FAC Explorer

Audit 364130

FY End
2024-06-30
Total Expended
$1.04M
Findings
12
Programs
10
Organization: Nevada School District (AR)
Year: 2024 Accepted: 2025-08-12
Auditor: Arkansas Legislative Audit

Organization Exclusion Status:

Findings

ID Ref Severity Repeat Requirement
573322 2024-001 Material Weakness - P
573323 2024-001 Material Weakness - P
573324 2024-001 Material Weakness - P
573325 2024-001 Material Weakness - P
573326 2024-001 Material Weakness - P
573327 2024-001 Material Weakness - P
1149764 2024-001 Material Weakness - P
1149765 2024-001 Material Weakness - P
1149766 2024-001 Material Weakness - P
1149767 2024-001 Material Weakness - P
1149768 2024-001 Material Weakness - P
1149769 2024-001 Material Weakness - P

Programs

ALN Program Spent Major Findings
84.010 Title I Grants to Local Educational Agencies $321,396 - 0
84.027 Special Education_grants to States $203,879 - 0
84.425 Covid-19 - Education Stabilization Fund $131,439 Yes 1
10.553 School Breakfast Program $68,315 Yes 1
84.367 Supporting Effective Instruction State Grants (formerly Improving Teacher Quality State Grants) $21,645 - 0
84.424 Student Support and Academic Enrichment Program $18,971 - 0
84.173 Special Education Preschool Grants $9,017 - 0
10.555 National School Lunch Program $8,090 Yes 1
84.358 Rural Education $7,563 - 0
93.323 Epidemiology and Laboratory Capacity for Infectious Diseases (elc) $97 - 0

Contacts

Name Title Type
EBWMMLQ4DUS5 Roy McCoy Auditee
8708712418 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 Nevada 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 $10,845 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 Nevada 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
2024-001. Internal Control APPLICABLE MAJOR FEDERAL PROGRAMS: U.S. DEPARTMENT OF AGRICULTURE PASSED THROUGH ARKANSAS DEPARTMENT OF EDUCATION CHILD NUTRITION CLUSTER - AL NUMBERS 10.553 and 10.555 PASS-THROUGH NUMBER 5008 AUDIT PERIOD - YEAR ENDED JUNE 30, 2024 U.S. DEPARTMENT OF EDUCATION PASSED THROUGH ARKANSAS DEPARTMENT OF EDUCATION COVID-19 - EDUCATION STABILIZATION FUND - AL NUMBERS 84.425D and 84.425U PASS-THROUGH NUMBER 5008 AUDIT PERIOD - YEAR ENDED JUNE 30, 2024 The internal control deficiencies identified in Finding 2024-001 noted in Section II Financial Statement Findings also apply to these major federal programs. Financial statement finding 2024-001 detail below: Criteria: Internal control is a process consisting of five interrelated components - control environment, risk assessment, information and communication, control activities, and monitoring. Management is responsible for adopting sound accounting policies and for establishing and maintaining internal control that will, among other things, initiate, authorize, record, process, and report transactions (as well as events and conditions) consistent with management's assertions embodied in the financial statements. Condition: Deficiencies in the internal control component of control activities adversely affected the District’s ability to initiate, authorize, record, process, and report financial data in accordance with the regulatory basis of accounting such that there was a reasonable possibility that a material misstatement of the District’s financial statements would not be prevented, or detected and corrected on a timely basis. Financial accounting duties were not adequately segregated among employees. Specifically, non-payroll checks were prepared by the same employee responsible for the maintenance of the accounting records and such employee had unrestricted access to the District’s signature stamp pertaining to the District’s primary operating, activity, and food service accounts. The same employee who receipted monies collected, also deposited, posted, and reconciled the District’s primary operating and activity accounts, without compensating controls. The same employee who receipted and obtained monies collected in the food service area, prepared daily count records and deposited monies collected in the District’s food service account, without compensating controls. The same employee, who prepared payroll checks and maintained and reconciled payroll records, was responsible for changes to payroll amounts, without compensating controls. Cause: District management, due to cost/benefit implications, which hindered the District's ability to adequately segregate financial accounting duties among employees, did not effectively address the deficiencies in internal control. Effect or potential effect: The District's ability to initiate, authorize, record, process, and report transactions consistent with management's assertions embodied in the financial statements, as well as the ability to safeguard District assets, was adversely affected by the identified weaknesses in the above internal control component. Recommendation: District management should adopt sound accounting policies and establish and maintain internal controls that will initiate, authorize, record, process, and report transactions consistent with management's assertions embodied in the financial statements and that will safeguard District assets. Views of responsible officials: District management will adopt sound accounting policies and establish and maintain internal control that will initiate, authorize, record, process, and report transactions consistent with management's assertions embodied in the financial statements and that will safeguard District assets.
