FAC Explorer

Audit 309454

FY End
2023-06-30
Total Expended
$2.90M
Findings
4
Programs
11
Organization: Brinkley School District (AR)
Year: 2023 Accepted: 2024-06-21
Auditor: Arkansas Legislative Audit

Organization Exclusion Status:

Findings

ID Ref Severity Repeat Requirement
401354 2023-001 Material Weakness - F
401355 2023-001 Material Weakness - F
977796 2023-001 Material Weakness - F
977797 2023-001 Material Weakness - F

Programs

ALN Program Spent Major Findings
84.425 Covid-19 - Education Stabilization Fund $714,231 Yes 1
84.010 Title I Grants to Local Educational Agencies $457,424 - 0
84.287 Twenty-First Century Community Learning Centers $128,772 - 0
10.553 School Breakfast Program $118,215 - 0
84.424 Student Support and Academic Enrichment Program $56,878 - 0
84.367 Supporting Effective Instruction State Grants $49,800 - 0
84.027 Special Education_grants to States $23,911 - 0
10.555 National School Lunch Program $21,159 - 0
10.582 Fresh Fruit and Vegetable Program $19,778 - 0
84.173 Special Education_preschool Grants $15,195 - 0
84.358 Rural Education $12,251 - 0

Contacts

Name Title Type
PGTBAZZ1K2X8 Brenda Poole Auditee
8707345105 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 Brinkley School District No. B (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 $29,153 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 Brinkley School District No. B (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
MATERIAL WEAKNESS U.S. DEPARTMENT OF EDUCATION PASSED THROUGH ARKANSAS DEPARTMENT OF EDUCATION COVID-19 - EDUCATION STABILIZATION FUND - AL NUMBER 84.425D and 84.425U PASS-THROUGH NUMBER 4801 AUDIT PERIOD - YEAR ENDED JUNE 30, 2023 2023-001. 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. Additionally, the District should ensure that disposition of such equipment is in accordance with federal requirements, including the federal awarding agency is appropriately compensated for its share of any property sold or converted to non-federal use. Condition: A review of the equipment subsidiary ledger revealed that no equipment items purchased with Education Stabilization Funds in fiscal year 2023, were added to the ledger. The total cost of the equipment was $640,899. Also, the District could not account for 1 of 4 Education Stabilization Fund equipment items selected for sighting, costing $1,177. Cause: Lack of internal controls over the equipment subsidiary ledger. Effect or potential effect: The District's equipment subsidiary records did not include any equipment items purchased in fiscal year 2023. Context: All equipment items purchased in fiscal year 2023, were not added to the equipment subsidiary ledger for a total cost of $640,899. Also, 4 equipment items ($4,709) from a total of 40 equipment items ($47,094) that were included on the equipment subsidiary ledger were selected for observation. The sample was statistically valid. 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. In addition, the District should maintain proper records for equipment acquired with federal awards. Views of responsible officials: The Superintendent will work with the business manager and the technology coordinator to identify all items purchased with a cost greater than $1,000 that need to be properly recorded in the district's equipment subsidiary ledger. Items that are being retired will be approved by the board and removed from the ledger. The modular buildings will be added immediately to the fixed asset list as well as the 10 Dell laptops. The laptop that the teacher lost will be removed from the fixed asset list and moving forward, all staff will complete an equipment incident form when equipment is lost or stolen. A police report will be filed for all stolen equipment.
Finding 2023-001
MATERIAL WEAKNESS U.S. DEPARTMENT OF EDUCATION PASSED THROUGH ARKANSAS DEPARTMENT OF EDUCATION COVID-19 - EDUCATION STABILIZATION FUND - AL NUMBER 84.425D and 84.425U PASS-THROUGH NUMBER 4801 AUDIT PERIOD - YEAR ENDED JUNE 30, 2023 2023-001. 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. Additionally, the District should ensure that disposition of such equipment is in accordance with federal requirements, including the federal awarding agency is appropriately compensated for its share of any property sold or converted to non-federal use. Condition: A review of the equipment subsidiary ledger revealed that no equipment items purchased with Education Stabilization Funds in fiscal year 2023, were added to the ledger. The total cost of the equipment was $640,899. Also, the District could not account for 1 of 4 Education Stabilization Fund equipment items selected for sighting, costing $1,177. Cause: Lack of internal controls over the equipment subsidiary ledger. Effect or potential effect: The District's equipment subsidiary records did not include any equipment items purchased in fiscal year 2023. Context: All equipment items purchased in fiscal year 2023, were not added to the equipment subsidiary ledger for a total cost of $640,899. Also, 4 equipment items ($4,709) from a total of 40 equipment items ($47,094) that were included on the equipment subsidiary ledger were selected for observation. The sample was statistically valid. 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. In addition, the District should maintain proper records for equipment acquired with federal awards. Views of responsible officials: The Superintendent will work with the business manager and the technology coordinator to identify all items purchased with a cost greater than $1,000 that need to be properly recorded in the district's equipment subsidiary ledger. Items that are being retired will be approved by the board and removed from the ledger. The modular buildings will be added immediately to the fixed asset list as well as the 10 Dell laptops. The laptop that the teacher lost will be removed from the fixed asset list and moving forward, all staff will complete an equipment incident form when equipment is lost or stolen. A police report will be filed for all stolen equipment.
