Audit 353537

U.S. ENVIRONMENTAL PROTECTION AGENCY CLEAN SCHOOL BUS REBATE PROGRAM - AL NUMBER 66.U01 AUDIT PERIOD - YEAR ENDED JUNE 30, 2024 2024-001. Eligibility Criteria or specific requirement: The 2022 Clean School Bus Rebate Program provides the following requirements for the replacement of eligible school buses. The old school buses to be replaced must be a vehicle model year 2010 or older diesel-powered school bus that will be scrapped if selected for replacement; have a gross vehicle weight rating of 10,001 lbs or more; be operational at the time of application submission; and have provided bus service to a public school district for at least 3 days/week on average during the 2021/2022 school year. Condition: The District replaced three school buses funded by the 2022 Clean School Bus Rebate Program (Program). One of the old school buses did not appear to meet all of the eligibility requirements for replacement. Specifically, documentation could not be provided to support that the replaced school bus was operational at the time of the grant application submission or provided bus service to the school district for at least three days/week on average during the 2021/2022 school year, as required by the Program. Cause: Lack of management oversight and understanding of program requirements. Effect or potential effect: One clean school bus replaced an old bus that did not appear to meet the eligibility requirements for replacement. Questioned costs: The amount of questioned costs was $375,000. Context: Three school buses were replaced totaling $1,035,000. Identification as a repeat finding: No Recommendation: The District should contact the U.S. Environmental Protection Agency for guidance regarding this matter and implement controls related to grant requirements. Views of responsible officials: The District has contacted the EPA regarding buses replaced and the new buses purchased in the 2022 Clean School Bus Rebate. As of this date (February 25, 2025), we are still waiting on their instructions for our next actions. The District uploaded all required documentation to the EPA portal in the close out process.

U.S. ENVIRONMENTAL PROTECTION AGENCY CLEAN SCHOOL BUS REBATE PROGRAM - AL NUMBER 66.U01 AUDIT PERIOD - YEAR ENDED JUNE 30, 2024 2024-002. Equipment and Real Property Management Criteria or specific requirement: The 2022 Clean School Bus Rebate Program provides the following requirements for scrappage of old buses. The scrappage of the old school buses to be replaced must be completed by (1) crushing the engine or creating a 3" diameter or larger hole in the engine block and (2) cutting or crushing one chassis rail between the axles. Documentation of the scrappage must include photographs of the destroyed engine and chassis rail for each scrapped bus and a letter signed by the representative of the scrap yard or other entity that performed the scrappage that lists the VINs of the buses that were scrapped, affirms the date(s) that the buses were scrapped, details the method of scrappage that aligns with the requirements outlined above, and lists contact information for the entity that performed the scrappage. Condition: All required documentation of the scrappage of the three school buses from the 2022 Clean School Bus Rebate Program (Program) could not be provided. Specifically, photographs of the destroyed engine and chassis rail for each scrapped bus were not retained, as required by the Program. Cause: Lack of management oversight and understanding of program requirements. Effect or potential effect: All required documentation of the scrapped school buses was not available. Context: Three school buses were replaced totaling $1,035,000. Identification as a repeat finding: No Recommendation: The District should contact the U.S. Environmental Protection Agency for guidance regarding this matter and implement controls related to grant requirements. Views of responsible officials: The District had the three buses enrolled in the EPA Program crushed in entirety at Cunningham Metals in Russellville, AR. The motor was only to be drilled if the District was keeping the chassis on site. The receipt from the salvage was uploaded to the EPA portal in the close out process. Pictures taken at the salvage yard and a letter was provided by the salvage yard. As of this date (February 25, 2025), we are waiting on instructions from the EPA for our next actions.

U.S. ENVIRONMENTAL PROTECTION AGENCY CLEAN SCHOOL BUS REBATE PROGRAM - AL NUMBER 66.U01 AUDIT PERIOD - YEAR ENDED JUNE 30, 2024 2024-001. Eligibility Criteria or specific requirement: The 2022 Clean School Bus Rebate Program provides the following requirements for the replacement of eligible school buses. The old school buses to be replaced must be a vehicle model year 2010 or older diesel-powered school bus that will be scrapped if selected for replacement; have a gross vehicle weight rating of 10,001 lbs or more; be operational at the time of application submission; and have provided bus service to a public school district for at least 3 days/week on average during the 2021/2022 school year. Condition: The District replaced three school buses funded by the 2022 Clean School Bus Rebate Program (Program). One of the old school buses did not appear to meet all of the eligibility requirements for replacement. Specifically, documentation could not be provided to support that the replaced school bus was operational at the time of the grant application submission or provided bus service to the school district for at least three days/week on average during the 2021/2022 school year, as required by the Program. Cause: Lack of management oversight and understanding of program requirements. Effect or potential effect: One clean school bus replaced an old bus that did not appear to meet the eligibility requirements for replacement. Questioned costs: The amount of questioned costs was $375,000. Context: Three school buses were replaced totaling $1,035,000. Identification as a repeat finding: No Recommendation: The District should contact the U.S. Environmental Protection Agency for guidance regarding this matter and implement controls related to grant requirements. Views of responsible officials: The District has contacted the EPA regarding buses replaced and the new buses purchased in the 2022 Clean School Bus Rebate. As of this date (February 25, 2025), we are still waiting on their instructions for our next actions. The District uploaded all required documentation to the EPA portal in the close out process.

U.S. ENVIRONMENTAL PROTECTION AGENCY CLEAN SCHOOL BUS REBATE PROGRAM - AL NUMBER 66.U01 AUDIT PERIOD - YEAR ENDED JUNE 30, 2024 2024-002. Equipment and Real Property Management Criteria or specific requirement: The 2022 Clean School Bus Rebate Program provides the following requirements for scrappage of old buses. The scrappage of the old school buses to be replaced must be completed by (1) crushing the engine or creating a 3" diameter or larger hole in the engine block and (2) cutting or crushing one chassis rail between the axles. Documentation of the scrappage must include photographs of the destroyed engine and chassis rail for each scrapped bus and a letter signed by the representative of the scrap yard or other entity that performed the scrappage that lists the VINs of the buses that were scrapped, affirms the date(s) that the buses were scrapped, details the method of scrappage that aligns with the requirements outlined above, and lists contact information for the entity that performed the scrappage. Condition: All required documentation of the scrappage of the three school buses from the 2022 Clean School Bus Rebate Program (Program) could not be provided. Specifically, photographs of the destroyed engine and chassis rail for each scrapped bus were not retained, as required by the Program. Cause: Lack of management oversight and understanding of program requirements. Effect or potential effect: All required documentation of the scrapped school buses was not available. Context: Three school buses were replaced totaling $1,035,000. Identification as a repeat finding: No Recommendation: The District should contact the U.S. Environmental Protection Agency for guidance regarding this matter and implement controls related to grant requirements. Views of responsible officials: The District had the three buses enrolled in the EPA Program crushed in entirety at Cunningham Metals in Russellville, AR. The motor was only to be drilled if the District was keeping the chassis on site. The receipt from the salvage was uploaded to the EPA portal in the close out process. Pictures taken at the salvage yard and a letter was provided by the salvage yard. As of this date (February 25, 2025), we are waiting on instructions from the EPA for our next actions.