ATTACHMENT A FY2017 MC SINGLE AUDIT.PDF

Maricopa County — Formal (2018-06-27)

Extracted text (via pymupdf_layout) 77198 characters

ATTACHMENT A
MARICOPA COUNTY
JUNE 30, 2017
SINGLE AUDIT

Maricopa County
Single Audit Report
A Report to the Arizona Legislature
CIFud A _WZ OitNA
arG e neral
111,II••

ARIZONA,
Auditi)rGenera
Making a Positive Difference
The Arizona Office of the Auditor General's mission is to provide independent and impartial information and
specific recommendations to improve the operations of state and local government entities. To this end, the
Office provides financial audits and accounting services to the State and political subdivisions, investigates
possible misuse of public monies, and conducts performance audits and special reviews of school districts, state
agencies, and the programs they administer.
The Joint Legislative Audit Committee
Representative Anthony Kern, Chair Senator Bob Worsley, Vice Chair
Representative John Allen Senator Sean Bowie
Representative Rusty Bowers Senator Judy Burges
Representative Rebecca Rios Senator Lupe Contreras
Representative Athena Salman Senator John Kavanagh
Representative J.D. Mesnard (ex officio) Senator Steve Yarbrough (ex officio)
Audit Staff
Jay Zsorey, Director
Taryn Stangle, Manager and Contact Person
Contact Information
Arizona Office of the Auditor General
2910 N. 44th St.
Ste. 410
Phoenix, AZ 85018
(602) 553-0333
www.azauditor.gov

Auditors Section
Independent auditors' report on compliance for each major federal program; report
on internal control over compliance; and report on schedule of expenditures of federal
awards required by the Uniform Guidance 1
Schedule of Findings and Questioned Costs 5
Summary of auditors' results 5
Financial statement findings 7
Federal award findings and questioned costs 7
County Section
Schedule of expenditures of federal awards 17
Notes to schedule of expenditures of federal awards 20
County Response
Corrective action plan
Summary schedule of prior audit findings
Report Issued Separately
Comprehensive annual financial report
Report on internal control over financial reporting and on compliance and other
matters based on an audit of basic financial statements performed in accordance
with Government Auditing Standards
PAGE i

Arizona Auditor General Maricopa County I Year Ended June 30, 2017
PAGE ii

STATE OF ARIZONA
OFFICE OF THE MELANIE M. CHESNEY
AUDITOR GENERAL DEPUTY AUDITOR GENERAL
Independent auditors' report on compliance for each major federal program;
report on internal control over compliance; and report on schedule of
expenditures of federal awards required by the Uniform Guidance
Members of the Arizona State Legislature
The Board of Supervisors
Maricopa County, Arizona
Report on compliance for each major federal program
We have audited Maricopa County's compliance with the types of compliance requirements described in
the U.S. Office of Management and Budget (OMB) Compliance Supplement that could have a direct and
material effect on each of its major federal programs for the year ended June 30, 2017, except for the Section
8 Housing Choice Vouchers (14.871) major federal program administered by the Housing Authority of
Maricopa County. That major federal program was audited by other auditors whose report has been
furnished to us, and our opinion, insofar as it relates to that major federal program's compliance with the
types of compliance requirements described in the OMB Compliance Supplement, is based solely on the
report of the other auditors. The County's major federal programs are identified in the summary of auditors'
results section of the accompanying schedule of findings and questioned costs.
Maricopa County's basic financial statements include the operations of the Maricopa County
Accommodation Schools, which expended $999,490 in federal awards that are not included in the County's
Schedule of Expenditures of Federal Awards for the year ended June 30, 2017. Our audit, described below,
did not include the operations of the Maricopa County Accommodation Schools because the
Accommodation Schools engaged other auditors to perform an audit in accordance with Title 2 U.S. Code
of Federal Regulations Part 200, Uniform Administrative Requirements, Cost Principles, and Audit
Requirements for Federal Awards (Uniform Guidance).
Management's responsibility
Management is responsible for compliance with federal statutes, regulations, and the terms and conditions
of its federal awards applicable to its federal programs.
Auditors' responsibility
Our responsibility is to express an opinion on compliance for each of the County's major federal programs
based on our audit of the types of compliance requirements referred to above. We conducted our audit of
compliance in accordance with U.S. generally accepted auditing standards; the standards applicable to
financial audits contained in Government Auditing Standards, issued by the Comptroller General of the
United States; and the audit requirements of the Uniform Guidance. Those standards and the Uniform
2910 PWIR.1- 1-1 44' Tmeei- sul-r 410 PI-UDE141 ,A.IZI.Z.D NA. 860113 (602) 663-0333 - FAX (602) 853-0061

Guidance require that we plan and perform the audit to obtain reasonable assurance about whether
noncompliance with the types of compliance requirements referred to above that could have a direct and
material effect on a major federal program occurred. An audit includes examining, on a test basis, evidence
about the County's compliance with those requirements and performing such other procedures as we
considered necessary in the circumstances.
We believe that our audit and the report of the other auditors provide a reasonable basis for our qualified
and unmodified opinions on compliance for major federal programs. However, our audit does not provide
a legal determination of the County's compliance.
Basis for qualified opinion on Teacher and School Leader Incentive Grants and Child Support
Enforcement programs
As described in the accompanying schedule of findings and questioned costs, the County did not comply
with certain compliance requirements that are applicable to the major federal programs listed below.
Compliance with such requirements is necessary, in our opinion, for the County to comply with the
requirements applicable to these programs.
CFDA Finding
Program name number Compliance requirements number
Teacher and School Leader Incentive Grants 84.374 Matching and reporting 2017-103,
(formerly the Teacher Incentive Fund) 2017-105
Child Support Enforcement 93.563 Allowable costs/cost principles 2017-106
Qualified opinion on Teacher and School Leader Incentive Grants and Child Support Enforcement
programs
In our opinion, except for the noncompliance described in the basis for qualified opinion paragraph,
Maricopa County complied, in all material respects, with the types of compliance requirements referred to
above that could have a direct and material effect on the Teacher and School Leader Incentive Grants
(84.374) and Child Support Enforcement (93.563) programs for the year ended June 30, 2017,
Unmodified opinion on each of the other major federal programs
In our opinion, based on our audit and the report of the other auditors, Maricopa County complied, in all
material respects, with the types of compliance requirements referred to above that could have a direct and
material effect on each of its other major federal programs identified in the summary of auditors' results
section of the accompanying schedule of findings and questioned costs for the year ended June 30, 2017.
Other matters
The results of our auditing procedures disclosed other instances of noncompliance that are required to be
reported in accordance with the Uniform Guidance and that are described in the accompanying schedule
of findings and questioned costs as items 2017-101, 2017-102, 2017-104, and 2017-108. Our opinion on
each major federal program is not modified with respect to these matters.
Report on internal control over compliance
The County's management is responsible for establishing and maintaining effective internal control over
compliance with the types of compliance requirements referred to above. In planning and performing our
audit of compliance, we considered the County's internal control over compliance with the types of
requirements that could have a direct and material effect on each major federal program to determine the
PAGE 2