Finding 2024-001
2024-001. Internal Control APPLICABLE MAJOR FEDERAL PROGRAMS: U.S. DEPARTMENT OF AGRICULTURE PASSED THROUGH ARKANSAS DEPARTMENT OF EDUCATION CHILD NUTRITION CLUSTER - AL NUMBERS 10.553 and 10.555 PASS-THROUGH NUMBER 5008 AUDIT PERIOD - YEAR ENDED JUNE 30, 2024 U.S. DEPARTMENT OF EDUCATION PASSED THROUGH ARKANSAS DEPARTMENT OF EDUCATION COVID-19 - EDUCATION STABILIZATION FUND - AL NUMBERS 84.425D and 84.425U PASS-THROUGH NUMBER 5008 AUDIT PERIOD - YEAR ENDED JUNE 30, 2024 The internal control deficiencies identified in Finding 2024-001 noted in Section II Financial Statement Findings also apply to these major federal programs. Financial statement finding 2024-001 detail below: Criteria: Internal control is a process consisting of five interrelated components - control environment, risk assessment, information and communication, control activities, and monitoring. Management is responsible for adopting sound accounting policies and for establishing and maintaining internal control that will, among other things, initiate, authorize, record, process, and report transactions (as well as events and conditions) consistent with management's assertions embodied in the financial statements. Condition: Deficiencies in the internal control component of control activities adversely affected the District’s ability to initiate, authorize, record, process, and report financial data in accordance with the regulatory basis of accounting such that there was a reasonable possibility that a material misstatement of the District’s financial statements would not be prevented, or detected and corrected on a timely basis. Financial accounting duties were not adequately segregated among employees. Specifically, non-payroll checks were prepared by the same employee responsible for the maintenance of the accounting records and such employee had unrestricted access to the District’s signature stamp pertaining to the District’s primary operating, activity, and food service accounts. The same employee who receipted monies collected, also deposited, posted, and reconciled the District’s primary operating and activity accounts, without compensating controls. The same employee who receipted and obtained monies collected in the food service area, prepared daily count records and deposited monies collected in the District’s food service account, without compensating controls. The same employee, who prepared payroll checks and maintained and reconciled payroll records, was responsible for changes to payroll amounts, without compensating controls. Cause: District management, due to cost/benefit implications, which hindered the District's ability to adequately segregate financial accounting duties among employees, did not effectively address the deficiencies in internal control. Effect or potential effect: The District's ability to initiate, authorize, record, process, and report transactions consistent with management's assertions embodied in the financial statements, as well as the ability to safeguard District assets, was adversely affected by the identified weaknesses in the above internal control component. Recommendation: District management should adopt sound accounting policies and establish and maintain internal controls that will initiate, authorize, record, process, and report transactions consistent with management's assertions embodied in the financial statements and that will safeguard District assets. Views of responsible officials: District management will adopt sound accounting policies and establish and maintain internal control that will initiate, authorize, record, process, and report transactions consistent with management's assertions embodied in the financial statements and that will safeguard District assets.
Finding 2024-001
2024-001. Internal Control APPLICABLE MAJOR FEDERAL PROGRAMS: U.S. DEPARTMENT OF AGRICULTURE PASSED THROUGH ARKANSAS DEPARTMENT OF EDUCATION CHILD NUTRITION CLUSTER - AL NUMBERS 10.553 and 10.555 PASS-THROUGH NUMBER 5008 AUDIT PERIOD - YEAR ENDED JUNE 30, 2024 U.S. DEPARTMENT OF EDUCATION PASSED THROUGH ARKANSAS DEPARTMENT OF EDUCATION COVID-19 - EDUCATION STABILIZATION FUND - AL NUMBERS 84.425D and 84.425U PASS-THROUGH NUMBER 5008 AUDIT PERIOD - YEAR ENDED JUNE 30, 2024 The internal control deficiencies identified in Finding 2024-001 noted in Section II Financial Statement Findings also apply to these major federal programs. Financial statement finding 2024-001 detail below: Criteria: Internal control is a process consisting of five interrelated components - control environment, risk assessment, information and communication, control activities, and monitoring. Management is responsible for adopting sound accounting policies and for establishing and maintaining internal control that will, among other things, initiate, authorize, record, process, and report transactions (as well as events and conditions) consistent with management's assertions embodied in the financial statements. Condition: Deficiencies in the internal control component of control activities adversely affected the District’s ability to initiate, authorize, record, process, and report financial data in accordance with the regulatory basis of accounting such that there was a reasonable possibility that a material misstatement of the District’s financial statements would not be prevented, or detected and corrected on a timely basis. Financial accounting duties were not adequately segregated among employees. Specifically, non-payroll checks were prepared by the same employee responsible for the maintenance of the accounting records and such employee had unrestricted access to the District’s signature stamp pertaining to the District’s primary operating, activity, and food service accounts. The same employee who receipted monies collected, also deposited, posted, and reconciled the District’s primary operating and activity accounts, without compensating controls. The same employee who receipted and obtained monies collected in the food service area, prepared daily count records and deposited monies collected in the District’s food service account, without compensating controls. The same employee, who prepared payroll checks and maintained and reconciled payroll records, was responsible for changes to payroll amounts, without compensating controls. Cause: District management, due to cost/benefit implications, which hindered the District's ability to adequately segregate financial accounting duties among employees, did not effectively address the deficiencies in internal control. Effect or potential effect: The District's ability to initiate, authorize, record, process, and report transactions consistent with management's assertions embodied in the financial statements, as well as the ability to safeguard District assets, was adversely affected by the identified weaknesses in the above internal control component. Recommendation: District management should adopt sound accounting policies and establish and maintain internal controls that will initiate, authorize, record, process, and report transactions consistent with management's assertions embodied in the financial statements and that will safeguard District assets. Views of responsible officials: District management will adopt sound accounting policies and establish and maintain internal control that will initiate, authorize, record, process, and report transactions consistent with management's assertions embodied in the financial statements and that will safeguard District assets.
