Finding 370195 (2023-005)

2023-005 ALLOWABLE COSTS/COST PRINCIPLES Program: Education Stabilization Fund Federal Assistance Listing Number: 84.425 Federal Agency: U.S. Department of Education Pass-Through Agency: Arizona Department of Education Grantor Number: 21FESIII-111323-01A Questioned Costs: N/A Type of Finding: Significant Deficiency Compliance Requirement: B. Allowable Costs/Cost Principles Condition/Context: For one of 25 Education Stabilization Fund expenditures tested, a purchase order was not maintained to support the authorization of the purchase before being made. Criteria: District management is responsible for establishing and maintaining internal controls over accounts payable disbursements that are adequate to ensure that all financial activities are properly processed and recorded in accordance with Uniform Guidance and the Uniform System of Financial Records. Cause: Management oversight. Effect: Internal control weakness. Repeat Finding: This is not a repeat finding. Recommendation: We recommend the District to review its internal control procedures over federal programs to ensure purchase orders and maintained to support the authorization of purchases before the goods or services are purchased. Views of Responsible Officials: The District concurs with this recommendation and will review its procedures over federal program reporting. Contact Person: Mike Mannelly, Chief Financial Officer