Finding 398335 (2023-002)

U.S. DEPARTMENT OF HEALTH AND HUMAN SERVICES PASSED THROUGH ARKANSAS DEPARTMENT OF EDUCATION SUBSTANCE ABUSE AND MENTAL HEALTH SERVICES PROJECTS OF REGIONAL AND NATIONAL SIGNIFICANCE - AL NUMBER 93.243 PASS-THROUGH NUMBER 4605 AUDIT PERIOD - YEAR ENDED JUNE 30, 2023 2023-002.Reporting Criteria or specific requirement: The District is required to submit a semi-annual and final financial report for each award year to the Arkansas Division of Elementary and Secondary Education (DESE). Reports should be accurate and supported with proper documentation. Condition: The final financial report submitted by the District to DESE for the Substance Abuse and Mental Health Services Project Award Year 4 Grant was not complete and did not receive final approval from DESE. Additionally, the mid-year financial report for Award Year 5 submitted by the District to DESE did not agree with the underlying accounting records for the period covered. Cause: Lack of internal controls and management oversight. Effect or potential effect: The District did not comply with the reporting requirements. Context: Examined mid-year and final financial reports. 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 District will contact DESE to determine if further steps are needed. The Assistant Superintendent of Student Services will facilitate this action.