Finding Text
U.S. DEPARTMENT OF EDUCATION
PASSED THROUGH THE ARKANSAS DEPARTMENT OF EDUCATION
COVID-19 - AMERICAN RESCUE PLAN - ELEMENTARY AND SECONDARY SCHOOL EMERGENCY RELIEF FUND - AL NUMBER 84.425U
PASS-THROUGH NUMBER 7009
AUDIT PERIOD - YEAR ENDED JUNE 30, 2023
2023-002 Allowable Costs/Cost Principles
Criteria or specific requirement: Purchase of equipment and other capital expenditures require the prior written approval of the Federal awarding agency or pass-through entity, as specified in Office of Management and Budget (OMB) 2 CFR Section 200.439.
Condition: In our test of expenditures from the COVID-19 Education Stabilization Fund, we identified two equipment purchases with unit costs greater than the $5,000 threshold for which the District did not obtain prior written approval from the Arkansas Division of Elementary and Secondary Education (DESE). These purchases had a total cost of $10,400.
Cause: Lack of Internal controls and management oversight over program expenditures.
Effect or potential effect: Unallowable costs of $10,400 were paid from the COVID-19 - Education Stabilization Fund.
Questioned costs: The amount of questioned costs were $10,400.
Context: We examined all capital expenditures of the COVID-19 - Education Stabilization Fund totaling $68,927.
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 communicate with the team at DESE to determine what is needed to bring all files current. The District understands fully that all state and federal spending must follow guidelines set forth in the grant or amount allocated. Accounts payable will not release funds until all guidelines and documents are secured and attached to the Purchase Card of Purchase Order form. The District will conduct a training to inform supervisors what forms and guidelines are required prior to the release of any monies.