FAC Explorer

Audit 356668

FY End
2024-06-30
Total Expended
$23.01M
Findings
18
Programs
17
Organization: Kayenta Unified School District No.27 (AZ)
Year: 2024 Accepted: 2025-05-20
Auditor: Heinfeld Meech & CO PC

Organization Exclusion Status:

Findings

ID Ref Severity Repeat Requirement
561058 2024-001 - - L
561059 2024-001 - - L
561060 2024-001 - - L
561061 2024-001 - - L
561062 2024-001 - - L
561063 2024-001 - - L
561064 2024-001 - - L
561065 2024-002 Significant Deficiency - F
561066 2024-002 Significant Deficiency - F
1137500 2024-001 - - L
1137501 2024-001 - - L
1137502 2024-001 - - L
1137503 2024-001 - - L
1137504 2024-001 - - L
1137505 2024-001 - - L
1137506 2024-001 - - L
1137507 2024-002 Significant Deficiency - F
1137508 2024-002 Significant Deficiency - F

Programs

ALN Program Spent Major Findings
84.041 Impact Aid $14.81M Yes 1
84.010 Title I Grants to Local Educational Agencies $2.72M Yes 1
84.425 Education Stabilization Fund $2.06M Yes 2
10.555 National School Lunch Program $1.36M Yes 1
84.060 Indian Education Grants to Local Educational Agencies $327,964 - 0
10.553 School Breakfast Program $267,992 Yes 1
84.424 Student Support and Academic Enrichment Program $150,454 - 0
84.367 Supporting Effective Instruction State Grants (formerly Improving Teacher Quality State Grants) $130,184 - 0
84.048 Career and Technical Education -- Basic Grants to States $75,435 - 0
12.357 Rotc Language and Culture Training Grants $65,390 - 0
10.559 Summer Food Service Program for Children $51,098 Yes 1
84.358 Rural Education $37,469 - 0
93.778 Medical Assistance Program $19,552 - 0
84.365 English Language Acquisition State Grants $17,792 - 0
84.027 Special Education Grants to States $4,248 - 0
84.173 Special Education Preschool Grants $4,116 - 0
15.130 Indian Education Assistance to Schools $3,290 - 0

Contacts

Name Title Type
T8VAMD7Q7817 Arlene Laughter Auditee
9286972001 Michael Loren Lauzon, Cpa, Mba 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 Kayenta Unified School District No. 27 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 Names/Assistance Listing Titles: Assistance Listing Numbers: Federal Award Numbers: Questioned Costs: Title I Grants 84.010 S010A230003 N/A Child Nutrition Cluster 10.553, 10.555, 10.559 7AZ300AZ3 N/A Impact Aid 84.041 N/A N/A Education Stabilization Fund 84.425 S425D210038, S425U210038 N/A Federal Agency: U.S Department of Education, U.S. Department of Agriculture Pass‐Through Agency: Arizona Department of Education Type of Finding: Noncompliance Compliance Requirements: Reporting Criteria In accordance with 2 CFR 200.512, the single audit must be completed, and the data collection form and reporting package must be submitted within the earlier of 30 calendar days after receipt of the auditor’s report(s), or nine months after the end of the audit period. Condition The District does not have adequate controls in place over federal reporting compliance. Cause The District does not have adequate controls over financial reporting and specifically, capital assets. Effect The District was not in compliance with federal regulations and guidelines. Context The sample was not intended to be, and was not, a statistically valid sample. The District’s Single Audit Report was not completed and submitted within nine months of fiscal year‐end. Recommendation The District should implement better controls over financial reporting and records retention to ensure all documents are prepared and available for the timely completion of the financial reports. Views of Responsible Officials See Corrective Action Plan.