Finding 2024-001
2024-001. Internal Control APPLICABLE MAJOR FEDERAL PROGRAMS: U.S. DEPARTMENT OF AGRICULTURE PASSED THROUGH ARKANSAS DEPARTMENT OF EDUCATION CHILD NUTRITION CLUSTER - AL NUMBERS 10.553 and 10.555 PASS-THROUGH NUMBER 5008 AUDIT PERIOD - YEAR ENDED JUNE 30, 2024 U.S. DEPARTMENT OF EDUCATION PASSED THROUGH ARKANSAS DEPARTMENT OF EDUCATION COVID-19 - EDUCATION STABILIZATION FUND - AL NUMBERS 84.425D and 84.425U PASS-THROUGH NUMBER 5008 AUDIT PERIOD - YEAR ENDED JUNE 30, 2024 The internal control deficiencies identified in Finding 2024-001 noted in Section II Financial Statement Findings also apply to these major federal programs. Financial statement finding 2024-001 detail below: Criteria: Internal control is a process consisting of five interrelated components - control environment, risk assessment, information and communication, control activities, and monitoring. Management is responsible for adopting sound accounting policies and for establishing and maintaining internal control that will, among other things, initiate, authorize, record, process, and report transactions (as well as events and conditions) consistent with management's assertions embodied in the financial statements. Condition: Deficiencies in the internal control component of control activities adversely affected the District’s ability to initiate, authorize, record, process, and report financial data in accordance with the regulatory basis of accounting such that there was a reasonable possibility that a material misstatement of the District’s financial statements would not be prevented, or detected and corrected on a timely basis. Financial accounting duties were not adequately segregated among employees. Specifically, non-payroll checks were prepared by the same employee responsible for the maintenance of the accounting records and such employee had unrestricted access to the District’s signature stamp pertaining to the District’s primary operating, activity, and food service accounts. The same employee who receipted monies collected, also deposited, posted, and reconciled the District’s primary operating and activity accounts, without compensating controls. The same employee who receipted and obtained monies collected in the food service area, prepared daily count records and deposited monies collected in the District’s food service account, without compensating controls. The same employee, who prepared payroll checks and maintained and reconciled payroll records, was responsible for changes to payroll amounts, without compensating controls. Cause: District management, due to cost/benefit implications, which hindered the District's ability to adequately segregate financial accounting duties among employees, did not effectively address the deficiencies in internal control. Effect or potential effect: The District's ability to initiate, authorize, record, process, and report transactions consistent with management's assertions embodied in the financial statements, as well as the ability to safeguard District assets, was adversely affected by the identified weaknesses in the above internal control component. Recommendation: District management should adopt sound accounting policies and establish and maintain internal controls that will initiate, authorize, record, process, and report transactions consistent with management's assertions embodied in the financial statements and that will safeguard District assets. Views of responsible officials: District management will adopt sound accounting policies and establish and maintain internal control that will initiate, authorize, record, process, and report transactions consistent with management's assertions embodied in the financial statements and that will safeguard District assets.
