FAC Explorer

Audit 346946

FY End
2024-06-30
Total Expended
$1.50M
Findings
4
Programs
11
Organization: Earle School District (AR)
Year: 2024 Accepted: 2025-03-19
Auditor: Arkansas Legislative Audit

Organization Exclusion Status:

Findings

ID Ref Severity Repeat Requirement
528951 2024-001 Significant Deficiency - L
528952 2024-001 Significant Deficiency - L
1105393 2024-001 Significant Deficiency - L
1105394 2024-001 Significant Deficiency - L

Programs

ALN Program Spent Major Findings
84.010 Title I Grants to Local Educational Agencies $449,328 - 0
10.553 School Breakfast Program $146,496 Yes 1
84.367 Supporting Effective Instruction State Grants (formerly Improving Teacher Quality State Grants) $35,966 - 0
84.424 Student Support and Academic Enrichment Program $18,025 - 0
10.555 National School Lunch Program $17,075 Yes 0
10.582 Fresh Fruit and Vegetable Program $7,847 Yes 0
84.371 Comprehensive Literacy Development $6,715 - 0
84.358 Rural Education $4,006 - 0
84.173 Special Education Preschool Grants $2,813 - 0
84.425 Covid-19 - Education Stabilization Fund $1,828 - 0
84.027 Special Education Grants to States $1,389 - 0

