FAC Explorer

Audit 45975

FY End
2022-06-30
Total Expended
$2.20M
Findings
4
Programs
12
Organization: Horatio School District (AR)
Year: 2022 Accepted: 2023-03-29
Auditor: Arkansas Legislative Audit

Organization Exclusion Status:

Findings

ID Ref Severity Repeat Requirement
43332 2022-001 Significant Deficiency - AB
43333 2022-001 Significant Deficiency - AB
619774 2022-001 Significant Deficiency - AB
619775 2022-001 Significant Deficiency - AB

Programs

ALN Program Spent Major Findings
84.425 Covid-19 - Education Stabilization Fund $484,430 Yes 1
84.010 Title I Grants to Local Educational Agencies $270,034 - 0
10.553 School Breakfast Program $153,354 - 0
84.027 Special Education_grants to States $39,078 - 0
84.367 Supporting Effective Instruction State Grants $33,865 - 0
10.555 National School Lunch Program $25,298 - 0
93.323 Epidemiology and Laboratory Capacity for Infectious Diseases (elc) $12,284 - 0
84.358 Rural Education $11,704 - 0
84.365 English Language Acquisition State Grants $9,338 - 0
10.582 Fresh Fruit and Vegetable Program $8,585 - 0
84.424 Student Support and Academic Enrichment Program $6,763 - 0
84.173 Special Education_preschool Grants $4,748 - 0

Contacts

Name Title Type
TXXFB41NDG46 Melissa Liggin Auditee
8708321940 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 Horatio School District No. 55 (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 Horatio School District No. 55 (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 $39,928 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 NUMBERS 84.425D and 84.425U PASS-THROUGH NUMBER 6703 AUDIT PERIOD - YEAR ENDED JUNE 30, 2022 2022-001 - Allowable Costs/Cost Principles Criteria or specific requirement: Purchases of equipment and other capital expenditures require the written prior 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 two 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. Cause: Lack of internal controls and management oversight over program expenditures. Effect or potential effect: Unallowable costs of $19,403 were paid from the COVID-19 Education Stabilization Fund. Questioned costs: The amount of questioned costs was $19,403 Context: As a result of an examination of 3 checks (totaling $107,678) from a population of 40 checks (totaling $521,325), we identified 1 unauthorized purchase for 2 pieces of equipment totaling $19,403 that did not contain evidence of prior written approval from the pass-through agency. 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 Horatio School District has received approval for all equipment greater than the $5000 threshold as required COM-22-047 since the purchase.
Finding 2022-001
U.S. DEPARTMENT OF EDUCATION PASSED THROUGH ARKANSAS DEPARTMENT OF EDUCATION COVID-19 ELEMENTARY AND SECONDARY SCHOOL EMERGENCY RELIEF FUND - AL NUMBERS 84.425D and 84.425U PASS-THROUGH NUMBER 6703 AUDIT PERIOD - YEAR ENDED JUNE 30, 2022 2022-001 - Allowable Costs/Cost Principles Criteria or specific requirement: Purchases of equipment and other capital expenditures require the written prior 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 two 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. Cause: Lack of internal controls and management oversight over program expenditures. Effect or potential effect: Unallowable costs of $19,403 were paid from the COVID-19 Education Stabilization Fund. Questioned costs: The amount of questioned costs was $19,403 Context: As a result of an examination of 3 checks (totaling $107,678) from a population of 40 checks (totaling $521,325), we identified 1 unauthorized purchase for 2 pieces of equipment totaling $19,403 that did not contain evidence of prior written approval from the pass-through agency. 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 Horatio School District has received approval for all equipment greater than the $5000 threshold as required COM-22-047 since the purchase.
Finding 2022-001
U.S. DEPARTMENT OF EDUCATION PASSED THROUGH ARKANSAS DEPARTMENT OF EDUCATION COVID-19 ELEMENTARY AND SECONDARY SCHOOL EMERGENCY RELIEF FUND - AL NUMBERS 84.425D and 84.425U PASS-THROUGH NUMBER 6703 AUDIT PERIOD - YEAR ENDED JUNE 30, 2022 2022-001 - Allowable Costs/Cost Principles Criteria or specific requirement: Purchases of equipment and other capital expenditures require the written prior 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 two 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. Cause: Lack of internal controls and management oversight over program expenditures. Effect or potential effect: Unallowable costs of $19,403 were paid from the COVID-19 Education Stabilization Fund. Questioned costs: The amount of questioned costs was $19,403 Context: As a result of an examination of 3 checks (totaling $107,678) from a population of 40 checks (totaling $521,325), we identified 1 unauthorized purchase for 2 pieces of equipment totaling $19,403 that did not contain evidence of prior written approval from the pass-through agency. 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 Horatio School District has received approval for all equipment greater than the $5000 threshold as required COM-22-047 since the purchase.
Finding 2022-001
U.S. DEPARTMENT OF EDUCATION PASSED THROUGH ARKANSAS DEPARTMENT OF EDUCATION COVID-19 ELEMENTARY AND SECONDARY SCHOOL EMERGENCY RELIEF FUND - AL NUMBERS 84.425D and 84.425U PASS-THROUGH NUMBER 6703 AUDIT PERIOD - YEAR ENDED JUNE 30, 2022 2022-001 - Allowable Costs/Cost Principles Criteria or specific requirement: Purchases of equipment and other capital expenditures require the written prior 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 two 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. Cause: Lack of internal controls and management oversight over program expenditures. Effect or potential effect: Unallowable costs of $19,403 were paid from the COVID-19 Education Stabilization Fund. Questioned costs: The amount of questioned costs was $19,403 Context: As a result of an examination of 3 checks (totaling $107,678) from a population of 40 checks (totaling $521,325), we identified 1 unauthorized purchase for 2 pieces of equipment totaling $19,403 that did not contain evidence of prior written approval from the pass-through agency. 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 Horatio School District has received approval for all equipment greater than the $5000 threshold as required COM-22-047 since the purchase.