Audit 54965

FY End
2022-06-30
Total Expended
$1.21M
Findings
8
Programs
12
Organization: Dierks School District (AR)
Year: 2022 Accepted: 2023-06-07

Organization Exclusion Status:

Checking exclusion status...

Findings

ID Ref Severity Repeat Requirement
58918 2022-001 Significant Deficiency - L
58919 2022-001 Significant Deficiency - L
58920 2022-001 Significant Deficiency - L
58921 2022-001 Significant Deficiency - L
635360 2022-001 Significant Deficiency - L
635361 2022-001 Significant Deficiency - L
635362 2022-001 Significant Deficiency - L
635363 2022-001 Significant Deficiency - L

Contacts

Name Title Type
FE9SSPUMX6Q3 Kayla Jones Auditee
8702862191 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 Dierks School District No.2 (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 Dierks School District No.2 (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 $31,236 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

U.S. DEPARTMENT OF AGRICULTURE PASSED THROUGH ARKANSAS DEPARTMENT OF EDUCATION CHILD NUTRITION CLUSTER - AL NUMBERS 10.553 AND 10.555 PASS - THROUGH NUMBER 3102 AUDIT PERIOD - YEAR ENDED JUNE 30, 2022 2022-001. Reporting Criteria or specific requirement: Monthly claims for reimbursement are required to be submitted to the Arkansas Department of Education, Child Nutrition Unit (DESE, CNU). Reimbursement claim components include the total number of students eligible for and number of students participating in free, reduced price, and paid meals served. The total meals served by category are to be derived from the daily record forms. Condition: An Administrative Review for Dierks School District was completed by the Arkansas Division of Elementary and Secondary Education, Child Nutrition Unit (DESE, CNU) in February 2022. The review noted the high school meal counts for breakfast and lunch were not consolidated, and daily rosters for lunch at the elementary school were inaccurately counted on the January 2022 claim for reimbursement. This resulted in an under claim of $3,354 for breakfast and $12,494 for lunch. In addition, the review noted the District was taking lunch counts in the classroom prior to the lunch service rather than at the point of service. During our examination of the March and May 2022 claims for reimbursement, we noted the number of meals reported was overstated by 34 for breakfast and 42 for lunch resulting in a combined over claim of $280. Cause: The inaccurate reporting of meals served resulted from daily lunch counts taken in the classrooms and clerical errors in posting data from the daily lunch counts to the monthly claims for reimbursement. Effect: The District was not properly reimbursed for meals served during the year. Context: Results of an Administrative Review by the DESE, CNU and audit examination of daily record forms substantiating the District's two monthly claims for reimbursement that were tested for the audit year from a total population of ten claims. The amount claimed for the two months tested was $89,099 from a total claim population of $441,524 Recommendation: The District should exercise due care in the posting of data from the monthly account eligibility reports and daily record forms to the monthly claim for reimbursement. Views of responsible officials: The District will thoroughly review the data during the posting of monthly account eligibility reports and daily record forms to the monthly claim for reimbursement.
U.S. DEPARTMENT OF AGRICULTURE PASSED THROUGH ARKANSAS DEPARTMENT OF EDUCATION CHILD NUTRITION CLUSTER - AL NUMBERS 10.553 AND 10.555 PASS - THROUGH NUMBER 3102 AUDIT PERIOD - YEAR ENDED JUNE 30, 2022 2022-001. Reporting Criteria or specific requirement: Monthly claims for reimbursement are required to be submitted to the Arkansas Department of Education, Child Nutrition Unit (DESE, CNU). Reimbursement claim components include the total number of students eligible for and number of students participating in free, reduced price, and paid meals served. The total meals served by category are to be derived from the daily record forms. Condition: An Administrative Review for Dierks School District was completed by the Arkansas Division of Elementary and Secondary Education, Child Nutrition Unit (DESE, CNU) in February 2022. The review noted the high school meal counts for breakfast and lunch were not consolidated, and daily rosters for lunch at the elementary school were inaccurately counted on the January 2022 claim for reimbursement. This resulted in an under claim of $3,354 for breakfast and $12,494 for lunch. In addition, the review noted the District was taking lunch counts in the classroom prior to the lunch service rather than at the point of service. During our examination of the March and May 2022 claims for reimbursement, we noted the number of meals reported was overstated by 34 for breakfast and 42 for lunch resulting in a combined over claim of $280. Cause: The inaccurate reporting of meals served resulted from daily lunch counts taken in the classrooms and clerical errors in posting data from the daily lunch counts to the monthly claims for reimbursement. Effect: The District was not properly reimbursed for meals served during the year. Context: Results of an Administrative Review by the DESE, CNU and audit examination of daily record forms substantiating the District's two monthly claims for reimbursement that were tested for the audit year from a total population of ten claims. The amount claimed for the two months tested was $89,099 from a total claim population of $441,524 Recommendation: The District should exercise due care in the posting of data from the monthly account eligibility reports and daily record forms to the monthly claim for reimbursement. Views of responsible officials: The District will thoroughly review the data during the posting of monthly account eligibility reports and daily record forms to the monthly claim for reimbursement.
