Finding 1103174 (2024-002)

Significant Deficiency
Requirement
ABH
Questioned Costs
-
Year
2024
Accepted
2025-03-12

AI Summary

  • Core Issue: The District failed to comply with federal regulations regarding journal entry approvals for federal funds.
  • Impacted Requirements: Noncompliance with documentation and approval processes under 2CFR §200.303.
  • Recommended Follow-Up: Reinforce adherence to established journal entry procedures to ensure compliance with federal guidelines.

Finding Text

Finding Number: 2024‐002 Repeat Finding: No Program Names/Assistance Listing Titles: Assistance Listing Numbers: Federal Award Numbers: Questioned Costs: Title I Grants to Local Educational Agencies 84.010 S010A230003 N/A Education Stabilization Fund 84.425U, 84.425W S425U210038, S425W210003 N/A Federal Agency: U.S. Department of Education Pass‐Through Agency: Arizona Department of Education Type of Finding: Noncompliance, Significant Deficiency Compliance Requirements: Activities Allowed or Unallowed, Period of Performance Criteria Under 2CFR §200.303, District management is responsible for establishing and maintaining internal controls over journal entries that are adequate to ensure that all financial activities are properly processed and recorded. All journal entries related to federal monies must be supported by documentation, signed, dated, properly recorded, and approved by an authorized person. Condition The District did not follow federal regulations and guidelines related to activities allowed or unallowed and period of performance. Cause Due to turnover in the District’s finance office and not following established procedures. Controls in place were not always followed. Effect The District was not in compliance with federal regulations and guidelines related to activities allowed or unallowed and period of performance. Context For three of 10 journal entries reviewed from the Title I Grants to Local Educational Agencies program, the journal entry was not approved by an authorized person other than the preparer. Finally, for two of five journal entries reviewed from the Education Stabilization Fund, the journal entry was not approved by an authorized person other than the preparer. The sample was not intended to be, and was not, a statistically valid sample. Recommendation The District should follow journal entry procedures established to ensure compliance with federal requirements. Views of Responsible Officials See Corrective Action Plan.

Categories

Period of Performance Significant Deficiency Internal Control / Segregation of Duties

Other Findings in this Audit

  • 526727 2024-001
    Significant Deficiency
  • 526728 2024-001
    Significant Deficiency
  • 526729 2024-001
    Significant Deficiency
  • 526730 2024-001
    Significant Deficiency
  • 526731 2024-001
    Significant Deficiency
  • 526732 2024-002
    Significant Deficiency
  • 526733 2024-002
    Significant Deficiency
  • 1103169 2024-001
    Significant Deficiency
  • 1103170 2024-001
    Significant Deficiency
  • 1103171 2024-001
    Significant Deficiency
  • 1103172 2024-001
    Significant Deficiency
  • 1103173 2024-001
    Significant Deficiency
  • 1103175 2024-002
    Significant Deficiency

Programs in Audit

ALN Program Name Expenditures
84.010 Title I Grants to Local Educational Agencies $6.08M
84.027 Special Education Grants to States $1.84M
10.553 School Breakfast Program $1.57M
84.367 Supporting Effective Instruction State Grants (formerly Improving Teacher Quality State Grants) $974,754
84.287 Twenty-First Century Community Learning Centers $428,933
93.243 Substance Abuse and Mental Health Services Projects of Regional and National Significance $348,907
93.778 Medical Assistance Program $346,968
10.582 Fresh Fruit and Vegetable Program $232,130
10.555 National School Lunch Program $214,275
84.377 School Improvement Grants $175,516
84.424 Student Support and Academic Enrichment Program $171,517
84.365 English Language Acquisition State Grants $170,143
84.027 Covid-19 Special Education Grants to States $136,215
10.559 Summer Food Service Program for Children $110,249
84.173 Special Education Preschool Grants $41,678
84.173 Covid-19 Special Education Preschool Grants $18,907
84.425 Education Stabilization Fund $17,447
84.196 Education for Homeless Children and Youth $6,284