Legacy Traditional School - North Chandler

Federal Agency: U.S. Department of Education Federal Program Title: Elementary and Secondary Emergency Relief and American Rescue Plan – Elementary and Secondary School Emergency Relief Assistance Listing Numbers: 84.425D and 84.425U Federal Award Program Year: July 1, 2023–July 30, 2024 Pass-Through Agency: Arizona Department of Education Pass-Through Number: S425D210038 and S425U210038 Type of Finding: Other matter Compliance Requirement: Reporting – Special Reports Criteria: Grantees must submit an annual performance report with data on expenditures, planned expenditures, subrecipients, and uses of funds as set forth in compliance supplement. Condition: Annual performance report was filed; however, support used for such reporting was not provided. Questioned Costs: None reportable. Context: Management was unable to provide supporting documentation for the annual performance report filed, resulting in the auditor’s inability to perform key line item 2 (line 3.b10), as required by the compliance supplement. Effect: In the event support was required by funders, the School would be unable to provide necessary supporting documentation. Cause: The School did not adequately retain supporting documentation. Identification as a Repeat Finding: Not a repeat finding. Recommendation: Supporting documentation for all required annual performance reports, and any required filings, should be maintained on School servers. Views of Responsible Officials and Planned Corrective Actions: Our management team has acknowledged the finding and is committed to maintaining all required annual performance reports supporting documentation. We will require that responsible program manager ensures retention of such documentation.

Federal Agency: U.S. Department of Agriculture Federal Program Title: Child Nutrition Cluster Assistance Listing Numbers: 10.553, 10555 Federal Award Program Year: July 1, 2022 – July 30, 2023 Pass-Through Agency: Arizona Department of Education Pass-Through Number: 07-84-09-001 Type of Finding: Other matter Compliance Requirement: Procurement and 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 sections 200.318 through 200.326. Condition: The School’s policy governing procurement requirements for the purchase of goods or services when the aggregate dollar amount is greater than $10,000 but less than $100,000 was not followed. Questionable Costs: None reportable Context: Two vendors with purchases over $10,000 and under $100,000 were selected for testing and no price/rate quotes were obtained for one of the vendors. Effect: Purchases of goods or services were made that may not have been obtained in the most effective manner or in compliance with Uniform Guidance. Cause: The School did not adequately monitor purchases from its vendors to ensure compliance with it policies. Identification as a Repeat Finding: Not a repeat finding Recommendation: All purchases should be monitored by the purchasing and grant management departments to ensure that the purchases are in compliance with the School’s procurement policies.