EIN: 743027316
UEI: PWCNN9MKRB87
Audited by: Fester & Chapman, PLLC
Oversight agency: 84 [Department of Education]
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Data as of August 31, 2026
Management decision deadline — for entities that funded this organization
The FAC accepted this audit on March 24, 2026. Under 2 CFR 200.521(d), a pass-through entity that provided federal funds to this organization for this audit period must issue a management decision on these findings by September 24, 2026 (23 days from today).
What is a management decision? →For 1 out of 40 payroll transactions tested, Title I funds were being utilized for wages that did not meet the allowable cost criteria defined by the grant. Cause: The School’s control environment failed to detect and correct payroll errors in a timely manner, allowing wages for ineligible activities to be charged against the Title I program. Effect: There is an increased risk that employee compensation will be charged to grants for unallowable activities. Recommendation: To help ensure that charges to payroll expenses are accurately allocated to the grants for which they are reimbursable, the School should implement internal control policies and procedures that require regular review of employees whose work activity deviates from initial budget estimates.
Show full finding ▾Hide full finding ▴Material Weakness in Internal Controls Over Compliance and Noncompliance: Payroll Federal program: Award Number: Federal Agency: Compliance Requirement: Questioned Costs: FAL 84.010A Title I Grants to Local Educational Agencies (Title I, Part A of the ESEA) None U.S. Department of Education Allowable Costs N/A Criteria: In accordance with 2 CFR, §200.430(i)(1) Charges to Federal awards for salaries and wages must be based on records that accurately reflect the work performed. These records must: (i) Be supported by a system of internal control which provides reasonable assurance that the charges are accurate, allowable, and properly allocated. Condition: For 1 out of 40 payroll transactions tested, Title I funds were being utilized for wages that did not meet the allowable cost criteria defined by the grant. Cause: The School’s control environment failed to detect and correct payroll errors in a timely manner, allowing wages for ineligible activities to be charged against the Title I program. Effect: There is an increased risk that employee compensation will be charged to grants for unallowable activities. Recommendation: To help ensure that charges to payroll expenses are accurately allocated to the grants for which they are reimbursable, the School should implement internal control policies and procedures that require regular review of employees whose work activity deviates from initial budget estimates.
CFDA NUMBER 84.010A – Title I Grants to Local Educational Agencies US Department of Education – 2025 Passed Through Arizona State Department of Education Project Number: 25FT1TTI-510414-01A Finding: Unallowable Personnel Costs Charged to Federal Grant Description of Finding During the fiscal year, the school received reimbursement through a federal grant for services performed by an Instructional Assistant. It was subsequently identified that for a portion of this period the employee was temporarily reassigned to perform substitute teacher duties. Substitute teaching services are not an allowable activity under the federal grant for this position. As a result, a portion of payroll costs were inadvertently charged to the federal program. Corrective Action Taken The school conducted a review of payroll records and staff assignments to determine the time period during which the Instructional Assistant performed substitute duties. The payroll costs associated with that period have been identified and were removed from the federal grant and reclassified to an appropriate non-federal funding source. If applicable, the school will reimburse the federal program for any disallowed costs. Documentation supporting the adjustment and calculations will be maintained for audit and monitoring purposes. Steps to Prevent Recurrence To prevent similar issues in the future and ensure compliance with federal grant requirements, the following procedures will be implemented: School administration will notify the HR and finance office whenever federally funded staff are reassigned to duties outside the scope of the grant. The Payroll and HR administrators will review payroll allocations and staff assignments prior to submitting federal reimbursement requests.Time and effort documentation will be maintained for federally funded personnel to ensure that activities performed align with allowable grant requirements. Administrative and finance staff will be reminded of federal grant compliance expectations related to allowable personnel costs and documentation. Monitoring Process The payroll administrator will conduct periodic internal reviews of payroll allocations and federal reimbursement requests to confirm that personnel costs charged to federal programs align with documented duties and allowable activities. Any discrepancies identified will be corrected prior to submitting reimbursement requests. Responsible Parties School Administration and Payroll Administrator Implementation Date These procedures are effective immediately and will apply to all future federal grant reimbursement requests
FAC accepted this audit on March 11, 2025 — management decision was due September 11, 2025.
