FAC Explorer

Audit 328565

FY End
2023-06-30
Total Expended
$958,395
Findings
8
Programs
7
Organization: Fredonia-Moccasin Unified School District No. 6 (AZ)
Year: 2023 Accepted: 2024-11-15
Auditor: Cwdl Certified Public Accountants

Organization Exclusion Status:

Findings

ID Ref Severity Repeat Requirement
508033 2023-004 Material Weakness - A
508034 2023-005 Material Weakness - AB
508035 2023-004 Material Weakness - A
508036 2023-005 Material Weakness - AB
1084475 2023-004 Material Weakness - A
1084476 2023-005 Material Weakness - AB
1084477 2023-004 Material Weakness - A
1084478 2023-005 Material Weakness - AB

Programs

ALN Program Spent Major Findings
84.425 Education Stabilization Fund $321,023 Yes 2
10.665 Schools and Roads - Grants to States $293,735 - 0
84.041 Impact Aid $38,533 - 0
10.553 School Breakfast Program $21,268 - 0
84.358 Rural Education $17,214 - 0
10.555 National School Lunch Program $12,561 - 0
21.027 Coronavirus State and Local Fiscal Recovery Funds $3,410 - 0

Contacts

Name Title Type
FCLTEW55EKQ7 Dorene Mudrow Auditee
4356890216 Dennis V Maschke Auditor
No contacts on file

Notes to SEFA

Title: BASIS OF PRESENTATION Accounting Policies: 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. Therefore, some amounts presented in this schedule may differ from amounts presented in, or used in the preparation of, the financial statements. De Minimis Rate Used: N Rate Explanation: The District did not elect to use the 10 percent de minimis indirect cost rate as covered in 2 CFR §200.414. The District used an indirect cost rate that was approved by the Arizona Department of Education. The accompanying Schedule of Expenditures of Federal Awards includes the District's federal grant activity for the year ended June 30, 2023. The information in this 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.
Title: FEDERAL ASSISTANCE LISTING NUMBERS Accounting Policies: 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. Therefore, some amounts presented in this schedule may differ from amounts presented in, or used in the preparation of, the financial statements. De Minimis Rate Used: N Rate Explanation: The District did not elect to use the 10 percent de minimis indirect cost rate as covered in 2 CFR §200.414. The District used an indirect cost rate that was approved by the Arizona Department of Education. The program titles and Federal Assistance Listings numbers were obtained from the federal or passthrough grantor or the 2023 Federal Assistance Listings.
Title: NON-CASH ASSISTANCE Accounting Policies: 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. Therefore, some amounts presented in this schedule may differ from amounts presented in, or used in the preparation of, the financial statements. De Minimis Rate Used: N Rate Explanation: The District did not elect to use the 10 percent de minimis indirect cost rate as covered in 2 CFR §200.414. The District used an indirect cost rate that was approved by the Arizona Department of Education. Food donations as reported for the Child Nutrition Cluster represents the amount of donated food used during the fiscal year ended June 30, 2023. Commodities are valued at fair value at the time of donation.