Finding 2024-001
Finding Number: 2024‐001 Repeat Finding: No Program Names/Assistance Listing Titles: Assistance Listing Numbers: Federal Award Numbers: Questioned Costs: Title I Grants 84.010 S010A230003 N/A Child Nutrition Cluster 10.553, 10.555, 10.559 7AZ300AZ3 N/A Impact Aid 84.041 N/A N/A Education Stabilization Fund 84.425 S425D210038, S425U210038 N/A Federal Agency: U.S Department of Education, U.S. Department of Agriculture Pass‐Through Agency: Arizona Department of Education Type of Finding: Noncompliance Compliance Requirements: Reporting Criteria In accordance with 2 CFR 200.512, the single audit must be completed, and the data collection form and reporting package must be submitted within the earlier of 30 calendar days after receipt of the auditor’s report(s), or nine months after the end of the audit period. Condition The District does not have adequate controls in place over federal reporting compliance. Cause The District does not have adequate controls over financial reporting and specifically, capital assets. Effect The District was not in compliance with federal regulations and guidelines. Context The sample was not intended to be, and was not, a statistically valid sample. The District’s Single Audit Report was not completed and submitted within nine months of fiscal year‐end. Recommendation The District should implement better controls over financial reporting and records retention to ensure all documents are prepared and available for the timely completion of the financial reports. Views of Responsible Officials See Corrective Action Plan.
Finding 2024-001
Finding Number: 2024‐001 Repeat Finding: No Program Names/Assistance Listing Titles: Assistance Listing Numbers: Federal Award Numbers: Questioned Costs: Title I Grants 84.010 S010A230003 N/A Child Nutrition Cluster 10.553, 10.555, 10.559 7AZ300AZ3 N/A Impact Aid 84.041 N/A N/A Education Stabilization Fund 84.425 S425D210038, S425U210038 N/A Federal Agency: U.S Department of Education, U.S. Department of Agriculture Pass‐Through Agency: Arizona Department of Education Type of Finding: Noncompliance Compliance Requirements: Reporting Criteria In accordance with 2 CFR 200.512, the single audit must be completed, and the data collection form and reporting package must be submitted within the earlier of 30 calendar days after receipt of the auditor’s report(s), or nine months after the end of the audit period. Condition The District does not have adequate controls in place over federal reporting compliance. Cause The District does not have adequate controls over financial reporting and specifically, capital assets. Effect The District was not in compliance with federal regulations and guidelines. Context The sample was not intended to be, and was not, a statistically valid sample. The District’s Single Audit Report was not completed and submitted within nine months of fiscal year‐end. Recommendation The District should implement better controls over financial reporting and records retention to ensure all documents are prepared and available for the timely completion of the financial reports. Views of Responsible Officials See Corrective Action Plan.
Finding 2024-001
Finding Number: 2024‐001 Repeat Finding: No Program Names/Assistance Listing Titles: Assistance Listing Numbers: Federal Award Numbers: Questioned Costs: Title I Grants 84.010 S010A230003 N/A Child Nutrition Cluster 10.553, 10.555, 10.559 7AZ300AZ3 N/A Impact Aid 84.041 N/A N/A Education Stabilization Fund 84.425 S425D210038, S425U210038 N/A Federal Agency: U.S Department of Education, U.S. Department of Agriculture Pass‐Through Agency: Arizona Department of Education Type of Finding: Noncompliance Compliance Requirements: Reporting Criteria In accordance with 2 CFR 200.512, the single audit must be completed, and the data collection form and reporting package must be submitted within the earlier of 30 calendar days after receipt of the auditor’s report(s), or nine months after the end of the audit period. Condition The District does not have adequate controls in place over federal reporting compliance. Cause The District does not have adequate controls over financial reporting and specifically, capital assets. Effect The District was not in compliance with federal regulations and guidelines. Context The sample was not intended to be, and was not, a statistically valid sample. The District’s Single Audit Report was not completed and submitted within nine months of fiscal year‐end. Recommendation The District should implement better controls over financial reporting and records retention to ensure all documents are prepared and available for the timely completion of the financial reports. Views of Responsible Officials See Corrective Action Plan.
