Finding 947457 (2023-002)

Finding Number: 2023‐002 Repeat Finding: No Program Name/Assistance Listing Title: COVID‐19 Education Stabilization Fund Assistance Listing Number: 84.425D, 84.425U Federal Agency: U.S. Department of Education Federal Award Number: S425D210038, S425U210038 Pass‐Through Agency: Arizona Department of Education Questioned Costs: N/A Type of Finding: Noncompliance, Significant Deficiency Compliance Requirement: Reporting Criteria Education Stabilization Fund grant recipients are required to submit an annual performance report with data on expenditures, planned expenditures, subrecipients, and uses of funds. The District, as a subrecipient  of  the  Arizona  Department  of  Education  (ADE),  fulfills  this  requirement  through  completion of ADE's LEA Uses of ESSER I, II & III Report (ESSER Report). Condition The District did not maintain adequate supporting documentation for various data included in the ESSER Report submitted to ADE. Cause The  District  did  not  have  sufficient  review  procedures  in  place  to  ensure  the  ESSER  Report  was  sufficiently supported, and/or did not maintain documentation utilized when the ESSER Report was prepared. Effect The District was unable to accurately and fully support the data submitted on the ESSER Report. Context The data maintained by the District to support the allocation of costs to specific object codes and expenditure categories  for  ESSER  II  and  ESSER  III  did  not  agree  to  the  amounts  reported  to  ADE.  However, the total amounts expended for ESSER II and ESSER III were consistent with the District's accounting records. Additionally, the full time equivalent (FTE) amount submitted did not agree with District records. Recommendation The District should ensure that accurate federal reports are prepared and that proper supporting documentation is maintained for all amounts indicated on such reports. Views of Responsible Officials See Corrective Action Plan.