Audit 35992

SECTION III - FEDERAL AWARDS FINDINGS AND QUESTIONED COSTS 2022-002 Allowable and Unallowable Costs Program: Education Stabilization Fund CFDA Number: 84.425D and 84.425U Federal Agency: U.S. Department of Education Pass-Through Agency: Arizona Department of Education Type of Finding: Noncompliance, material weakness in internal control Compliance Requirement: A. Allowable and Unallowable Costs Condition/Context: The District did not maintain documentation to support retention stipends and other monies paid to employees during the current year. Payroll vouchers were approved to support the amounts paid to employees but no other time and effort documentation was maintained. Criteria: Uniform Grant Guidance requires that time and effort documentation is maintained to support the distribution of employee compensation from federal grants. Cause: The District did not have proper internal controls in place to ensure all grant funding was properly supported by time and effort documentation or contracts that detailed out the amounts to be paid to each employee. Effect: Noncompliance and internal control weakness. Repeat Finding: This is not a repeat finding. Recommendation: We recommend that the District establish internal control procedures that ensure time and effort and contracts, stipend forms, or timesheets are maintained to support the individual payments made to employees with grant funds. These forms should also be reviewed and approved by an appropriate District administrator. Views of Responsible Officials: The District concurs with this recommendation and will ensure that documentation is maintained to support all federal grant funding in future periods. Contact Person: Ginger Wiltbank, Finance Director.

SECTION III - FEDERAL AWARDS FINDINGS AND QUESTIONED COSTS 2022-002 Allowable and Unallowable Costs Program: Education Stabilization Fund CFDA Number: 84.425D and 84.425U Federal Agency: U.S. Department of Education Pass-Through Agency: Arizona Department of Education Type of Finding: Noncompliance, material weakness in internal control Compliance Requirement: A. Allowable and Unallowable Costs Condition/Context: The District did not maintain documentation to support retention stipends and other monies paid to employees during the current year. Payroll vouchers were approved to support the amounts paid to employees but no other time and effort documentation was maintained. Criteria: Uniform Grant Guidance requires that time and effort documentation is maintained to support the distribution of employee compensation from federal grants. Cause: The District did not have proper internal controls in place to ensure all grant funding was properly supported by time and effort documentation or contracts that detailed out the amounts to be paid to each employee. Effect: Noncompliance and internal control weakness. Repeat Finding: This is not a repeat finding. Recommendation: We recommend that the District establish internal control procedures that ensure time and effort and contracts, stipend forms, or timesheets are maintained to support the individual payments made to employees with grant funds. These forms should also be reviewed and approved by an appropriate District administrator. Views of Responsible Officials: The District concurs with this recommendation and will ensure that documentation is maintained to support all federal grant funding in future periods. Contact Person: Ginger Wiltbank, Finance Director.

SECTION III - FEDERAL AWARDS FINDINGS AND QUESTIONED COSTS 2022-002 Allowable and Unallowable Costs Program: Education Stabilization Fund CFDA Number: 84.425D and 84.425U Federal Agency: U.S. Department of Education Pass-Through Agency: Arizona Department of Education Type of Finding: Noncompliance, material weakness in internal control Compliance Requirement: A. Allowable and Unallowable Costs Condition/Context: The District did not maintain documentation to support retention stipends and other monies paid to employees during the current year. Payroll vouchers were approved to support the amounts paid to employees but no other time and effort documentation was maintained. Criteria: Uniform Grant Guidance requires that time and effort documentation is maintained to support the distribution of employee compensation from federal grants. Cause: The District did not have proper internal controls in place to ensure all grant funding was properly supported by time and effort documentation or contracts that detailed out the amounts to be paid to each employee. Effect: Noncompliance and internal control weakness. Repeat Finding: This is not a repeat finding. Recommendation: We recommend that the District establish internal control procedures that ensure time and effort and contracts, stipend forms, or timesheets are maintained to support the individual payments made to employees with grant funds. These forms should also be reviewed and approved by an appropriate District administrator. Views of Responsible Officials: The District concurs with this recommendation and will ensure that documentation is maintained to support all federal grant funding in future periods. Contact Person: Ginger Wiltbank, Finance Director.

