CAMDEN FAIRVIEW SCHOOL DISTRICT

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 2023-001. Allowable Cost/Cost Principles Criteria or specific requirement: Office of Management and Budget (OMB) 2 CFR Part 200, subpart E - Cost Principles establish principles for determining the allowable cost incurred by the District under Federal awards. Such costs are to be necessary and reasonable for the performance of the Federal award. Condition: Unallowable costs paid from the Title I program totaling $2,060 were detected for the audit year. These costs were comprised of $1,304 for field trips that were not included in the approved budget, and $756 in salary payments that should have been recorded in the District's general fund. Cause: Lack of internal control and management oversight over program expenditures. Effect or potential effect: Unallowable costs of $2,060 were paid from the Title I program. Questioned costs: The amount of questioned costs was $2,060. Context: An examination of Title I program non-payroll expenditures totaling $34,570 (15 checks) from a population of $436,956 (144 checks). One of the fifteen checks examined included unallowable costs. An examination of Title I payroll expenditures for 4 employees ($113,992) from a population of 39 employees ($606.334). Our sample was statistically valid sample. Identification as a repeat finding: No Recommendation: The District should contact the Arkansas Department of Education for resolution regarding this matter and implement proper controls over program expenditures. Views of responsible officials: DESE will be contacted to ensure the correct process is used to move the unallowable costs totaling $2,060 to the Operating Fund. To correct the payroll issue of charging unallowable costs, the payroll clerk will run reports, quarterly, to verify all payroll charges to any federal fund are appropriate, as well as getting the Business Manager and Federal Programs Coordinator’s approval. To correct the fieldtrip being unbudgeted the Federal Programs Coordinator will receive a list of any proposed fieldtrips schools are planning to use Federal money for and budget them accordingly. In addition, all parties approving requisitions will ensure correct coding is used for all Title I purchases.

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.

U.S. DEPARTMENT OF AGRICULTURE PASSED THROUGH ARKANSAS DEPARTMENT OF EDUCATION CHILD NUTRITION CLUSTER ? CFDA NUMBERS 10.553 AND 10.555 PASS-THROUGH NUMBER 5204 AUDIT PERIOD ? YEAR ENDED JUNE 30, 2019 Criteria or specific requirement: The U.S. Department of Agriculture Eligibility Manual for School Meals states that income applications must be properly completed to determine eligibility for free or reduced price meals. The U.S. Department of Agriculture (USDA) guidelines require an entity to perform verification procedures for a specific number of applicants for free and reduced price meals. As part of this process, the applicant?s household must provide the District with written evidence confirming eligibility. Condition: An Administrative Review for the District was completed by the Arkansas Department of Education, Child Nutrition Unit (ADE, CNU) in December 2018 noting the following: ? Five of the fourteen free/reduced price meal applications chosen for verification did not contain sufficient pay information documentation and one of the fourteen applications had a miscalculation on the income pay stub. ? Of the 525 free/reduced price meal applications reviewed, five applications did not include the guardian?s social security number, the eligibility status on three applications was determined incorrectly, and one application did not include an adult signature and the determining official?s signature and date. Cause: Applicable personnel did not obtain proper training and the District did not provide proper management oversight to ensure compliance with applicable regulations. Effect or potential effect: Free/reduced price meal applications were not properly completed. Acceptable documentation was not obtained and income was not properly calculated to substantiate income used to determine proper classification of meal applications during the verification process. Context: Results of an Administrative Review by the Arkansas Department of Education, Child Nutrition Unit (ADE, CNU). Recommendation: The District should implement procedures to ensure free/reduced price meal applications are properly completed and classified. The District should also implement procedures to ensure proper documentation is received during the verification process. Views of responsible officials: District has made every effort to ensure that the verification process is handled more efficiently. The application/verification process has been moved from the campuses to the Central Office.

U.S. DEPARTMENT OF AGRICULTURE PASSED THROUGH ARKANSAS DEPARTMENT OF EDUCATION CHILD NUTRITION CLUSTER ? CFDA NUMBERS 10.553 AND 10.555 PASS-THROUGH NUMBER 5204 AUDIT PERIOD ? YEAR ENDED JUNE 30, 2019 Criteria or specific requirement: Monthly claims for reimbursement are required to be submitted to the Arkansas Department of Education, Child Nutrition Unit (ADE, CNU). Reimbursement claim components include the total number of students eligible for and number of students participating in free, reduced price, and paid meals served. The total meals served by category are to be derived from the daily record forms. Condition: An Administrative Review for the District was completed by the Arkansas Department of Education, Child Nutrition Unit (ADE, CNU) in December 2018 noting the District?s October reimbursement claim did not include sixty free meal status students and also did not include preschool student meals. Cause: Applicable personnel did not properly reconcile daily record forms to the reimbursement claim. Effect or potential effect: The District was not properly reimbursed for meals served during the year. Context: Results of an Administrative Review by the Arkansas Department of Education, Child Nutrition unit (ADE, CNU). Recommendation: The District should exercise due care in the posting of data from the monthly account eligibility reports and daily record forms to the monthly claim for reimbursement. Views of responsible officials: District will make every effort to ensure that all meals are recorded correctly on the monthly claim for reimbursement.

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