Finding Text
U.S. DEPARTMENT OF AGRICULTURE
PASSED THROUGH ARKANSAS DEPARTMENT OF EDUCATION
CHILD NUTRITION CLUSTER - AL NUMBERS 10.553 AND 10.555
PASS-THROUGH NUMBER 4603
AUDIT PERIOD - YEAR ENDED JUNE 30, 2024
2024-001. Allowable Costs/Costs Principles
Criteria or specific requirement: Office of Management and Budget (OMB) 2 CFR part 200, subpart E - Cost Principles establish principles for determining the allowable cost incurred by the District under Federal awards. Such costs are to be necessary and reasonable for the performance of the Federal award.
Condition: Unallowable costs paid from the Child Nutrition program totaling $843 were detected for the audit year. These costs were comprised of $843 in salary payments that should have been recorded in the District's general fund.
Cause: Lack of internal control and management oversight over program expenditures.
Effect or potential effect: Unallowable costs of $843 were paid from the Child Nutrition program.
Questioned costs: The amount of questioned costs was $843.
Context: An examination of Child Nutrition Cluster payroll expenditures for 2 employees ($37,649) from a population of 15 employees ($294,944).
Identification as a repeat finding: No
Recommendation: The District should contact the Arkansas Department of Education Division of Elementary and Secondary Education (DESE) for resolution regarding this matter and implement proper controls over program expenditures.
"Views of responsible officials:. We concur with the recommendation and will contact DESE to ensure that the correct process is used to move the unallowable costs totaling $843 to the operating fund. To correct the payroll issue of charging unallowable costs, the payroll clerk will run reports quarterly to verify all payroll charges to any federal fund are appropriate.
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