Finding 2023-001
MATERIAL WEAKNESS U.S. DEPARTMENT OF EDUCATION PASSED THROUGH ARKANSAS DEPARTMENT OF EDUCATION COVID-19 - EDUCATION STABILIZATION FUND - AL NUMBER 84.425D and 84.425U PASS-THROUGH NUMBER 4801 AUDIT PERIOD - YEAR ENDED JUNE 30, 2023 2023-001. 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. Additionally, the District should ensure that disposition of such equipment is in accordance with federal requirements, including the federal awarding agency is appropriately compensated for its share of any property sold or converted to non-federal use. Condition: A review of the equipment subsidiary ledger revealed that no equipment items purchased with Education Stabilization Funds in fiscal year 2023, were added to the ledger. The total cost of the equipment was $640,899. Also, the District could not account for 1 of 4 Education Stabilization Fund equipment items selected for sighting, costing $1,177. Cause: Lack of internal controls over the equipment subsidiary ledger. Effect or potential effect: The District's equipment subsidiary records did not include any equipment items purchased in fiscal year 2023. Context: All equipment items purchased in fiscal year 2023, were not added to the equipment subsidiary ledger for a total cost of $640,899. Also, 4 equipment items ($4,709) from a total of 40 equipment items ($47,094) that were included on the equipment subsidiary ledger were selected for observation. The sample was statistically valid. 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. In addition, the District should maintain proper records for equipment acquired with federal awards. Views of responsible officials: The Superintendent will work with the business manager and the technology coordinator to identify all items purchased with a cost greater than $1,000 that need to be properly recorded in the district's equipment subsidiary ledger. Items that are being retired will be approved by the board and removed from the ledger. The modular buildings will be added immediately to the fixed asset list as well as the 10 Dell laptops. The laptop that the teacher lost will be removed from the fixed asset list and moving forward, all staff will complete an equipment incident form when equipment is lost or stolen. A police report will be filed for all stolen equipment.
Finding 2023-001
MATERIAL WEAKNESS U.S. DEPARTMENT OF EDUCATION PASSED THROUGH ARKANSAS DEPARTMENT OF EDUCATION COVID-19 - EDUCATION STABILIZATION FUND - AL NUMBER 84.425D and 84.425U PASS-THROUGH NUMBER 4801 AUDIT PERIOD - YEAR ENDED JUNE 30, 2023 2023-001. 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. Additionally, the District should ensure that disposition of such equipment is in accordance with federal requirements, including the federal awarding agency is appropriately compensated for its share of any property sold or converted to non-federal use. Condition: A review of the equipment subsidiary ledger revealed that no equipment items purchased with Education Stabilization Funds in fiscal year 2023, were added to the ledger. The total cost of the equipment was $640,899. Also, the District could not account for 1 of 4 Education Stabilization Fund equipment items selected for sighting, costing $1,177. Cause: Lack of internal controls over the equipment subsidiary ledger. Effect or potential effect: The District's equipment subsidiary records did not include any equipment items purchased in fiscal year 2023. Context: All equipment items purchased in fiscal year 2023, were not added to the equipment subsidiary ledger for a total cost of $640,899. Also, 4 equipment items ($4,709) from a total of 40 equipment items ($47,094) that were included on the equipment subsidiary ledger were selected for observation. The sample was statistically valid. 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. In addition, the District should maintain proper records for equipment acquired with federal awards. Views of responsible officials: The Superintendent will work with the business manager and the technology coordinator to identify all items purchased with a cost greater than $1,000 that need to be properly recorded in the district's equipment subsidiary ledger. Items that are being retired will be approved by the board and removed from the ledger. The modular buildings will be added immediately to the fixed asset list as well as the 10 Dell laptops. The laptop that the teacher lost will be removed from the fixed asset list and moving forward, all staff will complete an equipment incident form when equipment is lost or stolen. A police report will be filed for all stolen equipment.