FAC Explorer

Finding 47412 (2022-004)

Significant Deficiency
Requirement
L
Questioned Costs
-
Year
2022
Accepted
2023-08-17
Audit: 52089
Organization: McNary Elementary School District No. 23 (AZ)
Auditor: Drs CPA PLLC

AI Summary

  • Core Issue: The District missed the deadline for submitting the single audit reporting package.
  • Impacted Requirements: This violates the Uniform Guidance section 500.512 regarding timely submission of audit documents.
  • Recommended Follow-Up: The District should closely monitor federal grant spending and secure audit services if expenditures are projected to exceed $750,000.

Finding Text

2022-004 Single Audit Submission CFDA No: 84.041 Program Name: Impact Aid Award Number: N/A Federal Agency: U.S. Department of Education Pass-Through Grantor: N/A Compliance Requirement: Reporting Questioned Costs: N/A Summary of Finding: Significant Deficiency in internal control over major programs Repeat Finding? No Condition The District did not submit the single audit reporting package and related data collection form by the required deadline. Criteria The Uniform Guidance section 500.512 states: "...The audit must be completed and the data collection form....and reporting package....must be submitted within the earlier of 30 calendar days after receipt of the auditor?s reports, or nine months after the end of the audit period." Cause The District experienced turnover in the key position responsible for overseeing the single audit. Effect The District is not in compliance with the requirements of the Uniform Guidance. Recommendation We recommend that the District monitor federal grant expenditures and if it is expected that expenditures will exceed $750,000, the District procure audit services promptly.

Corrective Action Plan

During this fiscal year, The District procured audit services for two additional fiscal years, therefore, the auditor is under contract and will be available if a single audit is required. In addition, federal grant expenditures will be monitored and if federal expenditures are expected to exceed $750,000 for the fiscal year ending June 30, 2023, then the District will enter into an engagement to have a single audit completed by the required due date.

Categories

Reporting Significant Deficiency Internal Control / Segregation of Duties

Other Findings in this Audit

  • 47410 2022-002
    Material Weakness
  • 47411 2022-003
    Material Weakness
  • 623852 2022-002
    Material Weakness
  • 623853 2022-003
    Material Weakness
  • 623854 2022-004
    Significant Deficiency

Programs in Audit

ALN Program Name Expenditures
84.041 Impact Aid $1.51M
84.425 Education Stabilization Fund $165,890
10.559 Summer Food Service Program for Children $70,879
84.027 Special Education_grants to States $42,307
84.060 Indian Education_grants to Local Educational Agencies $21,664
84.010 Title I Grants to Local Educational Agencies $13,800
84.358 Rural Education $11,302
10.555 National School Lunch Program $6,945
10.542 Pandemic Ebt Food Benefits $614