Finding Details

Finding 2023-004
2023-004 ACTIVITIES ALLOWED OR UNALLOWED Program: Education Stabilization Fund – ESSER II and ESSER III Federal Assistance Listing Number: 84.425 Federal Agency: U.S. Department of Education Pass-Through Agency: Arizona Department of Education Grantor Number: 21FESSII-111175-01A and 21FESIII-111175-01A Questioned Costs: $133,105 Type of Finding: Material noncompliance and material weakness in internal control Compliance Requirement: A. Activities Allowed or Unallowed Condition/Context: During our testing of expenditures, it was noted that eleven expenditures with a total of $133,105 were not included within the Education Stabilization Fund budget as approved by the Arizona Department of Education. Criteria: Title 2 U.S. Code of Federal Regulations § 200.303 states that the auditee must establish and maintain effective internal control over the federal award that provides reasonable assurance that the auditee is managing the federal award in compliance with federal statutes, regulations, and the terms and conditions of the federal award. Additionally, federal awards must be spent in accordance with the budget and grant agreement approved by the awarding agency or pass-through entity. Cause: Management oversight and turnover in the federal grant department. Effect: Noncompliance with Uniform Guidance and internal control weakness. Repeat Finding: No. Recommendation: We recommend the District to review its internal control procedures over federal programs to ensure grant expenditures are approved by the SEA prior to the expenditures being incurred. Views of Responsible Officials: The District’s corrective action plan presented in a separate document includes the views and planned corrective action of its responsible officials. We are not required to and have not audited these responses and planned corrective actions and therefore provide no assurances as to their accuracy. Contact Person: Dorene Mudrow, Superintendent
Finding 2023-005
2023-005 ACTIVITIES ALLOWED OR UNALLOWED AND ALLOWABLE COSTS / COST PRINCIPLES Program: Education Stabilization Fund – ESSER II and ESSER III Federal Assistance Listing Number: 84.425 Federal Agency: U.S. Department of Education Pass-Through Agency: Arizona Department of Education Grantor Number: 21FESSII-111175-01A and 21FESIII-111175-01A Questioned Costs: None Type of Finding: Material weakness in internal controls Compliance Requirement: A. Activities Allowed or Unallowed; B. Allowable Costs / Cost Principles Condition/Context: For one of three payroll related journal entries tested for the Education Stabilization Fund program, the District did not have documentation supporting that the entry was reviewed and approved by an individual separate from the preparer. Criteria: The District’s policies and procedures should ensure that internal controls over compliance of Federal programs are in place and operating effectively. Cause: Management oversight and turnover in the federal grant department. Effect: Internal control weakness. Repeat Finding: No. Recommendation: We recommend the District to review its internal control procedures over federal programs to ensure that journal entries moving expenditures into the grant program is reviewed and approved by an individual separate from the preparer. Views of Responsible Officials: The District’s corrective action plan presented in a separate document includes the views and planned corrective action of its responsible officials. We are not required to and have not audited these responses and planned corrective actions and therefore provide no assurances as to their accuracy. Contact Person: Dorene Mudrow, Superintendent
Finding 2023-004
2023-004 ACTIVITIES ALLOWED OR UNALLOWED Program: Education Stabilization Fund – ESSER II and ESSER III Federal Assistance Listing Number: 84.425 Federal Agency: U.S. Department of Education Pass-Through Agency: Arizona Department of Education Grantor Number: 21FESSII-111175-01A and 21FESIII-111175-01A Questioned Costs: $133,105 Type of Finding: Material noncompliance and material weakness in internal control Compliance Requirement: A. Activities Allowed or Unallowed Condition/Context: During our testing of expenditures, it was noted that eleven expenditures with a total of $133,105 were not included within the Education Stabilization Fund budget as approved by the Arizona Department of Education. Criteria: Title 2 U.S. Code of Federal Regulations § 200.303 states that the auditee must establish and maintain effective internal control over the federal award that provides reasonable assurance that the auditee is managing the federal award in compliance with federal statutes, regulations, and the terms and conditions of the federal award. Additionally, federal awards must be spent in accordance with the budget and grant agreement approved by the awarding agency or pass-through entity. Cause: Management oversight and turnover in the federal grant department. Effect: Noncompliance with Uniform Guidance and internal control weakness. Repeat Finding: No. Recommendation: We recommend the District to review its internal control procedures over federal programs to ensure grant expenditures are approved by the SEA prior to the expenditures being incurred. Views of Responsible Officials: The District’s corrective action plan presented in a separate document includes the views and planned corrective action of its responsible officials. We are not required to and have not audited these responses and planned corrective actions and therefore provide no assurances as to their accuracy. Contact Person: Dorene Mudrow, Superintendent
Finding 2023-005
2023-005 ACTIVITIES ALLOWED OR UNALLOWED AND ALLOWABLE COSTS / COST PRINCIPLES Program: Education Stabilization Fund – ESSER II and ESSER III Federal Assistance Listing Number: 84.425 Federal Agency: U.S. Department of Education Pass-Through Agency: Arizona Department of Education Grantor Number: 21FESSII-111175-01A and 21FESIII-111175-01A Questioned Costs: None Type of Finding: Material weakness in internal controls Compliance Requirement: A. Activities Allowed or Unallowed; B. Allowable Costs / Cost Principles Condition/Context: For one of three payroll related journal entries tested for the Education Stabilization Fund program, the District did not have documentation supporting that the entry was reviewed and approved by an individual separate from the preparer. Criteria: The District’s policies and procedures should ensure that internal controls over compliance of Federal programs are in place and operating effectively. Cause: Management oversight and turnover in the federal grant department. Effect: Internal control weakness. Repeat Finding: No. Recommendation: We recommend the District to review its internal control procedures over federal programs to ensure that journal entries moving expenditures into the grant program is reviewed and approved by an individual separate from the preparer. Views of Responsible Officials: The District’s corrective action plan presented in a separate document includes the views and planned corrective action of its responsible officials. We are not required to and have not audited these responses and planned corrective actions and therefore provide no assurances as to their accuracy. Contact Person: Dorene Mudrow, Superintendent
