EIN: 453851539
UEI: DR3TF4ZMLPF9
Audited by: Christy White Inc
Oversight agency: 84 [Department of Education]
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Data as of September 2, 2026
Management decision deadline — for entities that funded this organization
The FAC accepted this audit on February 20, 2026. Under 2 CFR 200.521(d), a pass-through entity that provided federal funds to this organization for this audit period must issue a management decision on these findings by August 20, 2026 (15 days ago).
What is a management decision? →FAC accepted this audit on July 15, 2025 — management decision was due January 15, 2026.
FAC accepted this audit on March 26, 2024 — management decision was due September 26, 2024.
50000 – Time and Effort Accounting (Significant Deficiency in Internal Controls, Noncompliance) Federal Agency: U.S. Department of Education Pass‐Through Entity: California Department of Education Program Name: Education Stabilization Fund Assistance Listing Numbers: 84.425D, 84.425U Criteria or Specific Requirements Per Title 2 U.S. Code of Federal Regulations Part 200, Subpart D, Section 200.430(i)(1)(vii), Charges to Federal awards for salaries and wages must be based on records that accurately reflect the work performed. These records must support the distribution of the employee’s salary or wages among specific activities or cost objectives if the employee works on more than one Federal award; a Federal award and non‐Federal award; an indirect cost activity and a direct cost activity; two or more indirect activities which are allocated using different allocation bases; or an unallowable activity and a direct or indirect cost activity. Condition The Organization did not have sufficient controls in place to ensure that retroactive payments being charged to the ESSER program for employees were for allowable activities only and not other retros during the year. Questioned Costs There were no questioned costs associated with the identified condition. Context The condition was identified through inquiry with Organization personnel and review of documentation used to prepare the retroactive calculation for each employee. Effect The Organization has not complied with the requirement identified in Title 2 U.S. Code of Federal Regulations Part 200, Subpart D, Section 200.430 (i)(1)(vii). Cause The identified condition appears to have materialized due to clerical oversight and lack of appropriate review. Repeat Finding Yes, see prior year finding 2022‐002. Recommendation The Organization should review the requirements stated in Title 2, Code of Federal Regulations, Part 200, Subpart E, Section 200.430(i)(1)(vii) and implement a procedure to address the control deficiency identified with the Organization’s time and accounting documentation as it relates to employees working on multiple activities or cost objectives.
Show full finding ▾Hide full finding ▴50000 – Time and Effort Accounting (Significant Deficiency in Internal Controls, Noncompliance) Federal Agency: U.S. Department of Education Pass‐Through Entity: California Department of Education Program Name: Education Stabilization Fund Assistance Listing Numbers: 84.425D, 84.425U Criteria or Specific Requirements Per Title 2 U.S. Code of Federal Regulations Part 200, Subpart D, Section 200.430(i)(1)(vii), Charges to Federal awards for salaries and wages must be based on records that accurately reflect the work performed. These records must support the distribution of the employee’s salary or wages among specific activities or cost objectives if the employee works on more than one Federal award; a Federal award and non‐Federal award; an indirect cost activity and a direct cost activity; two or more indirect activities which are allocated using different allocation bases; or an unallowable activity and a direct or indirect cost activity. Condition The Organization did not have sufficient controls in place to ensure that retroactive payments being charged to the ESSER program for employees were for allowable activities only and not other retros during the year. Questioned Costs There were no questioned costs associated with the identified condition. Context The condition was identified through inquiry with Organization personnel and review of documentation used to prepare the retroactive calculation for each employee. Effect The Organization has not complied with the requirement identified in Title 2 U.S. Code of Federal Regulations Part 200, Subpart D, Section 200.430 (i)(1)(vii). Cause The identified condition appears to have materialized due to clerical oversight and lack of appropriate review. Repeat Finding Yes, see prior year finding 2022‐002. Recommendation The Organization should review the requirements stated in Title 2, Code of Federal Regulations, Part 200, Subpart E, Section 200.430(i)(1)(vii) and implement a procedure to address the control deficiency identified with the Organization’s time and accounting documentation as it relates to employees working on multiple activities or cost objectives.
