal ALN Not Available For A Certain Program (SEFA Note 7) Accounting Policies: Basis of Presentation (SEFA Note 1) - The accompanying Schedule of Expenditures of Federal Awards (the "Schedule") includes the federal award activity of Texarkana Arkansas School District No. 7 (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 ALN 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 COVID-19 - ELEMENTARY AND SECONDARY SCHOOL EMERGENCY RELIEF FUND - AL NUMBER 84.425 PASS-THROUGH NUMBER 4605 AUDIT PERIOD - YEAR ENDED JUNE 30, 2023 2023-001.Special Tests and Provisions Criteria or specific requirement (including statutory, regulatory, or other citation): 29 CFR 5.5 (Wage Rate Requirements) requires all contractors and subcontractors performing construction contracts in excess of $2,000, financed by federal assistance funds, to pay laborers and mechanics employed by the contractor or subcontractor not less than the prevailing wage rates established by the Department of Labor for the locality of the project. Non-federal entities shall include in the applicable construction contracts a provision that the contractor or subcontractor comply with those requirements. Such requirements include the submission of weekly certified payrolls for each week in which any contract work is performed, to the non-federal entities. Condition: The District paid $385,755, $336,016, $2,440,820, and $242,812 for the Arkansas Middle School Canopy, Arkansas Middle School Outdoor Classroom, North Heights HVAC, and PreK Restroom Remodel, respectively, from the Education Stabilization Fund without weekly certified payrolls being submitted to the District. Cause: Lack of internal controls and management oversight. Effect or potential effect: The District did not comply with Wage Rate Requirements. Context: A total of four contracts for facility repairs and improvements were paid from the Education Stabilization Fund. All were examined. 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 has made several attempts to secure weekly certified payrolls for construction projects on-going since July 2023 once notified of this deficiency for the 2022-2023 audit. We will continue to request certified payrolls for the months prior to April 2024 and will request the payroll information for current and future construction projects from this point forward. Documentation of attempts to collect the information will be maintained. This will be monitored by the Comptroller and Business Manager for the District.
Finding 2023-001
U.S. DEPARTMENT OF EDUCATION PASSED THROUGH ARKANSAS DEPARTMENT OF EDUCATION COVID-19 - ELEMENTARY AND SECONDARY SCHOOL EMERGENCY RELIEF FUND - AL NUMBER 84.425 PASS-THROUGH NUMBER 4605 AUDIT PERIOD - YEAR ENDED JUNE 30, 2023 2023-001.Special Tests and Provisions Criteria or specific requirement (including statutory, regulatory, or other citation): 29 CFR 5.5 (Wage Rate Requirements) requires all contractors and subcontractors performing construction contracts in excess of $2,000, financed by federal assistance funds, to pay laborers and mechanics employed by the contractor or subcontractor not less than the prevailing wage rates established by the Department of Labor for the locality of the project. Non-federal entities shall include in the applicable construction contracts a provision that the contractor or subcontractor comply with those requirements. Such requirements include the submission of weekly certified payrolls for each week in which any contract work is performed, to the non-federal entities. Condition: The District paid $385,755, $336,016, $2,440,820, and $242,812 for the Arkansas Middle School Canopy, Arkansas Middle School Outdoor Classroom, North Heights HVAC, and PreK Restroom Remodel, respectively, from the Education Stabilization Fund without weekly certified payrolls being submitted to the District. Cause: Lack of internal controls and management oversight. Effect or potential effect: The District did not comply with Wage Rate Requirements. Context: A total of four contracts for facility repairs and improvements were paid from the Education Stabilization Fund. All were examined. 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 has made several attempts to secure weekly certified payrolls for construction projects on-going since July 2023 once notified of this deficiency for the 2022-2023 audit. We will continue to request certified payrolls for the months prior to April 2024 and will request the payroll information for current and future construction projects from this point forward. Documentation of attempts to collect the information will be maintained. This will be monitored by the Comptroller and Business Manager for the District.
Finding 2023-002
U.S. DEPARTMENT OF HEALTH AND HUMAN SERVICES PASSED THROUGH ARKANSAS DEPARTMENT OF EDUCATION SUBSTANCE ABUSE AND MENTAL HEALTH SERVICES PROJECTS OF REGIONAL AND NATIONAL SIGNIFICANCE - AL NUMBER 93.243 PASS-THROUGH NUMBER 4605 AUDIT PERIOD - YEAR ENDED JUNE 30, 2023 2023-002.Reporting Criteria or specific requirement: The District is required to submit a semi-annual and final financial report for each award year to the Arkansas Division of Elementary and Secondary Education (DESE). Reports should be accurate and supported with proper documentation. Condition: The final financial report submitted by the District to DESE for the Substance Abuse and Mental Health Services Project Award Year 4 Grant was not complete and did not receive final approval from DESE. Additionally, the mid-year financial report for Award Year 5 submitted by the District to DESE did not agree with the underlying accounting records for the period covered. Cause: Lack of internal controls and management oversight. Effect or potential effect: The District did not comply with the reporting requirements. Context: Examined mid-year and final financial reports. 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 will contact DESE to determine if further steps are needed. The Assistant Superintendent of Student Services will facilitate this action.
