Finding Text
"U.S. DEPARTMENT OF EDUCATION
PASSED THROUGH ARKANSAS DEPARTMENT OF EDUCATION
EDUCATION STABILIZATION FUND - AL NUMBER 84.425U
PASS-THROUGH NUMBER 5403
AUDIT PERIOD - YEAR ENDED JUNE 30, 2023"
2023-002. Allowable Costs/Cost Principles
Criteria or specific requirement: Office of Management and Budget (OMB) 2 CFR part 200, subpart E – Cost 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 adequately documented.
Condition: During our examination of Education Stabilization Fund payroll expenditures, we noted one employee was overpaid $430.
Cause: Lack of internal controls and management oversight over program expenditures.
Effect or potential effect: Unallowable costs of $430 were paid from COVID-19-Education Stabilization Fund.
Questioned costs: The amount of questioned costs was $430.
Context: An examination of Education Stabilization Fund payroll expenditures for 19 employees totaling $100,210 from a population of 183 employees totaling $1,077,990. Our sample was a statistically valid sample.
Identification as a repeat finding: No
Recommendation: The District should contact the Arkansas Division of Elementary and Secondary Education (DESE) for resolution regarding this matter and implement proper controls over program payroll expenditures.
Views of responsible officials: We have revised our internal policies and procedures that includes a system of checks and balances including payroll. This system will allow the district to review purchases, payroll, and the fund source to ensure alignment.