Fiscal year ended June 30, 2023, represents a transition year for the Academy as it is the first fiscal year in which Academy staff has been in charge of processing all accounting and business transactions in‐house. Previously the Academy utilized a back‐office provider. In making the transition to in‐house processing, the Academy has sought to build up the capabilities of its business department, including the full implementation of a new financial software system as well as augmenting the capabilities of staff both in number and in capabilities. In addition, the Academy has made extensive use of expert outside consultants to strengthen its system of internal controls and accounting procedures to ensure that a robust system for processing accounting and business transactions is in place. The Academy will continue to both procure the services of outside experts and augment the capabilities of the business department as deemed necessary. In addition, the departments in charge of maintaining files and records pertinent to financial transactions will strengthen their procedures to ensure that all such files and records are properly maintained, and the business department will audit such on a quarterly basis. The business department will continue to ensure that all accounts receivable, accounts payable, and refundable advances will be reconciled quarterly. As well, at the end of each fiscal year, all areas will be reconciled and adjusted as needed. At the beginning of each fiscal year, all areas will be verified for accuracy and any necessary corrections will be made accordingly.
2022-002
50000 – Reporting (Significant Deficiency in Internal Controls, Noncompliance) Federal Agency: U.S. Department of Education Pass‐Through Entity: California Department of Education Program Name: Education Stabilization Fund Assistance Listing Numbers: 84.425D, 84.425U Criteria or Specific Requirements Per Title 2, Code of Federal Regulations, Part 200, Subpart D, Section 200.333, financial records and supporting documents pertinent to a Federal award must be retained for a period of three years from the date of submission of expenditure reports to the awarding agency or passthrough entity. Condition The Organization was unable to provide financial records or supporting documents that agreed to the expenditure information reported to the California Department of Education. Questioned Costs There were no questioned costs associated with the identified condition. Context The condition was identified through inquiry with Organization personnel and through the unsuccessful request to review available supporting documentation. Effect The Organization has not complied with the requirement identified in Title 2, Code of Federal Regulations, Part 200, Subpart D, Section 200.333. Cause The identified condition appears to have materialized due to insufficient procedures related to the retention of financial records. Repeat Finding Yes, see prior year finding 2022‐003. Recommendation The Organization should ensure that all federal expenditure reports are supported by financial reports. These records should be maintained for a period of three years from the date of submission of the expenditure reports to the awarding agency or pass‐through entity.
Show full finding ▾Hide full finding ▴50000 – Reporting (Significant Deficiency in Internal Controls, Noncompliance) Federal Agency: U.S. Department of Education Pass‐Through Entity: California Department of Education Program Name: Education Stabilization Fund Assistance Listing Numbers: 84.425D, 84.425U Criteria or Specific Requirements Per Title 2, Code of Federal Regulations, Part 200, Subpart D, Section 200.333, financial records and supporting documents pertinent to a Federal award must be retained for a period of three years from the date of submission of expenditure reports to the awarding agency or passthrough entity. Condition The Organization was unable to provide financial records or supporting documents that agreed to the expenditure information reported to the California Department of Education. Questioned Costs There were no questioned costs associated with the identified condition. Context The condition was identified through inquiry with Organization personnel and through the unsuccessful request to review available supporting documentation. Effect The Organization has not complied with the requirement identified in Title 2, Code of Federal Regulations, Part 200, Subpart D, Section 200.333. Cause The identified condition appears to have materialized due to insufficient procedures related to the retention of financial records. Repeat Finding Yes, see prior year finding 2022‐003. Recommendation The Organization should ensure that all federal expenditure reports are supported by financial reports. These records should be maintained for a period of three years from the date of submission of the expenditure reports to the awarding agency or pass‐through entity.
Fiscal year ended June 30, 2023, represents a transition year for the Academy as it is the first fiscal year in which Academy staff has been in charge of processing all accounting and business transactions in‐house. Previously the Academy utilized a back‐office provider. In making the transition to in‐house processing, the Academy has sought to build up the capabilities of its business department, including the full implementation of a new financial software system as well as augmenting the capabilities of staff both in number and in capabilities. In addition, the Academy has made extensive use of expert outside consultants to strengthen its system of internal controls and accounting procedures to ensure that a robust system for processing accounting and business transactions is in place. The Academy will continue to both procure the services of outside experts and augment the capabilities of the business department as deemed necessary. In addition, the departments in charge of maintaining files and records pertinent to financial transactions will strengthen their procedures to ensure that all such files and records are properly maintained, and the business department will audit such on a quarterly basis. The business department will continue to ensure that all accounts receivable, accounts payable, and refundable advances will be reconciled quarterly. As well, at the end of each fiscal year, all areas will be reconciled and adjusted as needed. At the beginning of each fiscal year, all areas will be verified for accuracy and any necessary corrections will be made accordingly.