Finding 2024-001
2024-001. Internal Control APPLICABLE MAJOR FEDERAL PROGRAMS: U.S. DEPARTMENT OF AGRICULTURE PASSED THROUGH ARKANSAS DEPARTMENT OF EDUCATION CHILD NUTRITION CLUSTER - AL NUMBERS 10.553 and 10.555 PASS-THROUGH NUMBER 5008 AUDIT PERIOD - YEAR ENDED JUNE 30, 2024 U.S. DEPARTMENT OF EDUCATION PASSED THROUGH ARKANSAS DEPARTMENT OF EDUCATION COVID-19 - EDUCATION STABILIZATION FUND - AL NUMBERS 84.425D and 84.425U PASS-THROUGH NUMBER 5008 AUDIT PERIOD - YEAR ENDED JUNE 30, 2024 The internal control deficiencies identified in Finding 2024-001 noted in Section II Financial Statement Findings also apply to these major federal programs. Financial statement finding 2024-001 detail below: Criteria: Internal control is a process consisting of five interrelated components - control environment, risk assessment, information and communication, control activities, and monitoring. Management is responsible for adopting sound accounting policies and for establishing and maintaining internal control that will, among other things, initiate, authorize, record, process, and report transactions (as well as events and conditions) consistent with management's assertions embodied in the financial statements. Condition: Deficiencies in the internal control component of control activities adversely affected the District’s ability to initiate, authorize, record, process, and report financial data in accordance with the regulatory basis of accounting such that there was a reasonable possibility that a material misstatement of the District’s financial statements would not be prevented, or detected and corrected on a timely basis. Financial accounting duties were not adequately segregated among employees. Specifically, non-payroll checks were prepared by the same employee responsible for the maintenance of the accounting records and such employee had unrestricted access to the District’s signature stamp pertaining to the District’s primary operating, activity, and food service accounts. The same employee who receipted monies collected, also deposited, posted, and reconciled the District’s primary operating and activity accounts, without compensating controls. The same employee who receipted and obtained monies collected in the food service area, prepared daily count records and deposited monies collected in the District’s food service account, without compensating controls. The same employee, who prepared payroll checks and maintained and reconciled payroll records, was responsible for changes to payroll amounts, without compensating controls. Cause: District management, due to cost/benefit implications, which hindered the District's ability to adequately segregate financial accounting duties among employees, did not effectively address the deficiencies in internal control. Effect or potential effect: The District's ability to initiate, authorize, record, process, and report transactions consistent with management's assertions embodied in the financial statements, as well as the ability to safeguard District assets, was adversely affected by the identified weaknesses in the above internal control component. Recommendation: District management should adopt sound accounting policies and establish and maintain internal controls that will initiate, authorize, record, process, and report transactions consistent with management's assertions embodied in the financial statements and that will safeguard District assets. Views of responsible officials: District management will adopt sound accounting policies and establish and maintain internal control that will initiate, authorize, record, process, and report transactions consistent with management's assertions embodied in the financial statements and that will safeguard District assets.
Finding 2024-001
2024-001. Internal Control APPLICABLE MAJOR FEDERAL PROGRAMS: U.S. DEPARTMENT OF AGRICULTURE PASSED THROUGH ARKANSAS DEPARTMENT OF EDUCATION CHILD NUTRITION CLUSTER - AL NUMBERS 10.553 and 10.555 PASS-THROUGH NUMBER 5008 AUDIT PERIOD - YEAR ENDED JUNE 30, 2024 U.S. DEPARTMENT OF EDUCATION PASSED THROUGH ARKANSAS DEPARTMENT OF EDUCATION COVID-19 - EDUCATION STABILIZATION FUND - AL NUMBERS 84.425D and 84.425U PASS-THROUGH NUMBER 5008 AUDIT PERIOD - YEAR ENDED JUNE 30, 2024 The internal control deficiencies identified in Finding 2024-001 noted in Section II Financial Statement Findings also apply to these major federal programs. Financial statement finding 2024-001 detail below: Criteria: Internal control is a process consisting of five interrelated components - control environment, risk assessment, information and communication, control activities, and monitoring. Management is responsible for adopting sound accounting policies and for establishing and maintaining internal control that will, among other things, initiate, authorize, record, process, and report transactions (as well as events and conditions) consistent with management's assertions embodied in the financial statements. Condition: Deficiencies in the internal control component of control activities adversely affected the District’s ability to initiate, authorize, record, process, and report financial data in accordance with the regulatory basis of accounting such that there was a reasonable possibility that a material misstatement of the District’s financial statements would not be prevented, or detected and corrected on a timely basis. Financial accounting duties were not adequately segregated among employees. Specifically, non-payroll checks were prepared by the same employee responsible for the maintenance of the accounting records and such employee had unrestricted access to the District’s signature stamp pertaining to the District’s primary operating, activity, and food service accounts. The same employee who receipted monies collected, also deposited, posted, and reconciled the District’s primary operating and activity accounts, without compensating controls. The same employee who receipted and obtained monies collected in the food service area, prepared daily count records and deposited monies collected in the District’s food service account, without compensating controls. The same employee, who prepared payroll checks and maintained and reconciled payroll records, was responsible for changes to payroll amounts, without compensating controls. Cause: District management, due to cost/benefit implications, which hindered the District's ability to adequately segregate financial accounting duties among employees, did not effectively address the deficiencies in internal control. Effect or potential effect: The District's ability to initiate, authorize, record, process, and report transactions consistent with management's assertions embodied in the financial statements, as well as the ability to safeguard District assets, was adversely affected by the identified weaknesses in the above internal control component. Recommendation: District management should adopt sound accounting policies and establish and maintain internal controls that will initiate, authorize, record, process, and report transactions consistent with management's assertions embodied in the financial statements and that will safeguard District assets. Views of responsible officials: District management will adopt sound accounting policies and establish and maintain internal control that will initiate, authorize, record, process, and report transactions consistent with management's assertions embodied in the financial statements and that will safeguard District assets.
