FAC Explorer

Audit 37215

FY End
2022-06-30
Total Expended
$69.84M
Findings
8
Programs
21
Organization: Little Rock School District (AR)
Year: 2022 Accepted: 2023-03-28
Auditor: Arkansas Legislative Audit

Organization Exclusion Status:

Findings

ID Ref Severity Repeat Requirement
39649 2022-001 Material Weakness - B
39650 2022-001 Material Weakness - B
39651 2022-001 Material Weakness - B
39652 2022-001 Material Weakness - B
616091 2022-001 Material Weakness - B
616092 2022-001 Material Weakness - B
616093 2022-001 Material Weakness - B
616094 2022-001 Material Weakness - B

Programs

ALN Program Spent Major Findings
84.010 Title I Grants to Local Educational Agencies $12.68M - 0
10.553 School Breakfast Program $3.18M Yes 0
84.367 Supporting Effective Instruction State Grants $1.17M - 0
84.371 Comprehensive Literacy Development $1.17M - 0
84.287 Twenty-First Century Community Learning Centers $1.14M Yes 0
32.009 Emergency Connectivity Fund Program - Covid-19 $1.04M - 0
10.555 National School Lunch Program $941,954 Yes 0
84.027 Special Education_grants to States $647,478 - 0
84.424 Student Support and Academic Enrichment Program $404,646 - 0
84.048 Career and Technical Education -- Basic Grants to States $326,211 - 0
15.904 Historic Preservation Fund Grants-in-Aid $218,889 - 0
84.002 Adult Education - Basic Grants to States $184,453 - 0
84.365 English Language Acquisition State Grants $165,866 - 0
10.579 Child Nutrition Discretionary Grants Limited Availability $147,447 - 0
10.582 Fresh Fruit and Vegetable Program $108,835 Yes 0
84.173 Special Education_preschool Grants $98,021 - 0
12.U01 Rotc $87,193 - 0
93.558 Temporary Assistance for Needy Families $77,776 Yes 0
84.196 Education for Homeless Children and Youth $40,716 - 0
84.425 Covid-19 - Education Stabilization Fund $15,217 Yes 1
93.243 Substance Abuse and Mental Health Services_projects of Regional and National Significance $9,776 - 0

Contacts

Name Title Type
JN2ELBGE7KQ7 Jean Ring Auditee
5014471089 Matt Fink, CPA Auditor
No contacts on file

Notes to SEFA

Title: Nonmonetary Assistance (SEFA Notes 3 and 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 Little Rock School District (District) under programs of the federal government for the year ended June 30, 2022. 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 6) 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 Certain Program(s) (SEFA Note 5) Accounting Policies: Basis of Presentation (SEFA Note 1) - The accompanying Schedule of Expenditures of Federal Awards (the "Schedule") includes the federal award activity of Little Rock School District (District) under programs of the federal government for the year ended June 30, 2022. 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 6) Federal ALN was not available. An alternative identifying number was utilized.
Title: Medicaid Funding (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 Little Rock School District (District) under programs of the federal government for the year ended June 30, 2022. 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 6) During the year ended June 30, 2022, the District received Medicaid funding of $405,468 from the Arkansas Department of Human Services. Such payments are not considered Federal awards expended, and therefore, are not included in the above Schedule.

