FAC Explorer

Audit 340268

FY End
2024-06-30
Total Expended
$6.31M
Findings
6
Programs
14
Organization: Tolleson Elementary School District No. 17 (AZ)
Year: 2024 Accepted: 2025-01-28
Auditor: Heinfeld Meech & CO PC

Organization Exclusion Status:

Findings

ID Ref Severity Repeat Requirement
520619 2024-001 Significant Deficiency - B
520620 2024-001 Significant Deficiency - B
520621 2024-001 Significant Deficiency - B
1097061 2024-001 Significant Deficiency - B
1097062 2024-001 Significant Deficiency - B
1097063 2024-001 Significant Deficiency - B

Programs

ALN Program Spent Major Findings
10.555 National School Lunch Program $1.73M Yes 1
10.553 School Breakfast Program $883,044 Yes 1
84.010 Title I Grants to Local Educational Agencies $882,275 - 0
10.558 Child and Adult Care Food Program $364,621 - 0
84.287 Twenty-First Century Community Learning Centers $360,056 - 0
10.559 Summer Food Service Program for Children $171,779 Yes 1
84.367 Supporting Effective Instruction State Grants (formerly Improving Teacher Quality State Grants) $129,634 - 0
94.434 Preschool Development Grant $118,079 - 0
84.365 English Language Acquisition State Grants $75,133 - 0
84.425 Education Stabilization Fund $62,170 - 0
84.424 Student Support and Academic Enrichment Program $41,535 - 0
93.778 Medical Assistance Program $30,188 - 0
84.027 Special Education Grants to States $1,501 Yes 0
84.173 Special Education Preschool Grants $288 Yes 0