Finding 2024-001
2024-001. Internal Control APPLICABLE MAJOR FEDERAL PROGRAMS: U.S. DEPARTMENT OF AGRICULTURE PASSED THROUGH ARKANSAS DEPARTMENT OF EDUCATION CHILD NUTRITION CLUSTER - AL NUMBERS 10.553 and 10.555 PASS-THROUGH NUMBER 5008 AUDIT PERIOD - YEAR ENDED JUNE 30, 2024 U.S. DEPARTMENT OF EDUCATION PASSED THROUGH ARKANSAS DEPARTMENT OF EDUCATION COVID-19 - EDUCATION STABILIZATION FUND - AL NUMBERS 84.425D and 84.425U PASS-THROUGH NUMBER 5008 AUDIT PERIOD - YEAR ENDED JUNE 30, 2024 The internal control deficiencies identified in Finding 2024-001 noted in Section II Financial Statement Findings also apply to these major federal programs. Financial statement finding 2024-001 detail below: Criteria: Internal control is a process consisting of five interrelated components - control environment, risk assessment, information and communication, control activities, and monitoring. Management is responsible for adopting sound accounting policies and for establishing and maintaining internal control that will, among other things, initiate, authorize, record, process, and report transactions (as well as events and conditions) consistent with management's assertions embodied in the financial statements. Condition: Deficiencies in the internal control component of control activities adversely affected the District’s ability to initiate, authorize, record, process, and report financial data in accordance with the regulatory basis of accounting such that there was a reasonable possibility that a material misstatement of the District’s financial statements would not be prevented, or detected and corrected on a timely basis. Financial accounting duties were not adequately segregated among employees. Specifically, non-payroll checks were prepared by the same employee responsible for the maintenance of the accounting records and such employee had unrestricted access to the District’s signature stamp pertaining to the District’s primary operating, activity, and food service accounts. The same employee who receipted monies collected, also deposited, posted, and reconciled the District’s primary operating and activity accounts, without compensating controls. The same employee who receipted and obtained monies collected in the food service area, prepared daily count records and deposited monies collected in the District’s food service account, without compensating controls. The same employee, who prepared payroll checks and maintained and reconciled payroll records, was responsible for changes to payroll amounts, without compensating controls. Cause: District management, due to cost/benefit implications, which hindered the District's ability to adequately segregate financial accounting duties among employees, did not effectively address the deficiencies in internal control. Effect or potential effect: The District's ability to initiate, authorize, record, process, and report transactions consistent with management's assertions embodied in the financial statements, as well as the ability to safeguard District assets, was adversely affected by the identified weaknesses in the above internal control component. Recommendation: District management should adopt sound accounting policies and establish and maintain internal controls that will initiate, authorize, record, process, and report transactions consistent with management's assertions embodied in the financial statements and that will safeguard District assets. Views of responsible officials: District management will adopt sound accounting policies and establish and maintain internal control that will initiate, authorize, record, process, and report transactions consistent with management's assertions embodied in the financial statements and that will safeguard District assets.
