Naco Elementary School District No. 23

EIN: 860720040

UEI: DARFCMBALGL9

Data as of August 22, 2026

Naco Elementary School District No. 233 audit years2 findings
3
Audit Years
2
Total Findings
0
Repeat Findings

FY 2023-06-30

Management decision deadline — for entities that funded this organization

The FAC accepted this audit on July 30, 2024. 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 January 30, 2025 (570 days ago).

What is a management decision? →
2023-005
Equipment & Real Property
MATERIAL WEAKNESS

Program: Education Stabilization Fund – ESSER II and ESSER III Federal Assistance Listing Number: 84.425 Federal Agency: U.S. Department of Education Pass-Through Agency: Arizona Department of Education Grantor Number: 21FESSII-111175-01A and 21FESIII-111175-01A Questioned Costs: N/A Type of Finding: Material noncompliance and material weakness in internal control Compliance Requirement: F. Equipment and Real Property Management Condition/Context: The District did not provide a capital asset or stewardship listing to support three items purchased with Education Stabilization Fund was properly recorded in the District’s equipment listing. Criteria: Title 2 U.S. Code of Federal Regulations § 200.303 states that the auditee must establish and maintain effective internal control over the federal award that provides reasonable assurance that the auditee is managing the federal award in compliance with federal statutes, regulations, and the terms and conditions of the federal award. Additionally, any purchases with ESF funds in this category are subject to applicable inventory control, log maintenance, and disposition requirements consistent with Part 3, Section F, “Equipment/Real Property Management” of the Compliance Supplement. Cause: Management oversight. Effect: Noncompliance with Uniform Guidance and internal control weakness. View of Responsible Official: The District’s corrective action plan presented in a separate document includes the views and planned corrective action of its responsible officials. We are not required to and have not audited these responses and planned corrective actions and therefore provide no assurances as to their accuracy. Contact person: Kristen King, Business Manager

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Full finding narrative

Program: Education Stabilization Fund – ESSER II and ESSER III Federal Assistance Listing Number: 84.425 Federal Agency: U.S. Department of Education Pass-Through Agency: Arizona Department of Education Grantor Number: 21FESSII-111175-01A and 21FESIII-111175-01A Questioned Costs: N/A Type of Finding: Material noncompliance and material weakness in internal control Compliance Requirement: F. Equipment and Real Property Management Condition/Context: The District did not provide a capital asset or stewardship listing to support three items purchased with Education Stabilization Fund was properly recorded in the District’s equipment listing. Criteria: Title 2 U.S. Code of Federal Regulations § 200.303 states that the auditee must establish and maintain effective internal control over the federal award that provides reasonable assurance that the auditee is managing the federal award in compliance with federal statutes, regulations, and the terms and conditions of the federal award. Additionally, any purchases with ESF funds in this category are subject to applicable inventory control, log maintenance, and disposition requirements consistent with Part 3, Section F, “Equipment/Real Property Management” of the Compliance Supplement. Cause: Management oversight. Effect: Noncompliance with Uniform Guidance and internal control weakness. View of Responsible Official: The District’s corrective action plan presented in a separate document includes the views and planned corrective action of its responsible officials. We are not required to and have not audited these responses and planned corrective actions and therefore provide no assurances as to their accuracy. Contact person: Kristen King, Business Manager

Corrective Action Plan

Program: Education Stabilization Fund – ESSER II and ESSER III Federal Assistance Listing Number: 84.425 Federal Agency: U.S. Department of Education Pass-Through Agency: Arizona Department of Education Grantor Number: 21FESSII-111175-01A and 21FESIII-111175-01A Questioned Costs: N/A Type of Finding: Material noncompliance and material weakness in internal control Compliance Requirement: F. Equipment and Real Property Management Condition/Context: The District did not provide a capital asset or stewardship listing to support three items purchased with Education Stabilization Fund was properly recorded in the District’s equipment listing. Corrective Action: The District will review its procedures over asset listing to ensure all equipment are properly recorded to the District’s listing. Planned completion date for corrective action plan: For the period ending June 30, 2024. Name of the contact person responsible for corrective action: Kristen King, Business Manager

About Equipment and Real Property Management →

FY 2022-06-30

FAC accepted this audit on April 16, 2023 — management decision was due October 16, 2023.

