Finding 554936 (2024-001)

Material Weakness
Requirement
E
Questioned Costs
$1
Year
2024
Accepted
2025-04-14
Audit: 353537
Organization: Danville School District (AR)

AI Summary

  • Core Issue: One replaced school bus did not meet eligibility requirements, lacking proof of being operational and providing service as required.
  • Impacted Requirements: The bus must be a 2010 or older diesel model, operational at application time, and have served the district at least three days a week during the previous school year.
  • Recommended Follow-Up: The District should seek further guidance from the EPA and enhance controls to ensure compliance with grant requirements.

Finding Text

U.S. ENVIRONMENTAL PROTECTION AGENCY CLEAN SCHOOL BUS REBATE PROGRAM - AL NUMBER 66.U01 AUDIT PERIOD - YEAR ENDED JUNE 30, 2024 2024-001. Eligibility Criteria or specific requirement: The 2022 Clean School Bus Rebate Program provides the following requirements for the replacement of eligible school buses. The old school buses to be replaced must be a vehicle model year 2010 or older diesel-powered school bus that will be scrapped if selected for replacement; have a gross vehicle weight rating of 10,001 lbs or more; be operational at the time of application submission; and have provided bus service to a public school district for at least 3 days/week on average during the 2021/2022 school year. Condition: The District replaced three school buses funded by the 2022 Clean School Bus Rebate Program (Program). One of the old school buses did not appear to meet all of the eligibility requirements for replacement. Specifically, documentation could not be provided to support that the replaced school bus was operational at the time of the grant application submission or provided bus service to the school district for at least three days/week on average during the 2021/2022 school year, as required by the Program. Cause: Lack of management oversight and understanding of program requirements. Effect or potential effect: One clean school bus replaced an old bus that did not appear to meet the eligibility requirements for replacement. Questioned costs: The amount of questioned costs was $375,000. Context: Three school buses were replaced totaling $1,035,000. Identification as a repeat finding: No Recommendation: The District should contact the U.S. Environmental Protection Agency for guidance regarding this matter and implement controls related to grant requirements. Views of responsible officials: The District has contacted the EPA regarding buses replaced and the new buses purchased in the 2022 Clean School Bus Rebate. As of this date (February 25, 2025), we are still waiting on their instructions for our next actions. The District uploaded all required documentation to the EPA portal in the close out process.

Corrective Action Plan

The District has contacted the EPA regarding buses replaced and the new buses purchased in the 2022 Clean School Bus Rebate. As of April 2, 2025, we are still waiting on their instructions for our next actions. The District uploaded all required documentation to the EPA portal in the close out process. Contact person responsible for corrective action: Kim Foster. Anticipated completion date of corrective action: The EPA was contacted on February 3, 2025.

Categories

Questioned Costs Procurement, Suspension & Debarment Eligibility Matching / Level of Effort / Earmarking Internal Control / Segregation of Duties

Other Findings in this Audit

  • 554937 2024-002
    Significant Deficiency
  • 1131378 2024-001
    Material Weakness
  • 1131379 2024-002
    Significant Deficiency

Programs in Audit

ALN Program Name Expenditures
66.U01 Clean School Bus Rebate Program $1.09M
84.010 Title I Grants to Local Educational Agencies $216,841
84.027 Special Education Grants to States $197,917
10.553 School Breakfast Program $145,747
84.371 Comprehensive Literacy Development $47,729
84.425 Covid-19 - Education Stabilization Fund $43,823
84.367 Supporting Effective Instruction State Grants (formerly Improving Teacher Quality State Grants) $23,540
10.555 National School Lunch Program $17,713
84.424 Student Support and Academic Enrichment Program $16,861
10.582 Fresh Fruit and Vegetable Program $15,426
84.365 English Language Acquisition State Grants $13,052
84.358 Rural Education $7,809
84.173 Special Education Preschool Grants $4,236