Finding 2024-001
Finding Number: 2024‐001 Repeat Finding: No Program Names/Assistance Listing Titles: Assistance Listing Numbers: Federal Award Numbers: Questioned Costs: Title I Grants 84.010 S010A230003 N/A Child Nutrition Cluster 10.553, 10.555, 10.559 7AZ300AZ3 N/A Impact Aid 84.041 N/A N/A Education Stabilization Fund 84.425 S425D210038, S425U210038 N/A Federal Agency: U.S Department of Education, U.S. Department of Agriculture Pass‐Through Agency: Arizona Department of Education Type of Finding: Noncompliance Compliance Requirements: Reporting Criteria In accordance with 2 CFR 200.512, the single audit must be completed, and the data collection form and reporting package must be submitted within the earlier of 30 calendar days after receipt of the auditor’s report(s), or nine months after the end of the audit period. Condition The District does not have adequate controls in place over federal reporting compliance. Cause The District does not have adequate controls over financial reporting and specifically, capital assets. Effect The District was not in compliance with federal regulations and guidelines. Context The sample was not intended to be, and was not, a statistically valid sample. The District’s Single Audit Report was not completed and submitted within nine months of fiscal year‐end. Recommendation The District should implement better controls over financial reporting and records retention to ensure all documents are prepared and available for the timely completion of the financial reports. Views of Responsible Officials See Corrective Action Plan.
Finding 2024-001
Finding Number: 2024‐001 Repeat Finding: No Program Names/Assistance Listing Titles: Assistance Listing Numbers: Federal Award Numbers: Questioned Costs: Title I Grants 84.010 S010A230003 N/A Child Nutrition Cluster 10.553, 10.555, 10.559 7AZ300AZ3 N/A Impact Aid 84.041 N/A N/A Education Stabilization Fund 84.425 S425D210038, S425U210038 N/A Federal Agency: U.S Department of Education, U.S. Department of Agriculture Pass‐Through Agency: Arizona Department of Education Type of Finding: Noncompliance Compliance Requirements: Reporting Criteria In accordance with 2 CFR 200.512, the single audit must be completed, and the data collection form and reporting package must be submitted within the earlier of 30 calendar days after receipt of the auditor’s report(s), or nine months after the end of the audit period. Condition The District does not have adequate controls in place over federal reporting compliance. Cause The District does not have adequate controls over financial reporting and specifically, capital assets. Effect The District was not in compliance with federal regulations and guidelines. Context The sample was not intended to be, and was not, a statistically valid sample. The District’s Single Audit Report was not completed and submitted within nine months of fiscal year‐end. Recommendation The District should implement better controls over financial reporting and records retention to ensure all documents are prepared and available for the timely completion of the financial reports. Views of Responsible Officials See Corrective Action Plan.
Finding 2024-001
Finding Number: 2024‐001 Repeat Finding: No Program Names/Assistance Listing Titles: Assistance Listing Numbers: Federal Award Numbers: Questioned Costs: Title I Grants 84.010 S010A230003 N/A Child Nutrition Cluster 10.553, 10.555, 10.559 7AZ300AZ3 N/A Impact Aid 84.041 N/A N/A Education Stabilization Fund 84.425 S425D210038, S425U210038 N/A Federal Agency: U.S Department of Education, U.S. Department of Agriculture Pass‐Through Agency: Arizona Department of Education Type of Finding: Noncompliance Compliance Requirements: Reporting Criteria In accordance with 2 CFR 200.512, the single audit must be completed, and the data collection form and reporting package must be submitted within the earlier of 30 calendar days after receipt of the auditor’s report(s), or nine months after the end of the audit period. Condition The District does not have adequate controls in place over federal reporting compliance. Cause The District does not have adequate controls over financial reporting and specifically, capital assets. Effect The District was not in compliance with federal regulations and guidelines. Context The sample was not intended to be, and was not, a statistically valid sample. The District’s Single Audit Report was not completed and submitted within nine months of fiscal year‐end. Recommendation The District should implement better controls over financial reporting and records retention to ensure all documents are prepared and available for the timely completion of the financial reports. Views of Responsible Officials See Corrective Action Plan.