FAC accepted this audit on March 30, 2023 — management decision was due September 30, 2023.
Federal Agency: U.S. Department of Education Pass-Through Entity: California Department of Education (CDE) Program Name: COVID-19: COVID-19: Elementary and Secondary School Emergency Relief (ESSER) Fund and COVID-19: Elementary and Secondary School Emergency Relief II (ESSER II) Fund Assistance Listing Number: 84.425D Compliance Requirement: A/B Criteria or Specific Requirements Per Title 2, Code of Federal Regulations, Part 200, Subpart E, Section 200.430(i)(1)(vii), Charges to Federal awards for salaries and wages must be based on records that accurately reflect the work performed. These records must support the distribution of the employee's salary or wages among specific activities or cost objectives if the employee works on more than one Federal award; a Federal award and non-Federal award; an indirect cost activity and a direct cost activity; two or more indirect activities which are allocated using different allocation bases; or an unallowable activity and a direct or indirect cost activity. Condition The Organization did not have sufficient controls in place to ensure that employees charged to the program maintain time accounting documentation in accordance with federal requirements. Questioned Costs There were no direct questioned costs associated with the condition identified. Context A significant amount of the federal expenditures related to these programs are derived from payroll costs. While the salaries appear to be reasonable and necessary for the program objectives, the Organization did not provide the required supporting documentation as outlined in the Title 2, Code of Federal Regulations, Part 200, Subpart E, Section 200.430 (i)(1)(vii) for two of 56 employees selected for testing. Effect The Organization has not complied with the requirements identified in Title 2, Code of Federal Regulations, Part 200, Subpart E, Section 200.430 (i)(1)(vii). Cause The condition identified appears to have materialized due to clerical oversight and lack of appropriate review. Repeat Finding No. Recommendation The Organization should review the requirements stated in Title 2, Code of Federal Regulations, Part 200, Subpart E, Section 200.430 (i)(1)(vii) and implement a procedure to address the control deficiency identified with the Organization?s time accounting documentation as it relates to employees working on multiple activities or cost objectives.
Show full finding ▾Hide full finding ▴Federal Agency: U.S. Department of Education Pass-Through Entity: California Department of Education (CDE) Program Name: COVID-19: COVID-19: Elementary and Secondary School Emergency Relief (ESSER) Fund and COVID-19: Elementary and Secondary School Emergency Relief II (ESSER II) Fund Assistance Listing Number: 84.425D Compliance Requirement: A/B Criteria or Specific Requirements Per Title 2, Code of Federal Regulations, Part 200, Subpart E, Section 200.430(i)(1)(vii), Charges to Federal awards for salaries and wages must be based on records that accurately reflect the work performed. These records must support the distribution of the employee's salary or wages among specific activities or cost objectives if the employee works on more than one Federal award; a Federal award and non-Federal award; an indirect cost activity and a direct cost activity; two or more indirect activities which are allocated using different allocation bases; or an unallowable activity and a direct or indirect cost activity. Condition The Organization did not have sufficient controls in place to ensure that employees charged to the program maintain time accounting documentation in accordance with federal requirements. Questioned Costs There were no direct questioned costs associated with the condition identified. Context A significant amount of the federal expenditures related to these programs are derived from payroll costs. While the salaries appear to be reasonable and necessary for the program objectives, the Organization did not provide the required supporting documentation as outlined in the Title 2, Code of Federal Regulations, Part 200, Subpart E, Section 200.430 (i)(1)(vii) for two of 56 employees selected for testing. Effect The Organization has not complied with the requirements identified in Title 2, Code of Federal Regulations, Part 200, Subpart E, Section 200.430 (i)(1)(vii). Cause The condition identified appears to have materialized due to clerical oversight and lack of appropriate review. Repeat Finding No. Recommendation The Organization should review the requirements stated in Title 2, Code of Federal Regulations, Part 200, Subpart E, Section 200.430 (i)(1)(vii) and implement a procedure to address the control deficiency identified with the Organization?s time accounting documentation as it relates to employees working on multiple activities or cost objectives.
