Finding 19927 (2022-010)

2022 ? 010 Federal Agency: U.S. Department of Education Federal Program Name: Elementary and Secondary School Emergency Relief Fund Assistance Listing Number: 84.425C, 84.425D, 84.425U Federal Award Identification Number and Year: Not applicable Pass-Through Agency: Arizona Department of Education Pass-Through Number(s): ADE-070121-04, S425D200003, S425D210003 Award Period: July 1, 2021 through June 30, 2022 Type of Finding: Material Weakness in Internal Control over Compliance and Material Noncompliance (Modified Opinion) Criteria or specific requirement: 2 CFR Part 200 Uniform Administrative Requirements, Cost Principles, and Audit Requirements for Federal Award requires compliance with the provisions of equipment and real property management. The District should have internal controls designed to ensure compliance with those provisions. Condition: During our testing, we noted the District did not have adequate internal controls designed to ensure physical inventory procedures were being performed and assets were properly identified within the property records. Questioned costs: None Context: During our testing, it was noted that the District was not performing physical inventory procedures and reconciling to property records. Also, all three assets tested were not issued an identification number for inventory tracking. Cause: The District was not following its own policies and procedures requiring physical inventories are performed and property records are maintained and updated. Effect: The auditor noted instances of noncompliance with the provisions of equipment and real property management. Repeat Finding: No Recommendation: We recommend the District ensure that its own internal controls are followed to ensure physical inventory procedures are performed and property records are tracked and updated. Views of responsible officials: There is no disagreement with the audit finding.