FAC Explorer

Audit 315830

FY End
2023-06-30
Total Expended
$3.79M
Findings
4
Programs
14
Organization: Gravette School District (AR)
Year: 2023 Accepted: 2024-07-24
Auditor: Arkansas Legislative Audit

Organization Exclusion Status:

Findings

ID Ref Severity Repeat Requirement
479333 2023-002 Significant Deficiency - B
479334 2023-001 Significant Deficiency - B
1055775 2023-002 Significant Deficiency - B
1055776 2023-001 Significant Deficiency - B

Programs

ALN Program Spent Major Findings
84.010 Title I Grants to Local Educational Agencies $384,771 Yes 1
84.027 Special Education_grants to States $365,091 - 0
10.553 School Breakfast Program $141,355 - 0
84.287 Twenty-First Century Community Learning Centers $134,753 - 0
84.027 Special Education_preschool Grants $96,074 - 0
97.036 Disaster Grants - Public Assistance (presidentially Declared Disasters) $81,074 - 0
84.367 Supporting Effective Instruction State Grants $74,584 - 0
10.555 National School Lunch Program $67,961 - 0
84.371 Comprehensive Literacy Development $36,267 - 0
84.424 Student Support and Academic Enrichment Program $35,120 - 0
84.173 Special Education_preschool Grants $19,030 - 0
93.323 Epidemiology and Laboratory Capacity for Infectious Diseases (elc) $14,147 - 0
84.425 Covid-19 - Education Stabilization Fund $6,387 Yes 0
93.079 Cooperative Agreements to Promote Adolescent Health Through School-Based Hiv/std Prevention and School-Based Surveillance $133 - 0

