Finding 1104646 (2024-001)

Finding Number: 2024‐001 Repeat Finding: No Program Name/Assistance Listing Title: Education Stabilization Fund Assistance Listing Number: 84.425 Federal Agency: U.S. Department of Education Federal Award Number: S425U210038, S425W210003 Pass‐Through Agency: Arizona Department of Education Questioned Costs: N/A Type of Finding: Noncompliance, Significant Deficiency Compliance Requirement: Reporting Criteria In accordance with 2 CFR 200.303, management is responsible for establishing and maintaining internal controls over federal programs. This includes the development of a system to ensure documentation is maintained to support all reported figures and counts as it relates to federal programs. Condition The District lacked proper internal controls over preparation of the annual reporting required for the Education Stabilization Fund. Cause The annual report was not reviewed by someone other than the preparer. Effect The annual report contained errors in the number of ESSER funded positions and also indicated the District allocated ESSER funds to schools, when in fact they did not. Context The number of ESSER funded positions reported to the Arizona Department of Education did not agree to the FTE Statistics report for each specific position. In total, positions did not agree by 45 positions. Recommendation The District should ensure reported figures agree to supporting documentation and that annual reports are reviewed by someone other than the preparer. Views of Responsible Officials See Corrective Action Plan.