Finding Text
Finding Number: 2024‐002
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 Numbers: S425D210038, S425U210038
Pass‐Through Agency: Arizona Department of Education
Questioned Costs: N/A
Type of Finding: Noncompliance, Significant Deficiency
Compliance Requirement: Equipment and Real Property Management
Criteria
District management is responsible for establishing and maintaining internal control over the
District’s accounting records and financial reporting in order to meet financial reporting objectives of
the District. CFR 200.313 requires a physical inventory, of property purchased with federal funds,
must be completed and reconciled with the property records every two years. The Uniform System
of Financial Records (USFR) prescribes required procedures in the areas of capital assets including an
inventory at least every three years.
Condition
The District lacked adequate financial controls over capital assets.
Cause
District and Federal policies and internal controls in place were not always operating effectively or
were not always followed.
Effect
The District was not in compliance with CFR 200.313.
Context
During our review of the District’s capital assets, we noted that the District has not performed a
physical inventory and reconciliation over stewardship and capital assets since fiscal year 2016‐17.
The sample was not intended to be, and was not, a statistically valid sample.
Recommendation
The District should appoint an individual to ensure that a physical inventory of property purchased
with federal funds is conducted and reconciled back to the property records every two years. Views of Responsible Officials
See Corrective Action Plan.