2022-009 ALLOWABLE COSTS Program: Education Stabilization Fund CFDA Number: 84.425D Federal Agency: U.S. Department of Education Pass-Through Agency: Arizona Department of Education Grantor Number: 21FESSII-111563-01A & 21FESIII-111563-01A Questioned Costs: $12,772 ? general disbursements and $31,500 ? payroll disbursements. Type of Finding: Noncompliance, material weakness in internal control Compliance Requirement: A. Allowable costs Condition/Context: The District spent $12,772 of federal funding on video conferencing, COVID-19 testing, charging stations, fire and alarm testing, palm tree trimming, ADEQ monitoring, and a printer. These expenditures were not explicitly authorized within the budget approved by the passthrough agency for the related grant. In addition, the District expended $31,500 in payroll for retention stipends that were not explicitly written into the budget approved by the passthrough agency. Lastly, for eleven of 25 general disbursements tested, an approved purchase order or requisition was not maintained to support the authorization of the purchase. Among those eleven purchases, five did not have invoices approved for payment. Criteria: The District must follow Uniform Guidance and adhere to the budgets approved by the Arizona Department of Education (ADE) for allowable expenditures. Cause: The District did not have proper internal controls over grant disbursements to ensure only activity related to the District was recorded within their general ledger. In addition, controls were not effective to ensure proper purchase orders were being prepared or that invoices were approved for payment. Effect: Noncompliance and internal control weakness. Expenditures in the amount of $12,772 and $31,500 were recorded within the District?s general ledger that were not approved within the budget provided to ADE. This led to a qualified opinion. Repeat Finding: No. Recommendation: We recommend that the District establish proper internal controls over processing expenditures to ensure that only those expenditures that are allowed and approved within the budget be spent out of grant funds. Those expenditures should be approved within a purchase order and requisition and the related invoices should be approved for payment. View of Responsible Official: The District?s corrective action plan presented in a separate document includes the views and planned corrective action of its responsible officials. We are not required to and have not audited these responses and planned corrective actions and therefore provide no assurances as to their accuracy. Contact person: Aaron Whittle, Business Manager.
2022-010 EQUIPMENT/REAL PROPERTY MANAGEMENT Program: Education Stabilization Fund CFDA Number: 84.425D Federal Agency: U.S. Department of Education Pass-Through Agency: Arizona Department of Education Grantor Number: 21FESSII-111563-01A & 21FESIII-111563-01A Questioned Costs: $30,775 Type of Finding: Noncompliance, material weakness in internal control Compliance Requirement: F. Equipment/Real Property Management Condition/Context: The District did not ensure that monies spent on equipment were properly budgeted within the grant agreement and that the Arizona Department of Education had prior approval of equipment purchases. Criteria: The Uniform Grant Guidance and applicable compliance supplement. Cause: Management oversight. Effect: Noncompliance and internal control weakness which led to a qualified opinion. Repeat Finding: This is not a repeat finding. Recommendation: We recommend that the District establish proper internal controls over property and equipment to ensure all equipment purchases are budgeted for within the grant agreement. Views of Responsible Officials: The District concurs with this recommendation and will review its procedures over capital asset and property control. Contact Person: Aaron Whittle, Business Manager.
2022-009 ALLOWABLE COSTS Program: Education Stabilization Fund CFDA Number: 84.425D Federal Agency: U.S. Department of Education Pass-Through Agency: Arizona Department of Education Grantor Number: 21FESSII-111563-01A & 21FESIII-111563-01A Questioned Costs: $12,772 ? general disbursements and $31,500 ? payroll disbursements. Type of Finding: Noncompliance, material weakness in internal control Compliance Requirement: A. Allowable costs Condition/Context: The District spent $12,772 of federal funding on video conferencing, COVID-19 testing, charging stations, fire and alarm testing, palm tree trimming, ADEQ monitoring, and a printer. These expenditures were not explicitly authorized within the budget approved by the passthrough agency for the related grant. In addition, the District expended $31,500 in payroll for retention stipends that were not explicitly written into the budget approved by the passthrough agency. Lastly, for eleven of 25 general disbursements tested, an approved purchase order or requisition was not maintained to support the authorization of the purchase. Among those eleven purchases, five did not have invoices approved for payment. Criteria: The District must follow Uniform Guidance and adhere to the budgets approved by the Arizona Department of Education (ADE) for allowable expenditures. Cause: The District did not have proper internal controls over grant disbursements to ensure only activity related to the District was recorded within their general ledger. In addition, controls were not effective to ensure proper purchase orders were being prepared or that invoices were approved for payment. Effect: Noncompliance and internal control weakness. Expenditures in the amount of $12,772 and $31,500 were recorded within the District?s general ledger that were not approved within the budget provided to ADE. This led to a qualified opinion. Repeat Finding: No. Recommendation: We recommend that the District establish proper internal controls over processing expenditures to ensure that only those expenditures that are allowed and approved within the budget be spent out of grant funds. Those expenditures should be approved within a purchase order and requisition and the related invoices should be approved for payment. View of Responsible Official: The District?s corrective action plan presented in a separate document includes the views and planned corrective action of its responsible officials. We are not required to and have not audited these responses and planned corrective actions and therefore provide no assurances as to their accuracy. Contact person: Aaron Whittle, Business Manager.