All accounting and business transactions procedures for FY 21/22 were completed by the Academy?s back office provider. This relationship caused reporting conflicts between the academy and outside agency. Effective July 2022, all accounting and business transactions have been brought in-house and are not processed by Academy staff. By bringing the financial process in house, this will increase the strength of the internal controls within the Academy. The financials are monitored and processed by only one entity instead of between the back office staff and Academy staff. The Academy has created an internal Personal Action Request (PAR) form. This form identifies the employee, position and funding source or sources for each employee. On a quarterly basis all positions will be reviewed and compared to the most current PAR. Any adjustments, changes, reallocations, etc. will be made at each review period.
Federal Agency: U.S. Department of Education Pass-Through Entity: California Department of Education (CDE) Program Name: COVID-19: COVID-19: Elementary and Secondary School Emergency Relief II (ESSER II) Fund and COVID-19: Governor's Emergency Education Relief Fund Learning Loss Mitigation Assistance Listing Number: 84.425D, 84.425C Compliance Requirement: L Criteria or Specific Requirements Per Title 2, Code of Federal Regulations, Part 200, Subpart D, Section 200.333, financial records and supporting documents pertinent to a Federal award must be retained for a period of three years from the date of submission of expenditure reports to the awarding agency or passthrough entity. Condition The Organization was unable to provide financial records or supporting documents that agreed to the expenditure information reported to the California Department of Education. Questioned Costs There were no questioned costs associated with the identified condition. Context The condition was identified through inquiry with Organization personnel and through the unsuccessful request to review available supporting documentation. Effect The Organization has not complied with the requirement identified in Title 2, Code of Federal Regulations, Part 200, Subpart D, Section 200.333. Cause The identified condition appears to have materialized due to insufficient procedures related to the retention of financial records. Repeat Finding No. Recommendation The Organization should ensure that all federal expenditure reports are supported by financial reports. These records should be maintained for a period of three years from the date of submission of the expenditure reports to the awarding agency or pass-through entity.
Show full finding ▾Hide full finding ▴Federal Agency: U.S. Department of Education Pass-Through Entity: California Department of Education (CDE) Program Name: COVID-19: COVID-19: Elementary and Secondary School Emergency Relief II (ESSER II) Fund and COVID-19: Governor's Emergency Education Relief Fund Learning Loss Mitigation Assistance Listing Number: 84.425D, 84.425C Compliance Requirement: L Criteria or Specific Requirements Per Title 2, Code of Federal Regulations, Part 200, Subpart D, Section 200.333, financial records and supporting documents pertinent to a Federal award must be retained for a period of three years from the date of submission of expenditure reports to the awarding agency or passthrough entity. Condition The Organization was unable to provide financial records or supporting documents that agreed to the expenditure information reported to the California Department of Education. Questioned Costs There were no questioned costs associated with the identified condition. Context The condition was identified through inquiry with Organization personnel and through the unsuccessful request to review available supporting documentation. Effect The Organization has not complied with the requirement identified in Title 2, Code of Federal Regulations, Part 200, Subpart D, Section 200.333. Cause The identified condition appears to have materialized due to insufficient procedures related to the retention of financial records. Repeat Finding No. Recommendation The Organization should ensure that all federal expenditure reports are supported by financial reports. These records should be maintained for a period of three years from the date of submission of the expenditure reports to the awarding agency or pass-through entity.
All accounting and business transactions procedures for FY 21/22 were completed by the Academy?s back-office provider. This relationship caused reporting conflicts between the academy and outside agency. Effective July 2022, all accounting and business transactions have been brought in-house and are not processed by Academy staff. By bringing the financial process in house, this will increase the strength of the internal controls within the Academy. The financials are monitored and processed by only one entity instead of between the back office staff and Academy staff. The Academy is in the process analyzing all three past years of financial records, in addition to the current fiscal year?s financial, and verify all expenditures related to the COVID-19: COVID-19: Elementary and Secondary School Emergency Relief II (ESSER II) Fund and COVID-19: Governor's Emergency Education Relief Fund Learning Loss Mitigation. Once reconciliation if complete, the Academy will be reporting the true financial impact during the 2023 Spring Federal Stimulus Funding Quarterly reporting period for January 1, 2023-March 31, 2023. This reporting period has a closing deadline of April 14, 2023. These records will be housed electronically and physically within the business services department and available for the required retention timeline.
