CEDAR PUBLIC SCHOOL DISTRICT 25Local Government

2025-002 Single Audit Submission CFDA No: 84.010 84.041 Program Name: Title I Grants to Local Educational Agencies Impact Aid Award Number: Title I: 25FT1TTI-511389-01A and 24FT1TTI-411389-01A Impact Aid: N/A Federal Agency: U.S. Department of Education Pass-Through Grantor: Title I: Arizona Department of Education Impact Aid: N/A Compliance Requirement: L. Reporting Questioned Costs: N/A Summary of Finding: Significant Deficiency in internal control over major programs Repeat Finding? No Condition The District did not submit the single audit reporting package and related data collection form by the required deadline. Criteria The Uniform Guidance section 500.512 states: "...The audit must be completed and the data collection form....and reporting package....must be submitted within the earlier of 30 calendar days after receipt of the auditor’s reports, or nine months after the end of the audit period." Cause The District experienced turnover in positions responsible for overseeing the single audit. Effect The District is not in compliance with the requirements of the Uniform Guidance. Recommendation We recommend that the District monitor federal grant expenditures and if it is expected that expenditures will exceed $750,000 ($1,000,000 in FY2026), the District procure audit services promptly. Further, for major programs supporting documentation should be reviewed to determine if any corrections need to be made or additional support need to be obtained.

SECTION III - FEDERAL AWARDS FINDINGS AND QUESTIONED COSTS 2024-005 EQUIPMENT/REAL PROPERTY MANAGEMENT Program: Education Stabilization Fund CFDA Number: 84.425D, 84.425U Federal Agency: U.S. Department of Education Pass-Through Agency: Arizona Department of Education Grantor Number: 21FESSII-111389-01A, 21FESIII-111389-01A Questioned Costs: $-0- Type of Finding: Noncompliance, significant deficiency Compliance Requirement: F. Equipment/Real Property Management Condition/Context: The District did not properly update its capital assets listing to include equipment purchased using Education Stabilization Fund monies. Additionally, the District has not performed a full physical inventory of its assets purchased using federal monies in the two year period ended June 30, 2024. Criteria: The District must follow 2 CFR sections 200.313 which requires that: Property records must be maintained that include a description of the property, a serial number or other identification number, the source of funding for the property (including the federal award identification number), who holds title, the acquisition date, cost of the property, percentage of federal participation in the project costs for the federal award under which the property was acquired, the location, use and condition of the property, and any ultimate disposition data including the date of disposal and sales price of the property. Cause: The District did not have proper internal controls over property and equipment to ensure the capital assets listing was properly updated. Effect: Noncompliance and internal control weakness. The District could inadvertently use an asset outside of its intended purpose and assets could go missing. Repeat Finding: No. Recommendation: We recommend that the District establish proper internal controls over property and equipment to ensure all assets are properly recorded on the District’s capital assets listing and those federal equipment and vehicle are properly tracked and maintained. The District should also complete a full physical inventory and reconcile the results against the asset listings. Views of Responsible Officials: There was no disagreement with the finding. Contact Person: Judy James, Business Manager

SECTION III - FEDERAL AWARDS FINDINGS AND QUESTIONED COSTS 2022-004 EQUIPMENT/REAL PROPERTY MANAGEMENT Program: Education Stabilization Fund CFDA Number: 84.425D Federal Agency: U.S. Department of Education Pass-Through Agency: Arizona Department of Education Grantor Number: 21FESSII-111389-01A Questioned Costs: $-0- Type of Finding: Noncompliance, significant deficiency Compliance Requirement: F. Equipment/Real Property Management Condition/Context: The District did not properly update its capital assets listing to include equipment purchased under Criteria: The District must follow 2 CFR sections 200.313 which requires that: Property records must be maintained that include a description of the property, a serial number or other identification number, the source of funding for the property (including the federal award identification number), who holds title, the acquisition date, cost of the property, percentage of federal participation in the project costs for the federal award under which the property was acquired, the location, use and condition of the property, and any ultimate disposition data including the date of disposal and sales price of the property. Cause: The District did not have proper internal controls over property and equipment to ensure the capital assets listing was properly updated. Effect: Noncompliance and internal control weakness. The District could inadvertently use an asset outside of its intended purpose and assets could go missing. Repeat Finding: This is not a repeat finding. Recommendation: We recommend that the District establish proper internal controls over property and equipment to ensure all assets are properly recorded on the District?s capital assets listing and those federal equipment and vehicle are properly tracked and maintained. Views of Responsible Officials: The District concurs with this recommendation and will review its procedures over capital asset and property control. Contact Person: Judy James, Business Manager

Condition/Context: The District did not properly update its capital assets listing to include equipment purchased under the ESSER program. Criteria: The District must follow 2 CFR sections 200.313 which requires that: Property records must be maintained that include a description of the property, a serial number or other identification number, the source of funding for the property (including the federal award identification number), who holds title, the acquisition date, cost of the property, percentage of federal participation in the project costs for the federal award under which the property was acquired, the location, use and condition of the property, and any ultimate disposition data including the date of disposal and sales price of the property. Cause: The District did not have proper internal controls over property and equipment to ensure the capital assets listing was properly updated. Effect: Noncompliance and internal control weakness. The District could inadvertently use an asset outside of its intended purpose and assets could go missing. Repeat Finding: This is not a repeat finding. Recommendation: We recommend that the District establish proper internal controls over property and equipment to ensure all assets are properly recorded on the District?s capital assets listing and those federal equipment and vehicle are properly tracked and maintained. Views of Responsible Officials: The District concurs with this recommendation and will review its procedures over capital asset and property control. Contact Person: Judy James, Business Manager