FAC Explorer

Audit 317668

FY End
2023-06-30
Total Expended
$972,787
Findings
2
Programs
9
Organization: Deer/mt. Judea School District (AR)
Year: 2023 Accepted: 2024-08-21
Auditor: Arkansas Legislative Audit

Organization Exclusion Status:

Findings

ID Ref Severity Repeat Requirement
484747 2023-002 Material Weakness - B
1061189 2023-002 Material Weakness - B

Programs

ALN Program Spent Major Findings
84.425 Covid-19 - Education Stabilization Fund $362,501 Yes 0
84.010 Title I Grants to Local Educational Agencies $124,777 - 0
10.553 School Breakfast Program $41,326 - 0
84.358 Rural Education $39,052 - 0
84.027 Special Education_grants to States $21,237 - 0
10.555 National School Lunch Program $16,974 - 0
10.582 Fresh Fruit and Vegetable Program $10,556 - 0
84.424 Student Support and Academic Enrichment Program $5,349 - 0
84.173 Special Education_preschool Grants $3,704 - 0

Contacts

Name Title Type
KBCPLE65N5E3 Bill Mizaur Auditee
8704285433 Matt Fink, CPA Auditor
No contacts on file

Notes to SEFA

Title: Nonmonetary Assistance (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 Deer/Mt. Judea School District (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 Arkansas Department of Human Services.

Finding Details

Finding 2023-002
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 5106 AUDIT PERIOD - YEAR ENDED JUNE 30, 2023 2023-002.Allowable Costs/Cost Principles Criteria or specific requirement: Purchases of equipment and other capital expenditures require the prior 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: During our examination of expenditures, we identified four capital expenditures totaling $34,957 paid from the COVID-19 Education Stabilization Fund in which the District did not obtain prior written approval from the Arkansas Division of Elementary and Secondary Education (DESE). These capital expenditures included gymnasium windows ($20,259) and consultation for projects in which the District did not proceed with, including restroom renovations ($8,378) and an agricultural barn ($6,320). Cause: Lack of internal controls and management oversight over program expenditures. Effect or potential effect: Questioned costs of $34,957 were paid from COVID-19-Education Stabilization Fund. Questioned costs: Total questioned costs of $34,957 Context: All capital expenditures were examined totaling $97,536. 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 the Division of Elementary and Secondary Education (DESE) for guidance regarding this matter. The District will follow the guidance from DESE to ensure compliance with federal regulations and commissioners memos to ensure the District follows allowable costs and principles. Further, the partnership DMJ now has with the Arkansas Public School Resource Center (APSRC) will help establish proper internal controls and management over program expenditures.
Finding 2023-002
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 5106 AUDIT PERIOD - YEAR ENDED JUNE 30, 2023 2023-002.Allowable Costs/Cost Principles Criteria or specific requirement: Purchases of equipment and other capital expenditures require the prior 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: During our examination of expenditures, we identified four capital expenditures totaling $34,957 paid from the COVID-19 Education Stabilization Fund in which the District did not obtain prior written approval from the Arkansas Division of Elementary and Secondary Education (DESE). These capital expenditures included gymnasium windows ($20,259) and consultation for projects in which the District did not proceed with, including restroom renovations ($8,378) and an agricultural barn ($6,320). Cause: Lack of internal controls and management oversight over program expenditures. Effect or potential effect: Questioned costs of $34,957 were paid from COVID-19-Education Stabilization Fund. Questioned costs: Total questioned costs of $34,957 Context: All capital expenditures were examined totaling $97,536. 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 the Division of Elementary and Secondary Education (DESE) for guidance regarding this matter. The District will follow the guidance from DESE to ensure compliance with federal regulations and commissioners memos to ensure the District follows allowable costs and principles. Further, the partnership DMJ now has with the Arkansas Public School Resource Center (APSRC) will help establish proper internal controls and management over program expenditures.