Finding 498115 (2023-002)

Findings and Questioned Costs Related to Federal Awards Finding Number: 2023‐002 Repeat Finding: No Program Name/Assistance Listing Title: Education Stabilization Fund Assistance Listing Number: 84.425U Federal Agency: U.S. Department of Education Federal Award Number: S425U210038 Pass‐Through Agency: Arizona Department of Education Questioned Costs: N/A Type of Finding: Noncompliance, Significant Deficiency Compliance Requirement: Activities Allowed or Unallowed and Allowable Costs/Cost Principles Criteria Management is responsible for following internal controls over journal entries to allow management or employees in the normal course of performing their assigned functions to prevent or detect and correct misstatements on a timely basis. Condition The District did not have adequate controls over journal entries. Cause Due to turnover of personnel and staff vacancies, journal entry procedures were not always followed. Effect The District did not comply with the activities allowed/unallowed and allowable cost/cost principles requirements of the grant. Context For one of five journal entries reviewed for compliance with grant requirements, supporting documentation was not retained. In addition, it was unable to be determined if the journal entry was approved by an authorized person. The sample was not intended to be, and was not, a statistically valid sample. Recommendation The District should properly implement internal controls over journal entries. Views of Responsible Officials See Corrective Action Plan.