EIN: 866000494
UEI: CGJAA25W6GZ1
Audited by: Heinfeld, Meech & Co., P.C.
Oversight agency: 84 [Department of Education]
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Data as of August 28, 2026
Management decision deadline — for entities that funded this organization
The FAC accepted this audit on February 13, 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 August 13, 2026 (18 days ago).
What is a management decision? →FAC accepted this audit on March 26, 2025 — management decision was due September 26, 2025.
Finding Number: 2024‐001 Repeat Finding: No Program Name/Assistance Listing Title: Child Nutrition Cluster Assistance Listing Numbers: 10.553, 10.555, 10.559 Federal Agency: U.S. Department of Agriculture Federal Award Number: 7AZ300AZ3 Pass‐Through Agency: Arizona Department of Education Questioned Costs: $609,000 Type of Finding: Noncompliance, Significant Deficiency Compliance Requirement: Allowable Costs/Cost Principles Criteria According to the Memo SP60‐2016, Indirect Costs Guidance for State Agencies and School Food Authorities, issued by the United States Department of Agriculture (USDA), a District may recover indirect costs of services rendered to school food service at a total value not to exceed $25,000 for contracted expenses. Condition Indirect Cost Guidance for the Child Nutrition Program was not followed correctly. Cause The District was unaware of the limitations that were imposed on indirect cost charges to the Child Nutrition Program. Effect Indirect costs of $609,000 were overcharged to the Child Nutrition Cluster program. Context When recording indirect costs, the District did not charge the maximum allowable amount of $25,000 for contracted expenses. Therefore, the District overcharged $609,000 to the Child Nutrition Cluster program as reported in the Food Service Fund. Recommendation The District should ensure indirect costs are calculated in accordance with the formula set forth in the guidance issued by USDA. Views of Responsible Officials See Corrective Action Plan. Page 11
Show full finding ▾Hide full finding ▴Finding Number: 2024‐001 Repeat Finding: No Program Name/Assistance Listing Title: Child Nutrition Cluster Assistance Listing Numbers: 10.553, 10.555, 10.559 Federal Agency: U.S. Department of Agriculture Federal Award Number: 7AZ300AZ3 Pass‐Through Agency: Arizona Department of Education Questioned Costs: $609,000 Type of Finding: Noncompliance, Significant Deficiency Compliance Requirement: Allowable Costs/Cost Principles Criteria According to the Memo SP60‐2016, Indirect Costs Guidance for State Agencies and School Food Authorities, issued by the United States Department of Agriculture (USDA), a District may recover indirect costs of services rendered to school food service at a total value not to exceed $25,000 for contracted expenses. Condition Indirect Cost Guidance for the Child Nutrition Program was not followed correctly. Cause The District was unaware of the limitations that were imposed on indirect cost charges to the Child Nutrition Program. Effect Indirect costs of $609,000 were overcharged to the Child Nutrition Cluster program. Context When recording indirect costs, the District did not charge the maximum allowable amount of $25,000 for contracted expenses. Therefore, the District overcharged $609,000 to the Child Nutrition Cluster program as reported in the Food Service Fund. Recommendation The District should ensure indirect costs are calculated in accordance with the formula set forth in the guidance issued by USDA. Views of Responsible Officials See Corrective Action Plan. Page 11
Findings and Questioned Costs Related to Federal Awards Finding Number: 2024‐001 Program Name/Assistance Listing Title: Child Nutrition Cluster Assistance Listing Numbers: 10.553, 10.555, 10.559 Contact Person: Brian Lockery, Director of Finance Anticipated Completion Date: The finding was corrected as of February 18, 2025. Planned Corrective Action: District staff took the following steps to immediately remedy this finding: Entered and approved a journal entry in the FY24 general ledger to correct the indirect cost transfer out of Fund 510 and into Fund 570 as authorized under the program. Submitted to ADE a request to open a 15‐915 data correction to submit a revised FY24 Annual Financial Report (AFR), Food Service AFR and School by School (AFR). ADE opened the 15‐915 window, and Kyrene submitted all three revised AFRs. ADE processed and approved all three AFRs. Kyrene submitted all three revised AFRs to its governing board for approval on March 25, 2025. FY25 opening fund balances were additionally corrected to reflect the changes approved in the revised AFRs. Kyrene remedied this finding as of February 18, 2025. Kyrene now employs a new, revised calculator tool which limits the amount of the food service contract expenses to $25,000 maximum annually. This worksheet will be used to calculate the maximum allowable indirect cost rate transfer from Fund 510 Food Services to Fund 570 Indirect Costs.
FAC accepted this audit on March 28, 2024 — management decision was due September 28, 2024.
FAC accepted this audit on January 24, 2023 — management decision was due July 24, 2023.
FAC accepted this audit on February 27, 2022 — management decision was due August 27, 2022.
FAC accepted this audit on February 28, 2021 — management decision was due August 28, 2021.
FAC accepted this audit on March 3, 2020 — management decision was due September 3, 2020.
FAC accepted this audit on March 23, 2019 — management decision was due September 23, 2019.
FAC accepted this audit on March 28, 2018 — management decision was due September 28, 2018.
FAC accepted this audit on March 26, 2017 — management decision was due September 26, 2017.
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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