Finding 508034 (2023-005)

2023-005 ACTIVITIES ALLOWED OR UNALLOWED AND ALLOWABLE COSTS / COST PRINCIPLES Program: Education Stabilization Fund – ESSER II and ESSER III Federal Assistance Listing Number: 84.425 Federal Agency: U.S. Department of Education Pass-Through Agency: Arizona Department of Education Grantor Number: 21FESSII-111175-01A and 21FESIII-111175-01A Questioned Costs: None Type of Finding: Material weakness in internal controls Compliance Requirement: A. Activities Allowed or Unallowed; B. Allowable Costs / Cost Principles Condition/Context: For one of three payroll related journal entries tested for the Education Stabilization Fund program, the District did not have documentation supporting that the entry was reviewed and approved by an individual separate from the preparer. Criteria: The District’s policies and procedures should ensure that internal controls over compliance of Federal programs are in place and operating effectively. Cause: Management oversight and turnover in the federal grant department. Effect: Internal control weakness. Repeat Finding: No. Recommendation: We recommend the District to review its internal control procedures over federal programs to ensure that journal entries moving expenditures into the grant program is reviewed and approved by an individual separate from the preparer. Views of Responsible Officials: The District’s corrective action plan presented in a separate document includes the views and planned corrective action of its responsible officials. We are not required to and have not audited these responses and planned corrective actions and therefore provide no assurances as to their accuracy. Contact Person: Dorene Mudrow, Superintendent