auditing procedures that are appropriate in the circumstances for the purpose of expressing an opinion on
compliance for each major federal program and to test and report on internal control over compliance in
accordance with the Uniform Guidance, but not for the purpose of expressing an opinion on the
effectiveness of internal control over compliance. Accordingly, we do not express an opinion on the
effectiveness of the County's internal control over compliance.
Our consideration of internal control over compliance was for the limited purpose described in the preceding
paragraph and was not designed to identify all deficiencies in internal control over compliance that might be
material weaknesses or significant deficiencies, and therefore, material weaknesses or significant deficiencies
may exist that have not been identified. However, as discussed below, we identified certain deficiencies in
internal control over compliance that we consider to be material weaknesses and significant deficiencies.
A deficiency in internal control over compliance exists when the design or operation of a control over
compliance does not allow management or employees, in the normal course of performing their assigned
functions, to prevent, or detect and correct, noncompliance with a type of compliance requirement of a
federal program on a timely basis. A material weakness in internal control over compliance is a deficiency,
or a combination of deficiencies, in internal control over compliance, such that there is a reasonable
possibility that material noncompliance with a type of compliance requirement of a federal program will not
be prevented, or detected and corrected, on a timely basis. We consider the deficiencies in internal control
over compliance described in the accompanying schedule of findings and questioned costs as items 2017-
101, 2017-103, 2017-104, 2017-105, 2017-106, 2017-107, and 2017-108 to be material weaknesses.
A significant deficiency in internal control over compliance is a deficiency, or a combination of deficiencies,
in internal control over compliance with a type of compliance requirement of a federal program that is less
severe than a material weakness in internal control over compliance, yet important enough to merit attention
by those charged with governance. We consider the deficiencies in internal control over compliance
described in the accompanying schedule of findings and questioned costs as items 2017-102 and 2017-
109 to be significant deficiencies.
The purpose of this report on internal control over compliance is solely to describe the scope of our testing
of internal control over compliance and the results of that testing based on the requirements of the Uniform
Guidance. Accordingly, this report is not suitable for any other purpose.
Maricopa County's response to findings
Maricopa County's responses to the findings identified in our audit are presented in its corrective action plan
at the end of this report. The County's responses were not subjected to the auditing procedures applied in
the audit of compliance, and accordingly, we express no opinion on them.
Report on schedule of expenditures of federal awards required by the Uniform Guidance
We have audited the financial statements of the governmental activities, business-type activities, discretely
presented component unit, each major fund, and aggregate remaining fund information of Maricopa County
as of and for the year ended June 30, 2017, and the related notes to the financial statements, which collectively
comprise the County's basic financial statements. We issued our report thereon dated December 21, 2017,
that contained unmodified opinions on those financial statements. Our report also included a reference to our
reliance on other auditors. Our audit was conducted for the purpose of forming our opinions on the financial
• statements that collectively comprise the County's basic financial statements. The accompanying schedule of
expenditures of federal awards is presented for purposes of additional analysis as required by the Uniform
Guidance and is not a required part of the basic financial statements. Such information is the responsibility of
the County's management and was derived from and relates directly to the underlying accounting and other
records used to prepare the basic financial statements. The information has been subjected to the auditing
PAGE 3

procedures applied in the audit of the basic financial statements and certain additional procedures, including
comparing and reconciling such information directly to the underlying accounting and other records used to
prepare the basic financial statements or to the basic financial statements themselves, and other additional
procedures in accordance with U.S. generally accepted auditing standards by us and the other auditors. In
our opinion, based on our audit, the procedures performed as described previously, and the report of the
other auditors, the schedule of expenditures of federal awards is fairly stated in all material respects in relation
to the basic financial statements as a whole.
Jay Zsorey, CPA
Director, Financial Audit Division
March 28, 2018
PAGE 4

SCHEDULE OF FINDINGS
AND QUESTIONED COSTS
Summary of auditors results
Financial statements
Type of auditors' report issued on whether the financial statements audited were
prepared in accordance with generally accepted accounting principles Unmodified
Internal control over financial reporting
Material weaknesses identified? Yes
Significant deficiencies identified? Yes
Noncompliance material to the financial statements noted? No
Federal awards
Internal control over major programs
Material weaknesses identified? Yes
Significant deficiencies identified? Yes
Type of auditors' report issued on compliance for major programs
Unmodified for all major programs except for the Teacher and School Leader Incentive
Grants (formerly the Teacher Incentive Fund) (84.374) and Child Support Enforcement
(93.563) programs which were qualified.
Any audit findings disclosed that are required to be reported in accordance with 2
CFR §200.516(a)? Yes
Identification of major programs
CFDA number Name of federal program or cluster
10.904 Watershed Protection and Flood Prevention
10.916 Watershed Rehabilitation Program
14.239 HOME Investment Partnerships Program
14.871 Section 8 Housing Choice Vouchers
15.226 Payments in Lieu of Taxes
17.258/17.259/17.278 WIOA Cluster
Arizona Auditor General Marieope County—Schedule of Findings and Questioned Costs I Year Ended une 30, 2017
51111111111 1
PAGE 5

CFDA number Name of federal program or cluster
84.374 Teacher and School Leader Incentive Grants (formerly the
Teacher Incentive Fund)
93.563 Child Support Enforcement
93,568 Low-Income Home Energy Assistance
93.600 Head Start
Dollar threshold used to distinguish between Type A and Type B programs $3,000,000
Auditee qualified as low-risk auditee? No
Other matters
Auditee's summary schedule of prior audit findings required to be reported in
accordance with 2 CFR §200.511(b)? Yes
Arizona Auditor General Mario:pa County—Seherfule of Findings and Questioned COsts ME=
PAGE 6

Financial statement findings
Financial statement findings were reported in the separately issued report on internal control over financial
reporting and on compliance and other matters based on an audit of basic financial statements performed
in accordance with Government Auditing Standards.
Federal award findings and questioned costs
201 7-1 01
CFDA number and name: 10.904 Watershed Protection and Flood Prevention
Award numbers and years: 68-9457-15-537, December 1, 2009 through December 1, 2020;
68-9457-12-509, October 18, 2012 through September 30, 2017
Federal agency: U.S. Department of Agriculture
Compliance requirement: Reporting
Questioned costs: None
Criteria—To comply with 7 Code of Federal Regulations (CFR) §3016.20(b)(1), internal controls should be
maintained over reporting to provide reasonable assurance that federal program reports are accurate and
reliable. Failure to accurately compile and report information could result in noncompliance with a program's
reporting and matching requirements.
Condition and context—The County's Flood Control District (District) did not adequately compile and
review the SF-425, Federal Financial Reports (FFR), submitted to the federal agency. Specifically, the District
incorrectly reported the recipient's share of expenditures that accounts for the County's matching
contribution on two reports and on a third report overreported the federal cash disbursements. The District
corrected the errors on subsequent reports it filed. Further, the District submitted three of its reports after
the reports' required deadline.
Effect—Three of the District's FFRs submitted to the federal agency during the period July 1, 2016 through
June 30, 2017, were not accurate, The District misstated the federal cash disbursements, recipient share of
expenditures, and remaining recipient share to be provided.
Cause—The District did not follow its policies and procedures to ensure data used to prepare the FFRs
was accurate prior to submission. In addition, the District submitted the reports late because it was waiting
on approval of expenditures from the federal grantor.
Recommendation—To help ensure the accuracy of the FFRs, the District should follow its policies and
procedures by requiring that a responsible employee performs a detailed review of the FFRs and reconciles
them to supporting data. In addition, the reports should be submitted to the federal agency on time,
The County's responsible officials' views and planned corrective action are in its corrective action plan
included at the end of this report.
This finding is similar to prior year finding 2016-102.
Arizona Auditor General Marianna County—Schedule of Findings and Questioned Costs Year Ended June 30.2017
PAGE 7

201 7-1 02
CFDA number and name: 84.374 Teacher and School Leader Incentive Grants (formerly
the Teacher Incentive Fund)
Award numbers and years: S374A100025, October 1,2010 through September 30, 2016;
S374A120089, October 1, 2012 through September 30, 2017;
U374A160041, October 1, 2016 through September 30, 2021
Federal agency: U.S. Department of Education
Compliance requirement: Subreciplent monitoring
Questioned costs: None
Criteria—In accordance with 34 CFR §80.20(b)(3), the County's Maricopa Education Service Agency
(Agency) must maintain effective control and accountability over its grant programs. To comply with 34 CFR
§80.23(a), the Agency should only reimburse expenditures for the specified funding period outlined in its
contract.
Condition and context—The Agency was awarded the Teacher and School Leader Incentive Grants
program in 2010 along with its subrecipient school districts. The Agency entered into contracts with
subrecipients that expired on December 30, 2015. However, the Agency did not extend grant contracts for
subawards that were still being funded. As a result, the Agency allowed three subrecipients to continue to
request reimbursement and reimbursed them for $212,229 in program expenditures after the subrecipients'
contracts expired.
Effect—The Agency did not comply with subrecipient monitoring requirements and ensure that its
subrecipients requested reimbursement for allowable expenditures incurred only during the contract period.
The expenditures subrecipients incurred were valid and within the grants' period of availability; therefore,
there were no questioned costs.
Cause—The Agency did not have procedures in place to ensure its subrecipients were reimbursed for
allowable expenditures incurred only during the subrecipients' contract period.
Recommendation—To help ensure the Agency complies with subrecipient monitoring requirements, it
should evaluate and update, as appropriate, its existing policies and procedures to ensure they are aligned
with the federal agency's regulations. This must include ensuring its subrecipients are reimbursed for
allowable expenditures incurred only during the subrecipient's contract period.
The County's responsible officials' views and planned corrective action are in its corrective action plan
included at the end of this report.
This finding is similar to prior year finding 2016-107,
Arizona Auditor General Maricopa County—Schedule of Findings and Questioned Costs Year Ended June 30,2017
PAGE 8

