Finding Text
U.S. DEPARTMENT OF EDUCATION
PASSED THROUGH ARKANSAS DEPARTMENT OF EDUCATION
TITLE I GRANTS TO LOCAL EDUCATIONAL AGENCIES - AL NUMBER 84.010A
PASS THROUGH NUMBER 5204
AUDIT PERIOD - YEAR END JUNE 30, 2023
2023-001. Allowable Cost/Cost Principles
Criteria or specific requirement:
Office of Management and Budget (OMB) 2 CFR Part 200, subpart E - Cost Principles establish principles for determining the allowable cost incurred by the District under Federal awards. Such costs are to be necessary and reasonable for the performance of the Federal award.
Condition: Unallowable costs paid from the Title I program totaling $2,060 were detected for the audit year. These costs were comprised of $1,304 for field trips that were not included in the approved budget, and $756 in salary payments that should have been recorded in the District's general fund.
Cause: Lack of internal control and management oversight over program expenditures.
Effect or potential effect: Unallowable costs of $2,060 were paid from the Title I program.
Questioned costs: The amount of questioned costs was $2,060.
Context: An examination of Title I program non-payroll expenditures totaling $34,570 (15 checks) from a population of $436,956 (144 checks). One of the fifteen checks examined included unallowable costs. An examination of Title I payroll expenditures for 4 employees ($113,992) from a population of 39 employees ($606.334). Our sample was statistically valid sample.
Identification as a repeat finding: No
Recommendation: The District should contact the Arkansas Department of Education for resolution regarding this matter and implement proper controls over program expenditures.
Views of responsible officials: DESE will be contacted to ensure the correct process is used to move the unallowable costs totaling $2,060 to the Operating Fund.
To correct the payroll issue of charging unallowable costs, the payroll clerk will run reports, quarterly, to verify all payroll charges to any federal fund are appropriate, as well as getting the Business Manager and Federal Programs Coordinator’s approval.
To correct the fieldtrip being unbudgeted the Federal Programs Coordinator will receive a list of any proposed fieldtrips schools are planning to use Federal money for and budget them accordingly. In addition, all parties approving requisitions will ensure correct coding is used for all Title I purchases.