Chinle Unified School District No. 24

Finding Number: 2023-001 Repeat Finding: Yes, 2022-001 Program Names/Assistance Listing Titles: Assistance Listing Numbers: Federal Award Numbers: Questioned Costs: Education Stabilization Fund 84.425 S425D210038, S425U210038 N/A Impact Aid 84.041 N/A N/A

Federal Agency(ies): U.S Department of Education Pass-Through Agency(ies): Arizona Department of Education Type of Finding: Noncompliance, Significant Deficiency Compliance Requirements: Special Tests and Provisions – Wage Rate

Criteria According to Federal guidelines, §7007 construction funds, as well as any §7002 or §7003(b) funds expended for construction or minor remodeling, are subject to Wage Rate Requirements (20 USC 1232b).

Condition Wage rate certificates were not turned in weekly. Additionally, one procurement did not include the appropriate wage rate compliance disclosure.

Cause Effective internal controls were not implemented that would adequately prevent or detect a deficiency. There were delays on the side of the contractors regarding submission and an issue with the District’s internet connection that may have also affected email since April/May of 2023.

Effect The District did not comply with the special tests and provisions requirements of the grants.

Context The District failed to monitor the contract weekly to ensure compliance with the wage rate requirements. Additionally, the District could not provide support that the contract/subcontract or procurement included the appropriate wage rate clauses. The sample was not intended to be, and was not, a statistically valid sample.

Recommendation The District should monitor and ensure Davis-Bacon Act prevailing wage requirements are properly disclosed to all vendors and that wage rate certificates are turned in weekly.

Views of Responsible Officials See Corrective Action Plan.

Finding Number: 2023-002 Repeat Finding: No Program Name/Assistance Listing Title: Education Stabilization Fund Assistance Listing Number: 84.425 Federal Agency: U.S Department of Education Federal Award Number: S425D210038, S425U210038 Pass-Through Agency: Arizona Department of Education Questioned Costs: N/A Type of Finding: Noncompliance, Significant Deficiency Compliance Requirement: Reporting

Criteria Education Stabilization Fund grantees must submit an annual performance report to the SEA/Governor for the SEA’s/Governor’s report under OMB No. 1810-0749.

Condition Total amount expended per the LEA Uses of Elementary and Secondary School Relief Fund (ESSER) I, II, & III - Use of Funds Detail report could not be agreed to the District’s accounting records.

Cause This was the first year that this reporting requirement was in effect and there was a lot of confusion from ADE that led to misreporting.

Effect The District did not comply with the reporting requirements of the grant.

Context The amounts reported on the LEA Uses of ESSER I, II, & III - Use of Funds Detail report cannot be agreed to the general ledger. In addition, expenses for retention pay are listed on the report under ESSER II and ESSER III as the District drew down funds for the same expenses twice. The sample was not intended to be, and was not, a statistically valid sample.

Recommendation The District should monitor and ensure amounts expended per the LEA Uses of ESSER I, II, & III - Use of Funds Detail report agree to the District’s accounting records.

Views of Responsible Officials See Corrective Action Plan.