Finding 2024-001
2024-001. Internal Control APPLICABLE MAJOR FEDERAL PROGRAMS: U.S. DEPARTMENT OF AGRICULTURE PASSED THROUGH ARKANSAS DEPARTMENT OF EDUCATION CHILD NUTRITION CLUSTER - AL NUMBERS 10.553 and 10.555 PASS-THROUGH NUMBER 5008 AUDIT PERIOD - YEAR ENDED JUNE 30, 2024 U.S. DEPARTMENT OF EDUCATION PASSED THROUGH ARKANSAS DEPARTMENT OF EDUCATION COVID-19 - EDUCATION STABILIZATION FUND - AL NUMBERS 84.425D and 84.425U PASS-THROUGH NUMBER 5008 AUDIT PERIOD - YEAR ENDED JUNE 30, 2024 The internal control deficiencies identified in Finding 2024-001 noted in Section II Financial Statement Findings also apply to these major federal programs. Financial statement finding 2024-001 detail below: Criteria: Internal control is a process consisting of five interrelated components - control environment, risk assessment, information and communication, control activities, and monitoring. Management is responsible for adopting sound accounting policies and for establishing and maintaining internal control that will, among other things, initiate, authorize, record, process, and report transactions (as well as events and conditions) consistent with management's assertions embodied in the financial statements. Condition: Deficiencies in the internal control component of control activities adversely affected the District’s ability to initiate, authorize, record, process, and report financial data in accordance with the regulatory basis of accounting such that there was a reasonable possibility that a material misstatement of the District’s financial statements would not be prevented, or detected and corrected on a timely basis. Financial accounting duties were not adequately segregated among employees. Specifically, non-payroll checks were prepared by the same employee responsible for the maintenance of the accounting records and such employee had unrestricted access to the District’s signature stamp pertaining to the District’s primary operating, activity, and food service accounts. The same employee who receipted monies collected, also deposited, posted, and reconciled the District’s primary operating and activity accounts, without compensating controls. The same employee who receipted and obtained monies collected in the food service area, prepared daily count records and deposited monies collected in the District’s food service account, without compensating controls. The same employee, who prepared payroll checks and maintained and reconciled payroll records, was responsible for changes to payroll amounts, without compensating controls. Cause: District management, due to cost/benefit implications, which hindered the District's ability to adequately segregate financial accounting duties among employees, did not effectively address the deficiencies in internal control. Effect or potential effect: The District's ability to initiate, authorize, record, process, and report transactions consistent with management's assertions embodied in the financial statements, as well as the ability to safeguard District assets, was adversely affected by the identified weaknesses in the above internal control component. Recommendation: District management should adopt sound accounting policies and establish and maintain internal controls that will initiate, authorize, record, process, and report transactions consistent with management's assertions embodied in the financial statements and that will safeguard District assets. Views of responsible officials: District management will adopt sound accounting policies and establish and maintain internal control that will initiate, authorize, record, process, and report transactions consistent with management's assertions embodied in the financial statements and that will safeguard District assets.
Finding 2024-001
2024-001. Internal Control APPLICABLE MAJOR FEDERAL PROGRAMS: U.S. DEPARTMENT OF AGRICULTURE PASSED THROUGH ARKANSAS DEPARTMENT OF EDUCATION CHILD NUTRITION CLUSTER - AL NUMBERS 10.553 and 10.555 PASS-THROUGH NUMBER 5008 AUDIT PERIOD - YEAR ENDED JUNE 30, 2024 U.S. DEPARTMENT OF EDUCATION PASSED THROUGH ARKANSAS DEPARTMENT OF EDUCATION COVID-19 - EDUCATION STABILIZATION FUND - AL NUMBERS 84.425D and 84.425U PASS-THROUGH NUMBER 5008 AUDIT PERIOD - YEAR ENDED JUNE 30, 2024 The internal control deficiencies identified in Finding 2024-001 noted in Section II Financial Statement Findings also apply to these major federal programs. Financial statement finding 2024-001 detail below: Criteria: Internal control is a process consisting of five interrelated components - control environment, risk assessment, information and communication, control activities, and monitoring. Management is responsible for adopting sound accounting policies and for establishing and maintaining internal control that will, among other things, initiate, authorize, record, process, and report transactions (as well as events and conditions) consistent with management's assertions embodied in the financial statements. Condition: Deficiencies in the internal control component of control activities adversely affected the District’s ability to initiate, authorize, record, process, and report financial data in accordance with the regulatory basis of accounting such that there was a reasonable possibility that a material misstatement of the District’s financial statements would not be prevented, or detected and corrected on a timely basis. Financial accounting duties were not adequately segregated among employees. Specifically, non-payroll checks were prepared by the same employee responsible for the maintenance of the accounting records and such employee had unrestricted access to the District’s signature stamp pertaining to the District’s primary operating, activity, and food service accounts. The same employee who receipted monies collected, also deposited, posted, and reconciled the District’s primary operating and activity accounts, without compensating controls. The same employee who receipted and obtained monies collected in the food service area, prepared daily count records and deposited monies collected in the District’s food service account, without compensating controls. The same employee, who prepared payroll checks and maintained and reconciled payroll records, was responsible for changes to payroll amounts, without compensating controls. Cause: District management, due to cost/benefit implications, which hindered the District's ability to adequately segregate financial accounting duties among employees, did not effectively address the deficiencies in internal control. Effect or potential effect: The District's ability to initiate, authorize, record, process, and report transactions consistent with management's assertions embodied in the financial statements, as well as the ability to safeguard District assets, was adversely affected by the identified weaknesses in the above internal control component. Recommendation: District management should adopt sound accounting policies and establish and maintain internal controls that will initiate, authorize, record, process, and report transactions consistent with management's assertions embodied in the financial statements and that will safeguard District assets. Views of responsible officials: District management will adopt sound accounting policies and establish and maintain internal control that will initiate, authorize, record, process, and report transactions consistent with management's assertions embodied in the financial statements and that will safeguard District assets.
