FAC Explorer

Audit 312731

FY End
2022-06-30
Total Expended
$2.39M
Findings
4
Programs
12
Organization: Bergman School District (AR)
Year: 2022 Accepted: 2023-05-11
Auditor: Arkansas Legislative Audit

Organization Exclusion Status:

Findings

ID Ref Severity Repeat Requirement
443055 2022-001 Material Weakness - N
443056 2022-002 Material Weakness - A
1019497 2022-001 Material Weakness - N
1019498 2022-002 Material Weakness - A

Programs

ALN Program Spent Major Findings
84.425 Covid-19 - Education Stabilization Fund $822,056 Yes 0
10.553 School Breakfast Program $263,613 - 0
32.009 Emergency Connectivity Fund Program $210,215 Yes 2
84.010 Title I Grants to Local Educational Agencies $177,228 - 0
84.027 Special Education_grants to States $57,047 - 0
93.323 Epidemiology and Laboratory Capacity for Infectious Diseases (elc) $48,445 - 0
10.555 National School Lunch Program $39,086 - 0
84.367 Supporting Effective Instructions State Grants $28,119 - 0
10.582 Fresh Fruit and Vegetable Program $22,350 - 0
84.424 Student Support and Academic Enrichment Program $13,461 - 0
93.243 Substance Abuse and Mental Health Services_projects of Regional and National Significance $10,000 - 0
84.173 Special Education_preschool Grants $5,977 - 0

Contacts

Name Title Type
LV1HTXX3JCS7 Sarah Alexander Auditee
8707415213 Matt Fink, CPA Auditor
No contacts on file

Notes to SEFA

Title: Nonmonetary Assistance (SEFA Notes 3 and 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 Bergman School District No. 3 (District) under programs of the federal government for the year ended June 30, 2022. 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 5). 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: Medicaid Funding (SEFA Notes 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 Bergman School District No. 3 (District) under programs of the federal government for the year ended June 30, 2022. 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 5). During the year ended June 30, 2022, the District received Medicaid funding of $59,510 from the Arkansas Department of Human Services. Such payments are not considered Federal awards expended, and therefore, are not included in the above Schedule.

