FAC Explorer

Audit 348721

FY End
2024-06-30
Total Expended
$12.42M
Findings
6
Programs
11
Organization: Kyrene Elementary School District No. 28 (AZ)
Year: 2024 Accepted: 2025-03-26
Auditor: Heinfeld Meech & CO PC

Organization Exclusion Status:

Findings

ID Ref Severity Repeat Requirement
537483 2024-001 Significant Deficiency - A
537484 2024-001 Significant Deficiency - A
537485 2024-001 Significant Deficiency - A
1113925 2024-001 Significant Deficiency - A
1113926 2024-001 Significant Deficiency - A
1113927 2024-001 Significant Deficiency - A

Programs

ALN Program Spent Major Findings
10.555 National School Lunch Program $3.54M Yes 1
84.010 Title I Grants to Local Educational Agencies $1.58M - 0
10.553 School Breakfast Program $565,487 Yes 1
84.367 Supporting Effective Instruction State Grants (formerly Improving Teacher Quality State Grants) $483,960 - 0
84.060 Indian Education Grants to Local Educational Agencies $230,911 - 0
93.778 Medical Assistance Program $137,767 - 0
84.425 Education Stabilization Fund $86,422 Yes 0
84.365 English Language Acquisition State Grants $72,655 - 0
84.027 Special Education Grants to States $63,805 - 0
10.559 Summer Food Service Program for Children $10,293 Yes 1
84.173 Special Education Preschool Grants $1,769 - 0