Federal Agency: U.S. Department of Education Pass-Through Entity: California Department of Education (CDE) Program Name: Title I, Part A, Basic Grants Low-Income and Neglected Assistance Listing Number: 84.010 Compliance Requirement: G Criteria or Specific Requirements Title 34, Code of Federal Regulations, Part 299, Subpart D, Section 299.5 requires an Organization receiving funds for Title I, Part A, Basic Grants Low-Income and Neglected program may receive its full allocation of funds only if the SEA finds that either the combined fiscal effort per student or the aggregate expenditures of State and local funds with respect to the provision of free public education in the LEA for the preceding fiscal year was not less than 90% of the combined fiscal effort per student or the aggregate expenditures for the second preceding fiscal year. Condition While the Organization did meet the required maintenance of effort requirement as outlined in Title 34, Code of Federal Regulations, Part 299, Subpart D, Section 299.5, the calculation that was provided to the auditor did not reconcile back to the general ledger. Questioned Costs There were no direct questioned costs associated with the condition identified. Context The condition was identified as a result of inquiry with the Organization?s Business Services personnel and through review of the Every Student Succeeds Act Maintenance of Effort form. Effect The Organization?s controls and procedures related to the preparation of the calculation failed to detect the input errors on the calculation. Cause The condition identified appears to have materialized due to clerical oversight and lack of appropriate review. Repeat Finding Yes, see finding 2021-003. Recommendation The Organization should review the requirement stated in Title 34, Code of Federal Regulations, Part 299, Subpart D, Section 299.5 and implement a procedure to address the deficiency currently identified with the Organization?s documentation of procurement processes.
Show full finding ▾Hide full finding ▴Federal Agency: U.S. Department of Education Pass-Through Entity: California Department of Education (CDE) Program Name: Title I, Part A, Basic Grants Low-Income and Neglected Assistance Listing Number: 84.010 Compliance Requirement: G Criteria or Specific Requirements Title 34, Code of Federal Regulations, Part 299, Subpart D, Section 299.5 requires an Organization receiving funds for Title I, Part A, Basic Grants Low-Income and Neglected program may receive its full allocation of funds only if the SEA finds that either the combined fiscal effort per student or the aggregate expenditures of State and local funds with respect to the provision of free public education in the LEA for the preceding fiscal year was not less than 90% of the combined fiscal effort per student or the aggregate expenditures for the second preceding fiscal year. Condition While the Organization did meet the required maintenance of effort requirement as outlined in Title 34, Code of Federal Regulations, Part 299, Subpart D, Section 299.5, the calculation that was provided to the auditor did not reconcile back to the general ledger. Questioned Costs There were no direct questioned costs associated with the condition identified. Context The condition was identified as a result of inquiry with the Organization?s Business Services personnel and through review of the Every Student Succeeds Act Maintenance of Effort form. Effect The Organization?s controls and procedures related to the preparation of the calculation failed to detect the input errors on the calculation. Cause The condition identified appears to have materialized due to clerical oversight and lack of appropriate review. Repeat Finding Yes, see finding 2021-003. Recommendation The Organization should review the requirement stated in Title 34, Code of Federal Regulations, Part 299, Subpart D, Section 299.5 and implement a procedure to address the deficiency currently identified with the Organization?s documentation of procurement processes.
All accounting and business transactions procedures for FY 21/22 were completed by the Academy?s back-office provider. This relationship caused reporting conflicts between the academy and outside agency. Effective July 2022, all accounting and business transactions have been brought in-house and are not processed by Academy staff. By bringing the financial process in house, this will increase the strength of the internal controls within the Academy. The financials are monitored and processed by only one entity instead of between the back-office staff and Academy staff. There was a disconnect between the Academy and back-office staff regarding the preparation of the calculation of Every Student Succeeds Act Maintenance of Effort. The Academy will continue to have internal staff work along with the Director of Business Services and Finance to record and report expenses related to Title I, Part A quarterly. The Director of Business Services and Finance will report quarterly to the Ed Service department along with the Executive Director/Superintendent the current standing and projection of the MOE. Each quarter there will be a discussion on the additional actions that may need to be taken to make sure MOE will be met at end of each fiscal year.