Finding 2023-004
2023-004 ACTIVITIES ALLOWED OR UNALLOWED Program: Education Stabilization Fund – ESSER II and ESSER III Federal Assistance Listing Number: 84.425 Federal Agency: U.S. Department of Education Pass-Through Agency: Arizona Department of Education Grantor Number: 21FESSII-111175-01A and 21FESIII-111175-01A Questioned Costs: $133,105 Type of Finding: Material noncompliance and material weakness in internal control Compliance Requirement: A. Activities Allowed or Unallowed Condition/Context: During our testing of expenditures, it was noted that eleven expenditures with a total of $133,105 were not included within the Education Stabilization Fund budget as approved by the Arizona Department of Education. Criteria: Title 2 U.S. Code of Federal Regulations § 200.303 states that the auditee must establish and maintain effective internal control over the federal award that provides reasonable assurance that the auditee is managing the federal award in compliance with federal statutes, regulations, and the terms and conditions of the federal award. Additionally, federal awards must be spent in accordance with the budget and grant agreement approved by the awarding agency or pass-through entity. Cause: Management oversight and turnover in the federal grant department. Effect: Noncompliance with Uniform Guidance and internal control weakness. Repeat Finding: No. Recommendation: We recommend the District to review its internal control procedures over federal programs to ensure grant expenditures are approved by the SEA prior to the expenditures being incurred. Views of Responsible Officials: The District’s corrective action plan presented in a separate document includes the views and planned corrective action of its responsible officials. We are not required to and have not audited these responses and planned corrective actions and therefore provide no assurances as to their accuracy. Contact Person: Dorene Mudrow, Superintendent
Finding 2023-005
2023-005 ACTIVITIES ALLOWED OR UNALLOWED AND ALLOWABLE COSTS / COST PRINCIPLES Program: Education Stabilization Fund – ESSER II and ESSER III Federal Assistance Listing Number: 84.425 Federal Agency: U.S. Department of Education Pass-Through Agency: Arizona Department of Education Grantor Number: 21FESSII-111175-01A and 21FESIII-111175-01A Questioned Costs: None Type of Finding: Material weakness in internal controls Compliance Requirement: A. Activities Allowed or Unallowed; B. Allowable Costs / Cost Principles Condition/Context: For one of three payroll related journal entries tested for the Education Stabilization Fund program, the District did not have documentation supporting that the entry was reviewed and approved by an individual separate from the preparer. Criteria: The District’s policies and procedures should ensure that internal controls over compliance of Federal programs are in place and operating effectively. Cause: Management oversight and turnover in the federal grant department. Effect: Internal control weakness. Repeat Finding: No. Recommendation: We recommend the District to review its internal control procedures over federal programs to ensure that journal entries moving expenditures into the grant program is reviewed and approved by an individual separate from the preparer. Views of Responsible Officials: The District’s corrective action plan presented in a separate document includes the views and planned corrective action of its responsible officials. We are not required to and have not audited these responses and planned corrective actions and therefore provide no assurances as to their accuracy. Contact Person: Dorene Mudrow, Superintendent
Finding 2023-004
2023-004 ACTIVITIES ALLOWED OR UNALLOWED Program: Education Stabilization Fund – ESSER II and ESSER III Federal Assistance Listing Number: 84.425 Federal Agency: U.S. Department of Education Pass-Through Agency: Arizona Department of Education Grantor Number: 21FESSII-111175-01A and 21FESIII-111175-01A Questioned Costs: $133,105 Type of Finding: Material noncompliance and material weakness in internal control Compliance Requirement: A. Activities Allowed or Unallowed Condition/Context: During our testing of expenditures, it was noted that eleven expenditures with a total of $133,105 were not included within the Education Stabilization Fund budget as approved by the Arizona Department of Education. Criteria: Title 2 U.S. Code of Federal Regulations § 200.303 states that the auditee must establish and maintain effective internal control over the federal award that provides reasonable assurance that the auditee is managing the federal award in compliance with federal statutes, regulations, and the terms and conditions of the federal award. Additionally, federal awards must be spent in accordance with the budget and grant agreement approved by the awarding agency or pass-through entity. Cause: Management oversight and turnover in the federal grant department. Effect: Noncompliance with Uniform Guidance and internal control weakness. Repeat Finding: No. Recommendation: We recommend the District to review its internal control procedures over federal programs to ensure grant expenditures are approved by the SEA prior to the expenditures being incurred. Views of Responsible Officials: The District’s corrective action plan presented in a separate document includes the views and planned corrective action of its responsible officials. We are not required to and have not audited these responses and planned corrective actions and therefore provide no assurances as to their accuracy. Contact Person: Dorene Mudrow, Superintendent
Finding 2023-005
2023-005 ACTIVITIES ALLOWED OR UNALLOWED AND ALLOWABLE COSTS / COST PRINCIPLES Program: Education Stabilization Fund – ESSER II and ESSER III Federal Assistance Listing Number: 84.425 Federal Agency: U.S. Department of Education Pass-Through Agency: Arizona Department of Education Grantor Number: 21FESSII-111175-01A and 21FESIII-111175-01A Questioned Costs: None Type of Finding: Material weakness in internal controls Compliance Requirement: A. Activities Allowed or Unallowed; B. Allowable Costs / Cost Principles Condition/Context: For one of three payroll related journal entries tested for the Education Stabilization Fund program, the District did not have documentation supporting that the entry was reviewed and approved by an individual separate from the preparer. Criteria: The District’s policies and procedures should ensure that internal controls over compliance of Federal programs are in place and operating effectively. Cause: Management oversight and turnover in the federal grant department. Effect: Internal control weakness. Repeat Finding: No. Recommendation: We recommend the District to review its internal control procedures over federal programs to ensure that journal entries moving expenditures into the grant program is reviewed and approved by an individual separate from the preparer. Views of Responsible Officials: The District’s corrective action plan presented in a separate document includes the views and planned corrective action of its responsible officials. We are not required to and have not audited these responses and planned corrective actions and therefore provide no assurances as to their accuracy. Contact Person: Dorene Mudrow, Superintendent