FAC Explorer

Audit 292675

FY End
2023-06-30
Total Expended
$17.59M
Findings
6
Programs
20
Organization: Crane Elementary School District No. 13 (AZ)
Year: 2023 Accepted: 2024-02-28
Auditor: Heinfeld Meech & CO PC

Organization Exclusion Status:

Findings

ID Ref Severity Repeat Requirement
371013 2023-001 Material Weakness - F
371014 2023-002 Significant Deficiency - L
371015 2023-002 Significant Deficiency - L
947455 2023-001 Material Weakness - F
947456 2023-002 Significant Deficiency - L
947457 2023-002 Significant Deficiency - L

Programs

ALN Program Spent Major Findings
10.559 Summer Food Service Program for Children $2.81M - 0
84.010 Title I Grants to Local Educational Agencies $2.17M - 0
84.027 Special Education_grants to States $1.29M Yes 0
10.553 School Breakfast Program $1.05M - 0
84.011 Migrant Education_state Grant Program $952,426 Yes 0
84.287 Twenty-First Century Community Learning Centers $909,536 Yes 0
10.558 Child and Adult Care Food Program $707,423 - 0
84.367 Supporting Effective Instruction State Grant $309,754 - 0
10.555 National School Lunch Program $278,834 - 0
84.365 English Language Acquisition State Grants $216,807 - 0
84.358 Rural Education $155,207 - 0
84.027 Covid-19 Special Education_grants to States $147,026 Yes 0
84.424 Student Support and Academic Enrichment Program $135,434 - 0
93.778 Medical Assistance Program $115,762 - 0
84.425 Covid-19 Education Stabilization Fund $28,152 Yes 0
84.173 Special Education_preschool Grants $24,220 Yes 0
84.196 Education for Homeless Children and Youth $21,239 - 0
84.173 Covid-19 Special Education_preschool Grants $6,483 Yes 0
16.839 Stop School Violence $4,439 - 0
21.027 Covid-19 Coronavirus State and Local Fiscal Recovery Funds $239 - 0

Contacts

Name Title Type
FQLAFBJCWKN6 Jennifer Bosch Auditee
9283733410 Michael A. Hoerig, CPA Auditor
No contacts on file

Notes to SEFA

Title: Assistance Listing Numbers Accounting Policies: The accompanying Schedule of Expenditures of Federal Awards (Schedule) includes the federal grant activity of Crane Elementary School District No. 13 under programs of the federal government for the year  ended  June  30,  2023.  The  information  in  the  Schedule  is  presented  in  accordance  with  the  requirements of Title 2 U.S. Code of Federal Regulations Part 200, Uniform Administrative Requirements,  Cost  Principles,  and  Audit  Requirements  for  Federal  Awards  (Uniform  Guidance). Because the Schedule presents only a selected portion of the operations of the District, it is not intended to and does not present the financial position, changes in net position or cash flows of the District. Expenditures reported on the Schedule are reported on the modified accrual basis of accounting. Such expenditures are recognized following the cost principles contained in the Uniform Guidance,  wherein  certain  types  of  expenditures  are  not  allowable  or  are  limited  as  to  reimbursement. Any negative amounts shown on the Schedule represent adjustments or credits made in the normal course of business to amounts reported as expenditures in prior years. Pass‐through entity identifying numbers are presented where available. De Minimis Rate Used: N Rate Explanation: The auditee did not use the de minimis indirect cost rate. The program titles and Assistance Listing numbers were obtained from the federal or pass‐through grantor or through sam.gov. If the three‐digit Assistance Listing extension is unknown, there is a U followed by a two‐digit number in the Assistance Listing extension to identify one or more Federal award lines from that program. The first Federal program with an unknown three‐digit extension is indicated with U01 for all award lines associated with that program, the second is U02, etc.