Contacts

Name Title Type
XD4KEWR6VMC5 Ryan Burgess Auditee
8707928486 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 Earle 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 $1,091 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 Earle 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 AGRICULTURE PASSED THROUGH ARKANSAS DEPARTMENT OF EDUCATION CHILD NUTRITION CLUSTER - AL NUMBERS 10.553 AND 10.555 PASS-THROUGH NUMBER 1802 AUDIT PERIOD - YEAR ENDED JUNE 30, 2024 2024-001. Reporting Criteria or specific requirement: Monthly claims for reimbursement are required to be submitted to the Arkansas Division of Elementary and Secondary Education, Child Nutrition Unit (DESE, CNU), as required by 7 CFR 210.8 and 7 CFR 220.11. Eligible schools that have elected the Community Eligibility Provision (CEP) apply an alternative reimbursement option. As required by 7 CFR 245.9, reimbursement through the CEP is based on free and paid claiming percentages applied to the total number of reimbursable lunches and breakfasts served each month, respectively. Condition: During our review of child nutrition claim for reimbursement forms, we noted the District did not utilize the Community Eligibility Provision (CEP) calculation to determine the maximum number of eligible meals. As a result, the October 2023 claim for reimbursement exceeded the maximum allowed resulting in an overclaim of $552. Cause: Lack of management oversight, training, and not utilizing the CEP calculation method to determine the maximum number of meals allowed resulted in an overclaim. Effect: The District was not properly reimbursed for meals served during the year. Questioned costs: The amount of question costs was $552. Context: The two monthly claim for reimbursement forms tested did not calculate the maximum number of eligible meals utilizing the CEP method. Identification as a repeat finding: No Recommendation: The District should contact the Arkansas Division of Elementary and Secondary Education, Child Nutrition Unit for guidance regarding this matter. Views of responsible officials: The District has consulted with the Arkansas Division of Elementary and Secondary Education, Child Nutrition Unit (DESE, CNU) for guidance and technical assistance. Per CNU guidance, the District is in the process of submitting an amended claim for October 2023 to correct the $552 discrepancy. We anticipate acceptance of this claim, resolving the issue. The District has fully implemented the required CEP compliance procedures and has trained personnel to ensure future claims adhere to federal and state regulations. Standard Operating Procedures (SOP) for the Child Nutrition Program have also been updated to prevent recurrence of this issue.
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 1802 AUDIT PERIOD - YEAR ENDED JUNE 30, 2024 2024-001. Reporting Criteria or specific requirement: Monthly claims for reimbursement are required to be submitted to the Arkansas Division of Elementary and Secondary Education, Child Nutrition Unit (DESE, CNU), as required by 7 CFR 210.8 and 7 CFR 220.11. Eligible schools that have elected the Community Eligibility Provision (CEP) apply an alternative reimbursement option. As required by 7 CFR 245.9, reimbursement through the CEP is based on free and paid claiming percentages applied to the total number of reimbursable lunches and breakfasts served each month, respectively. Condition: During our review of child nutrition claim for reimbursement forms, we noted the District did not utilize the Community Eligibility Provision (CEP) calculation to determine the maximum number of eligible meals. As a result, the October 2023 claim for reimbursement exceeded the maximum allowed resulting in an overclaim of $552. Cause: Lack of management oversight, training, and not utilizing the CEP calculation method to determine the maximum number of meals allowed resulted in an overclaim. Effect: The District was not properly reimbursed for meals served during the year. Questioned costs: The amount of question costs was $552. Context: The two monthly claim for reimbursement forms tested did not calculate the maximum number of eligible meals utilizing the CEP method. Identification as a repeat finding: No Recommendation: The District should contact the Arkansas Division of Elementary and Secondary Education, Child Nutrition Unit for guidance regarding this matter. Views of responsible officials: The District has consulted with the Arkansas Division of Elementary and Secondary Education, Child Nutrition Unit (DESE, CNU) for guidance and technical assistance. Per CNU guidance, the District is in the process of submitting an amended claim for October 2023 to correct the $552 discrepancy. We anticipate acceptance of this claim, resolving the issue. The District has fully implemented the required CEP compliance procedures and has trained personnel to ensure future claims adhere to federal and state regulations. Standard Operating Procedures (SOP) for the Child Nutrition Program have also been updated to prevent recurrence of this issue.
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 1802 AUDIT PERIOD - YEAR ENDED JUNE 30, 2024 2024-001. Reporting Criteria or specific requirement: Monthly claims for reimbursement are required to be submitted to the Arkansas Division of Elementary and Secondary Education, Child Nutrition Unit (DESE, CNU), as required by 7 CFR 210.8 and 7 CFR 220.11. Eligible schools that have elected the Community Eligibility Provision (CEP) apply an alternative reimbursement option. As required by 7 CFR 245.9, reimbursement through the CEP is based on free and paid claiming percentages applied to the total number of reimbursable lunches and breakfasts served each month, respectively. Condition: During our review of child nutrition claim for reimbursement forms, we noted the District did not utilize the Community Eligibility Provision (CEP) calculation to determine the maximum number of eligible meals. As a result, the October 2023 claim for reimbursement exceeded the maximum allowed resulting in an overclaim of $552. Cause: Lack of management oversight, training, and not utilizing the CEP calculation method to determine the maximum number of meals allowed resulted in an overclaim. Effect: The District was not properly reimbursed for meals served during the year. Questioned costs: The amount of question costs was $552. Context: The two monthly claim for reimbursement forms tested did not calculate the maximum number of eligible meals utilizing the CEP method. Identification as a repeat finding: No Recommendation: The District should contact the Arkansas Division of Elementary and Secondary Education, Child Nutrition Unit for guidance regarding this matter. Views of responsible officials: The District has consulted with the Arkansas Division of Elementary and Secondary Education, Child Nutrition Unit (DESE, CNU) for guidance and technical assistance. Per CNU guidance, the District is in the process of submitting an amended claim for October 2023 to correct the $552 discrepancy. We anticipate acceptance of this claim, resolving the issue. The District has fully implemented the required CEP compliance procedures and has trained personnel to ensure future claims adhere to federal and state regulations. Standard Operating Procedures (SOP) for the Child Nutrition Program have also been updated to prevent recurrence of this issue.
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 1802 AUDIT PERIOD - YEAR ENDED JUNE 30, 2024 2024-001. Reporting Criteria or specific requirement: Monthly claims for reimbursement are required to be submitted to the Arkansas Division of Elementary and Secondary Education, Child Nutrition Unit (DESE, CNU), as required by 7 CFR 210.8 and 7 CFR 220.11. Eligible schools that have elected the Community Eligibility Provision (CEP) apply an alternative reimbursement option. As required by 7 CFR 245.9, reimbursement through the CEP is based on free and paid claiming percentages applied to the total number of reimbursable lunches and breakfasts served each month, respectively. Condition: During our review of child nutrition claim for reimbursement forms, we noted the District did not utilize the Community Eligibility Provision (CEP) calculation to determine the maximum number of eligible meals. As a result, the October 2023 claim for reimbursement exceeded the maximum allowed resulting in an overclaim of $552. Cause: Lack of management oversight, training, and not utilizing the CEP calculation method to determine the maximum number of meals allowed resulted in an overclaim. Effect: The District was not properly reimbursed for meals served during the year. Questioned costs: The amount of question costs was $552. Context: The two monthly claim for reimbursement forms tested did not calculate the maximum number of eligible meals utilizing the CEP method. Identification as a repeat finding: No Recommendation: The District should contact the Arkansas Division of Elementary and Secondary Education, Child Nutrition Unit for guidance regarding this matter. Views of responsible officials: The District has consulted with the Arkansas Division of Elementary and Secondary Education, Child Nutrition Unit (DESE, CNU) for guidance and technical assistance. Per CNU guidance, the District is in the process of submitting an amended claim for October 2023 to correct the $552 discrepancy. We anticipate acceptance of this claim, resolving the issue. The District has fully implemented the required CEP compliance procedures and has trained personnel to ensure future claims adhere to federal and state regulations. Standard Operating Procedures (SOP) for the Child Nutrition Program have also been updated to prevent recurrence of this issue.