2017-103
CFDA number and name: 84.374 Teacher and School Leader Incentive Grants (formerly
the Teacher Incentive Fund)
Award numbers and years: S374A100025, October 1, 2010 through September 30, 2016;
S374A120089, October 1, 2012 through September 30, 2017;
U374A160041, October 1, 2016 through September 30, 2021
Federal agency: U.S. Department of Education
Compliance requirement: Matching
Questioned costs: Unknown
Criteria—In accordance with 34 CFR §80.20(b)(3), the County's Maricopa Education Service Agency
(Agency) must maintain effective control and accountability over its grant programs. This includes ensuring
the grantee complies with applicable statutes, regulations, and approved applications as outlined in 34 CFA
§75.700,
Condition and context—The Agency agreed to match a total of $7,516,860 of program expenditures
over the 2012 grant award's (grant #S374A120089) 5-year term. The Agency planned to meet the match
with the administrative salaries of the school districts participating in the program. However, for the final two
grant years, the Agency did not meet the required match because two school districts were no longer
participating in the grant and one school district had a reduction in administrative staff. As of June 30, 2017,
the Agency did not meet the matching requirement by $505,965 for the full grant award. Although the Agency
had until September 30, 2017, to finalize the grant award's match, no additional matching funds were
contributed as of that date.
Effect—The Agency did not comply with matching requirements, resulting in potential questioned costs of
$505,965. The Agency informed the grantor of the changes to its participating schools and lack of matching
funds in its annual performance report; however, the Agency did not obtain a waiver to reduce the required
match, Auditors were unable to determine if acceptance of the performance report by the grantor waived
the County's additional matching requirement.
Cause—The Agency was aware that it did not meet the matching requirement because of changes to its
subrecipients but did not request a waiver from the U.S. Department of Education.
Recommendation—To help ensure the Agency complies with the matching requirements, the Agency
should monitor the match and determine if there is available funding to help match the program
requirements from other subrecipients or county funds. If the Agency is unable to meet the match, they
should communicate with the federal agency and determine if the grantor will waive the remaining
unmatched program dollars.
The County's responsible officials' views and planned corrective action are in its corrective action plan
included at the end of this report.
Arizona Auditor General Maricopa County--Schedule of Findings and Questioned Costs Year Ended June 30,2017
PAGE 9

2017-104
CFDA number and name: 84.374 Teacher and School Leader Incentive Grants (formerly
the Teacher Incentive Fund)
Award numbers and years: S374A100025, October 1, 2010 through September 30, 2016;
S374A120089, October 1, 2012 through September 30, 2017;
U374A160041, October 1, 2016 through September 30, 2021
Federal agency: U.S. Department of Education
Compliance requirement: Procurement
Questioned costs: None
Criteria—In accordance with 34 CFR §80.20(b)(3), the County's Maricopa Education Service Agency
(Agency) must maintain effective control and accountability over its grant programs. Additionally, to comply
with 2 CFR §80.36(b), a nonfederal entity must use its documented procurement procedures, which reflect
the applicable state and local laws and regulations. This includes ensuring competition impracticable
procurements exceeding an aggregate amount of $100,000 comply with the Maricopa County Procurement
Code MC1-351 and MC1-352.
Condition and context—The Agency did not always follow the County's procurement rules and
regulations. Specifically, the Agency paid a vendor $94,000 for services received prior to documenting or
submitting the competition impracticable form to the County's Office of Procurement Services and an
additional $100,000 prior to obtaining the Board of Supervisors' approval, Additionally, the Agency did not
provide a written explanation supporting the procurement. The original expenditures occurred approximately
4 months before the Agency completed the competition impracticable form and 1 year before board
approval.
Effect—The Agency did not comply with procurement requirements. The Agency documented later that
the vendor was the sole provider, and therefore, there are no questioned costs.
Cause—The Agency did not follow the County's Procurement Code because of insufficient oversight.
Recommendation—The Agency should follow the County's internal control policies and procedures to
ensure that all vendors being paid more than $100,000 are competitively procured and that the County's
Procurement Code is followed. If services are unavailable from another vendor, the Agency should
document that competition is impractical prior to obtaining services and entering into a contract. The Board
of Supervisors should approve the procurement.
The County's responsible officials' views and planned corrective action are in its corrective action plan
included at the end of this report.
Arizona Auditor -General Maricopa County—Schedule of Findings and Questioned Costs Year Ended June 30, 2017
PAGE 10

2017-105
CFDA number and name: 84.374 Teacher and School Leader Incentive Grants
(formerly the Teacher Incentive Fund)
Award numbers and years: 3374A100025, October 1, 2010 through September 30, 2016;
S374A120089, October 1, 2012 through September 30, 2017;
U374A160041, October 1, 2016 through September 30, 2021
Federal agency: U.S. Department of Education
Compliance requirement: Reporting
Questioned costs: None
Criteria—To comply with 34 CFR §§75.702 and 75.730, internal controls should be maintained over
reporting to provide reasonable assurance that federal program reports are accurate and reliable, Failure to
accurately compile and report information could result in noncompliance with the program's reporting
requirements.
Condition and context—The County's Maricopa Education Service Agency (Agency) did not adequately
compile and review its final performance report (FPR) for grant #S374A100025. Specifically, the Agency
incorrectly reported its non-TIF, performance-based compensation costs, matching contributions, and
reimbursements to subrecipients in the financial section of the report. The Agency was unable to locate all
of the documentation to support the amounts reported in the report. Although matching dollars were
reported incorrectly for grant #S374A100025, the Agency did meet its federal matching requirement for this
grant award.
Effect—The FPR submitted to the federal grantor agency was not accurate. The Agency overstated its
reimbursements to subrecipients and matching contributions by approximately $680,000 and $820,000,
respectively, and understated the increasing share of non-TIF, performance-based compensation by
approximately $6.5 million on the report,
Cause—The Agency did not have adequate policies and procedures to help ensure supporting
documentation used to prepare the FPR was maintained and that the report was reviewed for accuracy and
completeness prior to submission,
Recommendation—To help ensure reports are accurately compiled, the Agency should further develop
its policies and procedures by requiring that a responsible employee performs a detailed review of the
reports and reconciles the reports to supporting documentation. All documentation used to compile the
report should be retained by the Agency.
The County's responsible officials' views and planned corrective action are in its corrective action plan
included at the end of this report.
This finding is similar to prior year finding 2016-106.
Arizona Auditor General Etflaricopa CountVZ—. Schedule of Findings and Questioned Costs I Year Ended dune 30
PAGE 11

2017-106
CFDA number and name: 93.563 Child Support Enforcement
Award numbers and years: DI16-002158, October 1,2015 through September 30, 2020;
G1604AZ4004, October 1, 2015 through September 30, 2020
Federal agency: U.S. Department of Health and Human Services
Pass-through grantor: Arizona Department of Economic Security
Compliance requirement: Allowable costs/cost principles
Questioned costs: Unknown
Criteria—In accordance with 2 CFR §200,430(i), the County's Superior Court (Court) should ensure that
employee payroll costs charged to the Child Support Enforcement program are supported by personnel
activity reports or equivalent documentation that supports distribution of each employee's activity during the
period, in addition, in accordance with 45 CFR §75.303, the Court must establish and maintain effective
internal control over the federal award that provides reasonable assurance that the nonfederal entity is
managing the federal award in compliance with federal statutes, regulations, and the awards' terms and
conditions.
Condition and context—During the fiscal year, the Court spent $1,263,678 in salaries and wages for its
Child Support Enforcement program. The Court charged salaries and wages to the program based on
spreadsheets used to track each employee's hours devoted to the program, but it did not retain this
documentation. Although county employees charging to the grant prepared a time sheet each pay period,
the time sheets did not specify the actual activity, and no periodic certifications were prepared. As a result,
auditors could not confirm the payroll amounts charged to the program were appropriate.
Effect—The Court may have charged inappropriate payroll costs to the program. As there was a lack of
documentation, auditors were unable to determine questioned costs, if any, that may have resulted from
this finding.
Cause—The Court did not have policies and procedures to maintain documentation to support its
allocation of payroll costs to the federal program.
Recommendation—The Court should develop and implement policies and procedures to ensure its
distribution of employees' payroll costs charged to the program is supported by items such as the
employees' time sheets or a time-study analysis.
The County's responsible officials' views and planned corrective action are in its corrective action plan
included at the end of this report.
This finding is similar to prior year finding 2016-109.
Maricopa County—Schedule of Findings and Questioned Costs 1 Year Ended June 30,2017
PAGE 12

