Reports

Castro recommends Office of Inspector General (OIG) follow-up with Arizona's management to confirm if the $135,747,413 noted as unsupported expenditures within the Transfers greater than equal to $50,000 and Aggregate Payments to Individuals payment types can be supported. If support is not provided, Treasury OIG should recoup the funds or request Arizona's management to provide support for replacement expenses, not previous charges, that were eligible during the CRF period to performance. In addition, Castro recommended that Treasury OIG request the Arizona management provide support for replacement expenses, not previously charged, that were eligible during the CRF period of performance for the $74,044 of ineligible cost charged to the Grants greater than or equal to $50,000 and Aggregate Payments to Individuals payment types. If support is not provided, Treasury OIG should recoup the funds. Further, based on Arizona managements responsiveness to Treasury OIG's request and management's ability to provide sufficient documentation and/or replace unsupported and ineligible transactions charged to CRF with valid expenditures, Castro recommends Treasury OUIG determine the feasibility od conducting and audit for the Grants greater than or equal to $50,000, and Aggregate Payments to Individuals payment types.

Treasury's Office of Capital Access ensure that management decision letters are issued on the findings identified by the auditor in the fiscal years 2020 and 2021 Single Audit reports.

Treasury's Office of Capital Access should follow up with Arizona to obtain a copy of its fiscal year 2023 Single Audit Act report.

Treasury OIG request that Arizona's management completes a reconciliation of its Transfers greater than or equal to $50,000. Additionally, Castro recommends Treasury OIG determine the feasibility of performing additional testing over Transfers greater than or equal to $50,000.

Treasury OIG request Arizona's management perform and assessment over whether there were any additional indirect costs, above those identified by Castro, claimed withing its Grants greater than or equal to $50,000 CRF submission, and identify those for removal and repayment to Treasury, as applicable.

Treasury OIG request that Arizona's management performs and assessment of whether it had any additional annual leave payouts that were earned prior to the covered period and claimed as CRF expenses, above those identified by Castro, and identify those for reversal and repayment to Treasury.