Finding Text
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: 84.425
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, Material Weakness
Compliance Requirement: Reporting
Criteria
Districts that received Education Stabilization Fund funding were required by the Arizona Department
of Education to complete the “LEA Uses of ESSER I, II, & III – Use of Funds Detail” report by
April 21, 2023. The report is based on fiscal year 2021‐22 financial information and full‐time
equivalency (FTE) information.
Condition
Inadequate internal controls existed over the Education Stabilization Fund reporting processes.
Cause
The District has not developed nor implemented strong internal controls over reporting due to
turnover in key finance positions.
Effect
The District is at risk of reporting inaccurate information.
Context
The District was unable to provide supporting documentation for the allocation of expenditures to
the four categories in the report. In addition, the FTE reported as of September 30, 2022, did not
agree to supporting documentation. Lastly, total FY22 ESSER III expenditures reported did not agree
to accounting records by $106,755.
Recommendation
The District should develop or implement strong internal controls over reporting to reduce the risk
of reporting inaccurate information.
Views of Responsible Officials
See Corrective Action Plan.