FAC Explorer

Audit 309279

FY End
2023-06-30
Total Expended
$1.43M
Findings
2
Programs
12
Organization: Shirley School District (AR)
Year: 2023 Accepted: 2024-06-19
Auditor: Arkansas Legislative Audit

Organization Exclusion Status:

Findings

ID Ref Severity Repeat Requirement
401268 2023-001 Material Weakness - B
977710 2023-001 Material Weakness - B

Programs

ALN Program Spent Major Findings
84.425 Covid-19 - Education Stabilization Fund $514,080 Yes 0
84.010 Title I Grants to Local Educational Agencies $220,208 - 0
93.870 Maternal, Infant and Early Childhood Home Visiting Grant $159,048 - 0
10.553 School Breakfast Program $56,610 - 0
93.323 Epidemiology and Laboratory Capacity for Infectious Diseases (elc) $39,273 - 0
66.040 State Clean Diesel Grant Program $25,000 - 0
10.555 National School Lunch Program $16,845 - 0
84.424 Student Support and Academic Enrichment Program $10,975 - 0
93.243 Substance Abuse and Mental Health Services_projects of Regional and National Significance $10,000 - 0
84.027 Special Education_grants to States $8,384 - 0
84.173 Special Education_preschool Grants $7,188 - 0
10.582 Fresh Fruit and Vegetable Program $5,601 - 0

Contacts

Name Title Type
EHNJJ7753N38 Aaron Wiggins Auditee
5017238191 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 Shirley 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 $36,425 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 Shirley 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 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 COVID-19 ELEMENTARY AND SECONDARY SCHOOL EMERGENCY RELIEF FUND - AL NUMBER 84.425D PASS THROUGH NUMBER 7104 AUDIT PERIOD - YEAR ENDED JUNE 30, 2023 2023-001. Allowable Costs/Cost Principles Criteria or specific requirement: Purchases of equipment and other capital expenditures require the written approval of the Federal awarding agency or pass-through entity, as specified in Office of Management and Budget (OMB) 2 CFR section 200.439. Condition: In our test of expenditures from the COVID-19 Education Stabilization Fund, we identified an equipment purchase with a unit cost greater than the $5,000 threshold for which the District did not obtain prior written approval from the Arkansas Division of Elementary and Secondary Education (DESE). The equipment had a cost of $30,967. Cause: Lack of internal controls and management oversight over program expenditures. Effect or potential effect: Unallowable costs of $30,967 were paid from the COVID-19 Education Stabilization Fund. Questioned costs: The amount of questioned costs was $30,967. Context: As a result of an examination of 4 checks (totaling $139,550) from a population of 23 checks (totaling $268,217). Our sample was statistically valid. Identification as a repeat finding: No Recommendation: The District should contact the Arkansas Division of Elementary and Secondary Education for guidance regarding this matter and implement proper controls over program expenditures. Views of responsible officials: The timeline for prior approval and ordering of the piece of equipment referenced above happened prior to the new administration coming into the District. However, as Superintendent of the District, I should have double checked to ensure that the correct protocol was followed. Since being in this role, every item the District has purchased using the COVID-19 Education Stabilization Fund has documented prior approval and will continue to do so until the end of these funds.
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 84.425D PASS THROUGH NUMBER 7104 AUDIT PERIOD - YEAR ENDED JUNE 30, 2023 2023-001. Allowable Costs/Cost Principles Criteria or specific requirement: Purchases of equipment and other capital expenditures require the written approval of the Federal awarding agency or pass-through entity, as specified in Office of Management and Budget (OMB) 2 CFR section 200.439. Condition: In our test of expenditures from the COVID-19 Education Stabilization Fund, we identified an equipment purchase with a unit cost greater than the $5,000 threshold for which the District did not obtain prior written approval from the Arkansas Division of Elementary and Secondary Education (DESE). The equipment had a cost of $30,967. Cause: Lack of internal controls and management oversight over program expenditures. Effect or potential effect: Unallowable costs of $30,967 were paid from the COVID-19 Education Stabilization Fund. Questioned costs: The amount of questioned costs was $30,967. Context: As a result of an examination of 4 checks (totaling $139,550) from a population of 23 checks (totaling $268,217). Our sample was statistically valid. Identification as a repeat finding: No Recommendation: The District should contact the Arkansas Division of Elementary and Secondary Education for guidance regarding this matter and implement proper controls over program expenditures. Views of responsible officials: The timeline for prior approval and ordering of the piece of equipment referenced above happened prior to the new administration coming into the District. However, as Superintendent of the District, I should have double checked to ensure that the correct protocol was followed. Since being in this role, every item the District has purchased using the COVID-19 Education Stabilization Fund has documented prior approval and will continue to do so until the end of these funds.