FAC Explorer

Audit 38287

FY End
2022-06-30
Total Expended
$2.04M
Findings
4
Programs
11
Organization: Mineral Springs School District (AR)
Year: 2022 Accepted: 2023-07-11
Auditor: Arkansas Legislative Audit

Organization Exclusion Status:

Findings

ID Ref Severity Repeat Requirement
42581 2022-001 Significant Deficiency - B
42582 2022-001 Significant Deficiency - B
619023 2022-001 Significant Deficiency - B
619024 2022-001 Significant Deficiency - B

Programs

ALN Program Spent Major Findings
84.425 Covid-19 - Education Stabilization Fund $1.16M Yes 1
84.010 Title I Grants to Local Educational Agencies $230,726 - 0
84.027 Special Education_grants to States $96,806 - 0
10.553 School Breakfast Program $80,834 - 0
84.367 Supporting Effective Instruction State Grants $56,020 - 0
84.358 Rural Education $16,739 - 0
84.424 Student Support and Academic Enrichment Program $16,585 - 0
10.555 National School Lunch Program $15,612 - 0
10.582 Fresh Fruit and Vegetable Program $9,546 - 0
93.323 Epidemiology and Laboratory Capacity for Infectious Diseases (elc) $5,455 - 0
84.173 Special Education_preschool Grants $2,442 - 0