FAC accepted this audit on March 26, 2024 — management decision was due September 26, 2024.
REFERENCE: 2023-101 CFDA NUMBER 84.425D – COVID 19 – EDUCATION STABILIZATION FUND U.S. DEPARTMENT OF EDUCATION – 2023 PASSED THROUGH ARIZONA STATE DEPARTMENT OF EDUCATION GRANT NUMBER: S425D210038 QUESTIONED COSTS N/A CONDITION For the only employee paid under the School Safety Grant, the two semi-annual certifications for the employee did not cover the time period for wages charged to the grant. The certifications covered the school year period of July 18, 2022 to May 26, 2023, rather than the fiscal year period of July 1, 2022 through June 30, 2023. Additionally, although the certifications were signed by a supervisor, the date of review was not documented. Alternative procedures were performed to ensure that the costs were allowable to the program. CRITERIA In accordance with 2 CFR, Subtitle A, Chapter II, Part 200, Subpart E General Provisions for Selected Items of Cost, §200.430(i), (1) Charges to Federal awards for salaries and wages must be based on records that accurately reflect the work performed. These records must: (i) Be supported by a system of internal control which provides reasonable assurance that the charges are accurate, allowable, and properly allocated; (ii) Be incorporated into the official records of the non-Federal entity; (iii) Reasonably reflect the total activity for which the employee is compensated by the non-Federal entity, not exceeding 100% of compensated activities (for IHE, this per the IHE's definition of IBS); (iv) Encompass federally-assisted and all other activities compensated by the non-Federal entity on an integrated basis, but may include the use of subsidiary records as defined in the non-Federal entity's written policy; (v) Comply with the established accounting policies and practices of the non-Federal entity (See paragraph (h)(1)(ii) above for treatment of incidental work for IHEs.); and (vii) Support the distribution of the employee's salary or wages among specific activities or cost objectives if the employee works on more than one Federal award; a Federal award and non-Federal award; an indirect cost activity and a direct cost activity; two or more indirect activities which are allocated using different allocation bases; or an unallowable activity and a direct or indirect cost activity. In accordance with OMB Compliance Supplement, Part 6 – Internal Control, The 2 CFR section 200.303 requires that non-federal entities receiving federal awards establish and maintain internal control over the federal awards that provides reasonable assurance that the non-federal entity is managing the federal awards in compliance with federal statutes, regulations, and the terms and conditions of the federal awards. EFFECT Distribution of the employee's salary or wages among specific activities or cost objectives was not properly documented and did not agree actual activities incurred. CAUSE Although internal controls were properly designed, there were deficiencies in the execution of the controls. RECOMMENDATION AND BENEFIT Semi-annual certifications and time and effort logs, should be reviewed to ensure that the time periods spent on the federal programs support the expenditures charged to the grant. Additionally, the certifications and logs should be reviewed to ensure that they are properly signed and dated by a supervisor. This will help ensure compliance with federal requirements and only allowable costs are charged to the program. VIEWS OF RESPONSIBLE OFFICIALS See Corrective Action Plan.
