Finding Text
U.S. DEPARTMENT OF EDUCATION PASSED THROUGH ARKANSAS DEPARTMENT OF EDUCATION SPECIAL EDUCATION CLUSTER - AL NUMBERS 84.027A AND 84.173A PASS-THROUGH NUMBER 5440 AUDIT PERIOD - YEAR ENDED JUNE 30, 2025 2025-004. Activities Allowed or Unallowed and Allowable Costs/Cost Principles Criteria or specific requirement: Office of Management and Budget (OMB) 2 CFR part 200, subpart E – Cost Principles, establishes principles for determining the allowable costs incurred by the School under federal awards. Such costs are to be necessary and reasonable for the performance of the federal award. Condition: During our test of Special Education non-payroll expenditures, we identified unallowable costs totaling $19,750. Cause: Lack of internal controls and management oversight over program expenditures. Effect or potential effect: Unallowable costs of $19,750 were paid from Special Education funds. Questioned costs: $19,750. Context: Tested all non-payroll checks (2) totaling $25,240. Identification as a repeat finding: No Recommendation: The Charter School 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 School has made personnel and policy changes and has also been in contact with DESE for guidance. The School has since made coding corrections and implemented proper controls over program expenditures.