MOUNTAIN PINE SCHOOL DISTRICTLocal Government

U.S. DEPARTMENT OF EDUCATION PASSED THROUGH ARKANSAS DEPARTMENT OF EDUCATION TWENTY-FIRST CENTURY COMMUNITY LEARNING CENTERS - AL NUMBER 84.287C PASS-THROUGH NUMBER 2607 AUDIT PERIOD - YEAR ENDED JUNE 30, 2023 2023-001.Activities Allowed or Unallowed and Allowable Costs/Cost Principles Criteria or specific requirement: Office of Management and Budget (OMB) 2 CFR section 200.430 requires that personnel expenses (payroll) charged to federal awards must be based on records that adequately reflect the work performed. These records must be supported by a system of internal control that provides reasonable assurance through adequate documentation that the charges are accurate, allowable, and properly allocated. Additionally, the Arkansas Division of Elementary and Secondary Education (DESE) established grant guidance for the Twenty-First Century Community Learning Centers program, which states that timesheets must be signed by both the employee and the employee’s direct supervisor in the program, and the superintendent or district designee should sign timesheets for program directors. Condition: During our review of Twenty-First Century Community Learning Centers program payroll expenditures, we noted the following discrepancies: • Timesheet documentation was not provided for one employee for payments totaling $275. • Timesheets for three employees, totaling $1,030, were not signed by the employees' direct supervisor. Additionally, timesheets totaling $2,170 were not signed by the applicable employees. • Timesheets for two employees, totaling $418, appear to have been completed and signed by someone other than the employees. • The Site Coordinator was overpaid $1,920 for timesheets that conflicted with the employee’s existing contract. Additionally, timesheets totaling $7,580 were not signed by the employee’s direct supervisor. • The Program Director was overpaid $180 and $620, respectively, for hours that conflicted with the existing contract and for duplicate hours. Additionally, timesheets totaling $21,350 for the Site Director were not signed by the superintendent/district designee. Cause: Lack of internal controls and management oversight over program expenditures. Effect or potential effect: Questionable salary expenditures of $35,543 plus applicable fringe benefits of $8,050 were detected for the program. Questioned costs: Total questioned costs for the program were $43,593. Context: We examined all timesheets for the Program Director, Site Coordinator, Superintendent, and 3 additional program employees totaling $80,190 from a total population of 28 employees totaling $123,873. Our sample was statistically valid. Identification as a repeat finding: No Recommendation: The District should exercise proper oversight and implement proper internal controls over program expenditures. Additionally, the District should contact the Arkansas Division of Elementary and Secondary Education (DESE) for guidance regarding compliance with federal regulations. Views of responsible officials: The district will ensure that proper timesheets are submitted and signed by the employee and the program director. The Mountain Pine School District will exercise proper oversight and implement proper internal controls over program expenditures. The district will contact the Arkansas Division of Elementary and Secondary Education (DESE) for guidance regarding compliance with federal regulations.

U.S. DEPARTMENT OF EDUCATION PASSED THROUGH ARKANSAS DEPARTMENT OF EDUCATION TWENTY-FIRST CENTURY COMMUNITY LEARNING CENTERS - AL NUMBER 84.287C PASS-THROUGH NUMBER 2607 AUDIT PERIOD - YEAR ENDED JUNE 30, 2023 2023-002.Activities Allowed or Unallowed and Allowable Costs/Cost Principles Criteria or specific requirement: Office of Management and Budget (OMB) 2 CFR part 200, subpart E - Cost Principles, establishes principles for determining the allowable costs incurred by the District under federal awards. Such costs are to be necessary and reasonable for the performance of the federal award, as well as adequately documented. Additionally, the Arkansas Division of Elementary and Secondary Education (DESE) established grant guidance for the Twenty-First Century Community Learning Centers program, which states Professional Development (PD) and Training Staff Documentation Forms must be completed and approved by the program director (or supervisor) before and after the PD. Condition: During our review of Twenty-First Century Community Learning Centers program non-payroll expenditures, we noted $4,876 in expenditures for conference registration, airfare, hotels, meals, local transportation, and parking fees during a professional development conference. Because supporting documentation of conference attendance (i.e., a certificate of completion) could not be provided, we were unable to verify that the employees attended the conference. Additionally, we noted unallowable costs paid from the Twenty-First Century Community Learning Centers program totaling $1,139 for conference registration and airfare charged to the program in error. Specifically, these costs should have been charged to a different program. Cause: Lack of internal controls and management oversight over program expenditures. Effect or potential effect: Questionable expenditures of $6,015 were detected for the program. Questioned costs: Total questioned costs for the program were $6,015. Context: We examined 4 non-payroll expenditures totaling $9,270 from a total population of 12 totaling $16,322. Our sample was statistically valid. Identification as a repeat finding: No Recommendation: The District should exercise proper oversight and implement proper internal controls over program expenditures. Additionally, the District should contact the Arkansas Division of Elementary and Secondary Education (DESE) for guidance regarding compliance with federal regulations. Views of responsible officials: The district will ensure that proper supporting documents for any conference registration will be approved and a certificate of attendance will be obtained. The Mountain Pine School District will take the appropriate action to ensure that expenditures are coded to the correct fund or program.