U.S. DEPARTMENT OF AGRICULTURE PASSED THROUGH ARKANSAS DEPARTMENT OF EDUCATION CHILD NUTRITION CLUSTER - AL NUMBERS 10.553 AND 10.555 PASS - THROUGH NUMBER 3102 AUDIT PERIOD - YEAR ENDED JUNE 30, 2022 2022-001. Reporting Criteria or specific requirement: Monthly claims for reimbursement are required to be submitted to the Arkansas Department of Education, Child Nutrition Unit (DESE, CNU). Reimbursement claim components include the total number of students eligible for and number of students participating in free, reduced price, and paid meals served. The total meals served by category are to be derived from the daily record forms. Condition: An Administrative Review for Dierks School District was completed by the Arkansas Division of Elementary and Secondary Education, Child Nutrition Unit (DESE, CNU) in February 2022. The review noted the high school meal counts for breakfast and lunch were not consolidated, and daily rosters for lunch at the elementary school were inaccurately counted on the January 2022 claim for reimbursement. This resulted in an under claim of $3,354 for breakfast and $12,494 for lunch. In addition, the review noted the District was taking lunch counts in the classroom prior to the lunch service rather than at the point of service. During our examination of the March and May 2022 claims for reimbursement, we noted the number of meals reported was overstated by 34 for breakfast and 42 for lunch resulting in a combined over claim of $280. Cause: The inaccurate reporting of meals served resulted from daily lunch counts taken in the classrooms and clerical errors in posting data from the daily lunch counts to the monthly claims for reimbursement. Effect: The District was not properly reimbursed for meals served during the year. Context: Results of an Administrative Review by the DESE, CNU and audit examination of daily record forms substantiating the District's two monthly claims for reimbursement that were tested for the audit year from a total population of ten claims. The amount claimed for the two months tested was $89,099 from a total claim population of $441,524 Recommendation: The District should exercise due care in the posting of data from the monthly account eligibility reports and daily record forms to the monthly claim for reimbursement. Views of responsible officials: The District will thoroughly review the data during the posting of monthly account eligibility reports and daily record forms to the monthly claim for reimbursement.
U.S. DEPARTMENT OF AGRICULTURE PASSED THROUGH ARKANSAS DEPARTMENT OF EDUCATION CHILD NUTRITION CLUSTER - AL NUMBERS 10.553 AND 10.555 PASS - THROUGH NUMBER 3102 AUDIT PERIOD - YEAR ENDED JUNE 30, 2022 2022-001. Reporting Criteria or specific requirement: Monthly claims for reimbursement are required to be submitted to the Arkansas Department of Education, Child Nutrition Unit (DESE, CNU). Reimbursement claim components include the total number of students eligible for and number of students participating in free, reduced price, and paid meals served. The total meals served by category are to be derived from the daily record forms. Condition: An Administrative Review for Dierks School District was completed by the Arkansas Division of Elementary and Secondary Education, Child Nutrition Unit (DESE, CNU) in February 2022. The review noted the high school meal counts for breakfast and lunch were not consolidated, and daily rosters for lunch at the elementary school were inaccurately counted on the January 2022 claim for reimbursement. This resulted in an under claim of $3,354 for breakfast and $12,494 for lunch. In addition, the review noted the District was taking lunch counts in the classroom prior to the lunch service rather than at the point of service. During our examination of the March and May 2022 claims for reimbursement, we noted the number of meals reported was overstated by 34 for breakfast and 42 for lunch resulting in a combined over claim of $280. Cause: The inaccurate reporting of meals served resulted from daily lunch counts taken in the classrooms and clerical errors in posting data from the daily lunch counts to the monthly claims for reimbursement. Effect: The District was not properly reimbursed for meals served during the year. Context: Results of an Administrative Review by the DESE, CNU and audit examination of daily record forms substantiating the District's two monthly claims for reimbursement that were tested for the audit year from a total population of ten claims. The amount claimed for the two months tested was $89,099 from a total claim population of $441,524 Recommendation: The District should exercise due care in the posting of data from the monthly account eligibility reports and daily record forms to the monthly claim for reimbursement. Views of responsible officials: The District will thoroughly review the data during the posting of monthly account eligibility reports and daily record forms to the monthly claim for reimbursement.
