Finding Text
U.S. DEPARTMENT OF EDUCATION PASSED THROUGH ARKANSAS DEPARTMENT OF EDUCATION COVID-19 ELEMENTARY AND SECONDARY SCHOOL EMERGENCY RELIEF FUND - AL NUMBERS 84.425D AND 84.425U PASS-THROUGH NUMBER 5440 AUDIT PERIOD - YEAR ENDED JUNE 30, 2025 2025-005. Allowable Costs/Cost Principles Criteria or specific requirement: Office of Management and Budget (OMB) 2 CFR 200.430(g)(1) requires that salaries and wages charged to federal awards must be based on records that accurately reflect the work performed. Condition: Time distribution certifications that support salaries and wages charged to the Education Stabilization Fund were not maintained. A similar finding was noted in the prior year. Cause: Procedures are in place for personnel to review the accuracy of the time distribution certifications. However, these procedures were not followed in the current year. Effect or potential effect: Without proper documentation, it cannot be verified that salaries and wages charged to program were based on actual time spent on allowable program-related activities. Questioned costs: $19,396. Context: A sample of 4 employees from a population of 31 employees. Our sample was not a statistically valid sample. Identification as a repeat finding: Yes Recommendation: The Charter School should follow procedures established to ensure charges are accurate, allowable, and properly allocated. Views of responsible officials: The School has now made personnel and policy changes, and established procedures regarding time certifications that provide assurance that charges are accurate, allowable, and properly allocated.