FAC Explorer

Audit 347548

FY End
2024-06-30
Total Expended
$19.99M
Findings
4
Programs
11
Organization: West Memphis School District #4 (AR)
Year: 2024 Accepted: 2025-03-24
Auditor: Arkansas Legislative Audit

Organization Exclusion Status:

Findings

ID Ref Severity Repeat Requirement
529654 2024-001 Material Weakness - B
529655 2024-001 Material Weakness - B
1106096 2024-001 Material Weakness - B
1106097 2024-001 Material Weakness - B

Programs

ALN Program Spent Major Findings
84.010 Title I Grants to Local Educational Agencies $4.04M Yes 0
10.553 School Breakfast Program $789,036 Yes 0
84.367 Supporting Effective Instruction State Grants (formerly Improving Teacher Quality State Grants) $344,556 Yes 0
84.424 Student Support and Academic Enrichment Program $289,551 - 0
12.U01 Rotc $132,502 - 0
10.555 National School Lunch Program $118,696 Yes 0
84.173 Special Education Preschool Grants $111,287 Yes 0
84.048 Career and Technical Education -- Basic Grants to States $109,198 - 0
84.027 Special Education Grants to States $81,500 Yes 1
84.371 Comprehensive Literacy Development $75,634 - 0
84.425 Covid-19 - Education Stabilization Fund $7,695 - 0

Contacts

Name Title Type
HSD3YB5LJ7L1 Eric Foister Auditee
8707351915 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 West Memphis School District No. 4 (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 $242,813 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 West Memphis School District No. 4 (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.
Title: Federal ALN Not Available For A Certain Program (SEFA Note 7) Accounting Policies: Basis of Presentation (SEFA Note 1) - The accompanying Schedule of Expenditures of Federal Awards (the "Schedule") includes the federal award activity of West Memphis School District No. 4 (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) The Federal ALN was not available. An alternative identifying number was utilized.

