Dysart Unified School District No. 89

Finding Number: 2022-001 Repeat Finding: No Program Name/Assistance Listing Title: Title I Grants to Local Educational Agencies Assistance Listing Number: 84.010 Federal Agency: U.S. Department of Education Federal Award Number: S010A210003 Pass-Through Agency: Arizona Department of Education Questioned Costs: N/A Type of Finding: Significant Deficiency Compliance Requirement: Eligibility CRITERIA According to Title I, ?1113(a)-(c) of the ESEA (20 USC 6313(c)), a local educational agency shall allocate funds to eligible schools in rank order and to determine allocations using the same measure of poverty, which measure shall be the number of children ages five through 17 in poverty counted in the most recent census data approved by the Secretary, the number of children eligible for free and reduced priced lunches under the Richard B. Russell National School Lunch Act, the number of children in families receiving assistance under the state program funded under part A of title IV of the Social Security Act, or the number of children eligible to receive medical assistance under the Medicaid program, or a composite of such indicators, with respect to all school attendance areas in the local educational agency. CONDITION The District was not readily able to provide support for the low-income counts reported on the Title I School Eligibility worksheet. CAUSE The District?s internal controls over eligibility were not properly designed to ensure that the correct low-income students counts were reported to the Arizona Department of Education (ADE). In addition, the District did not maintain proper documentation for the low-income student counts. EFFECT The District was determined to be in compliance with the eligibility of school attendance provisions of Title I, Part A. CONTEXT Upon initial review, low-income counts from the District's records did not agree to counts reported to ADE. After an audit inquiry, the District revised the counts reported and used a previous fiscal year as the base year for student counts to be reported for Title I eligibility, which they were allowed to do per ADE. While the counts reported were ultimately supported and the District was in compliance, the District was not able to provide this support timely and was unaware of the allowability for using a different fiscal year for the support. RECOMMENDATION The District should retain all documentation to support low-income student counts for eligibility purposes, and enhance controls in place to ensure correct student counts are used for reporting purposes. VIEWS OF RESPONSIBLE OFFICIALS See Corrective Action Plan.

Finding Number: 2021-001 Repeat Finding: No Program Name/Assistance Listing Title: Special Education Cluster Assistance Listing Number: 84.027, 84.173 Federal Agency: U.S. Department of Education Federal Award Number: H027A200007, H173A200003 Pass-Through Agency: Arizona Department of Education Questioned Costs: N/A Type of Finding: Noncompliance, Significant Deficiency Compliance Requirement: Allowable Costs/Cost Principles CRITERIA According to the Office of Management and Budget Uniform Guidance requirements 2 CFR ?200.230(i) charges to federal awards for salaries and wages must be based on records that accurately reflect the work performed. Specifically, according to 2 CFR ?200.230(i)(vii) the records must 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. CONDITION Time and effort documentation did not accurately reflect the time worked by an employee that worked on a federal program and non-federal program. CAUSE District management did not have adequate controls in place to ensure the time and effort documentation completed by the employee accurately reflected the work performed. EFFECT The District was not in compliance with the requirements set forth by the federal government. CONTEXT For one of 40 employees reviewed, the employee?s time and effort documentation reflected they spent 100% of their time on the federal program. Based on review of the employee?s payroll record, the employee only spent 60% of their time on the federal program. The employee was paid accurately from grant funds. The sample was not intended to be, and was not, a statistically valid sample. RECOMMENDATION The District should ensure employees are trained so they understand the importance of the accuracy of the time and effort documentation prepared by the employee and that all time and effort documentation accurately reflects the work performed. VIEWS OF RESPONSIBLE OFFICIALS See Corrective Action Plan.

Finding Number: 2020-001 Repeat Finding: No Program Name/CFDA Title: Child Nutrition Cluster CFDA Number: 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: N/A Type of Finding: Noncompliance, Significant Deficiency Compliance Requirement: Procurement, Suspension and Debarment CRITERIA Non-Federal entities are prohibited from contracting with or making sub awards under covered transactions to parties that are suspended or debarred. ?Covered transactions? include those procurement contracts for goods and services awarded under a non-procurement transaction that are expected to equal or exceed $25,000 or meet certain other criteria as specified in 2 CFR section 180.220. CONDITION Verification of suspension and debarment was not performed for all vendors with whom the District spent at least $25,000 using federal grant monies. CAUSE The Food and Nutrition department did not have policies and procedures in place to ensure vendors were not suspended or debarred. EFFECT The District was not in compliance with the requirements set forth by the federal government. However, it was determined that the vendors in question were not suspended or debarred. CONTEXT For seven of eight vendors reviewed with purchases in excess of $25,000, the District did not verify if the vendor was suspended or debarred. The sample was not intended to be, and was not, a statistically valid sample. RECOMMENDATION The Food and Nutrition department should implement policies and procedures to ensure compliance with Federal requirements regarding suspension and debarment. VIEWS OF RESPONSIBLE OFFICIALS See Corrective Action Plan.

Finding Number: 2019-001 Repeat Finding: No Program Name/CFDA Title: Title I Grants to Local Educational Agencies CFDA Number: 84.010 Federal Agency: U.S. Department of Education Federal Award Number: S010A180003 Pass-Through Agency: Arizona Department of Education Questioned Costs: N/A Type of Finding: Noncompliance, Significant Deficiency Compliance Requirement: Allowable Costs/Cost Principles CRITERIA According to the Office of Management and Budget Uniform Guidance requirements 2 CFR section 200.230(i) charges to federal awards for salaries and wages must be based on records that accurately reflect the work performed. Specifically, according to 2 CFR section 200.230(i)(vii) the records must 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. CONDITION Time and effort documentation did not accurately reflect the time worked by an employee that worked on a federal program and non-federal program. CAUSE District management did not have adequate controls in place to ensure the time and effort documentation completed by the employee accurately reflected the work performed. EFFECT The District was not in compliance with the requirements set forth by the federal government. CONTEXT For one of 40 employees reviewed, the employee?s time and effort documentation reflected they spent 100% of their time on the federal program. Based on review of the employee?s payroll record, the employee only 80% of their time on the federal program. The employee was paid accurately from grant funds. The sample was not intended to be, and was not, a statistically valid sample. RECOMMENDATION The District should ensure employees are trained so they understand the importance of the accuracy of the time and effort documentation prepared by the employee and that all time and effort documentation accurately reflects the work performed. VIEWS OF RESPONSIBLE OFFICIALS See Corrective Action Plan.