Finding Text
Finding Number: 2023‐001
Repeat Finding: Yes, 2022‐002
Program Names/Assistance Listing Titles: COVID‐19 Education Stabilization Fund; COVID‐19 Emergency Connectivity Fund Program
Assistance Listing Numbers: 84.425C, 84.425D, 84.425D, 84.425U, 84.425W, 32.009
Federal Award Numbers: N/A, S425D200038, S425D210038, S425U210038, S425W210003, N/A
Questioned Costs: N/A
Federal Agency(ies): U.S. Department of Education, Federal Communications Commission
Pass‐Through Agency(ies): Arizona Department of Education
Type of Finding: Noncompliance, Significant Deficiency
Compliance Requirements: Equipment and Real Property Management
Criteria
According to Office of Management and Budget Uniform Guidance requirements 2 CFR
§200.313(d)(2), a physical inventory of the property must be taken and the results reconciled with
the property records at least once every two years.
Condition
The District did not have documentation to support that a physical inventory was performed and
reconciled at least once in the past two years.
Cause
Due to a cyber security incident, physical inventory records could not be recovered.
Effect
The District was not in compliance with the requirements set forth by the federal government.
Context
The District did not maintain documentation for the most recent physical inventory in July 2022 due
to data loss from a cyber security incident. The District last performed and reconciled a physical
inventory in fiscal year 2015.
The sample was not intended to be, and was not, a statistically valid sample.
Recommendation
The District should ensure that a physical inventory is performed and reconciled to asset records at
least once every two years.
Views of Responsible Officials
See Corrective Action Plan.