FAC Explorer

Audit 346841

FY End
2024-06-30
Total Expended
$2.65M
Findings
4
Programs
14
Organization: Drew Central School District (AR)
Year: 2024 Accepted: 2025-03-19
Auditor: Arkansas Legislative Audit

Organization Exclusion Status:

Findings

ID Ref Severity Repeat Requirement
528781 2024-001 Significant Deficiency - B
528782 2024-001 Significant Deficiency - B
1105223 2024-001 Significant Deficiency - B
1105224 2024-001 Significant Deficiency - B

Programs

ALN Program Spent Major Findings
84.027 Special Education_grants to States $328,713 - 0
10.553 School Breakfast Program $317,162 Yes 1
84.010 Title I Grants to Local Educational Agencies $315,508 - 0
84.287 Twenty-First Century Community Learning Centers $254,964 - 0
84.371 Comprehensive Literacy Development $56,352 - 0
10.582 Fresh Fruit and Vegetable Program $48,611 Yes 0
84.367 Supporting Effective Instruction State Grants (formerly Improving Teacher Quality State Grants) $44,078 - 0
84.173 Special Education_preschool Grants $36,909 - 0
10.555 National School Lunch Program $27,894 Yes 0
84.424 Student Support and Academic Enrichment Program $19,372 - 0
10.579 Child Nutrition Discretionary Grants Limited Availability $16,149 - 0
84.358 Rural Education $5,015 - 0
93.600 Head Start $3,067 - 0
84.425 Covid-19 - Education Stabilization Fund $1,537 - 0

