FAC Explorer

Audit 350512

FY End
2024-06-30
Total Expended
$7.76M
Findings
2
Programs
13
Organization: Magnolia School District (AR)
Year: 2024 Accepted: 2025-03-31
Auditor: Arkansas Legislative Audit

Organization Exclusion Status:

Findings

ID Ref Severity Repeat Requirement
540859 2024-001 Significant Deficiency - B
1117301 2024-001 Significant Deficiency - B

Programs

ALN Program Spent Major Findings
84.010 Title I Grants to Local Educational Agencies $1.31M Yes 0
84.027 Special Education_grants to States $771,049 - 0
10.553 School Breakfast Program $535,345 - 0
84.371 Comprehensive Literacy Development $180,584 - 0
84.367 Supporting Effective Instruction State Grants (formerly Improving Teacher Quality State Grants) $165,525 - 0
84.424 Student Support and Academic Enrichment Program $109,010 - 0
10.555 National School Lunch Program $90,676 - 0
84.048 Career and Technical Education -- Basic Grants to States $77,837 - 0
84.358 Rural Education $75,140 - 0
84.173 Special Education_preschool Grants $62,483 - 0
10.582 Fresh Fruit and Vegetable Program $37,154 - 0
84.425 Covid-19 - Education Stabilization Fund $12,736 Yes 0
84.027 Covid-19 - Special Education_grants to States $4,537 - 0

Contacts

Name Title Type
VN1UPY1RUN39 Carol Longino Auditee
8702344933 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 Magnolia School District No. 14 (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 $213,749 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 Magnolia School District No. 14 (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 ARKANSAS DEPARTMENT OF EDUCATION COVID-19 AMERICAN RESCUE PLAN - ELEMENTARY AND SECONDARY SCHOOL EMERGENCY RELIEF FUND - AL NUMBER 84.425U PASS-THROUGH NUMBER 1402 AUDIT PERIOD - YEAR ENDED JUNE 30, 2024 Allowable Costs/Costs 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: The District did not obtain prior approval from the Arkansas Division of Elementary and Secondary Education (DESE) for the purchase/installation of HVAC units for the central cafeteria project totaling $24,018 paid from the COVID-19 Education Stabilization Fund. Cause: Lack of internal controls and management oversight over program expenditures. Effect or potential effect: Unallowable costs of $24,018 were paid from COVID-19-Education Stabilization Fund. Questioned costs: The amount of questioned costs was $24,018. Context: An examination of 11 checks (totaling $734,487) from a population of 15 checks (totaling $1,190,357). 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: At the time of the purchase for this particular building, the district had several prior approval applications for HVAC replacement submitted to DESE for approval. We believe this one had been submitted as well but was unable to confirm that with DESE. In the future, we will develop a better checklist for items submitted to DESE for prior approvals so nothing is overlooked.
Finding 2024-001
U.S. DEPARTMENT OF EDUCATION PASSED THROUGH ARKANSAS DEPARTMENT OF EDUCATION COVID-19 AMERICAN RESCUE PLAN - ELEMENTARY AND SECONDARY SCHOOL EMERGENCY RELIEF FUND - AL NUMBER 84.425U PASS-THROUGH NUMBER 1402 AUDIT PERIOD - YEAR ENDED JUNE 30, 2024 Allowable Costs/Costs 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: The District did not obtain prior approval from the Arkansas Division of Elementary and Secondary Education (DESE) for the purchase/installation of HVAC units for the central cafeteria project totaling $24,018 paid from the COVID-19 Education Stabilization Fund. Cause: Lack of internal controls and management oversight over program expenditures. Effect or potential effect: Unallowable costs of $24,018 were paid from COVID-19-Education Stabilization Fund. Questioned costs: The amount of questioned costs was $24,018. Context: An examination of 11 checks (totaling $734,487) from a population of 15 checks (totaling $1,190,357). 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: At the time of the purchase for this particular building, the district had several prior approval applications for HVAC replacement submitted to DESE for approval. We believe this one had been submitted as well but was unable to confirm that with DESE. In the future, we will develop a better checklist for items submitted to DESE for prior approvals so nothing is overlooked.