Show full finding ▾Hide full finding ▴REFERENCE: 2023-101 CFDA NUMBER 84.425D – COVID 19 – EDUCATION STABILIZATION FUND U.S. DEPARTMENT OF EDUCATION – 2023 PASSED THROUGH ARIZONA STATE DEPARTMENT OF EDUCATION GRANT NUMBER: S425D210038 QUESTIONED COSTS N/A CONDITION For the only employee paid under the School Safety Grant, the two semi-annual certifications for the employee did not cover the time period for wages charged to the grant. The certifications covered the school year period of July 18, 2022 to May 26, 2023, rather than the fiscal year period of July 1, 2022 through June 30, 2023. Additionally, although the certifications were signed by a supervisor, the date of review was not documented. Alternative procedures were performed to ensure that the costs were allowable to the program. CRITERIA In accordance with 2 CFR, Subtitle A, Chapter II, Part 200, Subpart E General Provisions for Selected Items of Cost, §200.430(i), (1) Charges to Federal awards for salaries and wages must be based on records that accurately reflect the work performed. These records must: (i) Be supported by a system of internal control which provides reasonable assurance that the charges are accurate, allowable, and properly allocated; (ii) Be incorporated into the official records of the non-Federal entity; (iii) Reasonably reflect the total activity for which the employee is compensated by the non-Federal entity, not exceeding 100% of compensated activities (for IHE, this per the IHE's definition of IBS); (iv) Encompass federally-assisted and all other activities compensated by the non-Federal entity on an integrated basis, but may include the use of subsidiary records as defined in the non-Federal entity's written policy; (v) Comply with the established accounting policies and practices of the non-Federal entity (See paragraph (h)(1)(ii) above for treatment of incidental work for IHEs.); and (vii) Support the distribution of the employee's salary or wages among specific activities or cost objectives if the employee works on more than one Federal award; a Federal award and non-Federal award; an indirect cost activity and a direct cost activity; two or more indirect activities which are allocated using different allocation bases; or an unallowable activity and a direct or indirect cost activity. In accordance with OMB Compliance Supplement, Part 6 – Internal Control, The 2 CFR section 200.303 requires that non-federal entities receiving federal awards establish and maintain internal control over the federal awards that provides reasonable assurance that the non-federal entity is managing the federal awards in compliance with federal statutes, regulations, and the terms and conditions of the federal awards. EFFECT Distribution of the employee's salary or wages among specific activities or cost objectives was not properly documented and did not agree actual activities incurred. CAUSE Although internal controls were properly designed, there were deficiencies in the execution of the controls. RECOMMENDATION AND BENEFIT Semi-annual certifications and time and effort logs, should be reviewed to ensure that the time periods spent on the federal programs support the expenditures charged to the grant. Additionally, the certifications and logs should be reviewed to ensure that they are properly signed and dated by a supervisor. This will help ensure compliance with federal requirements and only allowable costs are charged to the program. VIEWS OF RESPONSIBLE OFFICIALS See Corrective Action Plan.
CORRECTIVE ACTION PLAN JUNE 30, 2023 REFERENCE: 2023-101 CFDA NUMBER 84.425D – COVID 19 – EDUCATION STABILIZATION FUND U.S. DEPARTMENT OF EDUCATION – 2023 PASSED THROUGH ARIZONA STATE DEPARTMENT OF EDUCATION GRANT NUMBER: S425D210038 CLIENT RESPONSE AND CORRECTIVE ACTION PLAN We concur with the condition. 1. Name of the contact person responsible for corrective action: Michelle Borja, Finance Director 2. Corrective action planned: Time and Effort documentation for employees who work solely on a single cost objective is prepared semi-annually and signed by the employee and/or a supervisor having firsthand knowledge of the work performed by the employee. Time and Effort documentation is collected semi-annually by the Accounting Office. The Finance Director will review forms to ensure the form is completed appropriately. Forms will be reviewed to ensure the period of performance is recorded accurately and signatures obtained from employees and/or supervisors are dated appropriately. 3. Anticipated completion date: Implemented immediately and completed by June 30, 2024
FAC accepted this audit on April 26, 2023 — management decision was due October 26, 2023.
FAC accepted this audit on September 28, 2022 — management decision was due March 28, 2023.
Data source: This information comes from the Federal Audit Clearinghouse, the official repository of Single Audit data. All data is public domain. Verify this organization's audit history at fac.gov.
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