FAC Explorer

Audit 81450

FY End
2022-06-30
Total Expended
$2.47M
Findings
2
Programs
11
Organization: Quitman School District (AR)
Year: 2022 Accepted: 2023-03-27
Auditor: Arkansas Legislative Audit

Organization Exclusion Status:

Findings

ID Ref Severity Repeat Requirement
84041 2022-002 Significant Deficiency - B
660483 2022-002 Significant Deficiency - B

Programs

ALN Program Spent Major Findings
84.425 Covid-19 - Education Stabilization Fund $1.15M Yes 1
84.010 Title I Grants to Local Educational Agencies $228,159 - 0
10.553 School Breakfast Program $145,027 - 0
84.287 Twenty-First Century Community Learning Centers $139,975 - 0
84.367 Supporting Effective Instruction State Grants $28,255 - 0
10.555 National School Lunch Program $27,575 - 0
84.358 Rural Education $16,654 - 0
84.424 Student Support and Academic Enrichment Program $13,618 - 0
32.009 Emergency Connectivity Fund Program $11,121 - 0
84.173 Special Education_preschool Grants $4,094 - 0
84.027 Special Education_grants to States $1,960 - 0

Contacts

Name Title Type
SBYAUCVRF4C3 Denise Kennedy Auditee
5015893156 Matt Fink, CPA Auditor
No contacts on file

Notes to SEFA

Title: Nonmonetary Assistance (SEFA Note 3) Accounting Policies: Basis of Presentation (SEFA Note 1) - Basis of Presentation - The accompanying Schedule of Expenditures of Federal Awards (the "Schedule") includes the federal award activity of Quitman School District No. 21 (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) - Summary of Significant Accounting Policies - 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 4). Nonmonetary assistance is reported at the approximate value as provided by the Arkansas Department of Human Services.
Title: Medicaid Funding (SEFA Note 5) Accounting Policies: Basis of Presentation (SEFA Note 1) - Basis of Presentation - The accompanying Schedule of Expenditures of Federal Awards (the "Schedule") includes the federal award activity of Quitman School District No. 21 (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) - Summary of Significant Accounting Policies - 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 4). During the year ended June 30, 2022, the District received Medicaid funding of $33,668 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 2022-002
U.S. DEPARTMENT OF EDUCATION PASSED THROUGH ARKANSAS DEPARTMENT OF EDUCATION COVID-19 AMERICAN RESCUE PLAN - ELEMENTARY AND SECONDARY SCHOOL EMERGENCY RELIEF FUND - AL NUMBER 84.425U PASS-THROUGH NUMBER 1203 AUDIT PERIOD - YEAR ENDED JUNE 30, 2022 Allowable Costs/Costs Principles Criteria or specific requirement: Office of Management and Budget (OMB) 2 CFR, part 200, part E - Costs Principles establishes principles and standards for determining allowable costs incurred by the District under federal awards. Such costs are to be necessary and reasonable for the performance of the Federal award and be adequately documented. Condition: In our test of disbursements, we identified unallowable costs totaling $3,011 were paid from the COVID-19 American Rescue Plan - Elementary and Secondary School Emergency Relief Fund. These costs were the result of the District paying sales tax on projects paid from operating funds incurred prior to March 2020. Cause: Lack of internal controls and management oversight over program expenditures. Effect: Unallowable costs of $3,011 were paid from the COVID-19 American Rescue Plan - Elementary and Secondary Emergency Relief Fund. Questioned costs: The amount of questioned costs was $3,011. Context: An examination of 5 checks totaling $11,425 paid from the COVID-19 Elementary and Secondary School Emergency Relief Fund from a population of 47 checks totaling $933,883. Our sample was a statistically valid sample. 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 ensure guidance regarding proper controls over program expenditures.
Finding 2022-002
U.S. DEPARTMENT OF EDUCATION PASSED THROUGH ARKANSAS DEPARTMENT OF EDUCATION COVID-19 AMERICAN RESCUE PLAN - ELEMENTARY AND SECONDARY SCHOOL EMERGENCY RELIEF FUND - AL NUMBER 84.425U PASS-THROUGH NUMBER 1203 AUDIT PERIOD - YEAR ENDED JUNE 30, 2022 Allowable Costs/Costs Principles Criteria or specific requirement: Office of Management and Budget (OMB) 2 CFR, part 200, part E - Costs Principles establishes principles and standards for determining allowable costs incurred by the District under federal awards. Such costs are to be necessary and reasonable for the performance of the Federal award and be adequately documented. Condition: In our test of disbursements, we identified unallowable costs totaling $3,011 were paid from the COVID-19 American Rescue Plan - Elementary and Secondary School Emergency Relief Fund. These costs were the result of the District paying sales tax on projects paid from operating funds incurred prior to March 2020. Cause: Lack of internal controls and management oversight over program expenditures. Effect: Unallowable costs of $3,011 were paid from the COVID-19 American Rescue Plan - Elementary and Secondary Emergency Relief Fund. Questioned costs: The amount of questioned costs was $3,011. Context: An examination of 5 checks totaling $11,425 paid from the COVID-19 Elementary and Secondary School Emergency Relief Fund from a population of 47 checks totaling $933,883. Our sample was a statistically valid sample. 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 ensure guidance regarding proper controls over program expenditures.