Finding 529654 (2024-001)

U.S. DEPARTMENT OF EDUCATION PASSED THROUGH ARKANSAS DEPARTMENT OF EDUCATION SPECIAL EDUCATION - GRANTS TO STATES AL NUMBER 84.027A AND COVID-19 AMERICAN RESCUE PLAN - SPECIAL EDUCATION - GRANTS TO STATES AL NUMBER 84.027X PASS-THROUGH NUMBER 1803 AUDIT PERIOD - YEAR ENDED JUNE 30, 2024 2024-01. Allowable Costs/Cost Principles Criteria or specific requirement: Office of Management and Budget (OMB) 2 CFR part 200, subpart D - Establish, document, and maintain effective internal controls over the Federal award in compliance with Federal statutes, regulations, and the terms and conditions of the Federal Award. Such controls are necessary and reasonable for the performance of the Federal Award. Condition: During our test of 23 Special Education program expenditures, we identified 21 expenditures totaling $199,062 that lacked documented approval prior to payment. Cause: Lack of internal controls and failure to properly document approval of invoices prior to payment. Effect: The District was unable to provide evidence of documented approval of invoices prior to payment. Context: Of the 23 expenditures tested, totaling $199,361, 21 expenditures totaling $199,062, did not indicate any form of approval. Identification as a repeat finding: No Recommendation: The District should implement procedures to ensure all expenditures indicate they've been properly reviewed and approved prior to payment. Views of responsible officials: Joyce Lowery, Special Education Bookkeeper, will receive all signed approval for expenditures from Lynell McGruder, Director of Special Education before the expenditure is ordered. Once all items have been verified and received, Ms. McGruder will review and sign invoice giving approval to pay. The District will establish purchase order and payment policy and procedures.