Finding 2024-001
2024-001. Internal Control APPLICABLE MAJOR FEDERAL PROGRAMS: U.S. DEPARTMENT OF AGRICULTURE PASSED THROUGH ARKANSAS DEPARTMENT OF EDUCATION CHILD NUTRITION CLUSTER - AL NUMBERS 10.553 and 10.555 PASS-THROUGH NUMBER 5008 AUDIT PERIOD - YEAR ENDED JUNE 30, 2024 U.S. DEPARTMENT OF EDUCATION PASSED THROUGH ARKANSAS DEPARTMENT OF EDUCATION COVID-19 - EDUCATION STABILIZATION FUND - AL NUMBERS 84.425D and 84.425U PASS-THROUGH NUMBER 5008 AUDIT PERIOD - YEAR ENDED JUNE 30, 2024 The internal control deficiencies identified in Finding 2024-001 noted in Section II Financial Statement Findings also apply to these major federal programs. Financial statement finding 2024-001 detail below: Criteria: Internal control is a process consisting of five interrelated components - control environment, risk assessment, information and communication, control activities, and monitoring. Management is responsible for adopting sound accounting policies and for establishing and maintaining internal control that will, among other things, initiate, authorize, record, process, and report transactions (as well as events and conditions) consistent with management's assertions embodied in the financial statements. Condition: Deficiencies in the internal control component of control activities adversely affected the District’s ability to initiate, authorize, record, process, and report financial data in accordance with the regulatory basis of accounting such that there was a reasonable possibility that a material misstatement of the District’s financial statements would not be prevented, or detected and corrected on a timely basis. Financial accounting duties were not adequately segregated among employees. Specifically, non-payroll checks were prepared by the same employee responsible for the maintenance of the accounting records and such employee had unrestricted access to the District’s signature stamp pertaining to the District’s primary operating, activity, and food service accounts. The same employee who receipted monies collected, also deposited, posted, and reconciled the District’s primary operating and activity accounts, without compensating controls. The same employee who receipted and obtained monies collected in the food service area, prepared daily count records and deposited monies collected in the District’s food service account, without compensating controls. The same employee, who prepared payroll checks and maintained and reconciled payroll records, was responsible for changes to payroll amounts, without compensating controls. Cause: District management, due to cost/benefit implications, which hindered the District's ability to adequately segregate financial accounting duties among employees, did not effectively address the deficiencies in internal control. Effect or potential effect: The District's ability to initiate, authorize, record, process, and report transactions consistent with management's assertions embodied in the financial statements, as well as the ability to safeguard District assets, was adversely affected by the identified weaknesses in the above internal control component. Recommendation: District management should adopt sound accounting policies and establish and maintain internal controls that will initiate, authorize, record, process, and report transactions consistent with management's assertions embodied in the financial statements and that will safeguard District assets. Views of responsible officials: District management will adopt sound accounting policies and establish and maintain internal control that will initiate, authorize, record, process, and report transactions consistent with management's assertions embodied in the financial statements and that will safeguard District assets.
