Finding 1154848 (2024-002)

Material Weakness Repeat Finding
Requirement
L
Questioned Costs
-
Year
2024
Accepted
2025-09-23

AI Summary

  • Core Issue: The District has inadequate internal controls over the Education Stabilization Fund reporting processes, leading to potential inaccuracies in financial reporting.
  • Impacted Requirements: Compliance with the Arizona Department of Education's requirement to submit the “LEA Uses of ESSER I, II, & III – Use of Funds Detail” report by May 10, 2024.
  • Recommended Follow-Up: The District should establish strong internal controls and provide training for staff responsible for reporting to ensure accurate information is submitted.

Finding Text

Finding Number: 2024‐002 Repeat Finding: Yes ‐ 2023‐002 Program Name/Assistance Listing Title: Education Stabilization Fund Assistance Listing Number: 84.425U Federal Agency: U.S. Department of Education Federal Award Number: S425U210038 Pass‐Through Agency: Arizona Department of Education Questioned Costs: N/A Type of Finding: Noncompliance, Material Weakness Compliance Requirement: Reporting Criteria Districts that received Education Stabilization Fund funding were required by the Arizona Department of Education to complete the “LEA Uses of ESSER I, II, & III – Use of Funds Detail” report by May 10, 2024. The report was based on fiscal year 2022‐23 financial information and full‐time equivalency (FTE) information. Condition Inadequate internal controls existed over the Education Stabilization Fund reporting processes. Cause The District did not develop nor implement strong internal controls over reporting due to lack of training for individuals with reporting responsibilities. Effect The District is at risk of reporting inaccurate information. Context The District was unable to provide supporting documentation for the allocation of expenditures to the four categories listed in the report. The sample was not intended to be, and was not, a statistically valid sample. Recommendation The District should develop or implement strong internal controls over reporting to reduce the risk of reporting inaccurate information. Views of Responsible Officials See Corrective Action Plan.

Corrective Action Plan

Program Name/Assistance Listing Title: Education Stabilization Fund Assistance Listing Number: 84.425U Contact Person: James Serbin, Chief Financial Officer Anticipated Completion Date: June 30, 2026 Planned Corrective Action: Since July 2025 the District has implemented processes to ensure accurate and timely reporting. The District finds frequent journal adjustments to be problematic and an indication of inaccurate reporting. The District’s Annual Financial Report (AFR) will be timely filed and supported by the accounting data.

Categories

Allowable Costs / Cost Principles Material Weakness Reporting Internal Control / Segregation of Duties

Other Findings in this Audit

  • 1154842 2024-001
    Material Weakness Repeat
  • 1154843 2024-001
    Material Weakness Repeat
  • 1154844 2024-001
    Material Weakness Repeat
  • 1154845 2024-001
    Material Weakness Repeat
  • 1154846 2024-001
    Material Weakness Repeat
  • 1154847 2024-001
    Material Weakness Repeat
  • 1154849 2024-003
    Material Weakness Repeat

Programs in Audit

ALN Program Name Expenditures
84.010 Title I Grants to Local Educational Agencies $4.36M
84.027 Special Education Grants to States $2.02M
10.553 School Breakfast Program $1.38M
84.287 Twenty-First Century Community Learning Centers $1.16M
84.367 Supporting Effective Instruction State Grants (formerly Improving Teacher Quality State Grants) $486,173
93.778 Medical Assistance Program $382,879
84.365 English Language Acquisition State Grants $265,568
32.009 Covid-19 Emergency Connectivity Fund Program $209,220
10.555 National School Lunch Program $143,375
84.424 Student Support and Academic Enrichment Program $124,494
10.559 Summer Food Service Program for Children $111,669
10.558 Child and Adult Care Food Program $69,825
84.173 Special Education Preschool Grants $53,625
84.173 Covid-19 Special Education Preschool Grants $35,813
10.582 Fresh Fruit and Vegetable Program $20,990
21.027 Covid-19 Coronavirus State and Local Fiscal Recovery Funds $11,067
93.354 Public Health Emergency Response: Cooperative Agreement for Emergency Response: Public Health Crisis Response $5,064
84.425 Covid-19 Education Stabilization Fund $-1,815
84.027 Covid-19 Special Education Grants to States $-43,590