Finding 2023-001
U.S. DEPARTMENT OF EDUCATION PASSED THROUGH ARKANSAS DEPARTMENT OF EDUCATION COVID-19 - ELEMENTARY AND SECONDARY SCHOOL EMERGENCY RELIEF FUND - AL NUMBER 84.425 PASS-THROUGH NUMBER 4605 AUDIT PERIOD - YEAR ENDED JUNE 30, 2023 2023-001.Special Tests and Provisions Criteria or specific requirement (including statutory, regulatory, or other citation): 29 CFR 5.5 (Wage Rate Requirements) requires all contractors and subcontractors performing construction contracts in excess of $2,000, financed by federal assistance funds, to pay laborers and mechanics employed by the contractor or subcontractor not less than the prevailing wage rates established by the Department of Labor for the locality of the project. Non-federal entities shall include in the applicable construction contracts a provision that the contractor or subcontractor comply with those requirements. Such requirements include the submission of weekly certified payrolls for each week in which any contract work is performed, to the non-federal entities. Condition: The District paid $385,755, $336,016, $2,440,820, and $242,812 for the Arkansas Middle School Canopy, Arkansas Middle School Outdoor Classroom, North Heights HVAC, and PreK Restroom Remodel, respectively, from the Education Stabilization Fund without weekly certified payrolls being submitted to the District. Cause: Lack of internal controls and management oversight. Effect or potential effect: The District did not comply with Wage Rate Requirements. Context: A total of four contracts for facility repairs and improvements were paid from the Education Stabilization Fund. All were examined. 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 has made several attempts to secure weekly certified payrolls for construction projects on-going since July 2023 once notified of this deficiency for the 2022-2023 audit. We will continue to request certified payrolls for the months prior to April 2024 and will request the payroll information for current and future construction projects from this point forward. Documentation of attempts to collect the information will be maintained. This will be monitored by the Comptroller and Business Manager for the District.
Finding 2023-001
U.S. DEPARTMENT OF EDUCATION PASSED THROUGH ARKANSAS DEPARTMENT OF EDUCATION COVID-19 - ELEMENTARY AND SECONDARY SCHOOL EMERGENCY RELIEF FUND - AL NUMBER 84.425 PASS-THROUGH NUMBER 4605 AUDIT PERIOD - YEAR ENDED JUNE 30, 2023 2023-001.Special Tests and Provisions Criteria or specific requirement (including statutory, regulatory, or other citation): 29 CFR 5.5 (Wage Rate Requirements) requires all contractors and subcontractors performing construction contracts in excess of $2,000, financed by federal assistance funds, to pay laborers and mechanics employed by the contractor or subcontractor not less than the prevailing wage rates established by the Department of Labor for the locality of the project. Non-federal entities shall include in the applicable construction contracts a provision that the contractor or subcontractor comply with those requirements. Such requirements include the submission of weekly certified payrolls for each week in which any contract work is performed, to the non-federal entities. Condition: The District paid $385,755, $336,016, $2,440,820, and $242,812 for the Arkansas Middle School Canopy, Arkansas Middle School Outdoor Classroom, North Heights HVAC, and PreK Restroom Remodel, respectively, from the Education Stabilization Fund without weekly certified payrolls being submitted to the District. Cause: Lack of internal controls and management oversight. Effect or potential effect: The District did not comply with Wage Rate Requirements. Context: A total of four contracts for facility repairs and improvements were paid from the Education Stabilization Fund. All were examined. 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 has made several attempts to secure weekly certified payrolls for construction projects on-going since July 2023 once notified of this deficiency for the 2022-2023 audit. We will continue to request certified payrolls for the months prior to April 2024 and will request the payroll information for current and future construction projects from this point forward. Documentation of attempts to collect the information will be maintained. This will be monitored by the Comptroller and Business Manager for the District.
Finding 2023-002
U.S. DEPARTMENT OF HEALTH AND HUMAN SERVICES PASSED THROUGH ARKANSAS DEPARTMENT OF EDUCATION SUBSTANCE ABUSE AND MENTAL HEALTH SERVICES PROJECTS OF REGIONAL AND NATIONAL SIGNIFICANCE - AL NUMBER 93.243 PASS-THROUGH NUMBER 4605 AUDIT PERIOD - YEAR ENDED JUNE 30, 2023 2023-002.Reporting Criteria or specific requirement: The District is required to submit a semi-annual and final financial report for each award year to the Arkansas Division of Elementary and Secondary Education (DESE). Reports should be accurate and supported with proper documentation. Condition: The final financial report submitted by the District to DESE for the Substance Abuse and Mental Health Services Project Award Year 4 Grant was not complete and did not receive final approval from DESE. Additionally, the mid-year financial report for Award Year 5 submitted by the District to DESE did not agree with the underlying accounting records for the period covered. Cause: Lack of internal controls and management oversight. Effect or potential effect: The District did not comply with the reporting requirements. Context: Examined mid-year and final financial reports. 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 will contact DESE to determine if further steps are needed. The Assistant Superintendent of Student Services will facilitate this action.