Finding Text
Finding Number: 2023‐003
Repeat Finding: Yes, 2022‐001
Program Name/Assistance Listing Title: Coronavirus State and Local Fiscal Recovery Funds
Assistance Listing Number: 21.027
Federal Agency: U.S. Department of Education
Federal Award Number: GR‐ARPA‐ASL‐ISAACSD‐161, GR‐ARPA‐SEP‐ISAACSD‐37
Pass‐Through Agency: Arizona Governor’s Office
Questioned Costs: N/A
Type of Finding: Material Weakness, Noncompliance
Compliance Requirement: Activities allowed or unallowed, allowable costs/cost principles
Criteria
In accordance with 2 CFR Part 200.303, the District is responsible for the establishing and maintaining
effective internal control over the Federal award that provides reasonable assurance that the non‐
Federal entity is managing the Federal award in compliance with Federal statutes, regulations, and
the terms and conditions of the Federal award.
Condition
The District did not have adequate internal controls in place to ensure eligible expenditures for the
Coronavirus State and Local Fiscal Recovery Funds (SLFRF) program were not reimbursed by other
federal grants.
Cause
The District lacked internal controls over grants management. The District consistently had initial
grant budgets approved well after the beginning of each grant’s period of performance. Additionally,
the District was not reviewing actual spending to approved budgets, and, therefore, did not submit
for budget revisions or reimbursements in a timely manner.
Effect
The District did not ensure the grant expenditures were properly reported on the Schedule of
Expenditures of Federal Awards, resulting in the need for the single audit report to be reissued.
Context
The District requested reimbursement in early calendar year 2024 for SLFRF grant expenditures, of
which $1,723,915 were recorded within the Education Stabilization Fund (ESF). Journal entries to
move the expenditures to the SLFRF grant fund were not performed until early calendar year 2025.
The result is that the District was reimbursed for the same costs from both the ESF and SLFRF
programs. However, the District later performed journal entries, in early calendar year 2025, to move
additional eligible expenditures for the ESF that replaced the expenditures reimbursed by the SLFRF
program.
The sample was not intended to be, and was not, a statistically valid sample.Recommendation
The District should provide training for those with grants management responsibilities. In particular,
the District should provide training on the relationship between the District’s accounting records and
should implement controls to ensure expenditures are not submitted for reimbursement under
multiple federal grants. The District should also have more consistent and timely oversight of grants
by higher level management.
Views of Responsible Officials
See Corrective Action Plan.