Avondale Elementary School District No. 44

Findings and Questioned Costs Related to Federal Awards Finding Number: 2025‐001 Repeat Finding: No Program Name/Assistance Listing Title: Child Nutrition Cluster Assistance Listing Numbers: 10.553, 10.555, 10.559, 10.582 Federal Agency: U.S. Department of Agriculture Federal Award Number: 6AZ300400, 7AZ300AZ3, 7AZ310AZ1 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 other than states, including those operating federal programs as subrecipients of states, must follow the procurement standards set out at 2 CFR §§200.318 through 200.326. Subrecipients must use their own documented procurement procedures, which reflect applicable State and local laws and regulations, provided that the procurements conform to applicable federal statutes and the procurement requirements identified in 2 CFR part 200. Condition The District did not follow Federal, State, and Board policies and regulations governing procurement. Cause The District’s review procedures over each transaction did not operate as designed. Effect The District was not in compliance with Federal, State, and Board policies and regulations governing procurement. Context The District issued requests for written quotes to multiple vendors, and awarded the quote to three vendors to avoid spending over $100,000 with one vendor. However, as the items purchased were homogenous items, and the expenses with the three vendors totaled $252,424, the District should have issued a sealed procurement. The sample was not intended to be, and was not, a statistically valid sample. Recommendation Approvers should ensure requisitions exceeding the formal procurement threshold are appropriately procured in accordance with Federal, State and Board policies and regulations. Views of Responsible Officials See Corrective Action Plan.

Findings and Questioned Costs Related to Federal Awards Finding Number: 2023‐001 Repeat Finding: No Program Name/Assistance Listing Title: Child Nutrition Cluster Assistance Listing Number: 10.553, 10.555, 10.559 Federal Agency: U.S. Department of Agriculture Federal Award Number: 6AZ300400, 7AZ300AZ3 Pass‐Through Agency: Arizona Department of Education Questioned Costs: $1,070 Type of Finding: Noncompliance, Significant Deficiency Compliance Requirement: Reporting Criteria According to 7 CFR §210.8, the District shall establish internal controls which ensure the accuracy of meal counts prior to the submission of the monthly claim for reimbursement. Condition The  District  did  not  have  internal  controls  in  place  to  ensure  the  number  of  meals  reported  for  reimbursement agreed to supporting documentation. Cause Adequate supporting documentation was not maintained. Effect The  District  did  not  comply  with  reporting  compliance  requirements  for  the  Child  Nutrition  Cluster. Context For the three months reviewed: • On the November claim, the District over claimed the number of paid breakfasts by 2,139. • On the March claim, the District under claimed the number of paid snacks by 10. The sample was not intended to be, and was not, a statistically valid sample. Recommendation The District should ensure adequate supporting documentation is maintained and the monthly meal reimbursements are reviewed by management before submission to the Arizona Department of Education. Views of Responsible Officials See Corrective Action Plan.