Finding Details

Finding 2022-001
U.S. DEPARTMENT OF EDUCATION PASSED THROUGH ARKANSAS DEPARTMENT OF EDUCATION COVID-19 ELEMENTARY AND SECONDARY SCHOOL EMERGENCY RELIEF FUND - AL NUMBER 84.425U PASS-THROUGH NUMBER 6001 AUDIT PERIOD - YEAR ENDED JUNE 30, 2022 Criteria or specific requirement: Purchases of equipment and other capital expenditures require the 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: In our test of equipment purchases from the COVID-19 Education Stabilization Fund, we identified the purchase of 447 pieces of equipment with unit costs greater than the $5,000 threshold for which the District did not obtain prior written approval from the Arkansas Division of Elementary and Secondary Education. Retroactive approval was subsequently obtained from DESE during audit fieldwork. Cause: Lack of internal controls and management oversight over program expenditures. Effect or potential effect: Unallowable costs of $2,859,534 were paid from the COVID-19 Education Stabilization Fund. Questioned costs: The amount of questioned costs was $2,859,534. Context: We examined all capital expenditures of the COVID-19 Education Stabilization Fund totaling $4,660,482. Recommendation: The District should contact the Arkansas Division of Elementary and Secondary Education for guidance regarding this matter and implement proper controls over program expenditures. Views of responsible officials: The District will continue to monitor internal controls in regards to use of ESSER funds and ensure all prior approvals are granted by DESE before purchasing of capital assets with a unit value equal to or greater than $5,000.
Finding 2022-001
U.S. DEPARTMENT OF EDUCATION PASSED THROUGH ARKANSAS DEPARTMENT OF EDUCATION COVID-19 ELEMENTARY AND SECONDARY SCHOOL EMERGENCY RELIEF FUND - AL NUMBER 84.425U PASS-THROUGH NUMBER 6001 AUDIT PERIOD - YEAR ENDED JUNE 30, 2022 Criteria or specific requirement: Purchases of equipment and other capital expenditures require the 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: In our test of equipment purchases from the COVID-19 Education Stabilization Fund, we identified the purchase of 447 pieces of equipment with unit costs greater than the $5,000 threshold for which the District did not obtain prior written approval from the Arkansas Division of Elementary and Secondary Education. Retroactive approval was subsequently obtained from DESE during audit fieldwork. Cause: Lack of internal controls and management oversight over program expenditures. Effect or potential effect: Unallowable costs of $2,859,534 were paid from the COVID-19 Education Stabilization Fund. Questioned costs: The amount of questioned costs was $2,859,534. Context: We examined all capital expenditures of the COVID-19 Education Stabilization Fund totaling $4,660,482. Recommendation: The District should contact the Arkansas Division of Elementary and Secondary Education for guidance regarding this matter and implement proper controls over program expenditures. Views of responsible officials: The District will continue to monitor internal controls in regards to use of ESSER funds and ensure all prior approvals are granted by DESE before purchasing of capital assets with a unit value equal to or greater than $5,000.
Finding 2022-001
U.S. DEPARTMENT OF EDUCATION PASSED THROUGH ARKANSAS DEPARTMENT OF EDUCATION COVID-19 ELEMENTARY AND SECONDARY SCHOOL EMERGENCY RELIEF FUND - AL NUMBER 84.425U PASS-THROUGH NUMBER 6001 AUDIT PERIOD - YEAR ENDED JUNE 30, 2022 Criteria or specific requirement: Purchases of equipment and other capital expenditures require the 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: In our test of equipment purchases from the COVID-19 Education Stabilization Fund, we identified the purchase of 447 pieces of equipment with unit costs greater than the $5,000 threshold for which the District did not obtain prior written approval from the Arkansas Division of Elementary and Secondary Education. Retroactive approval was subsequently obtained from DESE during audit fieldwork. Cause: Lack of internal controls and management oversight over program expenditures. Effect or potential effect: Unallowable costs of $2,859,534 were paid from the COVID-19 Education Stabilization Fund. Questioned costs: The amount of questioned costs was $2,859,534. Context: We examined all capital expenditures of the COVID-19 Education Stabilization Fund totaling $4,660,482. Recommendation: The District should contact the Arkansas Division of Elementary and Secondary Education for guidance regarding this matter and implement proper controls over program expenditures. Views of responsible officials: The District will continue to monitor internal controls in regards to use of ESSER funds and ensure all prior approvals are granted by DESE before purchasing of capital assets with a unit value equal to or greater than $5,000.
Finding 2022-001
U.S. DEPARTMENT OF EDUCATION PASSED THROUGH ARKANSAS DEPARTMENT OF EDUCATION COVID-19 ELEMENTARY AND SECONDARY SCHOOL EMERGENCY RELIEF FUND - AL NUMBER 84.425U PASS-THROUGH NUMBER 6001 AUDIT PERIOD - YEAR ENDED JUNE 30, 2022 Criteria or specific requirement: Purchases of equipment and other capital expenditures require the 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: In our test of equipment purchases from the COVID-19 Education Stabilization Fund, we identified the purchase of 447 pieces of equipment with unit costs greater than the $5,000 threshold for which the District did not obtain prior written approval from the Arkansas Division of Elementary and Secondary Education. Retroactive approval was subsequently obtained from DESE during audit fieldwork. Cause: Lack of internal controls and management oversight over program expenditures. Effect or potential effect: Unallowable costs of $2,859,534 were paid from the COVID-19 Education Stabilization Fund. Questioned costs: The amount of questioned costs was $2,859,534. Context: We examined all capital expenditures of the COVID-19 Education Stabilization Fund totaling $4,660,482. Recommendation: The District should contact the Arkansas Division of Elementary and Secondary Education for guidance regarding this matter and implement proper controls over program expenditures. Views of responsible officials: The District will continue to monitor internal controls in regards to use of ESSER funds and ensure all prior approvals are granted by DESE before purchasing of capital assets with a unit value equal to or greater than $5,000.
