Finding Text
Findings and Questioned Costs Related to Federal Awards Finding Number: 2025‐002 Repeat Finding: No Program Name/Assistance Listing Title: Child Nutrition Cluster Assistance Listing Number: 10.553, 10.555, 10.559 Federal Agency: U.S Department of Agriculture Federal Award Number: 7AZ300AZ3 Pass‐Through Agency: Arizona Department of Education Questioned Costs: N/A Type of Finding: Noncompliance, Significant Deficiency Compliance Requirement: Cash Management Criteria School management is responsible for establishing and maintaining internal controls over disbursements that are adequate to ensure that all financial activities are properly processed and recorded. Further, Indian tribes and tribal organizations may without the approval of the BIE expend funds provided under a self‐determination contract for purposes identified in 25 USC 450j 1(k), to the extent that the expenditure of the funds is supportive of a contracted program. The School must ensure sufficient cash is available in cash‐controlled funds prior to authorizing expenditures (2 CFR §215.22). Condition The School lacked adequate internal controls to ensure funds were available in cash‐controlled funds before authorizing expenditures. Cause The School was not monitoring the cash balance for each fund individually. Effect The School was not in compliance with federal regulations and guidelines. Context At year end, the School had a negative cash balance of $252,109 for the ISEP Food Service Fund. Recommendation The School should monitor the cash balance for each fund individually and verify cash exists before authorizing expenditures. Views of Responsible Officials See Corrective Action Plan.