Contacts

Name Title Type
SEDFA1752G18 Anita C. Percell Auditee
6235333930 Eric S. Taylor, Cpa, Cgfm 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 Tolleson Elementary School District No. 17 under programs of the federal government for the year ended June 30, 2024. 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. Passthrough 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 2024-001
Findings and Questioned Costs Related to Federal Awards Finding Number: 2024‐001 Repeat Finding: No Program Name/Assistance Listing Title: Child Nutrition Cluster Assistance Listing Number: 10.553, 10.555, 10.559 Federal Agency: U.S. Department of Education Federal Award Number: 7AZ300AZ3 Pass‐Through Agency: Arizona Department of Education Questioned Costs: $285,408 Type of Finding: Noncompliance, Significant Deficiency Compliance Requirement: Allowable Costs/Cost Principles Criteria According to the Memo SP60‐2016, Indirect Costs Guidance for State Agencies and School Food Authorities, issued by the United States Department of Agriculture (USDA), a District may recover indirect costs of services rendered to school food service at a rate not to exceed the unrestricted indirect cost rate approved by the Arizona Department of Education (ADE). The approved indirect cost rate is subject to change each fiscal year. Condition The District charged the Child Nutrition Cluster program, reported in the Food Service Fund, $391,714 in indirect costs for the fiscal year, whereas the maximum allowable indirect costs was calculated at $106,306. Cause The District was unaware that they could only take $25,000 of expenditures from their food service management costs. Effect The District overcharged indirect costs of $285,408 to the Child Nutrition Cluster program as reported in the Food Service Fund. Context When calculating indirect costs, the District did not exclude specific costs prohibited in the indirect cost calculation. As a result, the 25 percent indirect cost rate was applied to a net food service expenditure amount that was greater than it should have been. Therefore, the District overcharged $285,408 to the Child Nutrition Cluster program as reported in the Food Service Fund. The sample was not intended to be, and was not, a statistically valid sample. Recommendation The District should ensure indirect costs are calculated in accordance with the formula set forth in the guidance issued by USDA and ADE. Views of Responsible Officials See Corrective Action Plan.
Finding 2024-001
Findings and Questioned Costs Related to Federal Awards Finding Number: 2024‐001 Repeat Finding: No Program Name/Assistance Listing Title: Child Nutrition Cluster Assistance Listing Number: 10.553, 10.555, 10.559 Federal Agency: U.S. Department of Education Federal Award Number: 7AZ300AZ3 Pass‐Through Agency: Arizona Department of Education Questioned Costs: $285,408 Type of Finding: Noncompliance, Significant Deficiency Compliance Requirement: Allowable Costs/Cost Principles Criteria According to the Memo SP60‐2016, Indirect Costs Guidance for State Agencies and School Food Authorities, issued by the United States Department of Agriculture (USDA), a District may recover indirect costs of services rendered to school food service at a rate not to exceed the unrestricted indirect cost rate approved by the Arizona Department of Education (ADE). The approved indirect cost rate is subject to change each fiscal year. Condition The District charged the Child Nutrition Cluster program, reported in the Food Service Fund, $391,714 in indirect costs for the fiscal year, whereas the maximum allowable indirect costs was calculated at $106,306. Cause The District was unaware that they could only take $25,000 of expenditures from their food service management costs. Effect The District overcharged indirect costs of $285,408 to the Child Nutrition Cluster program as reported in the Food Service Fund. Context When calculating indirect costs, the District did not exclude specific costs prohibited in the indirect cost calculation. As a result, the 25 percent indirect cost rate was applied to a net food service expenditure amount that was greater than it should have been. Therefore, the District overcharged $285,408 to the Child Nutrition Cluster program as reported in the Food Service Fund. The sample was not intended to be, and was not, a statistically valid sample. Recommendation The District should ensure indirect costs are calculated in accordance with the formula set forth in the guidance issued by USDA and ADE. Views of Responsible Officials See Corrective Action Plan.
Finding 2024-001
Findings and Questioned Costs Related to Federal Awards Finding Number: 2024‐001 Repeat Finding: No Program Name/Assistance Listing Title: Child Nutrition Cluster Assistance Listing Number: 10.553, 10.555, 10.559 Federal Agency: U.S. Department of Education Federal Award Number: 7AZ300AZ3 Pass‐Through Agency: Arizona Department of Education Questioned Costs: $285,408 Type of Finding: Noncompliance, Significant Deficiency Compliance Requirement: Allowable Costs/Cost Principles Criteria According to the Memo SP60‐2016, Indirect Costs Guidance for State Agencies and School Food Authorities, issued by the United States Department of Agriculture (USDA), a District may recover indirect costs of services rendered to school food service at a rate not to exceed the unrestricted indirect cost rate approved by the Arizona Department of Education (ADE). The approved indirect cost rate is subject to change each fiscal year. Condition The District charged the Child Nutrition Cluster program, reported in the Food Service Fund, $391,714 in indirect costs for the fiscal year, whereas the maximum allowable indirect costs was calculated at $106,306. Cause The District was unaware that they could only take $25,000 of expenditures from their food service management costs. Effect The District overcharged indirect costs of $285,408 to the Child Nutrition Cluster program as reported in the Food Service Fund. Context When calculating indirect costs, the District did not exclude specific costs prohibited in the indirect cost calculation. As a result, the 25 percent indirect cost rate was applied to a net food service expenditure amount that was greater than it should have been. Therefore, the District overcharged $285,408 to the Child Nutrition Cluster program as reported in the Food Service Fund. The sample was not intended to be, and was not, a statistically valid sample. Recommendation The District should ensure indirect costs are calculated in accordance with the formula set forth in the guidance issued by USDA and ADE. Views of Responsible Officials See Corrective Action Plan.
