Snowflake Unified School District No. 5

Finding Number: 2024‐001 Repeat Finding: No Program Name/Assistance Listing Title: Coronavirus State and Local Fiscal Recovery Funds Assistance Listing Number: 21.027 Federal Agency: U.S. Department of Treasury Federal Award Number: WC2‐099‐2023 Pass‐Through Agency: Water Infrastructure Finance Authority of Arizona Questioned Costs: N/A Type of Finding: Noncompliance, Significant Deficiency Compliance Requirement: Reporting Criteria In accordance with 2 CFR Part 200.303, the District is responsible for the establishing and maintaining effective internal control over the Federal award that provides reasonable assurance that the non‐ Federal entity is managing the Federal award in compliance with Federal statutes, regulations, and the term and conditions of the Federal award. Condition The District did not have adequate internal controls in place to ensure eligible expenditures for the Coronavirus State and Local Fiscal Recovery Funds (CSLFRF) were reported on the Schedule of Expenditures of Federal Awards (SEFA). Cause The District was unaware the grant was federal in nature although it was stated so in the final grant agreement. Effect The District did not ensure the grant expenditures were properly reported on the Schedule of Expenditures of Federal Awards, resulting in the need for the single audit report to be reissued. Context The District recorded the CSLFRF revenues and expenditures in a state grant fund. As a result the expenditures were not reported on the SEFA and the single audit had to be reissued. The sample was not intended to be, and was not, a statistically valid sample. Recommendation The District should provide training for those with grant management responsibilities. The District should also have more consistent and timely oversight of grants by higher level management to confirm all Federal awards have been recorded appropriately in the District’s financial records system. 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: 7AZ300AZ3 Pass‐Through Agency: Arizona Department of Education Questioned Costs: N/A Type of Finding: Noncompliance, Significant Deficiency Compliance Requirement: Reporting, Special Tests and Provisions Criteria According to 7 CFR §210.8, §220.11, §215.10, and §225.15(c), the District shall establish internal controls which ensure the accuracy of meal counts prior to the submission of the monthly claim for reimbursement. Additionally, the District must verify the current free and reduced‐price eligibility of households selected from a sample of applications based on the total number of approved applications on file on October 1 by November 15 of each school year. Condition Paid meals per National School Lunch Program (NSLP) Claims did not agree to supporting documentation. Additionally, eligible free and reduced‐price student counts per the School Food Authority (SFA) Verification Collection Report did not agree to supporting documentation. Cause District management did not provide adequate oversight over the food service department to ensure records and other relevant support documentation were maintained in accordance with District policies. Effect The District did not comply with eligibility and reporting compliance requirements for the Child Nutrition Cluster. Context Paid meals served for one month at two school sites per NSLP Claims did not agree to District documentation, under‐reported by 300 and over‐reported by 3 meals respectively. Additionally, the number of applications per SFA did not agree to District documentation, under‐reported by 12 and two students respectively. The sample was not intended to be, and was not, a statistically valid sample. Recommendation The District should ensure that management provides adequate oversight over the food service department to ensure records and other relevant support documentation are maintained in accordance with District policies and Child Nutrition Cluster program. Views of Responsible Officials See Corrective Action Plan.