Finding 2024-002
Finding Number: 2024‐002 Repeat Finding: No Program Name/Assistance Listing Title: Education Stabilization Fund Assistance Listing Number: 84.425 Federal Agency: U.S Department of Education Federal Award Numbers: S425D210038, S425U210038 Pass‐Through Agency: Arizona Department of Education Questioned Costs: N/A Type of Finding: Noncompliance, Significant Deficiency Compliance Requirement: Equipment and Real Property Management Criteria District management is responsible for establishing and maintaining internal control over the District’s accounting records and financial reporting in order to meet financial reporting objectives of the District. CFR 200.313 requires a physical inventory, of property purchased with federal funds, must be completed and reconciled with the property records every two years. The Uniform System of Financial Records (USFR) prescribes required procedures in the areas of capital assets including an inventory at least every three years. Condition The District lacked adequate financial controls over capital assets. Cause District and Federal policies and internal controls in place were not always operating effectively or were not always followed. Effect The District was not in compliance with CFR 200.313. Context During our review of the District’s capital assets, we noted that the District has not performed a physical inventory and reconciliation over stewardship and capital assets since fiscal year 2016‐17. The sample was not intended to be, and was not, a statistically valid sample. Recommendation The District should appoint an individual to ensure that a physical inventory of property purchased with federal funds is conducted and reconciled back to the property records every two years. Views of Responsible Officials See Corrective Action Plan.
Finding 2024-002
Finding Number: 2024‐002 Repeat Finding: No Program Name/Assistance Listing Title: Education Stabilization Fund Assistance Listing Number: 84.425 Federal Agency: U.S Department of Education Federal Award Numbers: S425D210038, S425U210038 Pass‐Through Agency: Arizona Department of Education Questioned Costs: N/A Type of Finding: Noncompliance, Significant Deficiency Compliance Requirement: Equipment and Real Property Management Criteria District management is responsible for establishing and maintaining internal control over the District’s accounting records and financial reporting in order to meet financial reporting objectives of the District. CFR 200.313 requires a physical inventory, of property purchased with federal funds, must be completed and reconciled with the property records every two years. The Uniform System of Financial Records (USFR) prescribes required procedures in the areas of capital assets including an inventory at least every three years. Condition The District lacked adequate financial controls over capital assets. Cause District and Federal policies and internal controls in place were not always operating effectively or were not always followed. Effect The District was not in compliance with CFR 200.313. Context During our review of the District’s capital assets, we noted that the District has not performed a physical inventory and reconciliation over stewardship and capital assets since fiscal year 2016‐17. The sample was not intended to be, and was not, a statistically valid sample. Recommendation The District should appoint an individual to ensure that a physical inventory of property purchased with federal funds is conducted and reconciled back to the property records every two years. Views of Responsible Officials See Corrective Action Plan.
Finding 2024-001
Finding Number: 2024‐001 Repeat Finding: No Program Names/Assistance Listing Titles: Assistance Listing Numbers: Federal Award Numbers: Questioned Costs: Title I Grants 84.010 S010A230003 N/A Child Nutrition Cluster 10.553, 10.555, 10.559 7AZ300AZ3 N/A Impact Aid 84.041 N/A N/A Education Stabilization Fund 84.425 S425D210038, S425U210038 N/A Federal Agency: U.S Department of Education, U.S. Department of Agriculture Pass‐Through Agency: Arizona Department of Education Type of Finding: Noncompliance Compliance Requirements: Reporting Criteria In accordance with 2 CFR 200.512, the single audit must be completed, and the data collection form and reporting package must be submitted within the earlier of 30 calendar days after receipt of the auditor’s report(s), or nine months after the end of the audit period. Condition The District does not have adequate controls in place over federal reporting compliance. Cause The District does not have adequate controls over financial reporting and specifically, capital assets. Effect The District was not in compliance with federal regulations and guidelines. Context The sample was not intended to be, and was not, a statistically valid sample. The District’s Single Audit Report was not completed and submitted within nine months of fiscal year‐end. Recommendation The District should implement better controls over financial reporting and records retention to ensure all documents are prepared and available for the timely completion of the financial reports. Views of Responsible Officials See Corrective Action Plan.