2017-107
CFDA number and name: 93.600 Head Start
Award numbers and years: 09CH010385/01, July 1,2016 through June 30, 2017;
09HP0004/02, July 1, 2016 through June 30, 2017;
09HP000105/01, March 1, 2017 through August 31, 2018
Federal agency: U.S. Department of Health and Human Services
Compliance requirement: Matching
Questioned costs: None
Criteria—In accordance with 45 CFR §1303.4, the County's Human Services Department (Department) is
required to match at least 20 percent of the total cost of the Head Start program, which can include cash
and in-kind matching contributions. Further, in accordance with 45 CFR §75.303, the Department must
establish and maintain effective internal control over the federal award that provides reasonable assurance
that the Department is managing the federal award in compliance with federal statutes, regulations, and the
award terms and conditions.
Condition and context—The Department records in-kind contributions in its Child Plus database system
using data from approved in-kind contribution forms. However, for 10 of 60 in-kind contributions tested, the
Department did not have proper controls to ensure the amounts recorded in the system were accurate,
supported, or approved by an authorized employee. Specifically, for 9 contributions, the information
recorded in the Child Plus database system did not agree to the approved in-kind contribution forms, and
the Department did not retain documentation to support 1 contribution, Based on these sample items, the
Department both understated and overstated in-kind contributions. Auditors projected the total error in the
population to be approximately $118,000 and determined that the County met the matching requirement by
more than $1.5 million despite the instances of under- and overreported donated time identified.
Effect—Failure to properly enter information into the Child Plus database system could result in future
noncompliance with the program's matching requirements. It could also result in inaccurate data being
submitted to the federal grantor.
Cause—The Department does not have policies and procedures to perform reviews or audits to correct
errors in data entered into the Child Plus system. Further, the Department did not follow its policies and
procedures to ensure that all supporting documentation was maintained.
Recommendation—To help ensure that only allowable in-kind contributions are used to match federal
expenditures and the program's matching requirements are met, the County should strengthen its policies
and procedures for reviewing, approving, and documenting its in-kind match in the Child Plus database
system. Someone who is not responsible for entering the data into the system should perform this review.
The County's responsible officials' views and planned corrective action are in its corrective action plan
included at the end of this report
This finding is similar to prior year finding 2016-111.
Arizona Auditor General Maricopa County—Schedule of Findings and Questioned Costs I Year Ended June 30, 2017
PAGE 13

201 7-1 08
CFDA number and name: 93.600 Head Start
Award numbers and years: 09CH010385/01, July 1, 2016 through June 30, 2017;
09HP0004/02, July 1,2016 through June 30, 2017;
09HP000105/01, March 1, 2017 through August 31, 2018
Federal agency: U.S. Department of Health and Human Services
Compliance requirement: Reporting
Questioned costs: None
Criteria—In accordance with 45 CFR §75.341, the County's Human Services Department (Department)
should complete the SF-425, Federal Financial Report (FFR), to report federal expenditures. The Department
should prepare the report using the designated accounting basis and accurately report in-kind contributions
and the federal share of expenditures. Further, in accordance with 45 CFR §75.303, the Department must
establish and maintain effective internal control over the federal award that provides reasonable assurance
that the Department is managing the federal award in compliance with federal statutes, regulations, and the
award terms and conditions.
Condition and context—The Department did not adequately prepare and review the FFRs resulting in
various errors in five of six reports tested. Specifically, for four .reports, the Department did not retain
documentation supporting its in-kind contributions for the Head Start/Early Head Start and Early Head Start
Child Care Partnership programs. In addition, the Department indicated it prepared all its reports on the
cash basis of accounting but prepared them under the accrual basis of accounting. As a result, the
Department reported the total federal share of expenditures incorrectly on four of the reports. Finally, four of
the reports were submitted after the due date.
Effect—The Department underreported the in-kind contributions on the FFRs for the Head Start/Early Head
Start and Early Head Start Child Care Partnership programs by $493,629 and $36,449, respectively. In
addition, the Department overstated the total federal share of expenditures on the annual FFRs for the Head
Start/Early Head Start and Early Head Start Child Care Partnership programs by $435,522 and $213,740,
respectively.
Cause—The Department did not retain documentation for all amounts reported at the time the EFIRs were
compiled and submitted. In addition, the Department's review of the FFRs failed to identify the errors
because of employee turnover resulting in new employees compiling and reviewing the reports.
Recommendation—The Department should further develop its policies and procedures over its review
process to ensure the FFIRs are compared to supporting records and any errors noted are corrected prior
to submitting them. In addition, the Department should retain documentation that supports the amounts
included in the FFRs at the time the reports are compiled. Further, the Department should improve its
policies and procedures to ensure that FFRs are properly reviewed and approved for accuracy by a second
employee and submitted to the federal agency in a timely manner.
The County's responsible officials' views and planned corrective action are in its corrective action plan
included at the end of this report,
This finding is similar to prior year finding 2016-112.
Arizona Auditor General Maricopa County—Schedule of Findings and Questioned Costs j Year Ended dune 30,2017
PAGE 14

Other auditors' findings
The other auditors who audited the Section 8 Housing Choice Vouchers program administered by the
County's Housing Authority reported the following significant deficiency.
201 7-1 09
Cluster name: Housing Voucher Cluster
CFDA number and name: 14,871 Section 8 Housing Choice Vouchers
Award number and year: AZ20P009501-10, July 1, 2016 through June 30, 2017
Federal agency: U.S. Department of Housing and Urban Development
Compliance requirement: Reporting
Questioned costs: None
Criteria—Agencies are required to report leasing and other programmatic activity to the Voucher
Management System (VMS) on a monthly basis in accordance with the accrual method of accounting.
Condition and context—Financial data reported to HUD through the VMS was not reported in
accordance with program requirements as data contained errors or was otherwise incomplete. Missing data
included reporting monthly FSS escrow payments and FSS forfeitures. In addition, it is unclear if other activity
such as ACH returns and landlord repayments are effectively considered in reported amounts.
Effect—The Authority reported program expenditures in excess of actual amounts resulting in inaccurate
program funding totaling approximately $100,000 due to error and potentially another $73,663 due to
differences in annualized amounts versus amounts reported in the financial statements.
Cause—Employee oversight in reporting certain line items of VMS and lack of reconciliation and/or
assessment of completeness of data reported.
Recommendation—We recommend the Authority update VMS to adjust for items identified during the
audit to ensure that program funding is reconciled appropriately prior to closeout of the calendar year
funding period. In addition, reported amounts should be reconciled to bank activity and/or the Authority's
general ledger for appropriateness, accuracy, and completeness. Further, financial activity reported in VMS
should include all areas required by program requirements such as reporting of FSS Escrow Deposits and
FSS forfeitures in the appropriate reporting fields.
The County's responsible officials' views and planned corrective action are in its corrective action plan
included at the end of this report.
Maricopa County—Schedule of Findings and Questioned Costs Year Ended June 30, 2017
PAGE 15

Arizona Auditor General Marlowe County—Schedule of Findings and Questioned Costs I Year Ended June 30.2017
PAGE 18

