Finding 660483 (2022-002)

Significant Deficiency
Requirement
B
Questioned Costs
$1
Year
2022
Accepted
2023-03-27
Audit: 81450
Organization: Quitman School District (AR)

AI Summary

  • Core Issue: $3,011 in unallowable costs were paid from federal COVID-19 funds due to sales tax payments on pre-March 2020 projects.
  • Impacted Requirements: Costs must be necessary, reasonable, and well-documented according to OMB guidelines.
  • Recommended Follow-Up: The District should seek guidance from the Arkansas Division of Elementary and Secondary Education and improve internal controls over expenditures.

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 1203 AUDIT PERIOD - YEAR ENDED JUNE 30, 2022 Allowable Costs/Costs Principles Criteria or specific requirement: Office of Management and Budget (OMB) 2 CFR, part 200, part E - Costs Principles establishes principles and standards for determining allowable costs incurred by the District under federal awards. Such costs are to be necessary and reasonable for the performance of the Federal award and be adequately documented. Condition: In our test of disbursements, we identified unallowable costs totaling $3,011 were paid from the COVID-19 American Rescue Plan - Elementary and Secondary School Emergency Relief Fund. These costs were the result of the District paying sales tax on projects paid from operating funds incurred prior to March 2020. Cause: Lack of internal controls and management oversight over program expenditures. Effect: Unallowable costs of $3,011 were paid from the COVID-19 American Rescue Plan - Elementary and Secondary Emergency Relief Fund. Questioned costs: The amount of questioned costs was $3,011. Context: An examination of 5 checks totaling $11,425 paid from the COVID-19 Elementary and Secondary School Emergency Relief Fund from a population of 47 checks totaling $933,883. Our sample was a statistically valid sample. 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 ensure guidance regarding proper controls over program expenditures.

Categories

Questioned Costs Allowable Costs / Cost Principles Internal Control / Segregation of Duties

Other Findings in this Audit

  • 84041 2022-002
    Significant Deficiency

Programs in Audit

ALN Program Name Expenditures
84.425 Covid-19 - Education Stabilization Fund $1.15M
84.010 Title I Grants to Local Educational Agencies $228,159
10.553 School Breakfast Program $145,027
84.287 Twenty-First Century Community Learning Centers $139,975
84.367 Supporting Effective Instruction State Grants $28,255
10.555 National School Lunch Program $27,575
84.358 Rural Education $16,654
84.424 Student Support and Academic Enrichment Program $13,618
32.009 Emergency Connectivity Fund Program $11,121
84.173 Special Education_preschool Grants $4,094
84.027 Special Education_grants to States $1,960