Finding Text
U.S. DEPARTMENT OF EDUCATION
PASSED THROUGH ARKANSAS DEPARTMENT OF EDUCATION
SPECIAL EDUCATION - GRANTS TO STATES - AL NUMBER 84.027A
PASS-THROUGH NUMBER 5403
AUDIT PERIOD - YEAR ENDED JUNE 30, 2023
2023-003. Allowable Costs/Cost Principles
Criteria or specific requirement: Office of Management and Budget (OMB) 2 CFR part 200, subpart E – Cost 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. District employee' salaries should be based on the applicable salary schedule included in the District's written personnel polices, as required by Ark. Code Ann. §6-17-201.
Condition: A Special Education employee's contracted salary amount did not agree to the approved salary schedule for the position resulting in $6,646 in unallowable costs.
Cause: Lack of internal controls to ensure employee contracts are prepared in accordance with the applicable approved salary schedule.
Effect or potential effect: Unallowable costs of $6,646 were paid from the Special Education Cluster.Questioned costs: The amount of questioned costs was $6,646.
Context: An examination of Special Education program payroll expenditures for 1 employee totaling $75,678 from a population of 4 employees totaling $185,744. Our sample was a statistically valid sample.
Identification as a repeat finding: No
Recommendation: The District should contact the Arkansas Division of Elementary and Secondary Education (DESE) for resolution regarding this matter and implement proper controls over program payroll expenditures.
Views of responsible officials: We have revised our internal process and procedures that will review all employee contracts with the salary schedule. A system of checks and balances has been established that include reviewing payout of all employees according to the contract periodically.