Finding 392069 (2023-001)

2023-001 EQUIPMENT AND REAL PROPERTY MANAGEMENT Program: Education Stabilization Fund – ESSER III Federal Assistance Listing Number: 84.425U Federal Agency: U.S. Department of Education Pass-Through Agency: Arizona Department of Education Grantor Number: 21FESIII-111119-01A Questioned Costs: $16,552 Type of Finding: Noncompliance (Other Matter), significant deficiency in internal control Compliance Requirement: F. Equipment and Real Property Management Condition/Context: During our testing of equipment assets, it was noted that one asset was not authorized by the SEA prior to the purchase being made. Criteria: The Uniform Guidance compliance supplement. Cause: Management oversight and turnover in the federal grant department. Effect: Noncompliance and 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 capital equipment items are approved by the SEA prior to the purchase being made. Views of Responsible Officials: The District concurs with this recommendation and will review its procedures over capital equipment purchases out of the ESSER grants to ensure the SEA approves the activity before disbursements are made. Contact Person: Barbara Baca, Business Manager