2022-010 EQUIPMENT/REAL PROPERTY MANAGEMENT Program: Education Stabilization Fund CFDA Number: 84.425D Federal Agency: U.S. Department of Education Pass-Through Agency: Arizona Department of Education Grantor Number: 21FESSII-111563-01A & 21FESIII-111563-01A Questioned Costs: $30,775 Type of Finding: Noncompliance, material weakness in internal control Compliance Requirement: F. Equipment/Real Property Management Condition/Context: The District did not ensure that monies spent on equipment were properly budgeted within the grant agreement and that the Arizona Department of Education had prior approval of equipment purchases. Criteria: The Uniform Grant Guidance and applicable compliance supplement. Cause: Management oversight. Effect: Noncompliance and internal control weakness which led to a qualified opinion. Repeat Finding: This is not a repeat finding. Recommendation: We recommend that the District establish proper internal controls over property and equipment to ensure all equipment purchases are budgeted for within the grant agreement. Views of Responsible Officials: The District concurs with this recommendation and will review its procedures over capital asset and property control. Contact Person: Aaron Whittle, Business Manager.
2022-009 ALLOWABLE COSTS Program: Education Stabilization Fund CFDA Number: 84.425D Federal Agency: U.S. Department of Education Pass-Through Agency: Arizona Department of Education Grantor Number: 21FESSII-111563-01A & 21FESIII-111563-01A Questioned Costs: $12,772 ? general disbursements and $31,500 ? payroll disbursements. Type of Finding: Noncompliance, material weakness in internal control Compliance Requirement: A. Allowable costs Condition/Context: The District spent $12,772 of federal funding on video conferencing, COVID-19 testing, charging stations, fire and alarm testing, palm tree trimming, ADEQ monitoring, and a printer. These expenditures were not explicitly authorized within the budget approved by the passthrough agency for the related grant. In addition, the District expended $31,500 in payroll for retention stipends that were not explicitly written into the budget approved by the passthrough agency. Lastly, for eleven of 25 general disbursements tested, an approved purchase order or requisition was not maintained to support the authorization of the purchase. Among those eleven purchases, five did not have invoices approved for payment. Criteria: The District must follow Uniform Guidance and adhere to the budgets approved by the Arizona Department of Education (ADE) for allowable expenditures. Cause: The District did not have proper internal controls over grant disbursements to ensure only activity related to the District was recorded within their general ledger. In addition, controls were not effective to ensure proper purchase orders were being prepared or that invoices were approved for payment. Effect: Noncompliance and internal control weakness. Expenditures in the amount of $12,772 and $31,500 were recorded within the District?s general ledger that were not approved within the budget provided to ADE. This led to a qualified opinion. Repeat Finding: No. Recommendation: We recommend that the District establish proper internal controls over processing expenditures to ensure that only those expenditures that are allowed and approved within the budget be spent out of grant funds. Those expenditures should be approved within a purchase order and requisition and the related invoices should be approved for payment. View of Responsible Official: The District?s corrective action plan presented in a separate document includes the views and planned corrective action of its responsible officials. We are not required to and have not audited these responses and planned corrective actions and therefore provide no assurances as to their accuracy. Contact person: Aaron Whittle, Business Manager.
