FAC Explorer

Audit 346638

FY End
2024-06-30
Total Expended
$4.07M
Findings
2
Programs
13
Organization: Nashville School District (AR)
Year: 2024 Accepted: 2025-03-18
Auditor: Arkansas Legislative Audit

Organization Exclusion Status:

Findings

ID Ref Severity Repeat Requirement
528655 2024-001 - - BH
1105097 2024-001 - - BH

Programs

ALN Program Spent Major Findings
84.425 Covid-19 - Education Stabilization Fund $797,713 - 1
84.010 Title I Grants to Local Educational Agencies $694,097 - 0
10.553 School Breakfast Program $501,913 Yes 0
84.367 Supporting Effective Instruction State Grants (formerly Improving Teacher Quality State Grants) $89,421 - 0
84.358 Rural Education $68,919 - 0
10.579 Child Nutrition Discretionary Grants Limited Availability $59,831 - 0
84.011 Migrant Education State Grant Program $57,377 - 0
84.424 Student Support and Academic Enrichment Program $38,013 - 0
84.365 English Language Acquisition State Grants $34,155 - 0
84.027 Special Education Grants to States $28,489 Yes 0
10.555 National School Lunch Program $26,632 Yes 0
84.173 Special Education Preschool Grants $20,997 Yes 0
93.323 Epidemiology and Laboratory Capacity for Infectious Diseases (elc) $5,160 - 0

Contacts

Name Title Type
KGBSXF4BMQK7 Doug Graham Auditee
8708453425 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 Nashville School District No. 1 (District) under programs of the federal government for the year ended June 30, 2024. 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, 2024, the District received Medicaid funding of $68,968 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 Nashville School District No. 1 (District) under programs of the federal government for the year ended June 30, 2024. 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 2024-001
U.S. DEPARTMENT OF EDUCATION PASSED THROUGH THE ARKANSAS DEPARTMENT OF EDUCATION COVID-19 AMERICAN RESCUE PLAN - ELEMENTARY AND SECONDARY SCHOOL EMERGENCY RELIEF FUND - AL# 84.425U PASS-THROUGH NUMBER 3105 AUDIT PERIOD - YEAR ENDED JUNE 30, 2024 Criteria or specific requirement: Office of Management and Budget (OMB) 2 CFR section 200.502 states the determination of when a Federal award is expended must be based on when the activity related to the Federal award occurs. OMB 2 CFR section 200.344(b) requires that a non-federal entity must liquidate all financial obligations incurred under the federal award no later than 120 calendar days after the end date of the period of performance as specified in the terms and conditions of the federal award unless the federal awarding agency or pass-through entity authorizes an extension. American Rescue Plan - Elementary and Secondary Emergency Relief Funds must be obligated by September 30, 2024 and liquidated by January 28, 2025. Condition: The District issued two checks totaling $282,435 for the purchase of two buses on June 25, 2024 and held the checks awaiting delivery of the buses. The District reported the expenditures prior to being incurred and received federal reimbursement from the Education Stabilization Fund of $282,435. The District took possession of the buses and gave the payments to the vendor on February 5, 2025. The federal funds were not obligated or liquidated during the Education Stabilization Fund's period of performance. Cause: Lack of management oversight and adherence to program requirements. Effect or potential effect: $282,435 was reimbursed without an expenditure being incurred. Questioned costs: $282,435 Context: Identified during review of bank reconciliations in the financial statement audit. The program was not audited as a major federal program. Identification as a repeat finding: No Recommendation: The District should contact the Arkansas Division of Elementary and Secondary Education for guidance regarding this matter. Views of responsible officials: DESE has informed us that if this situation ever comes up in the future, asking for a federal extension if buses were not going to be delivered in a timely manner (by January 10, 2025). The manufacturer assured us that the buses would be delivered by November 4, 2024 so we didn’t ask for the extension. In the future, we will wait until buses are on site to write checks. We do not anticipate any ESSER ARP money to be issued in the near future.
Finding 2024-001
U.S. DEPARTMENT OF EDUCATION PASSED THROUGH THE ARKANSAS DEPARTMENT OF EDUCATION COVID-19 AMERICAN RESCUE PLAN - ELEMENTARY AND SECONDARY SCHOOL EMERGENCY RELIEF FUND - AL# 84.425U PASS-THROUGH NUMBER 3105 AUDIT PERIOD - YEAR ENDED JUNE 30, 2024 Criteria or specific requirement: Office of Management and Budget (OMB) 2 CFR section 200.502 states the determination of when a Federal award is expended must be based on when the activity related to the Federal award occurs. OMB 2 CFR section 200.344(b) requires that a non-federal entity must liquidate all financial obligations incurred under the federal award no later than 120 calendar days after the end date of the period of performance as specified in the terms and conditions of the federal award unless the federal awarding agency or pass-through entity authorizes an extension. American Rescue Plan - Elementary and Secondary Emergency Relief Funds must be obligated by September 30, 2024 and liquidated by January 28, 2025. Condition: The District issued two checks totaling $282,435 for the purchase of two buses on June 25, 2024 and held the checks awaiting delivery of the buses. The District reported the expenditures prior to being incurred and received federal reimbursement from the Education Stabilization Fund of $282,435. The District took possession of the buses and gave the payments to the vendor on February 5, 2025. The federal funds were not obligated or liquidated during the Education Stabilization Fund's period of performance. Cause: Lack of management oversight and adherence to program requirements. Effect or potential effect: $282,435 was reimbursed without an expenditure being incurred. Questioned costs: $282,435 Context: Identified during review of bank reconciliations in the financial statement audit. The program was not audited as a major federal program. Identification as a repeat finding: No Recommendation: The District should contact the Arkansas Division of Elementary and Secondary Education for guidance regarding this matter. Views of responsible officials: DESE has informed us that if this situation ever comes up in the future, asking for a federal extension if buses were not going to be delivered in a timely manner (by January 10, 2025). The manufacturer assured us that the buses would be delivered by November 4, 2024 so we didn’t ask for the extension. In the future, we will wait until buses are on site to write checks. We do not anticipate any ESSER ARP money to be issued in the near future.