Finding Details

Finding 2022-001
FEDERAL COMMUNICATIONS COMMISSIONEMERGENCY CONNECTIVITY FUND PROGRAM - AL NUMBER 32.009AUDIT PERIOD - YEAR ENDED JUNE 30, 2022Special Tests and ProvisionsCriteria or specific requirement: Office of Management and Budget (OMB) 47 CFR ? 54.1706 (c) states that Emergency Connectivity Fund support for eligible equipment is limited to no more than one connected device per student or school staff member. OMB 47 CFR ? 54.1710 requires entities requesting funding to certify that they are only seeking support for eligible equipment provided to students and school staff who would otherwise lack connected devices sufficient to engage in remote learning. Internal controls should be in place to ensure that the required calculations are performed to confirm data is accurately submitted to the FCC for reimbursement.Condition: During testing, we identified the amount requested for reimbursement by the service provider on behalf of the District from the Emergency Connectivity Fund Program was $16,520 greater than the actual amount of equipment provided to students or school staff with unmet need during the school year.Cause: The estimate the District used in their funding application was not updated to actual for the equipment provided to students or school staff who had unmet need on the service provider's request for reimbursement.Effect: The District received funding in excess of the unmet need for their students and school staff.Questioned costs: The District was reimbursed for 118 devices or $16,520 more than eligible.Context: The program required the District to estimate the amount of students with unmet need on the funding application and only request reimbursement for the actual equipment provided to students and school staff who would otherwise lack devices sufficient to engage in remote learning. The District provided 166 devices to students and school staff and received federal aid for 284 devices.Recommendation: The District should contact the Federal Communications Commission for guidance regarding this matter and implement proper controls over program expenditures.
Finding 2022-002
FEDERAL COMMUNICATIONS COMMISSIONEMERGENCY CONNECTIVITY FUND PROGRAM - AL NUMBER 32.009AUDIT PERIOD - YEAR ENDED JUNE 30, 2022Activities Allowed or UnallowedCriteria or specific requirement: Office of Management and Budget (OMB) 47 CFR ? 54.1706 (b) states that eligible schools cannot request and receive support for the purchase of eligible equipment and services for use solely at the school; however, some on-campus use is permitted for eligible equipment that was purchased primarily to provide off-campus access.Condition: During testing, we identified unallowable costs totaling $56,940 were paid from the Emergency Connectivity Fund Program for 157 connected devices that were purchased primarily for on-campus use.Cause: Lack of internal controls and management oversight of program expenditures.Effect: Unallowable costs of $56,940 were paid from the Emergency Connectivity Fund Program.Questioned costs: The amount of questioned costs was $56,940.Context: As a result of an examination of Emergency Connectivity Fund checks paid, review of inventory records maintained for connected devices purchased, and interviews of District personnel, it was determined the devices purchased were not primarily for off-campus use and resulted in unallowable costs.Recommendation: The District should contact the Federal Communications Commission for guidance regarding this matter and implement proper controls over program expenditures.
Finding 2022-001
FEDERAL COMMUNICATIONS COMMISSIONEMERGENCY CONNECTIVITY FUND PROGRAM - AL NUMBER 32.009AUDIT PERIOD - YEAR ENDED JUNE 30, 2022Special Tests and ProvisionsCriteria or specific requirement: Office of Management and Budget (OMB) 47 CFR ? 54.1706 (c) states that Emergency Connectivity Fund support for eligible equipment is limited to no more than one connected device per student or school staff member. OMB 47 CFR ? 54.1710 requires entities requesting funding to certify that they are only seeking support for eligible equipment provided to students and school staff who would otherwise lack connected devices sufficient to engage in remote learning. Internal controls should be in place to ensure that the required calculations are performed to confirm data is accurately submitted to the FCC for reimbursement.Condition: During testing, we identified the amount requested for reimbursement by the service provider on behalf of the District from the Emergency Connectivity Fund Program was $16,520 greater than the actual amount of equipment provided to students or school staff with unmet need during the school year.Cause: The estimate the District used in their funding application was not updated to actual for the equipment provided to students or school staff who had unmet need on the service provider's request for reimbursement.Effect: The District received funding in excess of the unmet need for their students and school staff.Questioned costs: The District was reimbursed for 118 devices or $16,520 more than eligible.Context: The program required the District to estimate the amount of students with unmet need on the funding application and only request reimbursement for the actual equipment provided to students and school staff who would otherwise lack devices sufficient to engage in remote learning. The District provided 166 devices to students and school staff and received federal aid for 284 devices.Recommendation: The District should contact the Federal Communications Commission for guidance regarding this matter and implement proper controls over program expenditures.
Finding 2022-002
FEDERAL COMMUNICATIONS COMMISSIONEMERGENCY CONNECTIVITY FUND PROGRAM - AL NUMBER 32.009AUDIT PERIOD - YEAR ENDED JUNE 30, 2022Activities Allowed or UnallowedCriteria or specific requirement: Office of Management and Budget (OMB) 47 CFR ? 54.1706 (b) states that eligible schools cannot request and receive support for the purchase of eligible equipment and services for use solely at the school; however, some on-campus use is permitted for eligible equipment that was purchased primarily to provide off-campus access.Condition: During testing, we identified unallowable costs totaling $56,940 were paid from the Emergency Connectivity Fund Program for 157 connected devices that were purchased primarily for on-campus use.Cause: Lack of internal controls and management oversight of program expenditures.Effect: Unallowable costs of $56,940 were paid from the Emergency Connectivity Fund Program.Questioned costs: The amount of questioned costs was $56,940.Context: As a result of an examination of Emergency Connectivity Fund checks paid, review of inventory records maintained for connected devices purchased, and interviews of District personnel, it was determined the devices purchased were not primarily for off-campus use and resulted in unallowable costs.Recommendation: The District should contact the Federal Communications Commission for guidance regarding this matter and implement proper controls over program expenditures.