Finding 2024-001
2024-001. Internal Control APPLICABLE MAJOR FEDERAL PROGRAMS: U.S. DEPARTMENT OF AGRICULTURE PASSED THROUGH ARKANSAS DEPARTMENT OF EDUCATION CHILD NUTRITION CLUSTER - AL NUMBERS 10.553 and 10.555 PASS-THROUGH NUMBER 5008 AUDIT PERIOD - YEAR ENDED JUNE 30, 2024 U.S. DEPARTMENT OF EDUCATION PASSED THROUGH ARKANSAS DEPARTMENT OF EDUCATION COVID-19 - EDUCATION STABILIZATION FUND - AL NUMBERS 84.425D and 84.425U PASS-THROUGH NUMBER 5008 AUDIT PERIOD - YEAR ENDED JUNE 30, 2024 The internal control deficiencies identified in Finding 2024-001 noted in Section II Financial Statement Findings also apply to these major federal programs. Financial statement finding 2024-001 detail below: Criteria: Internal control is a process consisting of five interrelated components - control environment, risk assessment, information and communication, control activities, and monitoring. Management is responsible for adopting sound accounting policies and for establishing and maintaining internal control that will, among other things, initiate, authorize, record, process, and report transactions (as well as events and conditions) consistent with management's assertions embodied in the financial statements. Condition: Deficiencies in the internal control component of control activities adversely affected the District’s ability to initiate, authorize, record, process, and report financial data in accordance with the regulatory basis of accounting such that there was a reasonable possibility that a material misstatement of the District’s financial statements would not be prevented, or detected and corrected on a timely basis. Financial accounting duties were not adequately segregated among employees. Specifically, non-payroll checks were prepared by the same employee responsible for the maintenance of the accounting records and such employee had unrestricted access to the District’s signature stamp pertaining to the District’s primary operating, activity, and food service accounts. The same employee who receipted monies collected, also deposited, posted, and reconciled the District’s primary operating and activity accounts, without compensating controls. The same employee who receipted and obtained monies collected in the food service area, prepared daily count records and deposited monies collected in the District’s food service account, without compensating controls. The same employee, who prepared payroll checks and maintained and reconciled payroll records, was responsible for changes to payroll amounts, without compensating controls. Cause: District management, due to cost/benefit implications, which hindered the District's ability to adequately segregate financial accounting duties among employees, did not effectively address the deficiencies in internal control. Effect or potential effect: The District's ability to initiate, authorize, record, process, and report transactions consistent with management's assertions embodied in the financial statements, as well as the ability to safeguard District assets, was adversely affected by the identified weaknesses in the above internal control component. Recommendation: District management should adopt sound accounting policies and establish and maintain internal controls that will initiate, authorize, record, process, and report transactions consistent with management's assertions embodied in the financial statements and that will safeguard District assets. Views of responsible officials: District management will adopt sound accounting policies and establish and maintain internal control that will initiate, authorize, record, process, and report transactions consistent with management's assertions embodied in the financial statements and that will safeguard District assets.
Finding 2024-001
2024-001. Internal Control APPLICABLE MAJOR FEDERAL PROGRAMS: U.S. DEPARTMENT OF AGRICULTURE PASSED THROUGH ARKANSAS DEPARTMENT OF EDUCATION CHILD NUTRITION CLUSTER - AL NUMBERS 10.553 and 10.555 PASS-THROUGH NUMBER 5008 AUDIT PERIOD - YEAR ENDED JUNE 30, 2024 U.S. DEPARTMENT OF EDUCATION PASSED THROUGH ARKANSAS DEPARTMENT OF EDUCATION COVID-19 - EDUCATION STABILIZATION FUND - AL NUMBERS 84.425D and 84.425U PASS-THROUGH NUMBER 5008 AUDIT PERIOD - YEAR ENDED JUNE 30, 2024 The internal control deficiencies identified in Finding 2024-001 noted in Section II Financial Statement Findings also apply to these major federal programs. Financial statement finding 2024-001 detail below: Criteria: Internal control is a process consisting of five interrelated components - control environment, risk assessment, information and communication, control activities, and monitoring. Management is responsible for adopting sound accounting policies and for establishing and maintaining internal control that will, among other things, initiate, authorize, record, process, and report transactions (as well as events and conditions) consistent with management's assertions embodied in the financial statements. Condition: Deficiencies in the internal control component of control activities adversely affected the District’s ability to initiate, authorize, record, process, and report financial data in accordance with the regulatory basis of accounting such that there was a reasonable possibility that a material misstatement of the District’s financial statements would not be prevented, or detected and corrected on a timely basis. Financial accounting duties were not adequately segregated among employees. Specifically, non-payroll checks were prepared by the same employee responsible for the maintenance of the accounting records and such employee had unrestricted access to the District’s signature stamp pertaining to the District’s primary operating, activity, and food service accounts. The same employee who receipted monies collected, also deposited, posted, and reconciled the District’s primary operating and activity accounts, without compensating controls. The same employee who receipted and obtained monies collected in the food service area, prepared daily count records and deposited monies collected in the District’s food service account, without compensating controls. The same employee, who prepared payroll checks and maintained and reconciled payroll records, was responsible for changes to payroll amounts, without compensating controls. Cause: District management, due to cost/benefit implications, which hindered the District's ability to adequately segregate financial accounting duties among employees, did not effectively address the deficiencies in internal control. Effect or potential effect: The District's ability to initiate, authorize, record, process, and report transactions consistent with management's assertions embodied in the financial statements, as well as the ability to safeguard District assets, was adversely affected by the identified weaknesses in the above internal control component. Recommendation: District management should adopt sound accounting policies and establish and maintain internal controls that will initiate, authorize, record, process, and report transactions consistent with management's assertions embodied in the financial statements and that will safeguard District assets. Views of responsible officials: District management will adopt sound accounting policies and establish and maintain internal control that will initiate, authorize, record, process, and report transactions consistent with management's assertions embodied in the financial statements and that will safeguard District assets.