Finding 2024-001
Finding Number: 2024‐001 Repeat Finding: No Program Names/Assistance Listing Titles: Assistance Listing Numbers: Federal Award Numbers: Questioned Costs: Title I Grants 84.010 S010A230003 N/A Child Nutrition Cluster 10.553, 10.555, 10.559 7AZ300AZ3 N/A Impact Aid 84.041 N/A N/A Education Stabilization Fund 84.425 S425D210038, S425U210038 N/A Federal Agency: U.S Department of Education, U.S. Department of Agriculture Pass‐Through Agency: Arizona Department of Education Type of Finding: Noncompliance Compliance Requirements: Reporting Criteria In accordance with 2 CFR 200.512, the single audit must be completed, and the data collection form and reporting package must be submitted within the earlier of 30 calendar days after receipt of the auditor’s report(s), or nine months after the end of the audit period. Condition The District does not have adequate controls in place over federal reporting compliance. Cause The District does not have adequate controls over financial reporting and specifically, capital assets. Effect The District was not in compliance with federal regulations and guidelines. Context The sample was not intended to be, and was not, a statistically valid sample. The District’s Single Audit Report was not completed and submitted within nine months of fiscal year‐end. Recommendation The District should implement better controls over financial reporting and records retention to ensure all documents are prepared and available for the timely completion of the financial reports. Views of Responsible Officials See Corrective Action Plan.
Finding 2024-001
Finding Number: 2024‐001 Repeat Finding: No Program Names/Assistance Listing Titles: Assistance Listing Numbers: Federal Award Numbers: Questioned Costs: Title I Grants 84.010 S010A230003 N/A Child Nutrition Cluster 10.553, 10.555, 10.559 7AZ300AZ3 N/A Impact Aid 84.041 N/A N/A Education Stabilization Fund 84.425 S425D210038, S425U210038 N/A Federal Agency: U.S Department of Education, U.S. Department of Agriculture Pass‐Through Agency: Arizona Department of Education Type of Finding: Noncompliance Compliance Requirements: Reporting Criteria In accordance with 2 CFR 200.512, the single audit must be completed, and the data collection form and reporting package must be submitted within the earlier of 30 calendar days after receipt of the auditor’s report(s), or nine months after the end of the audit period. Condition The District does not have adequate controls in place over federal reporting compliance. Cause The District does not have adequate controls over financial reporting and specifically, capital assets. Effect The District was not in compliance with federal regulations and guidelines. Context The sample was not intended to be, and was not, a statistically valid sample. The District’s Single Audit Report was not completed and submitted within nine months of fiscal year‐end. Recommendation The District should implement better controls over financial reporting and records retention to ensure all documents are prepared and available for the timely completion of the financial reports. Views of Responsible Officials See Corrective Action Plan.