Contacts

Name Title Type
CGJAA25W6GZ1 Brian Lockery Auditee
4805411370 Brittney Williams, 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 Kyrene Elementary School District No. 28 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
Finding Number: 2024‐001 Repeat Finding: No Program Name/Assistance Listing Title: Child Nutrition Cluster Assistance Listing Numbers: 10.553, 10.555, 10.559 Federal Agency: U.S. Department of Agriculture Federal Award Number: 7AZ300AZ3 Pass‐Through Agency: Arizona Department of Education Questioned Costs: $609,000 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 total value not to exceed $25,000 for contracted expenses. Condition Indirect Cost Guidance for the Child Nutrition Program was not followed correctly. Cause The District was unaware of the limitations that were imposed on indirect cost charges to the Child Nutrition Program. Effect Indirect costs of $609,000 were overcharged to the Child Nutrition Cluster program. Context When recording indirect costs, the District did not charge the maximum allowable amount of $25,000 for contracted expenses. Therefore, the District overcharged $609,000 to the Child Nutrition Cluster program as reported in the Food Service Fund. Recommendation The District should ensure indirect costs are calculated in accordance with the formula set forth in the guidance issued by USDA. Views of Responsible Officials See Corrective Action Plan. Page 11
Finding 2024-001
Finding Number: 2024‐001 Repeat Finding: No Program Name/Assistance Listing Title: Child Nutrition Cluster Assistance Listing Numbers: 10.553, 10.555, 10.559 Federal Agency: U.S. Department of Agriculture Federal Award Number: 7AZ300AZ3 Pass‐Through Agency: Arizona Department of Education Questioned Costs: $609,000 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 total value not to exceed $25,000 for contracted expenses. Condition Indirect Cost Guidance for the Child Nutrition Program was not followed correctly. Cause The District was unaware of the limitations that were imposed on indirect cost charges to the Child Nutrition Program. Effect Indirect costs of $609,000 were overcharged to the Child Nutrition Cluster program. Context When recording indirect costs, the District did not charge the maximum allowable amount of $25,000 for contracted expenses. Therefore, the District overcharged $609,000 to the Child Nutrition Cluster program as reported in the Food Service Fund. Recommendation The District should ensure indirect costs are calculated in accordance with the formula set forth in the guidance issued by USDA. Views of Responsible Officials See Corrective Action Plan. Page 11
Finding 2024-001
Finding Number: 2024‐001 Repeat Finding: No Program Name/Assistance Listing Title: Child Nutrition Cluster Assistance Listing Numbers: 10.553, 10.555, 10.559 Federal Agency: U.S. Department of Agriculture Federal Award Number: 7AZ300AZ3 Pass‐Through Agency: Arizona Department of Education Questioned Costs: $609,000 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 total value not to exceed $25,000 for contracted expenses. Condition Indirect Cost Guidance for the Child Nutrition Program was not followed correctly. Cause The District was unaware of the limitations that were imposed on indirect cost charges to the Child Nutrition Program. Effect Indirect costs of $609,000 were overcharged to the Child Nutrition Cluster program. Context When recording indirect costs, the District did not charge the maximum allowable amount of $25,000 for contracted expenses. Therefore, the District overcharged $609,000 to the Child Nutrition Cluster program as reported in the Food Service Fund. Recommendation The District should ensure indirect costs are calculated in accordance with the formula set forth in the guidance issued by USDA. Views of Responsible Officials See Corrective Action Plan. Page 11
Finding 2024-001
Finding Number: 2024‐001 Repeat Finding: No Program Name/Assistance Listing Title: Child Nutrition Cluster Assistance Listing Numbers: 10.553, 10.555, 10.559 Federal Agency: U.S. Department of Agriculture Federal Award Number: 7AZ300AZ3 Pass‐Through Agency: Arizona Department of Education Questioned Costs: $609,000 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 total value not to exceed $25,000 for contracted expenses. Condition Indirect Cost Guidance for the Child Nutrition Program was not followed correctly. Cause The District was unaware of the limitations that were imposed on indirect cost charges to the Child Nutrition Program. Effect Indirect costs of $609,000 were overcharged to the Child Nutrition Cluster program. Context When recording indirect costs, the District did not charge the maximum allowable amount of $25,000 for contracted expenses. Therefore, the District overcharged $609,000 to the Child Nutrition Cluster program as reported in the Food Service Fund. Recommendation The District should ensure indirect costs are calculated in accordance with the formula set forth in the guidance issued by USDA. Views of Responsible Officials See Corrective Action Plan. Page 11
Finding 2024-001
Finding Number: 2024‐001 Repeat Finding: No Program Name/Assistance Listing Title: Child Nutrition Cluster Assistance Listing Numbers: 10.553, 10.555, 10.559 Federal Agency: U.S. Department of Agriculture Federal Award Number: 7AZ300AZ3 Pass‐Through Agency: Arizona Department of Education Questioned Costs: $609,000 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 total value not to exceed $25,000 for contracted expenses. Condition Indirect Cost Guidance for the Child Nutrition Program was not followed correctly. Cause The District was unaware of the limitations that were imposed on indirect cost charges to the Child Nutrition Program. Effect Indirect costs of $609,000 were overcharged to the Child Nutrition Cluster program. Context When recording indirect costs, the District did not charge the maximum allowable amount of $25,000 for contracted expenses. Therefore, the District overcharged $609,000 to the Child Nutrition Cluster program as reported in the Food Service Fund. Recommendation The District should ensure indirect costs are calculated in accordance with the formula set forth in the guidance issued by USDA. Views of Responsible Officials See Corrective Action Plan. Page 11
Finding 2024-001
Finding Number: 2024‐001 Repeat Finding: No Program Name/Assistance Listing Title: Child Nutrition Cluster Assistance Listing Numbers: 10.553, 10.555, 10.559 Federal Agency: U.S. Department of Agriculture Federal Award Number: 7AZ300AZ3 Pass‐Through Agency: Arizona Department of Education Questioned Costs: $609,000 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 total value not to exceed $25,000 for contracted expenses. Condition Indirect Cost Guidance for the Child Nutrition Program was not followed correctly. Cause The District was unaware of the limitations that were imposed on indirect cost charges to the Child Nutrition Program. Effect Indirect costs of $609,000 were overcharged to the Child Nutrition Cluster program. Context When recording indirect costs, the District did not charge the maximum allowable amount of $25,000 for contracted expenses. Therefore, the District overcharged $609,000 to the Child Nutrition Cluster program as reported in the Food Service Fund. Recommendation The District should ensure indirect costs are calculated in accordance with the formula set forth in the guidance issued by USDA. Views of Responsible Officials See Corrective Action Plan. Page 11