EIN: 716014717
UEI: JN2ELBGE7KQ7
Audited by: Arkansas Legislative Audit
Cognizant agency: 84 [Department of Education]
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Data as of September 7, 2026
Management decision deadline — for entities that funded this organization
The FAC accepted this audit on March 13, 2026. Under 2 CFR 200.521(d), a pass-through entity that provided federal funds to this organization for this audit period must issue a management decision on these findings by September 13, 2026 (5 days from today).
What is a management decision? →FAC accepted this audit on March 17, 2025 — management decision was due September 17, 2025.
FAC accepted this audit on March 25, 2024 — management decision was due September 25, 2024.
FAC accepted this audit on March 28, 2023 — management decision was due September 28, 2023.
In our test of equipment purchases from the COVID-19 Education Stabilization Fund, we identified the purchase of 447 pieces of equipment with unit costs greater than the $5,000 threshold for which the District did not obtain prior written approval from the Arkansas Division of Elementary and Secondary Education. Retroactive approval was subsequently obtained from DESE during audit fieldwork. Cause: Lack of internal controls and management oversight over program expenditures. Effect or potential effect: Unallowable costs of $2,859,534 were paid from the COVID-19 Education Stabilization Fund. Questioned costs: The amount of questioned costs was $2,859,534. Context: We examined all capital expenditures of the COVID-19 Education Stabilization Fund totaling $4,660,482. 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 continue to monitor internal controls in regards to use of ESSER funds and ensure all prior approvals are granted by DESE before purchasing of capital assets with a unit value equal to or greater than $5,000.
Show full finding ▾Hide full finding ▴U.S. DEPARTMENT OF EDUCATION PASSED THROUGH ARKANSAS DEPARTMENT OF EDUCATION COVID-19 ELEMENTARY AND SECONDARY SCHOOL EMERGENCY RELIEF FUND - AL NUMBER 84.425U PASS-THROUGH NUMBER 6001 AUDIT PERIOD - YEAR ENDED JUNE 30, 2022 Criteria or specific requirement: Purchases of equipment and other capital expenditures require the written approval of the Federal awarding agency or pass-through entity, as specified in Office of Management and Budget (OMB) 2 CFR section 200.439. Condition: In our test of equipment purchases from the COVID-19 Education Stabilization Fund, we identified the purchase of 447 pieces of equipment with unit costs greater than the $5,000 threshold for which the District did not obtain prior written approval from the Arkansas Division of Elementary and Secondary Education. Retroactive approval was subsequently obtained from DESE during audit fieldwork. Cause: Lack of internal controls and management oversight over program expenditures. Effect or potential effect: Unallowable costs of $2,859,534 were paid from the COVID-19 Education Stabilization Fund. Questioned costs: The amount of questioned costs was $2,859,534. Context: We examined all capital expenditures of the COVID-19 Education Stabilization Fund totaling $4,660,482. 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 continue to monitor internal controls in regards to use of ESSER funds and ensure all prior approvals are granted by DESE before purchasing of capital assets with a unit value equal to or greater than $5,000.
Finding 2022-001 Allowable Costs/Cost Principles Criteria or Specific requirement: Purchases of equipment and other capital expenditures require the written approval of the Federal awarding agency or pass-through entity, as specified in Office of Management and Budget (OMB) 2 CFR section 200.439. Condition: In our test of equipment purchases from the COVID-19 Education Stabilization Fund, we identified the purchase of 447 pieces of equipment with the unit costs greater than the $5,000 threshold for which the District did not obtain prior written approval from the Arkansas Division of Elementary and Secondary Education (DESE). Retroactive approval was subsequently obtained from DESE during the audit fieldwork. LRSD Response: The District will continue to monitor internal controls in regards to use of ESSER funds and ensure all prior approvals are granted by DESE before purchasing of capital assets with a unit value equal to or greater than $5,000. Responsible LRSD Staff: Kelsey Bailey, CDFO, will be responsible for ensuring compliance. Completion Date: Kelsey Bailey has made contact with Jayne Greene at DESE for guidance and retroactive approval was granted from DESE on March 9, 2023. Please let me know if additional information is needed. Respectfully, Kelsey Bailey Chief Deputy Finance & Operations Officer
FAC accepted this audit on May 8, 2022 — management decision was due November 8, 2022.
FAC accepted this audit on March 14, 2021 — management decision was due September 14, 2021.
FAC accepted this audit on March 25, 2020 — management decision was due September 25, 2020.
FAC accepted this audit on March 24, 2019 — management decision was due September 24, 2019.
FAC accepted this audit on March 25, 2018 — management decision was due September 25, 2018.
FAC accepted this audit on March 26, 2017 — management decision was due September 26, 2017.
Data source: This information comes from the Federal Audit Clearinghouse, the official repository of Single Audit data. All data is public domain. Verify this organization's audit history at fac.gov.
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