2021-003
Federal Agency: U.S. Department of Education Pass-Through Entity: California Department of Education (CDE) Program Name: Title I, Part A, Basic Grants Low-Income and Neglected Assistance Listing Number: 84.010 Compliance Requirement: L Criteria or Specific Requirements Each year, a State Education Agency (SEA) must submit its average state per pupil expenditure (SPPE) data to the National Center for Education Statistics. These SPPE data are used by the Department of Education to make allocations under several Elementary and Secondary Education Act (ESEA) programs, include Title I, Part A. The Organization is required to submit SPPE data to the SEA for the SEA?s report. Condition The Organization does not have procedures in place to ensure that SPPE data is calculated and reported accurately. Questioned Costs There were no direct questioned costs associated with the condition identified. Context The condition was identified as a result of inquiry with the Organization's Business Services personnel and through review of supporting documents. Effect Due to a clerical error when the Organization calculated the annual SPPE data, the Organization?s SPPE data was inaccurately calculated and reported. Cause The condition identified appears to have materialized due to an undetected clerical error when performing the SPPE data calculation. Repeat Finding No. Recommendation The Organization should implement controls to ensure that the SPPE data calculation is properly calculated and reviewed prior to reporting.
Show full finding ▾Hide full finding ▴Federal Agency: U.S. Department of Education Pass-Through Entity: California Department of Education (CDE) Program Name: Title I, Part A, Basic Grants Low-Income and Neglected Assistance Listing Number: 84.010 Compliance Requirement: L Criteria or Specific Requirements Each year, a State Education Agency (SEA) must submit its average state per pupil expenditure (SPPE) data to the National Center for Education Statistics. These SPPE data are used by the Department of Education to make allocations under several Elementary and Secondary Education Act (ESEA) programs, include Title I, Part A. The Organization is required to submit SPPE data to the SEA for the SEA?s report. Condition The Organization does not have procedures in place to ensure that SPPE data is calculated and reported accurately. Questioned Costs There were no direct questioned costs associated with the condition identified. Context The condition was identified as a result of inquiry with the Organization's Business Services personnel and through review of supporting documents. Effect Due to a clerical error when the Organization calculated the annual SPPE data, the Organization?s SPPE data was inaccurately calculated and reported. Cause The condition identified appears to have materialized due to an undetected clerical error when performing the SPPE data calculation. Repeat Finding No. Recommendation The Organization should implement controls to ensure that the SPPE data calculation is properly calculated and reviewed prior to reporting.
All accounting and business transactions procedures for FY 21/22 were completed by the Academy?s back-office provider. This relationship caused reporting conflicts between the academy and outside agency. Effective July 2022, all accounting and business transactions have been brought in-house and are not processed by Academy staff. By bringing the financial process in house, this will increase the strength of the internal controls within the Academy. The financials are monitored and processed by only one entity instead of between the back-office staff and Academy staff. There was a disconnect between the Academy and back-office staff regarding the preparation of the calculation of average state per pupil expenditure statistics. Going forward the Academy will be handling this process solely in house. The Academy has created a detailed timeline for Federal and State reporting. This timeline will ensure that reports are completed in a timely manner and can be reviewed for accuracy and compliance.
FAC accepted this audit on February 8, 2022 — management decision was due August 8, 2022.
