Finding Text
U.S. DEPARTMENT OF EDUCATION
PASSED THROUGH ARKANSAS DEPARTMENT OF EDUCATION
COVID-19 AMERICAN RESCUE PLAN - ELEMENTARY AND SECONDARY SCHOOL EMERGENCY RELIEF FUND - AL NUMBER 84.425U
PASS-THROUGH NUMBER 6901
AUDIT PERIOD - YEAR ENDED JUNE 30, 2023
2023-001: Allowable Costs/Cost Principles
Criteria or specific requirement: Costs charged to a federal program must be allowable per the applicable Office of Management and Budget (OMB) Circular. Indirect costs claimed must be calculated in accordance with a formula prescribed by the Arkansas Division of Elementary and Secondary Education (DESE).
Condition: The District claimed indirect cost in excess of the allowable amount by $7,877 for the COVID-19 American Rescue Plan - Elementary and Secondary School Emergency Relief Fund (ESSER) program.
Cause: Lack of internal controls and management oversight regarding indirect costs contributed to the claiming of excessive costs.
Effect or potential effect: Unallowable costs of $7,877 were paid from the COVID-19 - Education Stabilization Fund.
Questioned costs: The amount of questioned costs was $7,877.
Context: An examination of ESSER program disbursements and the prescribed formula for calculation of allowable indirect costs, we determined the District claimed indirect costs in excess of the allowable amount by $7,877.
Identification as a repeat finding: No
Recommendation: The District should contact the Arkansas Division of Elementary and Secondary Education for guidance regarding this matter and implement proper controls over program expenditures.
Views of responsible officials: The District will contact the Arkansas Division of Elementary and Secondary Education for guidance on returning the funds and the District will take care to make sure all unallowable expenditures are not included in the calculation for indirect cost taken in the future on all federal funds.