Finding 2022-001
U.S. DEPARTMENT OF EDUCATION PASSED THROUGH ARKANSAS DEPARTMENT OF EDUCATION COVID-19 ELEMENTARY AND SECONDARY SCHOOL EMERGENCY RELIEF FUND - AL NUMBER 84.425U PASS-THROUGH NUMBER 6001 AUDIT PERIOD - YEAR ENDED JUNE 30, 2022 Criteria or specific requirement: Purchases of equipment and other capital expenditures require the 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: In our test of equipment purchases from the COVID-19 Education Stabilization Fund, we identified the purchase of 447 pieces of equipment with unit costs greater than the $5,000 threshold for which the District did not obtain prior written approval from the Arkansas Division of Elementary and Secondary Education. Retroactive approval was subsequently obtained from DESE during audit fieldwork. Cause: Lack of internal controls and management oversight over program expenditures. Effect or potential effect: Unallowable costs of $2,859,534 were paid from the COVID-19 Education Stabilization Fund. Questioned costs: The amount of questioned costs was $2,859,534. Context: We examined all capital expenditures of the COVID-19 Education Stabilization Fund totaling $4,660,482. Recommendation: The District should contact the Arkansas Division of Elementary and Secondary Education for guidance regarding this matter and implement proper controls over program expenditures. Views of responsible officials: The District will continue to monitor internal controls in regards to use of ESSER funds and ensure all prior approvals are granted by DESE before purchasing of capital assets with a unit value equal to or greater than $5,000.
Finding 2022-001
U.S. DEPARTMENT OF EDUCATION PASSED THROUGH ARKANSAS DEPARTMENT OF EDUCATION COVID-19 ELEMENTARY AND SECONDARY SCHOOL EMERGENCY RELIEF FUND - AL NUMBER 84.425U PASS-THROUGH NUMBER 6001 AUDIT PERIOD - YEAR ENDED JUNE 30, 2022 Criteria or specific requirement: Purchases of equipment and other capital expenditures require the 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: In our test of equipment purchases from the COVID-19 Education Stabilization Fund, we identified the purchase of 447 pieces of equipment with unit costs greater than the $5,000 threshold for which the District did not obtain prior written approval from the Arkansas Division of Elementary and Secondary Education. Retroactive approval was subsequently obtained from DESE during audit fieldwork. Cause: Lack of internal controls and management oversight over program expenditures. Effect or potential effect: Unallowable costs of $2,859,534 were paid from the COVID-19 Education Stabilization Fund. Questioned costs: The amount of questioned costs was $2,859,534. Context: We examined all capital expenditures of the COVID-19 Education Stabilization Fund totaling $4,660,482. Recommendation: The District should contact the Arkansas Division of Elementary and Secondary Education for guidance regarding this matter and implement proper controls over program expenditures. Views of responsible officials: The District will continue to monitor internal controls in regards to use of ESSER funds and ensure all prior approvals are granted by DESE before purchasing of capital assets with a unit value equal to or greater than $5,000.
Finding 2022-001
U.S. DEPARTMENT OF EDUCATION PASSED THROUGH ARKANSAS DEPARTMENT OF EDUCATION COVID-19 ELEMENTARY AND SECONDARY SCHOOL EMERGENCY RELIEF FUND - AL NUMBER 84.425U PASS-THROUGH NUMBER 6001 AUDIT PERIOD - YEAR ENDED JUNE 30, 2022 Criteria or specific requirement: Purchases of equipment and other capital expenditures require the 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: In our test of equipment purchases from the COVID-19 Education Stabilization Fund, we identified the purchase of 447 pieces of equipment with unit costs greater than the $5,000 threshold for which the District did not obtain prior written approval from the Arkansas Division of Elementary and Secondary Education. Retroactive approval was subsequently obtained from DESE during audit fieldwork. Cause: Lack of internal controls and management oversight over program expenditures. Effect or potential effect: Unallowable costs of $2,859,534 were paid from the COVID-19 Education Stabilization Fund. Questioned costs: The amount of questioned costs was $2,859,534. Context: We examined all capital expenditures of the COVID-19 Education Stabilization Fund totaling $4,660,482. Recommendation: The District should contact the Arkansas Division of Elementary and Secondary Education for guidance regarding this matter and implement proper controls over program expenditures. Views of responsible officials: The District will continue to monitor internal controls in regards to use of ESSER funds and ensure all prior approvals are granted by DESE before purchasing of capital assets with a unit value equal to or greater than $5,000.
Finding 2022-001
U.S. DEPARTMENT OF EDUCATION PASSED THROUGH ARKANSAS DEPARTMENT OF EDUCATION COVID-19 ELEMENTARY AND SECONDARY SCHOOL EMERGENCY RELIEF FUND - AL NUMBER 84.425U PASS-THROUGH NUMBER 6001 AUDIT PERIOD - YEAR ENDED JUNE 30, 2022 Criteria or specific requirement: Purchases of equipment and other capital expenditures require the 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: In our test of equipment purchases from the COVID-19 Education Stabilization Fund, we identified the purchase of 447 pieces of equipment with unit costs greater than the $5,000 threshold for which the District did not obtain prior written approval from the Arkansas Division of Elementary and Secondary Education. Retroactive approval was subsequently obtained from DESE during audit fieldwork. Cause: Lack of internal controls and management oversight over program expenditures. Effect or potential effect: Unallowable costs of $2,859,534 were paid from the COVID-19 Education Stabilization Fund. Questioned costs: The amount of questioned costs was $2,859,534. Context: We examined all capital expenditures of the COVID-19 Education Stabilization Fund totaling $4,660,482. Recommendation: The District should contact the Arkansas Division of Elementary and Secondary Education for guidance regarding this matter and implement proper controls over program expenditures. Views of responsible officials: The District will continue to monitor internal controls in regards to use of ESSER funds and ensure all prior approvals are granted by DESE before purchasing of capital assets with a unit value equal to or greater than $5,000.