Finding 1074538 (2023-004)

Significant Deficiency Repeat Finding
Requirement
F
Questioned Costs
-
Year
2023
Accepted
2024-09-24

AI Summary

  • Core Issue: The District did not conduct the required physical inventory of property, leading to a significant deficiency in internal controls over compliance.
  • Impacted Requirements: Noncompliance with 2 CFR Part 200, which mandates maintaining effective internal controls and conducting physical inventories every two years.
  • Recommended Follow-Up: The District should implement controls to ensure physical inventories are conducted and reconciled with property records at least biennially.

Finding Text

2023 – 004 – Equipment and Real Property Management Federal Agency: U.S. Department of Education Federal Program Name: Education Stabilization Fund Assistance Listing Number: 84.425 Pass-Through Agency: Arizona Department of Education Pass-Through Number(s): All Pass-Though Numbers Present in the SEFA Award Period: March 2020 through September 2024 Statistically Valid Sample: No, and not intended to be a Statistically Valid Sample. Type of Finding: Significant Deficiency in Internal Control over Compliance and Noncompliance Criteria: 2 CFR Part 200 Uniform Administrative Requirements, Cost Principles, and Audit Requirements for Federal Award requires compliance with the provisions of Subpart D – Property Standards including retaining audit evidence to support the physical inventory taken at the minimum of every two years. Additionally Per 2 CFR 200.303 (a) the District must establish and maintain effective internal control over the Federal ward that provides reasonable assurance that it is managing the federal award in compliance with federal status, regulations, and the terms and conditions of the federal award. These internal controls should be in compliance with guidance in the “internal Control integrated Framework” issued by the Committee of Sponsoring Organizations of the Treadway Commission (COSO). Condition/Context: We were unable to obtain evidence of the physical inventory of property taken as required by the Uniform Guidance. Questioned costs: None Cause: Due to the change in management and timing of prior year finding, the District failed to perform the inventory within the fiscal year under audit. Effect: Failure to retain adequate records can cause the District to be out of compliance with 2 CFR Part 200. Repeat finding: Yes Recommendation: We recommend the District to design controls to ensure a physical inventory of property be taken and the results reconciled with the property records at least every two years. Views of responsible officials: There is no disagreement with the audit finding. See corrective action plan.

Categories

Equipment & Real Property Management

Other Findings in this Audit

  • 498094 2023-002
    Significant Deficiency
  • 498095 2023-003
    Significant Deficiency
  • 498096 2023-004
    Significant Deficiency Repeat
  • 498097 2023-005
    Significant Deficiency
  • 498098 2023-004
    Significant Deficiency Repeat
  • 498099 2023-005
    Significant Deficiency
  • 498100 2023-004
    Significant Deficiency Repeat
  • 498101 2023-005
    Significant Deficiency
  • 1074536 2023-002
    Significant Deficiency
  • 1074537 2023-003
    Significant Deficiency
  • 1074539 2023-005
    Significant Deficiency
  • 1074540 2023-004
    Significant Deficiency Repeat
  • 1074541 2023-005
    Significant Deficiency
  • 1074542 2023-004
    Significant Deficiency Repeat
  • 1074543 2023-005
    Significant Deficiency

Programs in Audit

ALN Program Name Expenditures
84.041 Impact Aid $9.17M
84.425 Education Stabilization Fund $2.81M
10.555 National School Lunch Program $546,800
84.010 Title I Grants to Local Educational Agencies $506,391
21.027 Coronavirus State and Local Fiscal Recovery Funds $473,474
93.243 Substance Abuse and Mental Health Services Projects of Regional and National Significance $323,631
32.009 Emergency Connectivity Fund Program $277,873
84.060 Indian Education Grants to Local Educational Agencies $238,565
10.553 School Breakfast Program $143,988
10.559 Summer Food Service Program for Children $96,161
84.367 Supporting Effective Instruction State Grants (formerly Improving Teacher Quality State Grants) $94,960
84.027 Special Education Grants to States $43,704
15.130 Indian Education Assistance to Schools $32,619
84.358 Rural Education $24,276
84.013 Title I State Agency Program for Neglected and Delinquent Children and Youth $21,806
84.048 Career and Technical Education -- Basic Grants to States $19,970
84.173 Special Education Preschool Grants $3,268