MOUNTAIN VIEW SCHOOL DISTRICTLocal Government

U.S. DEPARTMENT OF EDUCATION PASSED THROUGH ARKANSAS DEPARTMENT OF EDUCATION COVID-19 AMERICAN RESCUE PLAN - ELEMENTARY AND SECONDARY SCHOOL EMERGENCY RELIEF FUND - AL NUMBER 84.425U PASS-THROUGH NUMBER 6901 AUDIT PERIOD - YEAR ENDED JUNE 30, 2023 2023-001: Allowable Costs/Cost Principles Criteria or specific requirement: Costs charged to a federal program must be allowable per the applicable Office of Management and Budget (OMB) Circular. Indirect costs claimed must be calculated in accordance with a formula prescribed by the Arkansas Division of Elementary and Secondary Education (DESE). Condition: The District claimed indirect cost in excess of the allowable amount by $7,877 for the COVID-19 American Rescue Plan - Elementary and Secondary School Emergency Relief Fund (ESSER) program. Cause: Lack of internal controls and management oversight regarding indirect costs contributed to the claiming of excessive costs. Effect or potential effect: Unallowable costs of $7,877 were paid from the COVID-19 - Education Stabilization Fund. Questioned costs: The amount of questioned costs was $7,877. Context: An examination of ESSER program disbursements and the prescribed formula for calculation of allowable indirect costs, we determined the District claimed indirect costs in excess of the allowable amount by $7,877. Identification as a repeat finding: No 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 contact the Arkansas Division of Elementary and Secondary Education for guidance on returning the funds and the District will take care to make sure all unallowable expenditures are not included in the calculation for indirect cost taken in the future on all federal funds.

FEDERAL COMMUNICATIONS COMMISSION COVID-19 EMERGENCY CONNECTIVITY FUND - AL NUMBER 32.009 AUDIT PERIOD - YEAR ENDED JUNE 30, 2022 Special Tests and Provisions and Activities Allowed or Unallowed Criteria or specific requirement: Office of Management and Budget (OMB) 47 CFR ? 54.1710 requires entities requesting funding to certify that they are only seeking support for eligible equipment provided to students or school staff who would otherwise lack connected devices sufficient to engage in remote learning. The Federal Communications Commission has defined school staff as those staff who provide educational services to students, such as teachers and para-professionals that work with students in the classroom or virtual classroom. Condition: During testing, we identified unallowable costs totaling $2,800 for seven devices that were provided to school board members, who do not provide educational services to students. Cause: District's unfamiliarity with the new federal program. Effect: The District received funding in excess of the unmet need for their students and school staff resulting in unallowable costs of $2,800 paid from the Emergency Connectivity Fund. Questioned costs: The District was reimbursed for seven devices or $2,800 more than eligible. Context: Of the 446 devices purchased, seven were not eligible to be reimbursed. Recommendation: The District should contact the Federal Communications Commission for guidance regarding this matter and implement proper controls over program expenditures. Views of responsible officials: The District will seek guidance from the Federal Communications Commission on how the devices should be used and will implement proper controls over the program.

FEDERAL COMMUNICATIONS COMMISSION COVID-19 EMERGENCY CONNECTIVITY FUND - AL NUMBER 32.009 AUDIT PERIOD - YEAR ENDED JUNE 30, 2022 Special Tests and Provisions Criteria or specific requirement: Office of Management and Budget (OMB) 47 CFR ? 54.1710 requires entities requesting funding to certify that they are only seeking support for eligible equipment provided to students and school staff who would otherwise lack connected devices sufficient to engage in remote learning. Condition: During testing, we identified the District purchased and requested reimbursement totaling $7,415 for devices purchased for the sole purpose of anticipated loss or breakage, which did not meet the definition of eligible equipment. Cause: District's unfamiliarity with the new federal program. Effect: The District received funding in excess of the unmet need for their students and school staff resulting in unallowable costs of $7,415 paid from the Emergency Connectivity Fund. Questioned costs: The District was reimbursed for 24 devices or $7,415 more than eligible. Context: Of the 446 devices purchased, 24 were not eligible to be reimbursed. Recommendation: The District should contact the Federal Communications Commission for guidance regarding this matter and implement proper controls over program expenditures. Views of responsible officials: The District will seek guidance from the Federal Communications Commission on how the remaining devices should be used and implement proper controls over the program.