2022-010 EQUIPMENT/REAL PROPERTY MANAGEMENT Program: Education Stabilization Fund CFDA Number: 84.425D Federal Agency: U.S. Department of Education Pass-Through Agency: Arizona Department of Education Grantor Number: 21FESSII-111563-01A & 21FESIII-111563-01A Questioned Costs: $30,775 Type of Finding: Noncompliance, material weakness in internal control Compliance Requirement: F. Equipment/Real Property Management Condition/Context: The District did not ensure that monies spent on equipment were properly budgeted within the grant agreement and that the Arizona Department of Education had prior approval of equipment purchases. Criteria: The Uniform Grant Guidance and applicable compliance supplement. Cause: Management oversight. Effect: Noncompliance and internal control weakness which led to a qualified opinion. Repeat Finding: This is not a repeat finding. Recommendation: We recommend that the District establish proper internal controls over property and equipment to ensure all equipment purchases are budgeted for within the grant agreement. Views of Responsible Officials: The District concurs with this recommendation and will review its procedures over capital asset and property control. Contact Person: Aaron Whittle, Business Manager.
2022-009 ALLOWABLE COSTS Program: Education Stabilization Fund CFDA Number: 84.425D Federal Agency: U.S. Department of Education Pass-Through Agency: Arizona Department of Education Grantor Number: 21FESSII-111563-01A & 21FESIII-111563-01A Questioned Costs: $12,772 ? general disbursements and $31,500 ? payroll disbursements. Type of Finding: Noncompliance, material weakness in internal control Compliance Requirement: A. Allowable costs Condition/Context: The District spent $12,772 of federal funding on video conferencing, COVID-19 testing, charging stations, fire and alarm testing, palm tree trimming, ADEQ monitoring, and a printer. These expenditures were not explicitly authorized within the budget approved by the passthrough agency for the related grant. In addition, the District expended $31,500 in payroll for retention stipends that were not explicitly written into the budget approved by the passthrough agency. Lastly, for eleven of 25 general disbursements tested, an approved purchase order or requisition was not maintained to support the authorization of the purchase. Among those eleven purchases, five did not have invoices approved for payment. Criteria: The District must follow Uniform Guidance and adhere to the budgets approved by the Arizona Department of Education (ADE) for allowable expenditures. Cause: The District did not have proper internal controls over grant disbursements to ensure only activity related to the District was recorded within their general ledger. In addition, controls were not effective to ensure proper purchase orders were being prepared or that invoices were approved for payment. Effect: Noncompliance and internal control weakness. Expenditures in the amount of $12,772 and $31,500 were recorded within the District?s general ledger that were not approved within the budget provided to ADE. This led to a qualified opinion. Repeat Finding: No. Recommendation: We recommend that the District establish proper internal controls over processing expenditures to ensure that only those expenditures that are allowed and approved within the budget be spent out of grant funds. Those expenditures should be approved within a purchase order and requisition and the related invoices should be approved for payment. View of Responsible Official: The District?s corrective action plan presented in a separate document includes the views and planned corrective action of its responsible officials. We are not required to and have not audited these responses and planned corrective actions and therefore provide no assurances as to their accuracy. Contact person: Aaron Whittle, Business Manager.
2022-010 EQUIPMENT/REAL PROPERTY MANAGEMENT Program: Education Stabilization Fund CFDA Number: 84.425D Federal Agency: U.S. Department of Education Pass-Through Agency: Arizona Department of Education Grantor Number: 21FESSII-111563-01A & 21FESIII-111563-01A Questioned Costs: $30,775 Type of Finding: Noncompliance, material weakness in internal control Compliance Requirement: F. Equipment/Real Property Management Condition/Context: The District did not ensure that monies spent on equipment were properly budgeted within the grant agreement and that the Arizona Department of Education had prior approval of equipment purchases. Criteria: The Uniform Grant Guidance and applicable compliance supplement. Cause: Management oversight. Effect: Noncompliance and internal control weakness which led to a qualified opinion. Repeat Finding: This is not a repeat finding. Recommendation: We recommend that the District establish proper internal controls over property and equipment to ensure all equipment purchases are budgeted for within the grant agreement. Views of Responsible Officials: The District concurs with this recommendation and will review its procedures over capital asset and property control. Contact Person: Aaron Whittle, Business Manager.