Finding 1165114 (2025-001)

Material Weakness Repeat Finding
Requirement
L
Questioned Costs
-
Year
2025
Accepted
2025-12-17

AI Summary

  • Core Issue: One programmatic report was submitted late without proof of an approved extension, indicating a significant internal control deficiency.
  • Impacted Requirements: Compliance with grant reporting deadlines as stipulated in the agreements is critical for maintaining funding integrity.
  • Recommended Follow-Up: The Foundation should improve its reporting processes and controls to ensure timely submission of all required reports.

Finding Text

Item: 2025-001 Assistance Listing Number: 21.027 Program: COVID-19 – Coronavirus State and Local Fiscal Recovery Funds Federal Agency: Department of Treasury Pass-Through Agency: City of Phoenix Pass-Through Grantor Identifying Number: 157096-0 Award Year: October 1, 2022 – September 30, 2025 Compliance Requirement: Reporting Criteria: Per the grant agreements, Maricopa County Community College District Foundation (the “Foundation”) must submit several programmatic reports throughout the grant period with various due dates. Condition: Programmatic reporting was submitted after the required due date. In a population of 6 programmatic reports, one report was not submitted timely and did not have concurrent evidence of a prior approval to extend the due date. This is deemed to be a significant deficiency in internal control over compliance. Questioned Costs: N/a Context: In a population of two projections reports, three demographics reports, and one itemized report, we tested 100% of these reports and noted that one of the demographics reports was not submitted timely. We were unable to confirm that there was an approved extension at the time of submission. Effect: The system of internal controls was not properly implemented. Cause: Weak reporting retention policies led to an unclear scenario in which a required report was submitted late but neither party was able to confirm that an extension was approved. Identification as a Repeat Finding: Not a repeat finding Recommendation: The Foundation should enhance its process and controls to ensure that deliverables are submitted in the time frames laid out by the grant agreements.

Corrective Action Plan

Item: 2025-001 Assistance Listing Number: 21.027 Program: COVID-19 – Coronavirus State and Local Fiscal Recovery Funds Federal Agency: U.S. Department of the Treasury Pass-Through Agencies: City of Phoenix Pass-Through Grantor Identifying Number: 157096-0 Award Year: October 1, 2022 – September 30, 2025 Compliance Requirement: Reporting Criteria: Per the grant agreements, Maricopa County Community College District Foundation (the “Foundation”) must submit several programmatic reports throughout the grant period with various due dates. Condition: A required programmatic report was submitted 6 days after the due date. Name of Contact Person: Judy Sanchez, Interim CEO Phone Number: 602-402-5062 Anticipated Completion Date: June 30, 2026 Views of Responsible Officials and Corrective Action Plan: The Foundation will design and implement controls regarding the tracking of reporting due dates and retention of concurrent documentation when obtaining extensions or approval for late submissions.

Categories

Reporting Significant Deficiency Internal Control / Segregation of Duties

Programs in Audit

ALN Program Name Expenditures
21.027 CORONAVIRUS STATE AND LOCAL FISCAL RECOVERY FUNDS $2.04M