Finding 2024-001
Finding Number: 2024‐001 Repeat Finding: No Program Names/Assistance Listing Titles: Assistance Listing Numbers: Federal Award Numbers: Questioned Costs: Title I Grants 84.010 S010A230003 N/A Child Nutrition Cluster 10.553, 10.555, 10.559 7AZ300AZ3 N/A Impact Aid 84.041 N/A N/A Education Stabilization Fund 84.425 S425D210038, S425U210038 N/A Federal Agency: U.S Department of Education, U.S. Department of Agriculture Pass‐Through Agency: Arizona Department of Education Type of Finding: Noncompliance Compliance Requirements: Reporting Criteria In accordance with 2 CFR 200.512, the single audit must be completed, and the data collection form and reporting package must be submitted within the earlier of 30 calendar days after receipt of the auditor’s report(s), or nine months after the end of the audit period. Condition The District does not have adequate controls in place over federal reporting compliance. Cause The District does not have adequate controls over financial reporting and specifically, capital assets. Effect The District was not in compliance with federal regulations and guidelines. Context The sample was not intended to be, and was not, a statistically valid sample. The District’s Single Audit Report was not completed and submitted within nine months of fiscal year‐end. Recommendation The District should implement better controls over financial reporting and records retention to ensure all documents are prepared and available for the timely completion of the financial reports. Views of Responsible Officials See Corrective Action Plan.
Finding 2024-001
Finding Number: 2024‐001 Repeat Finding: No Program Names/Assistance Listing Titles: Assistance Listing Numbers: Federal Award Numbers: Questioned Costs: Title I Grants 84.010 S010A230003 N/A Child Nutrition Cluster 10.553, 10.555, 10.559 7AZ300AZ3 N/A Impact Aid 84.041 N/A N/A Education Stabilization Fund 84.425 S425D210038, S425U210038 N/A Federal Agency: U.S Department of Education, U.S. Department of Agriculture Pass‐Through Agency: Arizona Department of Education Type of Finding: Noncompliance Compliance Requirements: Reporting Criteria In accordance with 2 CFR 200.512, the single audit must be completed, and the data collection form and reporting package must be submitted within the earlier of 30 calendar days after receipt of the auditor’s report(s), or nine months after the end of the audit period. Condition The District does not have adequate controls in place over federal reporting compliance. Cause The District does not have adequate controls over financial reporting and specifically, capital assets. Effect The District was not in compliance with federal regulations and guidelines. Context The sample was not intended to be, and was not, a statistically valid sample. The District’s Single Audit Report was not completed and submitted within nine months of fiscal year‐end. Recommendation The District should implement better controls over financial reporting and records retention to ensure all documents are prepared and available for the timely completion of the financial reports. Views of Responsible Officials See Corrective Action Plan.
Finding 2024-001
Finding Number: 2024‐001 Repeat Finding: No Program Names/Assistance Listing Titles: Assistance Listing Numbers: Federal Award Numbers: Questioned Costs: Title I Grants 84.010 S010A230003 N/A Child Nutrition Cluster 10.553, 10.555, 10.559 7AZ300AZ3 N/A Impact Aid 84.041 N/A N/A Education Stabilization Fund 84.425 S425D210038, S425U210038 N/A Federal Agency: U.S Department of Education, U.S. Department of Agriculture Pass‐Through Agency: Arizona Department of Education Type of Finding: Noncompliance Compliance Requirements: Reporting Criteria In accordance with 2 CFR 200.512, the single audit must be completed, and the data collection form and reporting package must be submitted within the earlier of 30 calendar days after receipt of the auditor’s report(s), or nine months after the end of the audit period. Condition The District does not have adequate controls in place over federal reporting compliance. Cause The District does not have adequate controls over financial reporting and specifically, capital assets. Effect The District was not in compliance with federal regulations and guidelines. Context The sample was not intended to be, and was not, a statistically valid sample. The District’s Single Audit Report was not completed and submitted within nine months of fiscal year‐end. Recommendation The District should implement better controls over financial reporting and records retention to ensure all documents are prepared and available for the timely completion of the financial reports. Views of Responsible Officials See Corrective Action Plan.
