Finding Text
2023-004 ACTIVITIES ALLOWED OR UNALLOWED
Program: Education Stabilization Fund – ESSER II and ESSER III
Federal Assistance Listing Number: 84.425
Federal Agency: U.S. Department of Education
Pass-Through Agency: Arizona Department of Education
Grantor Number: 21FESSII-111175-01A and 21FESIII-111175-01A
Questioned Costs: $133,105
Type of Finding: Material noncompliance and material weakness in internal control
Compliance Requirement: A. Activities Allowed or Unallowed
Condition/Context: During our testing of expenditures, it was noted that eleven expenditures with a total of $133,105 were not included within the Education Stabilization Fund budget as approved by the Arizona Department of Education.
Criteria: Title 2 U.S. Code of Federal Regulations § 200.303 states that the auditee must establish and maintain effective internal control over the federal award that provides reasonable assurance that the auditee is managing the federal award in compliance with federal statutes, regulations, and the terms and conditions of the federal award. Additionally, federal awards must be spent in accordance with the budget and grant agreement approved by the awarding agency or pass-through entity.
Cause: Management oversight and turnover in the federal grant department.
Effect: Noncompliance with Uniform Guidance and internal control weakness.
Repeat Finding: No.
Recommendation: We recommend the District to review its internal control procedures over federal programs to ensure grant expenditures are approved by the SEA prior to the expenditures being incurred.
Views of Responsible Officials: 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: Dorene Mudrow, Superintendent