Finding Details

Finding 2023-001
Finding Number: 2023‐001 Repeat Finding: No Program Name/Assistance Listing Title: COVID‐19 Education Stabilization Fund Assistance Listing Number: 84.425U Federal Agency: U.S. Department of Education Federal Award Number: S425U210038 Pass‐Through Agency: Arizona Department of Education Questioned Costs: N/A Type of Finding: Noncompliance, Material Weakness Compliance Requirement: Equipment and Real Property Management Criteria Under 2CFR §200.313, the District is required to maintain property records that include a description of the property, a serial number or other identification number, the source of funding for the property (including the FAIN), who holds title, the acquisition date, and cost of the property, percentage of Federal  participation  in  the  project  costs  for  the  Federal  award  under  which  the  property  was  acquired, the location, use and condition of the property, and any ultimate disposition data including the date of disposal and sale price of the property. Condition The  District  did  not  ensure  all  asset  additions  charged  to  the  Education  Stabilization  Fund  were  included in the capital asset listing. Cause The  District  did  not  have  sufficient  review  procedures  in  place  to  ensure  federally‐funded  capital  assets were included in the capital asset listing. Effect The District did not initially comply with the equipment and real property management requirements of the grant. As a result of auditor inquiry, management updated the capital asset listing to include the federally‐funded capital asset project. Context The  District  utilized  $485,801  of  Education  Stabilization  Funds  for  HVAC  upgrades,  but  failed  to  include the project in the initial capital asset listing provided to auditors. The sample was not intended to be, and was not, a statistically valid sample. Recommendation The District should allocate the necessary resources to implement controls and review procedures over capital asset schedules to ensure they are prepared accurately. Specifically, the District controls should  include  a  review  of  federally‐funded  projects  to  determine  if  they  have  been  properly  reflected in the year‐end capital asset listing. Views of Responsible Officials See Corrective Action Plan.
Finding 2023-002
Finding Number: 2023‐002 Repeat Finding: No Program Name/Assistance Listing Title: COVID‐19 Education Stabilization Fund Assistance Listing Number: 84.425D, 84.425U Federal Agency: U.S. Department of Education Federal Award Number: S425D210038, S425U210038 Pass‐Through Agency: Arizona Department of Education Questioned Costs: N/A Type of Finding: Noncompliance, Significant Deficiency Compliance Requirement: Reporting Criteria Education Stabilization Fund grant recipients are required to submit an annual performance report with data on expenditures, planned expenditures, subrecipients, and uses of funds. The District, as a subrecipient  of  the  Arizona  Department  of  Education  (ADE),  fulfills  this  requirement  through  completion of ADE's LEA Uses of ESSER I, II & III Report (ESSER Report). Condition The District did not maintain adequate supporting documentation for various data included in the ESSER Report submitted to ADE. Cause The  District  did  not  have  sufficient  review  procedures  in  place  to  ensure  the  ESSER  Report  was  sufficiently supported, and/or did not maintain documentation utilized when the ESSER Report was prepared. Effect The District was unable to accurately and fully support the data submitted on the ESSER Report. Context The data maintained by the District to support the allocation of costs to specific object codes and expenditure categories  for  ESSER  II  and  ESSER  III  did  not  agree  to  the  amounts  reported  to  ADE.  However, the total amounts expended for ESSER II and ESSER III were consistent with the District's accounting records. Additionally, the full time equivalent (FTE) amount submitted did not agree with District records. Recommendation The District should ensure that accurate federal reports are prepared and that proper supporting documentation is maintained for all amounts indicated on such reports. Views of Responsible Officials See Corrective Action Plan.
Finding 2023-002
Finding Number: 2023‐002 Repeat Finding: No Program Name/Assistance Listing Title: COVID‐19 Education Stabilization Fund Assistance Listing Number: 84.425D, 84.425U Federal Agency: U.S. Department of Education Federal Award Number: S425D210038, S425U210038 Pass‐Through Agency: Arizona Department of Education Questioned Costs: N/A Type of Finding: Noncompliance, Significant Deficiency Compliance Requirement: Reporting Criteria Education Stabilization Fund grant recipients are required to submit an annual performance report with data on expenditures, planned expenditures, subrecipients, and uses of funds. The District, as a subrecipient  of  the  Arizona  Department  of  Education  (ADE),  fulfills  this  requirement  through  completion of ADE's LEA Uses of ESSER I, II & III Report (ESSER Report). Condition The District did not maintain adequate supporting documentation for various data included in the ESSER Report submitted to ADE. Cause The  District  did  not  have  sufficient  review  procedures  in  place  to  ensure  the  ESSER  Report  was  sufficiently supported, and/or did not maintain documentation utilized when the ESSER Report was prepared. Effect The District was unable to accurately and fully support the data submitted on the ESSER Report. Context The data maintained by the District to support the allocation of costs to specific object codes and expenditure categories  for  ESSER  II  and  ESSER  III  did  not  agree  to  the  amounts  reported  to  ADE.  However, the total amounts expended for ESSER II and ESSER III were consistent with the District's accounting records. Additionally, the full time equivalent (FTE) amount submitted did not agree with District records. Recommendation The District should ensure that accurate federal reports are prepared and that proper supporting documentation is maintained for all amounts indicated on such reports. Views of Responsible Officials See Corrective Action Plan.