Maricopa County
Schedule of expenditures of federal awards
Year ended June 30, 2017
Federal Pass-through Amount
agency/CFDA Pass-through grantor's Program provided to
number grantor numbers expenditures subrecipients
10 553 School Breakfast Program Arizona Department E009-0001
of Education 119,242 .
10 553 School Breakfast Program (Non cash) Child Nutrition Cluster Arizona Department E009-0001
of Education 20,537
Total 70,552 139,779
10 555 National School Lunch Program Child Nutrition Cluster Arizona Department ED09-0001
of Education . 188,095
IS 555 National School Lunch Program (Non Cash) Chilli Nutrition Cluster Arizona Department • • i•• ED09-0001 i - - - - •-• •
of Education 32,396
Total 10.555 220,491
Tata/ Child IVutritFon Cluster 360,270
10 557 WIC Special Supplemental Nutrition Program for Arizona Department ADHS14-053007,
Women, Infants, and Children of Health Services ADHS15-084210 11,204,424
10 558 Child and Adult Care Food Program Arizona Department KR02-1170-ALS
of Education 409,599
10 561 State Administrative Matching Grants for the SNAP Cluster Arizona Department ADHS16-105547
Supplemental Nutrition Assistance Program of Health Services 2,187,767 $ 556,414
10 578 WIC Grants To States (WGS) Arizona Department ADHS14-053007
of Health Services 2093 ,
10 665 Schools and Roads—Grants to States Forest Service Schools
and Roads Cluster 103,573
10 904 Watershed Protection and Flood Prevention 17,935,723
10 916 Watershed Rehabilitation Program . 9,404,486
10 16-LE-11031200-005 Cooperative Law Enforcement Agreement 126,167
Total Department of Agriculture 41,734,102 556,414
Department of Hcsrn • and Urban DaveloPment
14 218 Community Development Block CDBG Entitlement
Grants/Entitlement Grants Grants Cluster 1,954,829 1,420,459
14 231 Emergency Solutions Grant Program 180,346 180,346
14 239 HOME' investment Partnerships Program 3,433,547 2,851,271
14 850 Public and Indian Housing 2,741,683
14 870 Resident Opportunity and Supportive Services-
Service Coordinators 89,446
14 871 Section 8 Housing Choice Vouchers Housing Voucher Cluster 13,901,932
14 872 Public Housing Capital Fund Program 1,397,057
14 896 Family Sell Sufficiency Program 59,445
14 900 Lead-Based Paint Hazard Control in Privately- City of Phoenix 141175-0
Owned Housing 127,742
Total Department of Housing and Urban Development 23,886,027 4,452,076
artnent of the nteno
15. 226. Payments ri Lieu of Taxes . . 3,153,762
15 227 Dstribution of Receipts to State and Local
Governments 8,446
15 228 BLM \Midland Urban Interface Community Fire
Assistance 20,336 20,336
Total Department of the Interior 3,182,544 20,336
!.!?!....144000401.,00011.00::
16 554 National Criminal History Improvement Program Arizona Criminal NCP15-16-003,
(NCHIP) Justice Commission NCP 16-17-004 233,730
16 • 575 Crime Victim Assistance Arizona Department 20 I5-VA-GX-0032
of Public Safety 674,314
16 576 Crime Victim Compensation Arizona Criminal VC-17-056
Justice Commission 832,307
See accompanying notes to schedule.
PAGE 17

Maricopa County
Schedule of expenditures of federal awards
Year ended June 30, 2017
Federal Pass-through Amount
agency/CFDA Pass-through grantor's Program provided to
number Federal program name Cluster title grantor numbers expenditures subrecipients
20 205 Highway Planning and Construction Highway Planning and Maricopa 656
Construction Cluster Association of
Governments 952,948 390,576
Total Highway Planning and Construction
Cluster 3,640,486 390,576
20 237 Motor Carrier Safety Assistance High Priority Arizona Department FM-CVN-0124-16-
Activities Grants and Cooperative Agreements of Transportation 01-00 33,294
`20. 600 . State and Community Highway Safety Highway Safety Cluster Arizona Governor's 2016-AI-001, 201-
Office of Highway AL-014, 2016-PT-
Safety 018, 2017-A1-003,
2017-AL-024, 2017-
AL-025, 2017-DOT-
013, 2017-PT-016 317,183
20 616' National Priority Safety Programs Highway Safety Cluster Arizona Governor's 2017-405D-018
Office of Highway
Safety 9,482
Total Highway Safety Ouster 326,665
Total Department of Transportation 4,000,445 390576
e of MUSelitt and Libra
45 310 310 Grants to States Arizona State 2016-36026-15
Library, Archives
and Public Records 5,453
I gag
66 001 Air Pollution Control Program Suppo 1,489,982
66 034 Surveys, Studies, Research, Investigations,
Demonstrations, and Special Purpose Activities
Relating to the Clean Air Act 34,463
66 040 State Clean Diesel Grant Program 4,080
Total Environmental Protection Agency 1,528,525
81 042 Weatherization Assistance for Low-income Arizona Department 204-16, EW-ESA-14-
Persons of Administration 4181-03
Office of Grants
and Federal
Resources 305,932
Department Education
84 002 Adult Education—Basic Grants to States Arizona Department 16EAEAPL-613237-
of Education 16B, 17FAEABE-
713237-168,
17FAEAPL-713237-
168, 17FAEIET-
713237-168,
17FEDWI0-713237-
16B . 221 ,074
84 013 Title I State Agency Program for Neglected and Arizona Department 16FLCCCL-613245-
Delinquent Children and Youth ..... of Education . . 02A . . 521
84 027 Special Education—Grants to States Special Education C aster Arizona Department 16FESSCB-613229-
(IDEA) of Education 55B, -17FESCBG-
613229-09A,
17FESSCG-713229-
55B 185,174
84 206 Javits Gifted and Talented Students Education Arizona Department 17-03-EDSG
of Education 50,000
. .
84 365 English Language Acquisition State Grants Arizona Department 16FELENG-613245-
of Education 66A, 17FELE,NG-
713245-66A 52,854 52,854
64 374 Teacher and School Leader Incentive Grants
(formerly . the . Teacher . . Incentive . . . . Fund) . . 19 755 551 9 319 272
See accompanying notes to schedule.
PAGE 15

Maricopa County
Schedule of expenditures of federal awards
Year ended June 30, 2017
Federal Pass-through Amount
agency/CFDA Pass-through grantor's Program provided to
number Federal program name Cluster title grantor numbers expenditures subrecipients
84 411 Education Innovation and Research (formerly
Investing 41 innovation {13) Fund) 496,307 19,037
Total Department of Education 20,761,481 9,391,163
93 044 Special Programs for the Aging—Title Ill, Part Aging Cluster Area Agency on 2017-28-MCH
B—Grants for Supportive Services and Senior Aging
Centers 403,585
93 . 059 Public Health Emergency Preparedness Arizona Department ADHS12-007891,
of Health Services .S17-133194 2,276,719
... ... .
93 074 Hospital Preparedness Program (REP) and Arizona Department ADH ADHS12-007891,
Public Health Emergency Preparedness (PHEP) of Health Services ADHS17-133194
Aligned Cooperative Agreements 1,609,916
93 103 Food and Drug Administration— Research 61,423
93 116 Project Grants and Cooperative Agreements for Arizona Department ADHS13-042100
Tuberculosis Control Programs of Health Services 307,006
93 136 injury Prevention and Control Research and Arizona Department ADHS16-109742
State and Community Based Programs of Health Services 137912
93 224 Health Center Program (Health Care for the Health Center Program
Homeless) Cluster 3,768478 188,480
93 235 Grants to States to Support Oral Health Arizona Department ADHS13-037845
Workforce Activities of Health Services 3202 ,
93 266 Immunization Cooperative Agreements Arizona Department ADHS13-041805
of Health Services 648,764
93 . 297 . Teenage Pregnancy Prevention Program 962,873 246,087
93 323 Epidemiology and Laboratory Capacity for Arizona Department ADHS16-130023
Infectious Diseases (EL,C) of Health Services 29,002
93 505 Affordable Care Act (ACA) Maternal, Infant, and Maternal, Infant, and Arizona Department ADHS12-023419,
Early Childhood Home Visiting Program Early Childhood Home of Health Services ADHS17-155910
Visiting Cluster 1,210,420 371,604
93 870 Maternal, Infant and Early Childhood Home Maternal, Infant, and Arizona Department ADHS12-023419,
Visiting Grant Program Early Childhood Home of Health Services ADHS17-155910
Visiting Cluster 770,627 236,586
Total Maternal, Infant and Early Childhood Home
Visiting Cluster 1,981,047 608,190
93 539 PPHF Capacity Building Assistance to Arizona Department ADHS13-041805
Strengthen Public Health Immunization of Health Services
Infrastructure and Performance financed in part
by Prevention and Public Health . Funds . 733,939
93 sss Temporary Assistance for Needy Families TANF Cluster Arizona Department 'ADES 15-069 .1
of Economic
Security . 564,228
93 563 Child Support Enforcement Arizona Department DI16;002158,
of Economic G1604474004
Security. ... 2,797,700
93 569 Low-Income Home Energy Assistance Arizona Department 204-16, LW-ESA-12-
of Housing 2182-03 822,621
93 568 Low-Income Home Energy Assistance Arizona Department ADES15-069115
of Economic 2,928,456
Total 93.568 3,751,077
93 569 Community Services Block Grant Arizona Department ADES 15-089115
of Economic
Security 610,104. 12,610
93 576 Refugee and Entrant Assistance—Discretionary Arizona Department DE101038-001
Grants of Economic
Security 695,122
93 597 Grants to States for Access and Visitation Arizona Department D116-002145
Programs of Economic
Security 39,739
93 600 Head Start 15,587,141
93 667 Social Services Block Grant Area Agency on 2017-28-MCLi
Aging 187,379
See accompanying notes to schedule,
PAGE 25