Finding 2024-001
Findings and Questioned Costs Related to Federal Awards Finding Number: 2024‐001 Repeat Finding: No Program Name/Assistance Listing Title: Child Nutrition Cluster Assistance Listing Number: 10.553, 10.555, 10.559 Federal Agency: U.S. Department of Education Federal Award Number: 7AZ300AZ3 Pass‐Through Agency: Arizona Department of Education Questioned Costs: $285,408 Type of Finding: Noncompliance, Significant Deficiency Compliance Requirement: Allowable Costs/Cost Principles Criteria According to the Memo SP60‐2016, Indirect Costs Guidance for State Agencies and School Food Authorities, issued by the United States Department of Agriculture (USDA), a District may recover indirect costs of services rendered to school food service at a rate not to exceed the unrestricted indirect cost rate approved by the Arizona Department of Education (ADE). The approved indirect cost rate is subject to change each fiscal year. Condition The District charged the Child Nutrition Cluster program, reported in the Food Service Fund, $391,714 in indirect costs for the fiscal year, whereas the maximum allowable indirect costs was calculated at $106,306. Cause The District was unaware that they could only take $25,000 of expenditures from their food service management costs. Effect The District overcharged indirect costs of $285,408 to the Child Nutrition Cluster program as reported in the Food Service Fund. Context When calculating indirect costs, the District did not exclude specific costs prohibited in the indirect cost calculation. As a result, the 25 percent indirect cost rate was applied to a net food service expenditure amount that was greater than it should have been. Therefore, the District overcharged $285,408 to the Child Nutrition Cluster program as reported in the Food Service Fund. The sample was not intended to be, and was not, a statistically valid sample. Recommendation The District should ensure indirect costs are calculated in accordance with the formula set forth in the guidance issued by USDA and ADE. Views of Responsible Officials See Corrective Action Plan.
Finding 2024-001
Findings and Questioned Costs Related to Federal Awards Finding Number: 2024‐001 Repeat Finding: No Program Name/Assistance Listing Title: Child Nutrition Cluster Assistance Listing Number: 10.553, 10.555, 10.559 Federal Agency: U.S. Department of Education Federal Award Number: 7AZ300AZ3 Pass‐Through Agency: Arizona Department of Education Questioned Costs: $285,408 Type of Finding: Noncompliance, Significant Deficiency Compliance Requirement: Allowable Costs/Cost Principles Criteria According to the Memo SP60‐2016, Indirect Costs Guidance for State Agencies and School Food Authorities, issued by the United States Department of Agriculture (USDA), a District may recover indirect costs of services rendered to school food service at a rate not to exceed the unrestricted indirect cost rate approved by the Arizona Department of Education (ADE). The approved indirect cost rate is subject to change each fiscal year. Condition The District charged the Child Nutrition Cluster program, reported in the Food Service Fund, $391,714 in indirect costs for the fiscal year, whereas the maximum allowable indirect costs was calculated at $106,306. Cause The District was unaware that they could only take $25,000 of expenditures from their food service management costs. Effect The District overcharged indirect costs of $285,408 to the Child Nutrition Cluster program as reported in the Food Service Fund. Context When calculating indirect costs, the District did not exclude specific costs prohibited in the indirect cost calculation. As a result, the 25 percent indirect cost rate was applied to a net food service expenditure amount that was greater than it should have been. Therefore, the District overcharged $285,408 to the Child Nutrition Cluster program as reported in the Food Service Fund. The sample was not intended to be, and was not, a statistically valid sample. Recommendation The District should ensure indirect costs are calculated in accordance with the formula set forth in the guidance issued by USDA and ADE. Views of Responsible Officials See Corrective Action Plan.
Finding 2024-001
Findings and Questioned Costs Related to Federal Awards Finding Number: 2024‐001 Repeat Finding: No Program Name/Assistance Listing Title: Child Nutrition Cluster Assistance Listing Number: 10.553, 10.555, 10.559 Federal Agency: U.S. Department of Education Federal Award Number: 7AZ300AZ3 Pass‐Through Agency: Arizona Department of Education Questioned Costs: $285,408 Type of Finding: Noncompliance, Significant Deficiency Compliance Requirement: Allowable Costs/Cost Principles Criteria According to the Memo SP60‐2016, Indirect Costs Guidance for State Agencies and School Food Authorities, issued by the United States Department of Agriculture (USDA), a District may recover indirect costs of services rendered to school food service at a rate not to exceed the unrestricted indirect cost rate approved by the Arizona Department of Education (ADE). The approved indirect cost rate is subject to change each fiscal year. Condition The District charged the Child Nutrition Cluster program, reported in the Food Service Fund, $391,714 in indirect costs for the fiscal year, whereas the maximum allowable indirect costs was calculated at $106,306. Cause The District was unaware that they could only take $25,000 of expenditures from their food service management costs. Effect The District overcharged indirect costs of $285,408 to the Child Nutrition Cluster program as reported in the Food Service Fund. Context When calculating indirect costs, the District did not exclude specific costs prohibited in the indirect cost calculation. As a result, the 25 percent indirect cost rate was applied to a net food service expenditure amount that was greater than it should have been. Therefore, the District overcharged $285,408 to the Child Nutrition Cluster program as reported in the Food Service Fund. The sample was not intended to be, and was not, a statistically valid sample. Recommendation The District should ensure indirect costs are calculated in accordance with the formula set forth in the guidance issued by USDA and ADE. Views of Responsible Officials See Corrective Action Plan.