Finding 2023-001
Finding Number: 2023‐001 Repeat Finding: No Program Name/Assistance Listing Title: COVID‐19 Education Stabilization Fund Assistance Listing Number: 84.425U Federal Agency: U.S. Department of Education Federal Award Number: S425U210038 Pass‐Through Agency: Arizona Department of Education Questioned Costs: N/A Type of Finding: Noncompliance, Material Weakness Compliance Requirement: Equipment and Real Property Management Criteria Under 2CFR §200.313, the District is required to maintain property records that include a description of the property, a serial number or other identification number, the source of funding for the property (including the FAIN), who holds title, the acquisition date, and cost of the property, percentage of Federal  participation  in  the  project  costs  for  the  Federal  award  under  which  the  property  was  acquired, the location, use and condition of the property, and any ultimate disposition data including the date of disposal and sale price of the property. Condition The  District  did  not  ensure  all  asset  additions  charged  to  the  Education  Stabilization  Fund  were  included in the capital asset listing. Cause The  District  did  not  have  sufficient  review  procedures  in  place  to  ensure  federally‐funded  capital  assets were included in the capital asset listing. Effect The District did not initially comply with the equipment and real property management requirements of the grant. As a result of auditor inquiry, management updated the capital asset listing to include the federally‐funded capital asset project. Context The  District  utilized  $485,801  of  Education  Stabilization  Funds  for  HVAC  upgrades,  but  failed  to  include the project in the initial capital asset listing provided to auditors. The sample was not intended to be, and was not, a statistically valid sample. Recommendation The District should allocate the necessary resources to implement controls and review procedures over capital asset schedules to ensure they are prepared accurately. Specifically, the District controls should  include  a  review  of  federally‐funded  projects  to  determine  if  they  have  been  properly  reflected in the year‐end capital asset listing. Views of Responsible Officials See Corrective Action Plan.
Finding 2023-002
Finding Number: 2023‐002 Repeat Finding: No Program Name/Assistance Listing Title: COVID‐19 Education Stabilization Fund Assistance Listing Number: 84.425D, 84.425U Federal Agency: U.S. Department of Education Federal Award Number: S425D210038, S425U210038 Pass‐Through Agency: Arizona Department of Education Questioned Costs: N/A Type of Finding: Noncompliance, Significant Deficiency Compliance Requirement: Reporting Criteria Education Stabilization Fund grant recipients are required to submit an annual performance report with data on expenditures, planned expenditures, subrecipients, and uses of funds. The District, as a subrecipient  of  the  Arizona  Department  of  Education  (ADE),  fulfills  this  requirement  through  completion of ADE's LEA Uses of ESSER I, II & III Report (ESSER Report). Condition The District did not maintain adequate supporting documentation for various data included in the ESSER Report submitted to ADE. Cause The  District  did  not  have  sufficient  review  procedures  in  place  to  ensure  the  ESSER  Report  was  sufficiently supported, and/or did not maintain documentation utilized when the ESSER Report was prepared. Effect The District was unable to accurately and fully support the data submitted on the ESSER Report. Context The data maintained by the District to support the allocation of costs to specific object codes and expenditure categories  for  ESSER  II  and  ESSER  III  did  not  agree  to  the  amounts  reported  to  ADE.  However, the total amounts expended for ESSER II and ESSER III were consistent with the District's accounting records. Additionally, the full time equivalent (FTE) amount submitted did not agree with District records. Recommendation The District should ensure that accurate federal reports are prepared and that proper supporting documentation is maintained for all amounts indicated on such reports. Views of Responsible Officials See Corrective Action Plan.
Finding 2023-002
Finding Number: 2023‐002 Repeat Finding: No Program Name/Assistance Listing Title: COVID‐19 Education Stabilization Fund Assistance Listing Number: 84.425D, 84.425U Federal Agency: U.S. Department of Education Federal Award Number: S425D210038, S425U210038 Pass‐Through Agency: Arizona Department of Education Questioned Costs: N/A Type of Finding: Noncompliance, Significant Deficiency Compliance Requirement: Reporting Criteria Education Stabilization Fund grant recipients are required to submit an annual performance report with data on expenditures, planned expenditures, subrecipients, and uses of funds. The District, as a subrecipient  of  the  Arizona  Department  of  Education  (ADE),  fulfills  this  requirement  through  completion of ADE's LEA Uses of ESSER I, II & III Report (ESSER Report). Condition The District did not maintain adequate supporting documentation for various data included in the ESSER Report submitted to ADE. Cause The  District  did  not  have  sufficient  review  procedures  in  place  to  ensure  the  ESSER  Report  was  sufficiently supported, and/or did not maintain documentation utilized when the ESSER Report was prepared. Effect The District was unable to accurately and fully support the data submitted on the ESSER Report. Context The data maintained by the District to support the allocation of costs to specific object codes and expenditure categories  for  ESSER  II  and  ESSER  III  did  not  agree  to  the  amounts  reported  to  ADE.  However, the total amounts expended for ESSER II and ESSER III were consistent with the District's accounting records. Additionally, the full time equivalent (FTE) amount submitted did not agree with District records. Recommendation The District should ensure that accurate federal reports are prepared and that proper supporting documentation is maintained for all amounts indicated on such reports. Views of Responsible Officials See Corrective Action Plan.