50000 (Material Weakness, Noncompliance) Federal Program Affected Title I, Part A, Basic Grants Low-Income and Neglected Federal Financial Assistance Listing/Federal CFDA Number: 84.010 Pass-Through Entity: California Department of Education Federal Agency: U.S. Department of Education Criteria or Specific Requirements Per Title 2, Code of Federal Regulations, Part 200, Subpart E, Section 200.430(i)(1)(vii), Charges to Federal awards for salaries and wages must be based on records that accurately reflect the work performed. These records must support the distribution of the employee's salary or wages among specific activities or cost objectives if the employee works on more than one Federal award; a Federal award and non-Federal award; an indirect cost activity and a direct cost activity; two or more indirect activities which are allocated using different allocation bases; or an unallowable activity and a direct or indirect cost activity. Condition The Organization did not have sufficient controls in place to ensure that employees working on multiple activities or cost objectives maintain time accounting documentation in accordance with federal requirements. Questioned Costs This finding represents a material weakness in internal control over federal compliance. However, there were no questioned costs associated with this finding as we did not identify any unallowable expenditures as a result of the finding. Context A significant amount of the federal expenditures related to these programs are derived from payroll costs. While the salaries appear to be reasonable and necessary for the program objectives, the Organization did not provide the required supporting documentation as outlined in the Title 2, Code of Federal Regulations, Part 200, Subpart E, Section 200.430 (i)(1)(vii). Further, there does not appear to be adequate policies and procedures necessary to support that the Organization has controls over compliance objectives. Effect The Organization has not complied with the requirements identified in Title 2, Code of Federal Regulations, Part 200, Subpart E, Section 200.430 (i)(1)(vii). Cause The condition identified appears to have materialized due to the Organization?s lack of established procedures to ensure compliance with the requirements under Title 2, Code of Federal Regulations, Part 200, Subpart E, Section 200.430 (i)(1)(vii). Repeat Finding No. Recommendation The Organization should review the requirements stated in Title 2, Code of Federal Regulations, Part 200, Subpart E, Section 200.430 (i)(1)(vii) and implement a procedure to address the control deficiency currently identified with the Organization?s time accounting documentation as it relates to employees working on multiple activities or cost objectives.
Show full finding ▾Hide full finding ▴50000 (Material Weakness, Noncompliance) Federal Program Affected Title I, Part A, Basic Grants Low-Income and Neglected Federal Financial Assistance Listing/Federal CFDA Number: 84.010 Pass-Through Entity: California Department of Education Federal Agency: U.S. Department of Education Criteria or Specific Requirements Per Title 2, Code of Federal Regulations, Part 200, Subpart E, Section 200.430(i)(1)(vii), Charges to Federal awards for salaries and wages must be based on records that accurately reflect the work performed. These records must support the distribution of the employee's salary or wages among specific activities or cost objectives if the employee works on more than one Federal award; a Federal award and non-Federal award; an indirect cost activity and a direct cost activity; two or more indirect activities which are allocated using different allocation bases; or an unallowable activity and a direct or indirect cost activity. Condition The Organization did not have sufficient controls in place to ensure that employees working on multiple activities or cost objectives maintain time accounting documentation in accordance with federal requirements. Questioned Costs This finding represents a material weakness in internal control over federal compliance. However, there were no questioned costs associated with this finding as we did not identify any unallowable expenditures as a result of the finding. Context A significant amount of the federal expenditures related to these programs are derived from payroll costs. While the salaries appear to be reasonable and necessary for the program objectives, the Organization did not provide the required supporting documentation as outlined in the Title 2, Code of Federal Regulations, Part 200, Subpart E, Section 200.430 (i)(1)(vii). Further, there does not appear to be adequate policies and procedures necessary to support that the Organization has controls over compliance objectives. Effect The Organization has not complied with the requirements identified in Title 2, Code of Federal Regulations, Part 200, Subpart E, Section 200.430 (i)(1)(vii). Cause The condition identified appears to have materialized due to the Organization?s lack of established procedures to ensure compliance with the requirements under Title 2, Code of Federal Regulations, Part 200, Subpart E, Section 200.430 (i)(1)(vii). Repeat Finding No. Recommendation The Organization should review the requirements stated in Title 2, Code of Federal Regulations, Part 200, Subpart E, Section 200.430 (i)(1)(vii) and implement a procedure to address the control deficiency currently identified with the Organization?s time accounting documentation as it relates to employees working on multiple activities or cost objectives.
