Audit 392212

U.S. DEPARTMENT OF AGRICULTURE PASSED THROUGH ARKANSAS DEPARTMENT OF EDUCATION CHILD NUTRITION CLUSTER - AL NUMBERS 10.553 AND 10.555 PASS-THROUGH NUMBER 0406 AUDIT PERIOD - YEAR ENDED JUNE 30, 2025 Allowable Costs/Cost Principles Criteria or specific requirement: In accordance with 2 CFR 200.430(g)(1)(iii), charges to federal awards for salaries and wages must be based on records that accurately reflect the work performed. These records must reasonably reflect the total activity for which the employee is compensated by the recipient or subrecipient, not exceeding 100% of compensated activities. Condition: An Administrative Review for Siloam Springs School District was completed by the Arkansas Division of Elementary and Secondary Education, Child Nutrition Unit (DESE, CNU) in December 2025. The review noted that time certifications were not prepared for Child Nutrition employees for the year ended June 30, 2025. Cause: Lack of internal controls and management oversight. Effect: Bi-annual time certifications were not prepared to properly document personnel expenses. Questioned costs: No questioned costs noted. Context: Results of an Administrative Review by the DESE, CNU. Identification as a repeat finding: No Recommendation: The District should follow the guidelines outlined by the USDA regarding documentation of personnel expenses. Views of responsible officials: The Siloam Springs School District was instructed to submit a time certification for all employees paid from the nonprofit food service account to Arkansas Department of Education, Division of Elementary and Secondary Education, Nutrition Services by January 16, 2026. The District received a letter from the Arkansas Department of Education, Nutrition Servies dated January 9, 2026 informing the District’s corrective action submitted was accepted and therefore, the review was officially closed.