SECTION III - FEDERAL AWARDS FINDINGS AND QUESTIONED COSTS 2022-002 Allowable and Unallowable Costs Program: Education Stabilization Fund CFDA Number: 84.425D and 84.425U Federal Agency: U.S. Department of Education Pass-Through Agency: Arizona Department of Education Type of Finding: Noncompliance, material weakness in internal control Compliance Requirement: A. Allowable and Unallowable Costs Condition/Context: The District did not maintain documentation to support retention stipends and other monies paid to employees during the current year. Payroll vouchers were approved to support the amounts paid to employees but no other time and effort documentation was maintained. Criteria: Uniform Grant Guidance requires that time and effort documentation is maintained to support the distribution of employee compensation from federal grants. Cause: The District did not have proper internal controls in place to ensure all grant funding was properly supported by time and effort documentation or contracts that detailed out the amounts to be paid to each employee. Effect: Noncompliance and internal control weakness. Repeat Finding: This is not a repeat finding. Recommendation: We recommend that the District establish internal control procedures that ensure time and effort and contracts, stipend forms, or timesheets are maintained to support the individual payments made to employees with grant funds. These forms should also be reviewed and approved by an appropriate District administrator. Views of Responsible Officials: The District concurs with this recommendation and will ensure that documentation is maintained to support all federal grant funding in future periods. Contact Person: Ginger Wiltbank, Finance Director.

SECTION III - FEDERAL AWARDS FINDINGS AND QUESTIONED COSTS 2022-002 Allowable and Unallowable Costs Program: Education Stabilization Fund CFDA Number: 84.425D and 84.425U Federal Agency: U.S. Department of Education Pass-Through Agency: Arizona Department of Education Type of Finding: Noncompliance, material weakness in internal control Compliance Requirement: A. Allowable and Unallowable Costs Condition/Context: The District did not maintain documentation to support retention stipends and other monies paid to employees during the current year. Payroll vouchers were approved to support the amounts paid to employees but no other time and effort documentation was maintained. Criteria: Uniform Grant Guidance requires that time and effort documentation is maintained to support the distribution of employee compensation from federal grants. Cause: The District did not have proper internal controls in place to ensure all grant funding was properly supported by time and effort documentation or contracts that detailed out the amounts to be paid to each employee. Effect: Noncompliance and internal control weakness. Repeat Finding: This is not a repeat finding. Recommendation: We recommend that the District establish internal control procedures that ensure time and effort and contracts, stipend forms, or timesheets are maintained to support the individual payments made to employees with grant funds. These forms should also be reviewed and approved by an appropriate District administrator. Views of Responsible Officials: The District concurs with this recommendation and will ensure that documentation is maintained to support all federal grant funding in future periods. Contact Person: Ginger Wiltbank, Finance Director.

SECTION III - FEDERAL AWARDS FINDINGS AND QUESTIONED COSTS 2022-002 Allowable and Unallowable Costs Program: Education Stabilization Fund CFDA Number: 84.425D and 84.425U Federal Agency: U.S. Department of Education Pass-Through Agency: Arizona Department of Education Type of Finding: Noncompliance, material weakness in internal control Compliance Requirement: A. Allowable and Unallowable Costs Condition/Context: The District did not maintain documentation to support retention stipends and other monies paid to employees during the current year. Payroll vouchers were approved to support the amounts paid to employees but no other time and effort documentation was maintained. Criteria: Uniform Grant Guidance requires that time and effort documentation is maintained to support the distribution of employee compensation from federal grants. Cause: The District did not have proper internal controls in place to ensure all grant funding was properly supported by time and effort documentation or contracts that detailed out the amounts to be paid to each employee. Effect: Noncompliance and internal control weakness. Repeat Finding: This is not a repeat finding. Recommendation: We recommend that the District establish internal control procedures that ensure time and effort and contracts, stipend forms, or timesheets are maintained to support the individual payments made to employees with grant funds. These forms should also be reviewed and approved by an appropriate District administrator. Views of Responsible Officials: The District concurs with this recommendation and will ensure that documentation is maintained to support all federal grant funding in future periods. Contact Person: Ginger Wiltbank, Finance Director.