Contacts

Name Title Type
NSY1NQMH9ME6 Maribel Childress Auditee
4797874100 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 Gravette School District No. 20 (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 $51,363 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 Gravette School District No. 20 (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 2023-002
U. S. DEPARTMENT OF EDUCATION PASSED THROUGH ARKANSAS OF EDUCATION COVID-19 - ELEMENTARY AND SECONDARY SCHOOL EMERGENCY RELIEF FUND - AL NUMBER 84.425D PASS-THROUGH NUMBER 0404 AUDIT PERIOD - YEAR ENDED JUNE 30, 2023 2023-002 Allowable Costs/Costs Principles Criteria or specific requirement: Office of Management and Budget (OMB) 2 CFR part 200, subpart E - Cost Principles establishes principles for determining the allowable costs incurred by the District under federal funds. Such costs are to be necessary and reasonable for the performance of the federal award. Conditions: In our test of disbursements, we identified unallowable costs totaling $4,458 for football kicking lessons ($2,250) and student t-shirts to be worn at sporting events ($2,208) were paid from Education Stabilization Fund. Cause: Lack of internal controls and management oversight over program expenditures. Effect or potential effect: Unallowable costs of $4,458 were paid from the COVID-19 - Education Stabilization Fund. Questioned costs: The amount of questioned cost was $4,458. Context: A test of 6 nonpayroll disbursements from a population of 48. Our 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. Views of responsible officials: The District notes that these expenditures were coded using ESSER program code 166. The District will contact DESE for guidance with respect to these expenditures.
Finding 2023-001
U. S. DEPARTMENT OF EDUCATION PASSED THROUGH ARKANSAS DEPARTMENT OF EDUCATION TITLE I GRANTS TO LOCAL EDUCATION AGENCIES - AL NUMBER 84.010A AUDIT PERIOD - YEAR ENDED JUNE 30, 2023 PASS-THROUGH NUMBER 0404 2023-001 Allowable Costs/Cost Principles Criteria or specific requirement: Office of Management and Budget (OMB) 2 CFR part 200, subpart E - Cost Principles establishes principles for determining the allowable costs incurred by the District under federal funds. Such costs are to be necessary and reasonable for the performance of the federal award. Condition: During our test of payroll expenditures, we identified $9,624 in salary expenditures paid from the Title I program for a Non-Title I certified teaching position. During the school year, the employee was reassigned from a Title I paraprofessional position to a Non-Title I position, and the District continued to pay the employee from the Title I program. Also, a contract was not prepared for the employee's position. Cause: Lack of internal controls and management oversight over program expenditures. Effect: Unallowable costs of $9,624 (gross salary) and $3,607 (fringe benefits) were paid from the Title I program. Questioned costs: The amount of questioned cost was $13,231. Context: An examination of Title I expenditures for 1 employee ($25,698) from a population of 10 employees ($361,978). Our sample was statistically valid. Identification as a repeat finding: No Recommendation: The District should contact the Arkansas Department 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 instituted an internal control that requires the preparation, review and retention of documentation as evidence that coding changes have not only been made but also made in a timely manner. The District will ensure that a contract is executed for every full-time employee included in the human resources module in eFinance by reconciling employee and contract counts.
Finding 2023-002
U. S. DEPARTMENT OF EDUCATION PASSED THROUGH ARKANSAS OF EDUCATION COVID-19 - ELEMENTARY AND SECONDARY SCHOOL EMERGENCY RELIEF FUND - AL NUMBER 84.425D PASS-THROUGH NUMBER 0404 AUDIT PERIOD - YEAR ENDED JUNE 30, 2023 2023-002 Allowable Costs/Costs Principles Criteria or specific requirement: Office of Management and Budget (OMB) 2 CFR part 200, subpart E - Cost Principles establishes principles for determining the allowable costs incurred by the District under federal funds. Such costs are to be necessary and reasonable for the performance of the federal award. Conditions: In our test of disbursements, we identified unallowable costs totaling $4,458 for football kicking lessons ($2,250) and student t-shirts to be worn at sporting events ($2,208) were paid from Education Stabilization Fund. Cause: Lack of internal controls and management oversight over program expenditures. Effect or potential effect: Unallowable costs of $4,458 were paid from the COVID-19 - Education Stabilization Fund. Questioned costs: The amount of questioned cost was $4,458. Context: A test of 6 nonpayroll disbursements from a population of 48. Our 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. Views of responsible officials: The District notes that these expenditures were coded using ESSER program code 166. The District will contact DESE for guidance with respect to these expenditures.
Finding 2023-001
U. S. DEPARTMENT OF EDUCATION PASSED THROUGH ARKANSAS DEPARTMENT OF EDUCATION TITLE I GRANTS TO LOCAL EDUCATION AGENCIES - AL NUMBER 84.010A AUDIT PERIOD - YEAR ENDED JUNE 30, 2023 PASS-THROUGH NUMBER 0404 2023-001 Allowable Costs/Cost Principles Criteria or specific requirement: Office of Management and Budget (OMB) 2 CFR part 200, subpart E - Cost Principles establishes principles for determining the allowable costs incurred by the District under federal funds. Such costs are to be necessary and reasonable for the performance of the federal award. Condition: During our test of payroll expenditures, we identified $9,624 in salary expenditures paid from the Title I program for a Non-Title I certified teaching position. During the school year, the employee was reassigned from a Title I paraprofessional position to a Non-Title I position, and the District continued to pay the employee from the Title I program. Also, a contract was not prepared for the employee's position. Cause: Lack of internal controls and management oversight over program expenditures. Effect: Unallowable costs of $9,624 (gross salary) and $3,607 (fringe benefits) were paid from the Title I program. Questioned costs: The amount of questioned cost was $13,231. Context: An examination of Title I expenditures for 1 employee ($25,698) from a population of 10 employees ($361,978). Our sample was statistically valid. Identification as a repeat finding: No Recommendation: The District should contact the Arkansas Department 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 instituted an internal control that requires the preparation, review and retention of documentation as evidence that coding changes have not only been made but also made in a timely manner. The District will ensure that a contract is executed for every full-time employee included in the human resources module in eFinance by reconciling employee and contract counts.