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
2023-002. Reporting
Criteria or specific requirement:
The District is required to budget Title I expenditures and submit such information to the Arkansas Division of Elementary and Secondary Education (DESE). Actual expenditures may not exceed the budget amounts for specific categories by more than 10 percent without prior approval from the DESE and submission of of budget amendments or adjustements.
Condition: Title I School Improvement Grant expenditures for function 2212 (Instruction and Curriculum Development) and Title I expenditures for functions 1550 (Early Childhood Education) and 5500 (Indirect Cost) exceeded the budgeted amounts by $738, $6,246 and $8,059, respectively, more than the 10 percent variance allowed.
Cause: The District failed to properly monitor expenditures against the approved budget.
Effect or potential effect: The District did not submit applicable budget amendments or adjustments to DESE approval for the Title I program resulting in actual expenditures exceeding budgeted amounts.
Context: Comparision of budget expenditures to actual expenditures as reported on the annual financial report.
Identification as a repeat finding: No
Recommendation: The District should implement procuedures to ensure expenditures are properly monitored and budgets are amended as necessary and consult with DESE for further gudiance regarding this matter.
Views of responsible officials:DESE will be contacted to ensure proper procedure is followed going forward.
The Federal Program Coordinator will provide a date to all involved parties with a cutoff date for any expenses that were not originally budgeted, to amend the budget, to stay within the guidelines provided by DESE. After that point, no more expenses will be approved that were not budgeted. After the cutoff, the Business Manager will also assist in monitoring the approved budget for payroll expenses or journal entries that may change the total expenses and need a final amendment to the budget submitted. When the final rates for indirect costs are posted, a budget amendment will be done at the time to ensure the anticipated indirect cost will be within budget.