Finding 370310 (2023-002)

Significant Deficiency
Requirement
L
Questioned Costs
-
Year
2023
Accepted
2024-02-23

AI Summary

  • Core Issue: The District failed to comply with reporting requirements for the Education Stabilization Fund due to discrepancies between reported expenditures and accounting records.
  • Impacted Requirements: Annual performance reports must accurately reflect expenditures as per OMB No. 1810-0749.
  • Recommended Follow-Up: The District should implement monitoring processes to ensure reported amounts align with accounting records to prevent future discrepancies.

Finding Text

Finding Number: 2023-002 Repeat Finding: No Program Name/Assistance Listing Title: Education Stabilization Fund Assistance Listing Number: 84.425 Federal Agency: U.S Department of Education Federal Award Number: S425D210038, S425U210038 Pass-Through Agency: Arizona Department of Education Questioned Costs: N/A Type of Finding: Noncompliance, Significant Deficiency Compliance Requirement: Reporting Criteria Education Stabilization Fund grantees must submit an annual performance report to the SEA/Governor for the SEA’s/Governor’s report under OMB No. 1810-0749. Condition Total amount expended per the LEA Uses of Elementary and Secondary School Relief Fund (ESSER) I, II, & III - Use of Funds Detail report could not be agreed to the District’s accounting records. Cause This was the first year that this reporting requirement was in effect and there was a lot of confusion from ADE that led to misreporting. Effect The District did not comply with the reporting requirements of the grant. Context The amounts reported on the LEA Uses of ESSER I, II, & III - Use of Funds Detail report cannot be agreed to the general ledger. In addition, expenses for retention pay are listed on the report under ESSER II and ESSER III as the District drew down funds for the same expenses twice. The sample was not intended to be, and was not, a statistically valid sample. Recommendation The District should monitor and ensure amounts expended per the LEA Uses of ESSER I, II, & III - Use of Funds Detail report agree to the District’s accounting records. Views of Responsible Officials See Corrective Action Plan.

Corrective Action Plan

Finding Number: 2023-002 Program Name/Assistance Listing Title: Education Stabilization Fund Assistance Listing Number: 84.425 Contact Person: Priscine Jones, Business Manager Anticipated Completion Date: The Business Manager will work with the Federal Programs Director to ensure that categories of expenses are correctly reported on the next ESSER reporting cycle. The Business Manager will work with the Federal Programs Director effective immediately January 18, 2024 to obtain correct funding codes in writing. Planned Corrective Action: The Business Manager and Federal Programs Director worked with ADE ESSER grants program staff, and the Arizona Auditor General’s office on ESSER and COVID Reporting. When we completed the initial ESSER reports, we did not understand from guidance that we were supposed to match the categories of expenditures we were reporting to the Accounts Payable Expense reports used for reimbursement requests. We had been reporting based on actual expenditures to date, not the snapshots for the given window of time represented by the Accounts Payable Expense reports used for reimbursement requests. For the most recent reporting cycle, we did gain a clear understanding of the expectations for these reports we are supposed to match to. We do carefully monitor expenditures to ensure that they are aligned to our grant and allowable uses for our ESSER funds. Now that we understand which reports we have to match to, we will be able to match the categories of expenditures to the Accounts Payable Expense reports accurately. Currently, The District has expended ESSER I and II completely. We only have ESSER III to report on which will simplify the ESSER reporting requirements to the Arizona Department of Education. In regard to ESSER I & II salary and benefits expenditures, the District had retention stipends written into both ESSER II and III for specified years and recruitment stipends written only in ESSER III. A misunderstanding caused a payment to be posted to the wrong grant. Upon discovery and to process the correction, the District executed a journal entry to assign the expense to the right grant. In the meantime, we had already processed a reimbursement request for the original and erroneously posted expense. This caused the financial reports to appear as if the expense occurred twice; once in F336 and once in F346 in the future, the Business Manager will get a written approval from the Federal Programs Director on which funds were approved for Recruitment and Retention payments and for specified years.

Categories

Reporting Significant Deficiency

Other Findings in this Audit

  • 370305 2023-001
    Significant Deficiency Repeat
  • 370306 2023-001
    Significant Deficiency Repeat
  • 370307 2023-001
    Significant Deficiency Repeat
  • 370308 2023-001
    Significant Deficiency Repeat
  • 370309 2023-001
    Significant Deficiency Repeat
  • 370311 2023-002
    Significant Deficiency
  • 370312 2023-002
    Significant Deficiency
  • 370313 2023-002
    Significant Deficiency
  • 946747 2023-001
    Significant Deficiency Repeat
  • 946748 2023-001
    Significant Deficiency Repeat
  • 946749 2023-001
    Significant Deficiency Repeat
  • 946750 2023-001
    Significant Deficiency Repeat
  • 946751 2023-001
    Significant Deficiency Repeat
  • 946752 2023-002
    Significant Deficiency
  • 946753 2023-002
    Significant Deficiency
  • 946754 2023-002
    Significant Deficiency
  • 946755 2023-002
    Significant Deficiency

Programs in Audit

ALN Program Name Expenditures
84.041 Impact Aid $38.78M
84.010 Title I Grants to Local Educational Agencies $4.75M
10.555 National School Lunch Program $2.21M
10.553 School Breakfast Program $820,847
84.060 Indian Education_grants to Local Educational Agencies $740,665
84.027 Special Education_grants to States $615,940
84.367 Improving Teacher Quality State Grants $415,100
84.425 Covid-19 Education Stabilization Fund $412,312
15.130 Indian Education_assistance to Schools $393,987
84.424 Student Support and Academic Enrichment Program $219,062
84.048 Career and Technical Education -- Basic Grants to States $194,195
10.558 Child and Adult Care Food Program $143,417
10.559 Summer Food Service Program for Children $128,623
10.582 Fresh Fruit and Vegetable Program $122,381
21.027 Covid-19 Coronavirus State and Local Fiscal Recovery Funds $110,683
12.357 Rotc Language and Culture Training Grants $62,317
84.027 Covid-19 Special Education_grants to States $38,004
84.365 English Language Acquisition State Grants $38,004
84.287 Twenty-First Century Community Learning Centers $27,120
84.358 Rural Education $23,351
84.334 Gaining Early Awareness and Readiness for Undergraduate Programs $20,529
84.173 Covid-19 Special Education_preschool Grants $10,399
84.173 Special Education_preschool Grants $5,562