2022-004
Activities Allowed or Unallowed / Cost Allowability
MATERIAL WEAKNESS

2022-004 Expenditures for Health Insurance Federal Assistance Number 84.425 Program Title Covid-19 Education Stabilization Fund Federal Agency U.S. Department of Education Compliance Requirements A. Activities Allowed or Unallowed B. Allowable Costs/Cost Principles Finding Type Noncompliance, Material Weakness Questioned Costs N/A CONDITION The District recorded $67,632 in employee health insurance expenditures to the federal program Covid-19 Education Stabilization Fund. Due to errors in the posting of health insurance expenditures the amount of health insurance applied could not be relied on. It could not be determined if the health insurance expenditures reported were questioned costs. CRITERIA Compliance Supplement 2CFR Part 200, Appendix XI provides in part: "As a condition of receiving federal awards, non-federal entities agree to comply with laws, regulations, and the provisions of grant agreements and contracts, and to also maintain internal control to provide reasonable assurance of compliance within these requirements." CAUSE Internal controls were not in place to ensure staff was properly monitored or trained to maintain required accounting records in an accurate, complete and timely manner. EFFECT Due to errors in the posting of health insurance expenses during fiscal year 2021-22 the expenditures for federal program Covid-19 Education Stabilization Fund provided on the Schedule of Federal Expenditures could not be relied upon. RECOMMENDATION The District should consider procuring the services of a financial consultant and/or review the District's internal control process and also provide training to staff to ensure they have the skills and knowledge to process financial transactions timely and accurately.

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Full finding narrative

2022-004 Expenditures for Health Insurance Federal Assistance Number 84.425 Program Title Covid-19 Education Stabilization Fund Federal Agency U.S. Department of Education Compliance Requirements A. Activities Allowed or Unallowed B. Allowable Costs/Cost Principles Finding Type Noncompliance, Material Weakness Questioned Costs N/A CONDITION The District recorded $67,632 in employee health insurance expenditures to the federal program Covid-19 Education Stabilization Fund. Due to errors in the posting of health insurance expenditures the amount of health insurance applied could not be relied on. It could not be determined if the health insurance expenditures reported were questioned costs. CRITERIA Compliance Supplement 2CFR Part 200, Appendix XI provides in part: "As a condition of receiving federal awards, non-federal entities agree to comply with laws, regulations, and the provisions of grant agreements and contracts, and to also maintain internal control to provide reasonable assurance of compliance within these requirements." CAUSE Internal controls were not in place to ensure staff was properly monitored or trained to maintain required accounting records in an accurate, complete and timely manner. EFFECT Due to errors in the posting of health insurance expenses during fiscal year 2021-22 the expenditures for federal program Covid-19 Education Stabilization Fund provided on the Schedule of Federal Expenditures could not be relied upon. RECOMMENDATION The District should consider procuring the services of a financial consultant and/or review the District's internal control process and also provide training to staff to ensure they have the skills and knowledge to process financial transactions timely and accurately.

Corrective Action Plan

FINDING 2022-004 Schedule of Federal Expenditures We have prepared the accompanying corrective action plan as required by the standards applicable to financial audit contained in Government Auditing Standards and by the audit requirements of Title 2 U.S. Code of Federal Regulations Part 200, Uniform Administrative Requirements, Cost Principles, and Audit Requirements for Federal Awards (Uniform Guidance). Federal Assistance Number 84.425 Program Title Covid-19 Education Stabilization Fund Federal Agency U.S. Department of Education Compliance Requirements A. Activities Allowed or Unallowed B. Allowable Costs/Cost Principles Finding Type Noncompliance, Material Weakness CONDITION The District recorded $67,632 in employee health insurance expenditures to the federal program Covid-19 Education Stabilization Fund. Due to errors in the posting of health insurance expenditures the amount of health insurance applied could not be relied on. It could not be determined if the health insurance expenditures reported were questioned costs. CORRECTIVE ACTION PLAN Management is in the process of hiring additional personnel to alleviate the workload of the Business Manager and will evaluate the need for the consultant when that process is complete. DISTRICT CONTACT Timothy Mayclin, Superintendent Completion Date June 30, 2023

About Activities Allowed or Unallowed, Allowable Costs / Cost Principles →

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