Contacts

Name Title Type
LKRAKWVKHFL3 Nancy Chapman Auditee
8703673569 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 Drew Central School District No. 5 (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 $127,337 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 Drew Central School District No. 5 (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 AGRICULTURE PASSED THROUGH ARKANSAS DEPARTMENT OF EDUCATION CHILD NUTRITION CLUSTER - AL NUMBERS 10.553 AND 10.555 PASS-THROUGH NUMBER 2202 AUDIT PERIOD - YEAR ENDED JUNE 30, 2024 2024-001. 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 awards. Such costs are to be necessary and reasonable for the performance of the federal award. Condition: In our test of non-payroll expenditures, we identified unallowable costs totaling $8,217 that were paid from the Child Nutrition program. Cause: Lack of internal controls and management oversight over program expenditures. Effect or potential effect: Unallowable costs of $8,217 were paid from Child Nutrition funds. Questioned costs: The amount of questioned costs was $8,217. Context: An examination of 13 Child Nutrition non-payroll expenditures totaling $45,852 from a population of 115 checks totaling $692,615. Identification as a repeat finding: No Recommendation: The District should contact the Arkansas Division of Elementary and Secondary Education- Child Nutrition Unit (DESE-CNU) for guidance regarding this matter and implement proper controls over program expenditures. Views of responsible officials: The Chief Financial Officer (CFO) and the Child Nutrition Director (CND) will take more care to ensure that all expenditures are properly classified per the Arkansas Public School Computer Network manual. If at any time the CFO and CND are unsure if an expense is allowable, the CND will contact the Child Nutrition Unit at DESE for guidance prior to purchasing. The District will contact DESE for guidance regarding this matter and will implement proper controls over program expenditures moving forward.
Finding 2024-001
U.S. DEPARTMENT OF AGRICULTURE PASSED THROUGH ARKANSAS DEPARTMENT OF EDUCATION CHILD NUTRITION CLUSTER - AL NUMBERS 10.553 AND 10.555 PASS-THROUGH NUMBER 2202 AUDIT PERIOD - YEAR ENDED JUNE 30, 2024 2024-001. 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 awards. Such costs are to be necessary and reasonable for the performance of the federal award. Condition: In our test of non-payroll expenditures, we identified unallowable costs totaling $8,217 that were paid from the Child Nutrition program. Cause: Lack of internal controls and management oversight over program expenditures. Effect or potential effect: Unallowable costs of $8,217 were paid from Child Nutrition funds. Questioned costs: The amount of questioned costs was $8,217. Context: An examination of 13 Child Nutrition non-payroll expenditures totaling $45,852 from a population of 115 checks totaling $692,615. Identification as a repeat finding: No Recommendation: The District should contact the Arkansas Division of Elementary and Secondary Education- Child Nutrition Unit (DESE-CNU) for guidance regarding this matter and implement proper controls over program expenditures. Views of responsible officials: The Chief Financial Officer (CFO) and the Child Nutrition Director (CND) will take more care to ensure that all expenditures are properly classified per the Arkansas Public School Computer Network manual. If at any time the CFO and CND are unsure if an expense is allowable, the CND will contact the Child Nutrition Unit at DESE for guidance prior to purchasing. The District will contact DESE for guidance regarding this matter and will implement proper controls over program expenditures moving forward.
Finding 2024-001
U.S. DEPARTMENT OF AGRICULTURE PASSED THROUGH ARKANSAS DEPARTMENT OF EDUCATION CHILD NUTRITION CLUSTER - AL NUMBERS 10.553 AND 10.555 PASS-THROUGH NUMBER 2202 AUDIT PERIOD - YEAR ENDED JUNE 30, 2024 2024-001. 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 awards. Such costs are to be necessary and reasonable for the performance of the federal award. Condition: In our test of non-payroll expenditures, we identified unallowable costs totaling $8,217 that were paid from the Child Nutrition program. Cause: Lack of internal controls and management oversight over program expenditures. Effect or potential effect: Unallowable costs of $8,217 were paid from Child Nutrition funds. Questioned costs: The amount of questioned costs was $8,217. Context: An examination of 13 Child Nutrition non-payroll expenditures totaling $45,852 from a population of 115 checks totaling $692,615. Identification as a repeat finding: No Recommendation: The District should contact the Arkansas Division of Elementary and Secondary Education- Child Nutrition Unit (DESE-CNU) for guidance regarding this matter and implement proper controls over program expenditures. Views of responsible officials: The Chief Financial Officer (CFO) and the Child Nutrition Director (CND) will take more care to ensure that all expenditures are properly classified per the Arkansas Public School Computer Network manual. If at any time the CFO and CND are unsure if an expense is allowable, the CND will contact the Child Nutrition Unit at DESE for guidance prior to purchasing. The District will contact DESE for guidance regarding this matter and will implement proper controls over program expenditures moving forward.
Finding 2024-001
U.S. DEPARTMENT OF AGRICULTURE PASSED THROUGH ARKANSAS DEPARTMENT OF EDUCATION CHILD NUTRITION CLUSTER - AL NUMBERS 10.553 AND 10.555 PASS-THROUGH NUMBER 2202 AUDIT PERIOD - YEAR ENDED JUNE 30, 2024 2024-001. 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 awards. Such costs are to be necessary and reasonable for the performance of the federal award. Condition: In our test of non-payroll expenditures, we identified unallowable costs totaling $8,217 that were paid from the Child Nutrition program. Cause: Lack of internal controls and management oversight over program expenditures. Effect or potential effect: Unallowable costs of $8,217 were paid from Child Nutrition funds. Questioned costs: The amount of questioned costs was $8,217. Context: An examination of 13 Child Nutrition non-payroll expenditures totaling $45,852 from a population of 115 checks totaling $692,615. Identification as a repeat finding: No Recommendation: The District should contact the Arkansas Division of Elementary and Secondary Education- Child Nutrition Unit (DESE-CNU) for guidance regarding this matter and implement proper controls over program expenditures. Views of responsible officials: The Chief Financial Officer (CFO) and the Child Nutrition Director (CND) will take more care to ensure that all expenditures are properly classified per the Arkansas Public School Computer Network manual. If at any time the CFO and CND are unsure if an expense is allowable, the CND will contact the Child Nutrition Unit at DESE for guidance prior to purchasing. The District will contact DESE for guidance regarding this matter and will implement proper controls over program expenditures moving forward.