Finding Text
Finding 2021-103 Allocation of Forest Reserve Funds (Repeat Finding)
(Material Weakness, Compliance Finding)
Assistance Listing Number: 10.665
Cluster Title: Forest Service Schools and Roads Cluster
Program Title: Schools and Roads – Grants to States
Federal Agency: U.S. Department of Agriculture
Award Year: 2021
Award Number: None
Compliance Requirements: Special Tests and Provisions
Question Costs: None
Criteria: Arizona Revised Statutes (A.R.S.) 11-497 requires that the counties’ share of pass-through
forest reserve monies from the United States be disbursed for the benefit of public schools and
public roads at the direction of the board of supervisors. Further, a county may allocate a
disproportionate amount of forest reserve monies between public schools and public roads as long
as both categories receive a real benefit.
Condition and context: Forest reserve monies for Apache County were not properly disbursed for
the benefit of public schools and public roads in accordance with A.R.S. 11-497. The County instead
disbursed the entire annual allocation of $558,547 to public school districts. This finding is similar to
prior year finding 2020-103.
Cause: The cause is that the Apache County Board of Supervisors decided that the County public
schools had a greater need for funding than roads projects.
Effect: The effect is that the County did not expend a portion of the grant monies on public roads
and therefore knowingly continued to violate state statute.
Recommendation: We recommend that the County stop violating state statute and distribute forest
reserve monies in a manner that benefits both public schools and public roads as required by A.R.S.
11-497.
County’s Response: The County’s responsible officials’ views and planned corrective action are in
its corrective action plan at the end of the report.