Audit 332377

FAL No. and Name: 84.425U COVID-19 American Rescue Plan - Elementary and Secondary School Emergency Relief (ARP ESSER) 84.425W COVID-19 American Rescue Plan - Elementary and Secondary School Emergency Relief - Homeless Children and Youth Award Number: 21FESIII-110236-01A 22FARHOI-210236-01A 22FAHIIE-210236-01A Federal Agency: Arizona Department of Education Compliance Requirement: Allowable Costs Questioned Costs: None Criteria: In accordance with 2 CFR §200.430(i)(1)(i), the School should have a system of internal control that provides reasonable assurance that employee compensation rates are accurate and properly verified. Condition and context: Two out of twenty-five employees tested were found to have been paid at a rate lower than what was documented in their personnel file. Cause: There appears to be insufficient review and verification procedures within the payroll processing system. Effect: This deficiency increases the risk of discrepancies in employee compensation, potentially leading to both overpayments and underpayments. Recommendation: To help ensure employees receive accurate compensation, the School should implement internal control procedures that include thorough verification of payroll data against authorized pay rates before payroll is processed. Management's Corrective Action Plan is included at the end of this report.

FAL No. and Name: 84.425U COVID-19 American Rescue Plan - Elementary and Secondary School Emergency Relief (ARP ESSER) 84.425W COVID-19 American Rescue Plan - Elementary and Secondary School Emergency Relief - Homeless Children and Youth Award Number: 21FESIII-110236-01A 22FARHOI-210236-01A 22FAHIIE-210236-01A Federal Agency: Arizona Department of Education Compliance Requirement: Allowable Costs Questioned Costs: None Criteria: In accordance with 2 CFR §200.430(i)(1)(i), the School should have a system of internal control that provides reasonable assurance that employee compensation rates are accurate and properly verified. Condition and context: Two out of twenty-five employees tested were found to have been paid at a rate lower than what was documented in their personnel file. Cause: There appears to be insufficient review and verification procedures within the payroll processing system. Effect: This deficiency increases the risk of discrepancies in employee compensation, potentially leading to both overpayments and underpayments. Recommendation: To help ensure employees receive accurate compensation, the School should implement internal control procedures that include thorough verification of payroll data against authorized pay rates before payroll is processed. Management's Corrective Action Plan is included at the end of this report.

FAL No. and Name: 84.425U COVID-19 American Rescue Plan - Elementary and Secondary School Emergency Relief (ARP ESSER) 84.425W COVID-19 American Rescue Plan - Elementary and Secondary School Emergency Relief - Homeless Children and Youth Award Number: 21FESIII-110236-01A 22FARHOI-210236-01A 22FAHIIE-210236-01A Federal Agency: Arizona Department of Education Compliance Requirement: Allowable Costs Questioned Costs: None Criteria: In accordance with 2 CFR §200.430(i)(1)(i), the School should have a system of internal control that provides reasonable assurance that employee compensation rates are accurate and properly verified. Condition and context: Two out of twenty-five employees tested were found to have been paid at a rate lower than what was documented in their personnel file. Cause: There appears to be insufficient review and verification procedures within the payroll processing system. Effect: This deficiency increases the risk of discrepancies in employee compensation, potentially leading to both overpayments and underpayments. Recommendation: To help ensure employees receive accurate compensation, the School should implement internal control procedures that include thorough verification of payroll data against authorized pay rates before payroll is processed. Management's Corrective Action Plan is included at the end of this report.

FAL No. and Name: 84.425U COVID-19 American Rescue Plan - Elementary and Secondary School Emergency Relief (ARP ESSER) 84.425W COVID-19 American Rescue Plan - Elementary and Secondary School Emergency Relief - Homeless Children and Youth Award Number: 21FESIII-110236-01A 22FARHOI-210236-01A 22FAHIIE-210236-01A Federal Agency: Arizona Department of Education Compliance Requirement: Allowable Costs Questioned Costs: None Criteria: In accordance with 2 CFR §200.430(i)(1)(i), the School should have a system of internal control that provides reasonable assurance that employee compensation rates are accurate and properly verified. Condition and context: Two out of twenty-five employees tested were found to have been paid at a rate lower than what was documented in their personnel file. Cause: There appears to be insufficient review and verification procedures within the payroll processing system. Effect: This deficiency increases the risk of discrepancies in employee compensation, potentially leading to both overpayments and underpayments. Recommendation: To help ensure employees receive accurate compensation, the School should implement internal control procedures that include thorough verification of payroll data against authorized pay rates before payroll is processed. Management's Corrective Action Plan is included at the end of this report.