Maricopa County
Schedule of expenditures of federal awards
Year ended June 30, 2017
Federal Pass-through Amount
agency/CFDA Pass-through grantor's Program provided to
number Federal program name Cluster title grantor numbers expenditures subrecipients
93 667 Social Services Block Grant Arizona Department ADES -15-089115
of Economic
Security 315,971 315,934
Total 93,667 503,350 315,934
93 758 Preventive Health and Health Services Block Arizona Department ADHS15-078134,
Grant funded solely with Prevention and Public of Health Services ADHS16-102232
Health Funds (PPHF) . 390 ,130
93 914 HIV Emergency Relief Project Grants 9,064,690 6,043,924
93 917 HIV Care Formula Grants Arizona Department ADHS14-059037,
of Health Service ADHS17-155496 478,096 118,340
93 926 Healthy Start Initiative 1,695,865 242,384
93 .940 HIV Prevention Activities—Health Department Arizona Department ADHSI 3-034910,
Based of Health Services ADHS16-113997 793,351
93 944 Human Immunodeficiency Virus (HIV)/Acquired Arizona Department ADHS12-016584
Immunodeficiency Virus Syndrome (AIDS) of Health Services
Surveillance 33,830
93 945 Assistance Programs for Chronic Disease Arizona Department ADHS14-061877,
Prevention and Control of Health Services ADHS16-113997,
ADHS16-114422 . 168,943 .
93 959 Block Grants for Prevention and Treatment of Governor's Office of IGA-SABG-GR-16-
Substance Abuse Youth, Faith and 040116-08, IGA-
Family SABG-GR-17-
070116-08 48,148
93 977 Sexually Transmitted Diseases (STD) Prevention Arizona Department ADHS16-116340,
and Control Grants of Health Services . ADHS1 .4-071224 548,697
93 994 Maternal and Child Health Services Block Grant Arizona Department ADHS13-037845,
to the States of Health Services ADHS14-074958,
ADHS16-102232 977,180
Total Department of Health and Human Services 51,671,366 71775,949
immunity Service
94 006 AmeriCorps Artzona Governor's AC-VSG-15-090115-
Office for Children, 07, AC-'v'SG. 15
Youth and Famlles 090115 .07Y2
Red States
Arizona Department DHS-16-GPD-04-2-
of Emergency and 09-01, EMW-2015-
Military Affairs FP-00048, EMW-
2017-FP-000008-
S01 . . . . . . . 763,979
97 067 Homeland Security Grant Program Arizona Department 146805-05, 15081 .1-
ot Homeland 01,150811-02,
Security 150811-03, 160204--
1, 160204-02,
160205-01, 150205-
2, 160812-01,
160812-02, 160812-
03 . 787,908.
97 691 Homeland Security Biowatch Program 593,865
Total Department of Homeland Security 2,145,752
Total expenditures of federal awards $ 170,068,055 $ 23,466,632
See accompanying notes to schedule.
PAGE 21

Mancopa County
Notes to schedule of expenditures of federal awards
Year ended June 30, 2017
Note 1 - Basis of presentation
The accompanying schedule of expenditures of federal awards (schedule) includes Maricopa County's
federal grant activity for the year ended June 30, 2017, The information in this schedule is presented in
accordance with the requirements of Title 2 U.S. Code of Federal Regulations (CFR) Part 200, Uniform
Administrative Requirements, Cost Principles, and Audit Requirements for Federal Awards (Uniform
Guidance).
Note 2 - Summary of significant accounting policies
Expenditures reported on the schedule are reported on the modified accrual basis of accounting, except for
the following programs: Schools and Roads—Grants to States (10.665), Payments in Lieu of Taxes (15.226),
and Distribution of Receipts to State and Local Governments (15.227). For these programs, revenues
received during the fiscal year are considered earned and are reported as expenditures. All remaining
expenditures are recognized following the cost principles contained in the Uniform Guidance, wherein
certain types of expenditures are not allowable or are limited as to reimbursement. Therefore, some amounts
presented in this schedule may differ from amounts presented in, or used in the preparation of, the financial
statements.
Note 3 - Catalog of Federal Domestic Assistance (CFDA) numbers
The program titles and CFDA numbers were obtained from the federal or pass-through grantor or the 2017
Catalog of Federal Domestic Assistance. When no CFDA number had been assigned to a program, the two-
digit federal agency identifier and the federal contract number were used. When there was no federal
contract number, the two-digit federal agency identifier and the word "unknown" were used.
Note 4 - Indirect cost rate
The County did not elect to use the 10 percent de minimis indirect cost rate as covered in 2 CFR §200.414.
PAGE 22

Maricopa County
Office of Assistant County Manager and Department of Finance
Shelby L. Scharbach
CPA, CGFM
Assistant and County Manages March 23, 2018
Chief Financial Officer
301 West j cffesson St Suite
960
Phx, AZ 85003-2148
Phone: 602-506-3561
Fa_x: 602-506-4451
www.rnaticopa.gov
Debbie Davenport
Auditor General
2910 North 44th Street, Suite 410
Phoenix, AZ 85018
Dear Ms. Davenport:
We have prepared the accompanying corrective action plan as required by the
standards applicable to financial audits contained in Government Auditing
Standards and by the audit requirements of Title 2 U.S. Code of Federal
Regulations Part 200, Uniform Administrative Requirements, Cost Principles, and
Audit Requirements for Federal Regulations. Specifically, for each finding we are
providing you with our responsible officials' views, the names of the contact people
responsible for corrective action, the corrective action planned, and the
anticipated completion date.
Sincerely,
Shelby L. Scharbach
Assistant County Manager — Chief Financial Officer

Maricopa County
Corrective Action Plan
Year Ended June 30, 2017
Federal award findings and questioned costs
-
CFDA No: 1O904 Watershed Protection and Flood Prevention
Department Maricopa County Flood Control District
iContact person(s): David Turner, Finance Support Supervisor Flood Control District,
002) 506-861
4P,S,PAPPITI Atg: A/kWh 31 , gOi
County Response: Concur
County Corrective Action Plan: The Maricopa County Flood Control District has policies
and procedures to accurately report and submit timely quarterly Federal Financial Reports
(FFR). However, as these federal program grants are construction related, events occur
that affect who may be responsible for certain construction expenditures which can delay
the accurate reporting of federal and recipients share of expenditures. These events also
delayed the timeliness of the same quarterly reports. In addition, clerical errors were
made on other occasions that were detected with subsequent reviews per district
procedures. These errors were corrected, and amended quarterly FFR's filed with the
grantor.
2017-102
CFDA No: 84,374 Teacher and School Leader Incentive Grants
Department: fvlaricopa County Education Service Agency
Contact person(s): Marc Kuffner, Assistant Superintendent for Economic Managemen ,
(602) 506-2068
Anticipated completion-44W June,,O, 2017
County Response: Concur
County Corrective Action Plan: The Maricopa County Education Service Agency
(MCESA) has policies and procedures to ensure that its subrecipients are reimbursed for
only allowable expenditures incurred during the award period of availability. The Teacher
Incentive Fund grant is a five year award and MCESA received a one year no cost
extension from the U.S. Department of Education. However, the intergovernmental
agreements with the subrecipients were not extended. These allowable expenditures did
occur within the grant award period of availability.
GFIDA No 84,374 Teacher and School Leader Incentive Grants
!Department: Maricopa County Education Service Agency -
Contact person(s): Marc Kuffner,- Assistant Superintendent for Economic Management,
(8O2)506-206
60441,0d comple0,41, Ate_ Swter4ar: 30, 2017
County Response: Concur
County Corrective Action Plan: The Maricopa County Education Service Agency
(MCESA) notified the U.S. Department of Education (USDOE) of a reduction in matching
funds through the Annual Performance Report (APR) and Interim Performance Report

