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.