Finding 554937 (2024-002)

Significant Deficiency
Requirement
F
Questioned Costs
-
Year
2024
Accepted
2025-04-14
Audit: 353537
Organization: Danville School District (AR)

AI Summary

  • Core Issue: Required documentation for scrapping three school buses was not provided, specifically missing photographs of the destroyed engine and chassis rail.
  • Impacted Requirements: The Clean School Bus Rebate Program mandates specific scrappage documentation, including photographic evidence and a signed letter from the scrap yard.
  • Recommended Follow-Up: The District should seek guidance from the U.S. EPA and establish better 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 2024-002. Equipment and Real Property Management Criteria or specific requirement: The 2022 Clean School Bus Rebate Program provides the following requirements for scrappage of old buses. The scrappage of the old school buses to be replaced must be completed by (1) crushing the engine or creating a 3" diameter or larger hole in the engine block and (2) cutting or crushing one chassis rail between the axles. Documentation of the scrappage must include photographs of the destroyed engine and chassis rail for each scrapped bus and a letter signed by the representative of the scrap yard or other entity that performed the scrappage that lists the VINs of the buses that were scrapped, affirms the date(s) that the buses were scrapped, details the method of scrappage that aligns with the requirements outlined above, and lists contact information for the entity that performed the scrappage. Condition: All required documentation of the scrappage of the three school buses from the 2022 Clean School Bus Rebate Program (Program) could not be provided. Specifically, photographs of the destroyed engine and chassis rail for each scrapped bus were not retained, as required by the Program. Cause: Lack of management oversight and understanding of program requirements. Effect or potential effect: All required documentation of the scrapped school buses was not available. 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 had the three buses enrolled in the EPA Program crushed in entirety at Cunningham Metals in Russellville, AR. The motor was only to be drilled if the District was keeping the chassis on site. The receipt from the salvage was uploaded to the EPA portal in the close out process. Pictures taken at the salvage yard and a letter was provided by the salvage yard. As of this date (February 25, 2025), we are waiting on instructions from the EPA for our next actions.

Corrective Action Plan

The District had the three buses enrolled in the EPA Program crushed in entirety at Cunningham Metals in Russellville, AR. The motor was only to be drilled if the District was keeping the chassis on site. The receipt from the salvage was uploaded to the EPA portal in the close out process. Pictures taken at the salvage yard and a letter was provided by the salvage yard. As of April 2, 2025, we are waiting on instructions from the EPA for our next actions. Contact person responsible for corrective action: Kim Foster. Anticipated completion date of corrective action: The EPA was contacted on February 3, 2025.

Categories

Equipment & Real Property Management Matching / Level of Effort / Earmarking

Other Findings in this Audit

  • 554936 2024-001
    Material Weakness
  • 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