U.S. DEPARTMENT OF AGRICULTURE PASSED THROUGH ARKANSAS DEPARTMENT OF EDUCATION CHILD NUTRITION CLUSTER - AL NUMBERS 10.553 AND 10.555 PASS - THROUGH NUMBER 3102 AUDIT PERIOD - YEAR ENDED JUNE 30, 2022 2022-001. Reporting Criteria or specific requirement: Monthly claims for reimbursement are required to be submitted to the Arkansas Department of Education, Child Nutrition Unit (DESE, CNU). Reimbursement claim components include the total number of students eligible for and number of students participating in free, reduced price, and paid meals served. The total meals served by category are to be derived from the daily record forms. Condition: An Administrative Review for Dierks School District was completed by the Arkansas Division of Elementary and Secondary Education, Child Nutrition Unit (DESE, CNU) in February 2022. The review noted the high school meal counts for breakfast and lunch were not consolidated, and daily rosters for lunch at the elementary school were inaccurately counted on the January 2022 claim for reimbursement. This resulted in an under claim of $3,354 for breakfast and $12,494 for lunch. In addition, the review noted the District was taking lunch counts in the classroom prior to the lunch service rather than at the point of service. During our examination of the March and May 2022 claims for reimbursement, we noted the number of meals reported was overstated by 34 for breakfast and 42 for lunch resulting in a combined over claim of $280. Cause: The inaccurate reporting of meals served resulted from daily lunch counts taken in the classrooms and clerical errors in posting data from the daily lunch counts to the monthly claims for reimbursement. Effect: The District was not properly reimbursed for meals served during the year. Context: Results of an Administrative Review by the DESE, CNU and audit examination of daily record forms substantiating the District's two monthly claims for reimbursement that were tested for the audit year from a total population of ten claims. The amount claimed for the two months tested was $89,099 from a total claim population of $441,524 Recommendation: The District should exercise due care in the posting of data from the monthly account eligibility reports and daily record forms to the monthly claim for reimbursement. Views of responsible officials: The District will thoroughly review the data during the posting of monthly account eligibility reports and daily record forms to the monthly claim for reimbursement.
U.S. DEPARTMENT OF AGRICULTURE PASSED THROUGH ARKANSAS DEPARTMENT OF EDUCATION CHILD NUTRITION CLUSTER - AL NUMBERS 10.553 AND 10.555 PASS - THROUGH NUMBER 3102 AUDIT PERIOD - YEAR ENDED JUNE 30, 2022 2022-001. Reporting Criteria or specific requirement: Monthly claims for reimbursement are required to be submitted to the Arkansas Department of Education, Child Nutrition Unit (DESE, CNU). Reimbursement claim components include the total number of students eligible for and number of students participating in free, reduced price, and paid meals served. The total meals served by category are to be derived from the daily record forms. Condition: An Administrative Review for Dierks School District was completed by the Arkansas Division of Elementary and Secondary Education, Child Nutrition Unit (DESE, CNU) in February 2022. The review noted the high school meal counts for breakfast and lunch were not consolidated, and daily rosters for lunch at the elementary school were inaccurately counted on the January 2022 claim for reimbursement. This resulted in an under claim of $3,354 for breakfast and $12,494 for lunch. In addition, the review noted the District was taking lunch counts in the classroom prior to the lunch service rather than at the point of service. During our examination of the March and May 2022 claims for reimbursement, we noted the number of meals reported was overstated by 34 for breakfast and 42 for lunch resulting in a combined over claim of $280. Cause: The inaccurate reporting of meals served resulted from daily lunch counts taken in the classrooms and clerical errors in posting data from the daily lunch counts to the monthly claims for reimbursement. Effect: The District was not properly reimbursed for meals served during the year. Context: Results of an Administrative Review by the DESE, CNU and audit examination of daily record forms substantiating the District's two monthly claims for reimbursement that were tested for the audit year from a total population of ten claims. The amount claimed for the two months tested was $89,099 from a total claim population of $441,524 Recommendation: The District should exercise due care in the posting of data from the monthly account eligibility reports and daily record forms to the monthly claim for reimbursement. Views of responsible officials: The District will thoroughly review the data during the posting of monthly account eligibility reports and daily record forms to the monthly claim for reimbursement.
