WHITERIVER UNIFIED SCHOOL DISTRICT 20

2021-001 Late Audit Submission Programs: Impact Aid, Elementary & Secondary School Emergency Relief , Enrollment Stabilization Grant, Child Nutrition Cluster CFDA Number: 84.041, 84.425, 21.019, 10.555, 10.559 Federal Agency: U.S. Department of Education, U.S Department of Treasury, U.S Department of Agriculture Grantor Number: N/A Questioned Costs: N/A Type of Finding: Noncompliance, material weakness Compliance Requirement: L. Reporting CONDITION The District did not submit their audit for the fiscal year ending June 30, 2021, timely. The audit was submitted October 14, 2022, which was 14 days past the September 30, 2022, extended deadline. CRITERIA 2 CFR ? 200.512(a) provides, in part: "The audit must be completed and the data collection form ... must be submitted within the earlier of 30 calendar days after receipt of the auditor's report(s), or nine months after the end of the audit period." 2 CFR ? 200.520 provides, in part: "That to qualify as a low-risk auditee and be eligible for reduced audit coverage the following condition must be met: Single audits were performed on an annual basis in accordance with the provisions of this Subpart, including submitting the data collection form and the reporting package to the FAC within the timeframe specified in ? 200.512." CAUSE The District did not have proper procedures in place to ensure that the audit was completed and submitted within the designated timeframe. EFFECT Not making all audit documentation available in a timely manner resulted in the audit and data collection form submissions to be late and, therefore, not available to the public within the required timeframe. This late submission also excludes the District from qualifying as a low-risk auditee. RECOMMENDATION The District should implement procedures to ensure that all audit documentation is available for audit in a timely manner and the audit report is completed and submitted within the appropriate timeframe.

2020-001 INTEREST REVENUE ALLOCATION Finding Type: Material Weakness and Compliance CONDITION The District received $1,286,116 in interest from its pooled investments with the County and all the interest revenue was applied to the Maintenance and Operation Fund 001. It was noted that the majority of the interest revenue should have been recorded in the Impact Aid Fund that had a beginning cash balance as of July 1, 2019 of $47,449,113 and an ending cash balance of $49,921,321 as of June 30, 2020. CRITERIA The Uniform System of Financial Reporting for Revenue Accounting Procedures beginning on page VIF- 7 provides in part: "Interest earned on pooled investments is apportioned by the county treasurer either monthly or quarterly to each district account based on an average daily, weekly, or monthly cash balance in accordance with the Uniform Accounting Manual for Arizona County Treasurers." CAUSE The District relied on the County to properly apportion interest to the funds and did not have proper procedures in place to monitor that the interest revenues were properly allocated to each fund. EFFECT With all the interest revenue being report in the M&O Fund, the interest revenues in the M&O Fund are materially overstated and the interest revenues in the Impact Aid Fund are materially understated. RECOMMENDATION We recommend that the District establish proper monitoring procedures to ensure that the interest revenues were properly allocated to each fund. CORRECTIVE ACTION PLAN The District has corrected the interest allocation by posting the proper interest allocation based on monthly cash balances for fiscal year 2019-20. The entry was posted as a correcting entry using fund balance as the offset in fiscal year 2021-22. CONTACT Sandie Sedillo, Business Manager

2020-002 Food Service Net Cash Resources CFDA Number 10.553, 10.555, 10.559 Program Title Child Nutrition Cluster Federal Agency U.S. Department of Education Pass-Through Agency Arizona Department of Education Compliance Requirement C. Cash Management Finding Type Noncompliance, Significant Deficiency Questioned Costs N/A CONDITION The District exceeded the allowable cash balance for its nonprofit school food service program. The District had an available cash balance in the food service fund of $908,277 as of June 30, 2020, and total expenditures of $1,274,043 for fiscal year 2019-20. Per federal regulations, the District is limited to a cash balance not to exceed three months of average expenditures, or $382,213, resulting in an excess cash balance of $526,064. CRITERIA Federal Regulation 7 CFR 210.14(b) provides: "Net cash resources. The school food authority shall limit its net cash resources to an amount that does not exceed three months average expenditures for its nonprofit school food service or such other amount as may be approved by the State agency in accordance with ?210.19(a)." CAUSE The District has accumulated an excess cash balance due to the carry forward of revenues in excess of expenditures from prior years. EFFECT The District has an excess cash balance of $526,064 for its nonprofit school food service program as of June 30, 2020. Federal Regulation 7 CFR 210.14(b) provides: "In the event that net cash resources exceed 3 months' average expenditures for the school food authority's nonprofit school food service or such other amount as may be approved in accordance with this paragraph, the State agency may require the school food authority to reduce the price children are charged for lunches, in a manner that is consistent with the paid lunch equity provision in ?210.14(e) and corresponding FNS guidance, improve food quality or take other action designed to improve the nonprofit school food service. In the absence of any such action, the State agency shall make adjustments in the rate of reimbursement under the Program." RECOMMENDATION We recommend that the District establish proper monitoring procedures to ensure that the cash balance for the food service program does not exceed three months of average expenditures.