Finding 2024-001
Finding Number: 2024‐001 Repeat Finding: No Program Names/Assistance Listing Titles: Assistance Listing Numbers: Federal Award Numbers: Questioned Costs: Title I Grants 84.010 S010A230003 N/A Child Nutrition Cluster 10.553, 10.555, 10.559 7AZ300AZ3 N/A Impact Aid 84.041 N/A N/A Education Stabilization Fund 84.425 S425D210038, S425U210038 N/A Federal Agency: U.S Department of Education, U.S. Department of Agriculture Pass‐Through Agency: Arizona Department of Education Type of Finding: Noncompliance Compliance Requirements: Reporting Criteria In accordance with 2 CFR 200.512, the single audit must be completed, and the data collection form and reporting package must be submitted within the earlier of 30 calendar days after receipt of the auditor’s report(s), or nine months after the end of the audit period. Condition The District does not have adequate controls in place over federal reporting compliance. Cause The District does not have adequate controls over financial reporting and specifically, capital assets. Effect The District was not in compliance with federal regulations and guidelines. Context The sample was not intended to be, and was not, a statistically valid sample. The District’s Single Audit Report was not completed and submitted within nine months of fiscal year‐end. Recommendation The District should implement better controls over financial reporting and records retention to ensure all documents are prepared and available for the timely completion of the financial reports. Views of Responsible Officials See Corrective Action Plan.
Finding 2024-002
Finding Number: 2024‐002 Repeat Finding: No Program Name/Assistance Listing Title: Education Stabilization Fund Assistance Listing Number: 84.425 Federal Agency: U.S Department of Education Federal Award Numbers: S425D210038, S425U210038 Pass‐Through Agency: Arizona Department of Education Questioned Costs: N/A Type of Finding: Noncompliance, Significant Deficiency Compliance Requirement: Equipment and Real Property Management Criteria District management is responsible for establishing and maintaining internal control over the District’s accounting records and financial reporting in order to meet financial reporting objectives of the District. CFR 200.313 requires a physical inventory, of property purchased with federal funds, must be completed and reconciled with the property records every two years. The Uniform System of Financial Records (USFR) prescribes required procedures in the areas of capital assets including an inventory at least every three years. Condition The District lacked adequate financial controls over capital assets. Cause District and Federal policies and internal controls in place were not always operating effectively or were not always followed. Effect The District was not in compliance with CFR 200.313. Context During our review of the District’s capital assets, we noted that the District has not performed a physical inventory and reconciliation over stewardship and capital assets since fiscal year 2016‐17. The sample was not intended to be, and was not, a statistically valid sample. Recommendation The District should appoint an individual to ensure that a physical inventory of property purchased with federal funds is conducted and reconciled back to the property records every two years. Views of Responsible Officials See Corrective Action Plan.
Finding 2024-002
Finding Number: 2024‐002 Repeat Finding: No Program Name/Assistance Listing Title: Education Stabilization Fund Assistance Listing Number: 84.425 Federal Agency: U.S Department of Education Federal Award Numbers: S425D210038, S425U210038 Pass‐Through Agency: Arizona Department of Education Questioned Costs: N/A Type of Finding: Noncompliance, Significant Deficiency Compliance Requirement: Equipment and Real Property Management Criteria District management is responsible for establishing and maintaining internal control over the District’s accounting records and financial reporting in order to meet financial reporting objectives of the District. CFR 200.313 requires a physical inventory, of property purchased with federal funds, must be completed and reconciled with the property records every two years. The Uniform System of Financial Records (USFR) prescribes required procedures in the areas of capital assets including an inventory at least every three years. Condition The District lacked adequate financial controls over capital assets. Cause District and Federal policies and internal controls in place were not always operating effectively or were not always followed. Effect The District was not in compliance with CFR 200.313. Context During our review of the District’s capital assets, we noted that the District has not performed a physical inventory and reconciliation over stewardship and capital assets since fiscal year 2016‐17. The sample was not intended to be, and was not, a statistically valid sample. Recommendation The District should appoint an individual to ensure that a physical inventory of property purchased with federal funds is conducted and reconciled back to the property records every two years. Views of Responsible Officials See Corrective Action Plan.