Finding Details

Finding 2024-001
U.S. DEPARTMENT OF EDUCATION PASSED THROUGH ARKANSAS DEPARTMENT OF EDUCATION SPECIAL EDUCATION - GRANTS TO STATES AL NUMBER 84.027A AND COVID-19 AMERICAN RESCUE PLAN - SPECIAL EDUCATION - GRANTS TO STATES AL NUMBER 84.027X PASS-THROUGH NUMBER 1803 AUDIT PERIOD - YEAR ENDED JUNE 30, 2024 2024-01. Allowable Costs/Cost Principles Criteria or specific requirement: Office of Management and Budget (OMB) 2 CFR part 200, subpart D - Establish, document, and maintain effective internal controls over the Federal award in compliance with Federal statutes, regulations, and the terms and conditions of the Federal Award. Such controls are necessary and reasonable for the performance of the Federal Award. Condition: During our test of 23 Special Education program expenditures, we identified 21 expenditures totaling $199,062 that lacked documented approval prior to payment. Cause: Lack of internal controls and failure to properly document approval of invoices prior to payment. Effect: The District was unable to provide evidence of documented approval of invoices prior to payment. Context: Of the 23 expenditures tested, totaling $199,361, 21 expenditures totaling $199,062, did not indicate any form of approval. Identification as a repeat finding: No Recommendation: The District should implement procedures to ensure all expenditures indicate they've been properly reviewed and approved prior to payment. Views of responsible officials: Joyce Lowery, Special Education Bookkeeper, will receive all signed approval for expenditures from Lynell McGruder, Director of Special Education before the expenditure is ordered. Once all items have been verified and received, Ms. McGruder will review and sign invoice giving approval to pay. The District will establish purchase order and payment policy and procedures.
Finding 2024-001
U.S. DEPARTMENT OF EDUCATION PASSED THROUGH ARKANSAS DEPARTMENT OF EDUCATION SPECIAL EDUCATION - GRANTS TO STATES AL NUMBER 84.027A AND COVID-19 AMERICAN RESCUE PLAN - SPECIAL EDUCATION - GRANTS TO STATES AL NUMBER 84.027X PASS-THROUGH NUMBER 1803 AUDIT PERIOD - YEAR ENDED JUNE 30, 2024 2024-01. Allowable Costs/Cost Principles Criteria or specific requirement: Office of Management and Budget (OMB) 2 CFR part 200, subpart D - Establish, document, and maintain effective internal controls over the Federal award in compliance with Federal statutes, regulations, and the terms and conditions of the Federal Award. Such controls are necessary and reasonable for the performance of the Federal Award. Condition: During our test of 23 Special Education program expenditures, we identified 21 expenditures totaling $199,062 that lacked documented approval prior to payment. Cause: Lack of internal controls and failure to properly document approval of invoices prior to payment. Effect: The District was unable to provide evidence of documented approval of invoices prior to payment. Context: Of the 23 expenditures tested, totaling $199,361, 21 expenditures totaling $199,062, did not indicate any form of approval. Identification as a repeat finding: No Recommendation: The District should implement procedures to ensure all expenditures indicate they've been properly reviewed and approved prior to payment. Views of responsible officials: Joyce Lowery, Special Education Bookkeeper, will receive all signed approval for expenditures from Lynell McGruder, Director of Special Education before the expenditure is ordered. Once all items have been verified and received, Ms. McGruder will review and sign invoice giving approval to pay. The District will establish purchase order and payment policy and procedures.
Finding 2024-001
U.S. DEPARTMENT OF EDUCATION PASSED THROUGH ARKANSAS DEPARTMENT OF EDUCATION SPECIAL EDUCATION - GRANTS TO STATES AL NUMBER 84.027A AND COVID-19 AMERICAN RESCUE PLAN - SPECIAL EDUCATION - GRANTS TO STATES AL NUMBER 84.027X PASS-THROUGH NUMBER 1803 AUDIT PERIOD - YEAR ENDED JUNE 30, 2024 2024-01. Allowable Costs/Cost Principles Criteria or specific requirement: Office of Management and Budget (OMB) 2 CFR part 200, subpart D - Establish, document, and maintain effective internal controls over the Federal award in compliance with Federal statutes, regulations, and the terms and conditions of the Federal Award. Such controls are necessary and reasonable for the performance of the Federal Award. Condition: During our test of 23 Special Education program expenditures, we identified 21 expenditures totaling $199,062 that lacked documented approval prior to payment. Cause: Lack of internal controls and failure to properly document approval of invoices prior to payment. Effect: The District was unable to provide evidence of documented approval of invoices prior to payment. Context: Of the 23 expenditures tested, totaling $199,361, 21 expenditures totaling $199,062, did not indicate any form of approval. Identification as a repeat finding: No Recommendation: The District should implement procedures to ensure all expenditures indicate they've been properly reviewed and approved prior to payment. Views of responsible officials: Joyce Lowery, Special Education Bookkeeper, will receive all signed approval for expenditures from Lynell McGruder, Director of Special Education before the expenditure is ordered. Once all items have been verified and received, Ms. McGruder will review and sign invoice giving approval to pay. The District will establish purchase order and payment policy and procedures.
Finding 2024-001
U.S. DEPARTMENT OF EDUCATION PASSED THROUGH ARKANSAS DEPARTMENT OF EDUCATION SPECIAL EDUCATION - GRANTS TO STATES AL NUMBER 84.027A AND COVID-19 AMERICAN RESCUE PLAN - SPECIAL EDUCATION - GRANTS TO STATES AL NUMBER 84.027X PASS-THROUGH NUMBER 1803 AUDIT PERIOD - YEAR ENDED JUNE 30, 2024 2024-01. Allowable Costs/Cost Principles Criteria or specific requirement: Office of Management and Budget (OMB) 2 CFR part 200, subpart D - Establish, document, and maintain effective internal controls over the Federal award in compliance with Federal statutes, regulations, and the terms and conditions of the Federal Award. Such controls are necessary and reasonable for the performance of the Federal Award. Condition: During our test of 23 Special Education program expenditures, we identified 21 expenditures totaling $199,062 that lacked documented approval prior to payment. Cause: Lack of internal controls and failure to properly document approval of invoices prior to payment. Effect: The District was unable to provide evidence of documented approval of invoices prior to payment. Context: Of the 23 expenditures tested, totaling $199,361, 21 expenditures totaling $199,062, did not indicate any form of approval. Identification as a repeat finding: No Recommendation: The District should implement procedures to ensure all expenditures indicate they've been properly reviewed and approved prior to payment. Views of responsible officials: Joyce Lowery, Special Education Bookkeeper, will receive all signed approval for expenditures from Lynell McGruder, Director of Special Education before the expenditure is ordered. Once all items have been verified and received, Ms. McGruder will review and sign invoice giving approval to pay. The District will establish purchase order and payment policy and procedures.