2020-003 Late Audit Submission Programs: Impact Aid CFDA Number: 84.041 Federal Agency: U.S. Department of Education Grantor Number: N/A Questioned Costs: N/A Type of Finding: Noncompliance, material weakness Compliance Requirement: L. Reporting CONDITION The District did not submit their audit for the fiscal year ending June 30, 2020, timely. The audit was submitted November 15, 2021, which was 46 days past the September 30, 2021, extended deadline. CRITERIA 2 CFR ? 200.512(a) provides, in part: "The audit must be completed and the data collection form ... must be submitted within the earlier of 30 calendar days after receipt of the auditor's report(s), or nine months after the end of the audit period." 2 CFR ? 200.520 provides, in part: "That to qualify as a low-risk auditee and be eligible for reduced audit coverage the following condition must be met: Single audits were performed on an annual basis in accordance with the provisions of this Subpart, including submitting the data collection form and the reporting package to the FAC within the timeframe specified in ? 200.512." CAUSE The District did not have proper procedures in place to ensure that the audit was completed and submitted within the designated timeframe. EFFECT Not making all audit documentation available in a timely manner resulted in the audit and data collection form submissions to be late and, therefore, not available to the public within the required timeframe. This late submission also excludes the District from qualifying as a low-risk auditee. RECOMMENDATION The District should implement procedures to ensure that all audit documentation is available for audit in a timely manner and the audit report is completed and submitted within the appropriate timeframe.

2019-001 Food Service Net Cash Resources CFDA Number 10.553, 10.555, 10.559 Program Title Child Nutrition Cluster Federal Agency U.S. Department of Education Pass-Through Agency Arizona Department of Education Compliance Requirement C. Cash Management Finding Type Noncompliance, Significant Deficiency Questioned Costs N/A CONDITION The District exceeded the allowable cash balance for its nonprofit school food service program. The District had an available cash balance in the food service fund of $748,415 as of June 30, 2019, and total expenditures of $1,726,190 for fiscal year 2018-19. Per federal regulations, the District is limited to a cash balance not to exceed three months of average expenditures, or $517,857, resulting in an excess cash balance of $230,558. CRITERIA Federal Regulation 7 CFR 210.14(b) provides: "Net cash resources. The school food authority shall limit its net cash resources to an amount that does not exceed three months average expenditures for its nonprofit school food service or such other amount as may be approved by the State agency in accordance with ?210.19(a)." CAUSE The District has accumulated an excess cash balance due to the carry forward of revenues in excess of expenditures from prior years. EFFECT The District has an excess cash balance of $230,558 for its nonprofit school food service program as of June 30, 2019. Federal Regulation 7 CFR 210.14(b) provides: "In the event that net cash resources exceed 3 months' average expenditures for the school food authority's nonprofit school food service or such other amount as may be approved in accordance with this paragraph, the State agency may require the school food authority to reduce the price children are charged for lunches, in a manner that is consistent with the paid lunch equity provision in ?210.14(e) and corresponding FNS guidance, improve food quality or take other action designed to improve the nonprofit school food service. In the absence of any such action, the State agency shall make adjustments in the rate of reimbursement under the Program." RECOMMENDATION We recommend that the District establish proper monitoring procedures to ensure that the cash balance for the food service program does not exceed three months of average expenditures.

2019-002 Late Audit Submission Programs: Impact Aid CFDA Number: 84.041 Federal Agency: U.S. Department of Education Grantor Number: N/A Questioned Costs: N/A Type of Finding: Noncompliance, material weakness Compliance Requirement: N/A CONDITION The District did not submit their audit for the fiscal year ending June 30, 2019, timely. The audit was submitted October 22, 2020, which was 22 days past the September 30, 2020, extended deadline. CRITERIA 2 CFR ? 200.512(a) provides, in part: "The audit must be completed and the data collection form ... must be submitted within the earlier of 30 calendar days after receipt of the auditor's report(s), or nine months after the end of the audit period." 2 CFR ? 200.520 provides, in part: "That to qualify as a low-risk auditee and be eligible for reduced audit coverage the following condition must be met: Single audits were performed on an annual basis in accordance with the provisions of this Subpart, including submitting the data collection form and the reporting package to the FAC within the timeframe specified in ? 200.512." CAUSE The District did not have proper procedures in place to ensure that the audit was completed and submitted within the designated timeframe. EFFECT Not making all audit documentation available in a timely manner resulted in the audit and data collection form submissions to be late and, therefore, not available to the public within the required timeframe. This late submission also excludes the District from qualifying as a low-risk auditee. RECOMMENDATION The District should implement procedures to ensure that all audit documentation is available for audit in a timely manner and the audit report is completed and submitted within the appropriate timeframe.

GSA_MIGRATION

GSA_MIGRATION

GSA_MIGRATION

GSA_MIGRATION