Finding Text
U.S. DEPARTMENT OF EDUCATION
PASSED THROUGH ARKANSAS DEPARTMENT OF EDUCATION
SPECIAL EDUCATION - GRANTS TO STATES - AL NUMBER 84.027A
AUDIT PERIOD - YEAR ENDED JUNE 30, 2023
2023-001. Allowable Costs/Cost Principles
Criteria or specific requirement: Purchases of equipment and other capital expenditures require prior written approval of the Federal awarding agency or pass-through entity, as specified in OMB 2 CFR part 200, subpart E.
Condition: During our examination of expenditures, we identified a journal entry reclassifying the purchase of playground equipment, with a cost of $13,714, to the Special Education Cluster. The District did not obtain prior written approval from the Arkansas Division of Elementary and Secondary Education (DESE) for this purchase.
Cause: Lack of internal controls and management oversight over program expenditures.
Effect or potential effect: Unallowable costs of $13,714 were paid from the Special Education Cluster.
Questioned costs: The amount of questioned cost was $13,714.
Context: As a result of an examination of 2 journal entries (totaling $15,514) from a population of 17 journal entries (totaling $31,431). Our sample was statistically valid.
Identification as a repeat finding: No
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 Prescott School District will contact the Arkansas Division of Elementary and Secondary Education for guidance regarding this matter and implement proper controls over program expenditures on any further projects.