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FINDINGS AND QUESTIONED COSTS RELATED TO FEDERAL AWARDS Finding Number: 2022-001 Repeat Finding: No Program Names/Assistance Listing Titles: Assistance Listing Numbers: Federal Award Numbers: Questioned Costs: Education Stabilization Fund 84.425D 84.425U S425D210038 S425U210038 N/A N/A Emergency Connectivity Fund Program 32.009 N/A N/A Federal Agencies: U.S. Department of Education, Federal Communications Commission Pass-Through Agency: Arizona Department of Education Type of Finding: Material Weakness Compliance Requirements: Activities Allowed or Unallowed CRITERIA According to 47 CFR Part 54, entities participating in the Emergency Connectivity Fund Program may not seek Emergency Connectivity Fund Program support or reimbursement for eligible equipment or services that have been purchased with or reimbursed in full from other Federal pandemic-relief funding, targeted state funding, other external sources of targeted funding or targeted gifts, or eligible for discounts from the schools and libraries universal service support mechanism or other universal service support mechanisms. CONDITION The District did not have adequate internal controls in place to ensure eligible expenditures were not reimbursed by other federal pandemic relief grants. CAUSE The District did not have a process in place to ensure that all necessary journal entries were posted to the accounting records to avoid duplicate reimbursement. EFFECT Audit adjustments were necessary to ensure eligible expenditures were not improperly reimbursed. CONTEXT The District was approved for the Emergency Connectivity Fund (ECF) Program in fall 2021 for eligible expenditures incurred in July and August 2021. The expenditures were also allowable under the Education Stabilization Fund (ESF) Program, and the District initially used these funds for the purchase. However, the District did not move the eligible expenditures from the ESF fund to the ECF fund in their accounting records until the audit adjustment was proposed. RECOMMENDATION The District should create processes to ensure all grant activity is properly recorded in the accounting records. VIEWS OF RESPONSIBLE OFFICIALS See Corrective Action Plan.