Maricopa County
Corrective Action Plan
Year Ended June 30, 2017
(IPR) process by submitting both budget and match adjustments. MCESA believes
USDOE approved the adjustments through the APR/IPR process. MCESA is updating its
procedures to ensure a formal waiver is requested from the grantor if the required match
amount may not be met.
2017-104 gra
ICFDA No 84,374 Teacher and School Leader Incentive Grants
Department Maricopa County Education Service Agency
Contact persons): Marc Kuffner, Assistant Superintendent for Economic Managemen
:(602) 506-2068
Anticipated comple ion dale: June 30 2017
County Response: Concur
County Corrective Action Plan: The Maricopa County Education Service Agency
(MCESA) will comply with the County's Procurement Code (MCI-351 and MC1-352) for
any purchases over $100,000. This includes Board approval for sole-source contracts
prior to obtaining services. In addition, MCESA will also improve documentation for the
rationale for any competition impracticable contracting decisions.
:2017-105
CFDA No.: 84,374 Teacher and School Leader Incentive Grants
Department. Maricopa County Education Service Agency
Contact person(s): Marc Kuffner, Assistant Superintendent for Economic Managemen
(602) 506-2068
}Anticipated completion date: March 31, 2018
County Response: Concur
County Corrective Action Plan: The Maricopa County Education Service Agency
(MCESA) updated its policies and procedures to ensure that reports are completed
accurately. However, procedures and policies were not always followed due to new
personnel and role changes. Further training will ensure that supporting documentation
is maintained and reviews by knowledgeable staff are completed prior to submission.
2017-106
CFDA No: 93.563 Child Support Enforcement
Department Maricopa County Superior Court
Contact person(s): Cheri Clark, Family Court Administrator/Director Conciliation Services,
(602)506-2109 -
,Anticjia.atectgog -iption date: June 30, 2018
County Response: Concur
County Corrective Action Plan: Maricopa County Superior Court implemented an
application to create a time study analysis. Although timesheets were completed last year,
to address ongoing concerns, Maricopa County Superior Court is using data from a
software application to create a time study analysis. This will capture a representative
sample of staff and time spent on Child Support Enforcement eligible activities for a

Maricopa County
Corrective Action Plan
Year Ended June 30, 2017
representative sample of months. The time study analysis is anticipated to be completed
by March 31, 2018 and will be applied retroactively for reporting employee payroll costs
charged to the program in Federal Fiscal Year 2018. The Court has enlisted the Court's
Grant Manager to provide a review and audit of the policies and procedures regarding
this funding source to ensure they meet the funding requirements.
CFDA No: 93600 Head Start
Department: Maricopa County Human Services Department
Contact person(s): Jacqueline Edwards, Deputy Director, 602-506-4812
Anticipaled completion date: Maxh 31, 2918
County Response: Concur
County Corrective Action Plan: The Maricopa County Human Services Department has
developed a new electronic database system that permits real-time entry of volunteer
time contributions. This system will store the required support documentation for the
volunteer time contributions and calculate the volunteer hours. This will ensure accurate
information is recorded and the total amount of in-kind contributions is accurately reported
to the grantor. The Department has revised policies and procedures related to in-kind
match documentation and entry in conjunction with the implementation of this new
database system, which ensures compliance with program requirements. A secondary
review and approval of match documentation will also be completed by program staff not
responsible for in-kind forms.
2017-108
'CFDA No. -: 93.600 Head Start
Department: Maricopa County Human Services Department
Contact person(s) Jacqueline Edwards, Deputy Director, 602-506-4812
,Anticioted completion date: March 10, 2918
County Response: Concur
County Corrective Action Plan: The Maricopa County Human Services Department has
updated policies and procedures to ensure reports include adequate documentation and
are retained. Additionally, processes have been strengthened to ensure that supporting
documentation is included with each financial report prior to processing. The Department
has implemented a tracking system that documents report due dates, the person
responsible for report completion, and the staff member responsible for review. The
review includes the Finance Manager, Program Staff, and the Deputy Director. Finally,
processes have been strengthened to ensure that reports are submitted on time.

Maricopa County
Corrective Action Plan
Year Ended June 30, 2017
2017-109M
Department. Housing Authority of Mancopa County
Contact person(s): Mario Aniies, Director of Finance and PO1110110 Management, 002)
744-4517
Anticipqted comgietion ctpte: December 2017
County Response: Concur
County Corrective Action Plan: The Housing Authority of Maricopa County (HAMC) will
be reconciling VMS data with bank activity as part of the bank reconciliation and month
end process to include proper classification on financial statements, sub ledgers, and
external reports along with timely resolution of unreconciled or outstanding balances.
Complete, corrective action has been taken with full implementation by December 2017,
which includes audit adjustments to VMS reports and reconciliation and transfer of FSS
balances.

Maricopa County
Office of Assistant County Manager and Department of Finance
Shelby L Scharbach
CPA, CGENf
Assistant Manager and County March 23, 2018
Chief Financial Officer
301 West Jefferson St
Suite 960
Phx, AZ 85003-2148
Phone: 602-506-3561
Fax: 602-506- 4451
5 "0, snaricopa.gov
Debbie Davenport
Auditor General
2910 North 44th Street, Suite 410
Phoenix, AZ 85018
Dear Ms. Davenport:
We have prepared the accompanying summary schedule of prior audit findings
as required by the audit requirements of Title 2 U.S. Code of Federal Regulations
Part 200, Uniform Administrative Requirements, Cost Principles, and Audit
Requirements for Federal Awards. Specifically, we are reporting the status of audit
findings included in the prior audit's schedule of findings and questioned costs.
This schedule also includes the status of audit findings reported in the prior audit's
summary schedule of prior audit findings that were not corrected.
Sincerely,
Shelby L. Scharbach
Assistant County Manager — Chief Financial Officer

Maricopa County
Summary Schedule of Prior Audit Findings
Year Ended June 30, 2017
Status of financial statement findings
t he County should follow its policies and procedures when preparing financial
statements and note disclosures
finding No 2015-01
us: fres*
County should improve
resources
finding No, 2015-02
Statu Partiajy correcijel
Access control procedures for Treasurer IT systems have been updated to ensure users
with multiple IDs are identified and approvals are fully documented. Access controls
related to new employees have been revised to prevent access prior to management
approval. The Treasurer's Office is currently implementing a new financial system that
will be implemented in fiscal year 2018. It is anticipated that controls for this system will
adhere to current National Institute of Standards and Technology (N 1ST) guidelines and
help correct the remaining deficiencies. Contact person is Phil Van Kley, Information
Systems Manager, Maricopa County Treasurer, (602) 506-4635.
ousing Authority of Maricopa bounty (HAMC): General Ledger Maintenance
Finding No 2015-05
'Stalw Not correctell,
The Housing Authority of Maricopa County (HAMC) will be updating the bank
reconciliation process to include timely resolution for "unreconciled" or "need more
research" items along with separate reconciliations for non-cash items. Additionally
trainings and technical assistance has been obtained to accelerate and address the
agency's learning curve for new staff. Corrective action is anticipated to be implemented
by December 2017. Contact person is Mario L. Aniles, HAMC Director of Finance and
Portfolio Management, (602) 744-4517.
The County should follow its policies and procedures when preparing financial
statements and note disclosures
n, mg No, 2016-01
us: Fully corrected.
Film County should improve access controls over its information systems
Finding No. 2016-02
Statts Partially cotiv
Maricopa County takes all IT audit findings seriously and will make efforts to resolve any
deficiencies. The County improved access controls over its IT resources by resolving
account concerns and implementing policy. The Treasurer's Office updated its access