Contacts

Name Title Type
FWM1EK8AUKB1 Frankie Tollett Auditee
8702874748 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 Mineral Springs School District No. 3 (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 5). 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: Medicaid Funding (SEFA Note 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 Mineral Springs School District No. 3 (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 5). During the year ended June 30, 2022, the District received Medicaid funding of $18,486 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
SIGNIFICANT DEFICIENCY U.S. DEPARTMENT OF EDUCATION PASSED THROUGH ARKANSAS DEPARTMENT OF EDUCATION COVID-19 ELEMENTARY AND SECONDARY SCHOOL EMERGENCY RELIEF FUND ? AL NUMBER 84.425D and 84.425U PASS-THROUGH NUMBER 3104 AUDIT PERIOD ? YEAR ENDED JUNE 30, 2022 2022-001 ALLOWABLE COSTS/COST PRINCIPLES Criteria or specific requirement: Office of Management and Budget (OMB) 2 CFR, part 200, subpart E ? Cost Principles establishes principles for determining allowable costs incurred by the District under federal awards. Such costs are necessary and reasonable for the performance of the federal award and adequately documented. Condition: On August 18, 2022, the Arkansas Division of Elementary and Secondary Education (DESE) conducted an on-site monitoring of the Mineral Springs School District?s use of Elementary and Secondary School Emergency Relief (ESSER) funds. DESE?s report issued on August 24, 2022, stated the district must move all expenditures related to a fieldhouse addition from ESSER funds to a local fund source. These expenditures included, but were not limited to, contractor fees, architect fees, labor, supplies, and equipment. As a result, the District identified $101,276 in unallowable fieldhouse expenditures and correctly transferred these expenditures to local funds. However, during our examination of expenditures, we identified an additional $38,219 in unallowable fieldhouse expenditures that were not identified and corrected by the District. Cause: Lack of internal controls and management oversight over program expenditures. Effect or potential effect: Unallowable costs of $38,219 were paid from COVID-19-Education Stabilization Fund. Questioned costs: The amount of questioned costs was $38,219. Context: An examination of fieldhouse expenditures totaling $139,495. 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: The District will implement proper controls over program expenditures. We have contacted DESE for assistance on correcting this.
Finding 2022-001
SIGNIFICANT DEFICIENCY U.S. DEPARTMENT OF EDUCATION PASSED THROUGH ARKANSAS DEPARTMENT OF EDUCATION COVID-19 ELEMENTARY AND SECONDARY SCHOOL EMERGENCY RELIEF FUND ? AL NUMBER 84.425D and 84.425U PASS-THROUGH NUMBER 3104 AUDIT PERIOD ? YEAR ENDED JUNE 30, 2022 2022-001 ALLOWABLE COSTS/COST PRINCIPLES Criteria or specific requirement: Office of Management and Budget (OMB) 2 CFR, part 200, subpart E ? Cost Principles establishes principles for determining allowable costs incurred by the District under federal awards. Such costs are necessary and reasonable for the performance of the federal award and adequately documented. Condition: On August 18, 2022, the Arkansas Division of Elementary and Secondary Education (DESE) conducted an on-site monitoring of the Mineral Springs School District?s use of Elementary and Secondary School Emergency Relief (ESSER) funds. DESE?s report issued on August 24, 2022, stated the district must move all expenditures related to a fieldhouse addition from ESSER funds to a local fund source. These expenditures included, but were not limited to, contractor fees, architect fees, labor, supplies, and equipment. As a result, the District identified $101,276 in unallowable fieldhouse expenditures and correctly transferred these expenditures to local funds. However, during our examination of expenditures, we identified an additional $38,219 in unallowable fieldhouse expenditures that were not identified and corrected by the District. Cause: Lack of internal controls and management oversight over program expenditures. Effect or potential effect: Unallowable costs of $38,219 were paid from COVID-19-Education Stabilization Fund. Questioned costs: The amount of questioned costs was $38,219. Context: An examination of fieldhouse expenditures totaling $139,495. 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: The District will implement proper controls over program expenditures. We have contacted DESE for assistance on correcting this.
Finding 2022-001
SIGNIFICANT DEFICIENCY U.S. DEPARTMENT OF EDUCATION PASSED THROUGH ARKANSAS DEPARTMENT OF EDUCATION COVID-19 ELEMENTARY AND SECONDARY SCHOOL EMERGENCY RELIEF FUND ? AL NUMBER 84.425D and 84.425U PASS-THROUGH NUMBER 3104 AUDIT PERIOD ? YEAR ENDED JUNE 30, 2022 2022-001 ALLOWABLE COSTS/COST PRINCIPLES Criteria or specific requirement: Office of Management and Budget (OMB) 2 CFR, part 200, subpart E ? Cost Principles establishes principles for determining allowable costs incurred by the District under federal awards. Such costs are necessary and reasonable for the performance of the federal award and adequately documented. Condition: On August 18, 2022, the Arkansas Division of Elementary and Secondary Education (DESE) conducted an on-site monitoring of the Mineral Springs School District?s use of Elementary and Secondary School Emergency Relief (ESSER) funds. DESE?s report issued on August 24, 2022, stated the district must move all expenditures related to a fieldhouse addition from ESSER funds to a local fund source. These expenditures included, but were not limited to, contractor fees, architect fees, labor, supplies, and equipment. As a result, the District identified $101,276 in unallowable fieldhouse expenditures and correctly transferred these expenditures to local funds. However, during our examination of expenditures, we identified an additional $38,219 in unallowable fieldhouse expenditures that were not identified and corrected by the District. Cause: Lack of internal controls and management oversight over program expenditures. Effect or potential effect: Unallowable costs of $38,219 were paid from COVID-19-Education Stabilization Fund. Questioned costs: The amount of questioned costs was $38,219. Context: An examination of fieldhouse expenditures totaling $139,495. 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: The District will implement proper controls over program expenditures. We have contacted DESE for assistance on correcting this.
Finding 2022-001
SIGNIFICANT DEFICIENCY U.S. DEPARTMENT OF EDUCATION PASSED THROUGH ARKANSAS DEPARTMENT OF EDUCATION COVID-19 ELEMENTARY AND SECONDARY SCHOOL EMERGENCY RELIEF FUND ? AL NUMBER 84.425D and 84.425U PASS-THROUGH NUMBER 3104 AUDIT PERIOD ? YEAR ENDED JUNE 30, 2022 2022-001 ALLOWABLE COSTS/COST PRINCIPLES Criteria or specific requirement: Office of Management and Budget (OMB) 2 CFR, part 200, subpart E ? Cost Principles establishes principles for determining allowable costs incurred by the District under federal awards. Such costs are necessary and reasonable for the performance of the federal award and adequately documented. Condition: On August 18, 2022, the Arkansas Division of Elementary and Secondary Education (DESE) conducted an on-site monitoring of the Mineral Springs School District?s use of Elementary and Secondary School Emergency Relief (ESSER) funds. DESE?s report issued on August 24, 2022, stated the district must move all expenditures related to a fieldhouse addition from ESSER funds to a local fund source. These expenditures included, but were not limited to, contractor fees, architect fees, labor, supplies, and equipment. As a result, the District identified $101,276 in unallowable fieldhouse expenditures and correctly transferred these expenditures to local funds. However, during our examination of expenditures, we identified an additional $38,219 in unallowable fieldhouse expenditures that were not identified and corrected by the District. Cause: Lack of internal controls and management oversight over program expenditures. Effect or potential effect: Unallowable costs of $38,219 were paid from COVID-19-Education Stabilization Fund. Questioned costs: The amount of questioned costs was $38,219. Context: An examination of fieldhouse expenditures totaling $139,495. 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: The District will implement proper controls over program expenditures. We have contacted DESE for assistance on correcting this.