U.S. DEPARTMENT OF AGRICULTURE PASSED THROUGH ARKANSAS DEPARTMENT OF EDUCATION CHILD NUTRITION CLUSTER - AL NUMBERS 10.553 AND 10.555 PASS - THROUGH NUMBER 3102 AUDIT PERIOD - YEAR ENDED JUNE 30, 2022 2022-001. Reporting Criteria or specific requirement: Monthly claims for reimbursement are required to be submitted to the Arkansas Department of Education, Child Nutrition Unit (DESE, CNU). Reimbursement claim components include the total number of students eligible for and number of students participating in free, reduced price, and paid meals served. The total meals served by category are to be derived from the daily record forms. Condition: An Administrative Review for Dierks School District was completed by the Arkansas Division of Elementary and Secondary Education, Child Nutrition Unit (DESE, CNU) in February 2022. The review noted the high school meal counts for breakfast and lunch were not consolidated, and daily rosters for lunch at the elementary school were inaccurately counted on the January 2022 claim for reimbursement. This resulted in an under claim of $3,354 for breakfast and $12,494 for lunch. In addition, the review noted the District was taking lunch counts in the classroom prior to the lunch service rather than at the point of service. During our examination of the March and May 2022 claims for reimbursement, we noted the number of meals reported was overstated by 34 for breakfast and 42 for lunch resulting in a combined over claim of $280. Cause: The inaccurate reporting of meals served resulted from daily lunch counts taken in the classrooms and clerical errors in posting data from the daily lunch counts to the monthly claims for reimbursement. Effect: The District was not properly reimbursed for meals served during the year. Context: Results of an Administrative Review by the DESE, CNU and audit examination of daily record forms substantiating the District's two monthly claims for reimbursement that were tested for the audit year from a total population of ten claims. The amount claimed for the two months tested was $89,099 from a total claim population of $441,524 Recommendation: The District should exercise due care in the posting of data from the monthly account eligibility reports and daily record forms to the monthly claim for reimbursement. Views of responsible officials: The District will thoroughly review the data during the posting of monthly account eligibility reports and daily record forms to the monthly claim for reimbursement.
U.S. DEPARTMENT OF AGRICULTURE PASSED THROUGH ARKANSAS DEPARTMENT OF EDUCATION CHILD NUTRITION CLUSTER - AL NUMBERS 10.553 AND 10.555 PASS - THROUGH NUMBER 3102 AUDIT PERIOD - YEAR ENDED JUNE 30, 2022 2022-001. Reporting Criteria or specific requirement: Monthly claims for reimbursement are required to be submitted to the Arkansas Department of Education, Child Nutrition Unit (DESE, CNU). Reimbursement claim components include the total number of students eligible for and number of students participating in free, reduced price, and paid meals served. The total meals served by category are to be derived from the daily record forms. Condition: An Administrative Review for Dierks School District was completed by the Arkansas Division of Elementary and Secondary Education, Child Nutrition Unit (DESE, CNU) in February 2022. The review noted the high school meal counts for breakfast and lunch were not consolidated, and daily rosters for lunch at the elementary school were inaccurately counted on the January 2022 claim for reimbursement. This resulted in an under claim of $3,354 for breakfast and $12,494 for lunch. In addition, the review noted the District was taking lunch counts in the classroom prior to the lunch service rather than at the point of service. During our examination of the March and May 2022 claims for reimbursement, we noted the number of meals reported was overstated by 34 for breakfast and 42 for lunch resulting in a combined over claim of $280. Cause: The inaccurate reporting of meals served resulted from daily lunch counts taken in the classrooms and clerical errors in posting data from the daily lunch counts to the monthly claims for reimbursement. Effect: The District was not properly reimbursed for meals served during the year. Context: Results of an Administrative Review by the DESE, CNU and audit examination of daily record forms substantiating the District's two monthly claims for reimbursement that were tested for the audit year from a total population of ten claims. The amount claimed for the two months tested was $89,099 from a total claim population of $441,524 Recommendation: The District should exercise due care in the posting of data from the monthly account eligibility reports and daily record forms to the monthly claim for reimbursement. Views of responsible officials: The District will thoroughly review the data during the posting of monthly account eligibility reports and daily record forms to the monthly claim for reimbursement.