Maricopa County
Summary Schedule of Prior Audit Findings
Year Ended June 30, 2017
controls. A new system should be fully implemented in March 2018 that will comply with
NIST guidelines and completely correct the deficiency. Contact persons are Kevin
Westover, Business Integration Specialist, Office of Enterprise Technology (602) 506-
1667 and Phil Van Kley, Information Systems Manager, Maricopa County Treasurer,
(602) 506-4635.
t he County should establish internal controls over temporary employees payroll
1Finding No. 2016-03
,Status: Fully corrected.
Justice Courts Administration needs to improve controls over purchasing cards
Finding No. 2016-04
t: Fully corrected_
The County should improve controls over purchasing controls
Finding No 2016-05
41 Fully correcte
sThg Athirttl', of Maricopa
iFinding No. 2016-06
!Status: Not corrected.
The Housing Authority of Maricopa County (HAMC) will be updating the bank
reconciliation process to include timely resolution for "unreconciled" or "need more
research" items along with separate reconciliations for non-cash items. Additionally
trainings and technical assistance has been obtained to accelerate and address the
agency's learning curve for new staff. Corrective action is anticipated to be implemented
by December 2017. Contact person is Mario L. Aniles, HAMC Director of Finance and
Portfolio Management, (602) 744-4517.
Status of federal award findin s,and questioned costs
CFDA No 84 Teacher Incentive Fund
_inding No. 2014-108
*Ow- Fully corrected_
FDA No.: 10.904 Watershed Protection and Flood Prevention
iinding No, 2015-101
LStatus: Partially corrected.
The Maricopa County Flood Control District understood this item was fully corrected as
of September 30, 2016. The District understood that the only in kind match expenses that
were to be reported on Federal Financial Reports (FFR) were those that were 'certified'.
The District now understands that if certified match amounts do not meet the District's
35% match requirement, otherwise reimbursement eligible costs are paid by the District
and included on the applicable quarterly FFR. A written concurrence has been requested

Maricopa County
Summary Schedule of Prior Audit Findings
Year Ended June 30, 2017
with the grantor (National Resource Conservation Service - NRCS). Contact person is
David Turner, Finance Support Supervisor Flood Control District, (602) 506-8617
CFliA Na.; 84.374 Teacher'lianiWfund
Finding Na. 201 5-1 02
Fully:TIPAgd
:LCFDA No.: 84.374 Teacher Incentive Fund
,Finding No. 2015-105
Fullysomected_
A No.. 93 Chid Support Enforcement
'finding No 2015-108
Status : Not corrected.
Maricopa County Superior Court implemented an application to create a time study
analysis. Although timesheets were completed last year, to address ongoing concerns,
Maricopa County Superior Court is using data from a software application to create a time
study analysis. This will capture a representative sample of staff and time spent on Child
Support Enforcement eligible activities for a representative sample of months. The time
study analysis is anticipated to be completed by March 31, 2018 and will be applied
retroactively for reporting employee payroll costs charged to the program in Federal Fiscal
Year 2018. The Court has enlisted the Court's Grant Manager to provide a review and
audit of the policies and procedures regarding this funding source to ensure they meet
the funding requirements. Contact person is Cheri Clark, Family Court
Administrator/Director of Conciliation Services, (602) 506-2109.
CFDA NQ.: 91568 Low-Income Horne Energy Assist
Finding No, 2015-109
Status: Fully corrected.
dFDA No.: 10.904 VVatershed Protection and Flood Prevention
Finding No. 2016-101
At4tus: Pu Ily,gtriected
- A 'aft47 ,Tatershed Protection and Flood Prevention
:-10.918 Watershed Rehabilitation Program
Finding No 2016-102
OtattAs:_Partially corrected_
The Maricopa County Flood Control District understood this item was fully corrected as
of September 30, 2016. The District understood that the only in kind match expenses that
were to be reported on Federal Financial Reports (FFR) were those that were 'certified'.
The District now understands that if certified match amounts do not meet the District's
35% match requirement, otherwise reimbursement eligible costs are paid by the District
and included on the applicable quarterly FFR. A written concurrence has been requested

Maricopa County
Summary Schedule of Prior Audit Findings
Year Ended June 30, 2017
with the grantor (National Resource Conservation Service - NRCS). This item is fully
corrected for CFDA 10.916. Contact person is David Turner, Finance Support Supervisor
Flood Control District, (602) 506-8617
ert5A. No.: 1-4239 HOME
'inding No 2016-103
glAitus: Fully corerected_
tFDA No.: 17.251WINVVIOA Adult Program
17.259 WINVVIOA Youth Activities
17.278 WIAANIOA Dislocated Work Formula Grants
Finding No -. 2016-104
Stalus Fully _corrected.
FDA No.: 84.374 Teacher Incentive Fund
inding No. 2016-105
Fully corrected.
o.: 84.374 Teacher Incentive Fund
1Finding No, 2016-106
St*us: Partially correctedl
The Maricopa County Education Service Agency (MCESA) updated its policies and
procedures to ensure that reports are completed accurately. However procedures and
policies were not always followed due to new personnel and role changes. Further training
will ensure that supporting documentation is maintained and reviews by knowledgeable
staff are completed prior to submission. Contact person is Marc Kuffner, Assistant
Superintendent for Economic Management & Consulting, (602) 506-8617.
pFDA No 84.374 Teacher Incentive Fund
nding No. 2016-107
141444§i; Part iditY coffiftrAV
The Maricopa County Education Service Agency (MCESA) has policies and procedures
to ensure that before the award monitoring including obtaining DUNS numbers is
completed for new subrecipients. DUNS numbers were verified for all current
subrecipients by March 2017 and MCESA considers this portion of the finding fully
corrected. The Teacher Incentive Fund grant is a five year award and MCESA received
a one year no cost extension from the U.S. Department of Education. However, the
intergovernmental agreement with the subrecipients was not extended. These allowable
expenditures did occur within the grant awards period of availability. Contact person is
Marc Kuffner, Assistant Superintendent for Economic Management & Consulting, (602)
506-8617.

Maricopa County
Summary Schedule of Prior Audit Findings
Year Ended June 30, 2017
CFDA No.: 93.24 Health Center Program (Health Care for the Homeless
Finding No. 2016-108
us: Fully corrected.
`PDA No.: 93.563rtil1d Support Enrcement
iticling No. 2016-109
Maricopa County Superior Court implemented an application to create a time study
analysis. Although timesheets were completed last year, to address ongoing concerns,
Maricopa County Superior Court is using data from a software application to create a time
study analysis. This will capture a representative sample of staff and time spent on Child
Support Enforcement eligible activities for a representative sample of months. The time
study analysis is anticipated to be completed by March 31, 2018 and will be applied
retroactively for reporting employee payroll costs charged to the program in Federal Fiscal
Year 2018. The Court has enlisted the Court's Grant Manager to provide a review and
audit of the policies and procedures regarding this funding source to ensure they meet
the funding requirements. Contact person is Cheri Clark, Family Court
Administrator/Director of Conciliation Services, (602) 506-2109.
FDA Ao.: 93.568 Low-Income Home Energy Assistance
nding No, 2016-110
s: F lly4y?frected.
A No.: 91600 Head Start
ing NcL 2016-111
'Status: Partially corrected,
The Maricopa County Human Services Department updated its policies and procedures
for in kind reporting. A new electronic tracking application was partially implemented in
February 2017. Full implementation of the application is anticipated by July 2018. Contact
person is Jaqueline Edwards, Deputy Director, (602) 506-4812.
CFDA 3 0 Head Start tha 1202;
Finding Nor 2016-112
Status: Partially corrected.
The Maricopa County Human Services Department updated its policies to ensure
required financial reports are completed accurately. The department is in the process of
implementing additional processes to ensure that supporting documents are retained with
copies of the financial reports in the document storage system. Additionally, reports are
reviewed to supporting documentation by the program and finance managers for
accuracy prior to submission. Corrective action is anticipated to be fully implemented by
June 30, 2018. Contact person is Jaqueline Edwards, Deputy Director, (602) 506-4812.

ARIZONA
AuditorGeneral
Making a Positive Difference