Willcox Unified School District No. 13

Findings and Questioned Costs Related to Federal Awards Finding Number: 2024‐001 Repeat Finding: Yes, 2023‐001 Program Name/Assistance Listing Title: Education Stabilization Fund Assistance Listing Number: 84.425U Federal Agency: U.S. Department of Education Federal Award Number: 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 grant recipients are required to submit an annual performance report with data on uses of funds. The District, as a subrecipient of the Arizona Department of Education (ADE), fulfills this requirement through completion of ADE's LEA Uses of Elementary and Secondary School Emergency Relief I, II & III Report (ESSER Report). Condition Inadequate internal controls existed over the Education Stabilization Fund reporting process. Cause The District did not have sufficient review procedures in place to ensure the data in the ESSER Report was accurate. Effect The District did not accurately complete the ESSER Report. Context The District reported dollar amounts for the LEA Hiring and Retention of Specific Positions data, rather than individual staff counts. Recommendation The District should ensure that accurate federal reports are prepared. Views of Responsible Officials See Corrective Action Plan.

Finding Number: 2023‐001 Repeat Finding: No Program Name/Assistance Listing Title: Education Stabilization Fund Assistance Listing Number: 84.425U Federal Agency: U.S. Department of Education Federal Award Number: S425U210038 Pass‐Through Agency: Arizona Department of Education Questioned Costs: N/A Type of Finding: Noncompliance, Material Weakness Compliance Requirement: Reporting Criteria Education Stabilization Fund grant recipients are required to submit an annual performance report with data on expenditures, planned expenditures, subrecipients, and uses of funds. The District, as subrecipient of the Arizona Department of Education (ADE), fulfills this requirement through completion of ADE's LEA Uses of Elementary and Secondary School Emergency Relief I, II & III (ESSER Report). Condition The District did not maintain adequate supporting documentation for the data included in the ESSER Report submitted to ADE. Cause The District did not have adequate review procedures in place to ensure the ESSER Report was sufficiently supported, and/or did not maintain documentation utilized when the ESSER Report was prepared. Effect The District was unable to support the data submitted on the ESSER Report. Context The District was unable to provide supporting documentation for the allocation of expenditures to the various categories under ESSER III in the ESSER Report. In addition, total ESSER III expenditures reported did not agree to accounting records by $721,215. Recommendation The District should ensure that accurate federal reports are prepared and that proper supporting documentation is maintained for all amounts indicated on such reports. Views of Responsible Officials See Corrective Action Plan.