The Palmdale Aerospace Academy has used a back office financial company to process, monitor, and report the financials of the Academy for 10 years. The Academy has relied heavily on the back office provider to maintain the integrity of the financials and report any concerns throughout the fiscal year. The Academy never has had a fiscal department nor the ability to monitor, track, and process financials, payroll, and human resources in house. In 2020, after a change in administration, the Academy realized the need for a larger physical presence of fiscal personnel on campus. Until March of 2021 there was only one Accounts Payable Clerk who physically worked at the Academy. In March of 2021 a Director of Business Services and Finance was hired. Since the hiring of the Director of Business Services and Finance, the Academy had created a new Business Services Department, purchased and is installing a new HRIS system and new fiscal system. As of January 2022, the department was fully staffed and consists of the Director, a Business Service Technician, and two Accounting and Data Technicians. These three individuals have separate duties but yet are all crossed trained. The Business Service Technician is responsible for payroll (recently moved from HR), purchasing, and ASB banking. The two Accounting and Data Technicians are responsible for accounts payable, budgeting, reconciling, and reporting on the general fund and categorical funding. Each tech is assigned a section of that alphabet for accounts payable and each one is assigned a set of categorical resources. Upon hiring of the Director, the new Administration informed the Director that the Academy was not maintaining time accounting documentation in accordance with federal requirements. The following is the new process that will be implemented for proper time and effort accounting record keeping: ? Accounting and Data Technician A has been assigned and responsible for tracking, collecting, and retaining the time certifications related to Title I ? Technician A along with the Director of Business Services and Finance have identified all employees (certificated and classified) who are funded with Title 1 resources ? Each qualifying employee is going to receive in person training on how and why time certifications are required. ? Each qualifying employee is going to receive a letter with directions and instructions on how to keep accurate time and how to submit completed time certifications ? Each qualifying employee is going to receive time certifications tracking sheets ? Each time certification tracking sheet is due to Technician A by the 5th of every month ? Technician A will keep all time certifications in a three-ring binder located in the Business Services Office ? The Academy will collect all required time certifications from July 2021 until present. This corrective action plan will be implemented the beginning of February 2022 and will continued to be followed in order to maintain the specific requirements related to the proper time and effort accounting record keeping as it relates to Title 2, Code of Federal Regulations, Part 200, Subpart E, Section 200.430 (i)(1)(vii).
50000 (Material Weakness, Noncompliance) Federal Program Affected Title I, Part A, Basic Grants Low-Income and Neglected Federal Financial Assistance Listing/Federal CFDA Number: 84.010 Pass-Through Entity: California Department of Education Federal Agency: U.S. Department of Education Criteria or Specific Requirements Title 34, Code of Federal Regulations, Part 299, Subpart D, Section 299.5 requires an Organization receiving funds for Title I, Part A, Basic Grants Low-Income and Neglected program may receive its full allocation of funds only if the SEA finds that either the combined fiscal effort per student or the aggregate expenditures of State and local funds with respect to the provision of free public education in the LEA for the preceding fiscal year was not less than 90 percent of the combined fiscal effort per student or the aggregate expenditures for the second preceding fiscal year. Condition The Organization did not meet the required maintenance of effort requirement as outlined in Title 34, Code of Federal Regulations, Part 299, Subpart D, Section 299.5. Questioned Costs There were no direct questioned costs associated with the condition identified. However, the California Department of Education will reduce the Organization?s allocation for Title I, Part A, Basic Grants Low-Income and Neglected if the Organization also failed to maintain effort in one or more of the five immediately preceding fiscal years in the exact proportion by which the Organization fails to maintain effort by falling below 90 percent of both the combined fiscal effort per student and aggregate expenditures. Context The condition was identified as a result of inquiry with the Organization?s Business Services personnel and through review of the Every Student Succeeds Act Maintenance of Effort form. Effect The Organization has not complied with the requirements identified in Title 34, Code of Federal Regulations, Part 299, Subpart D, Section 299.5 Cause The condition identified appears to have materialized due to the Organization?s lack of awareness of requirements under Title 34, Code of Federal Regulations, Part 299, Subpart D, Section 299.5. Repeat Finding No. Recommendation The Organization should review the requirements stated in Title 34, Code of Federal Regulations, Part 299, Subpart D, Section 299.5 and implement a procedure to address the deficiency currently identified with the Organization?s documentation of procurement processes.
Show full finding ▾Hide full finding ▴50000 (Material Weakness, Noncompliance) Federal Program Affected Title I, Part A, Basic Grants Low-Income and Neglected Federal Financial Assistance Listing/Federal CFDA Number: 84.010 Pass-Through Entity: California Department of Education Federal Agency: U.S. Department of Education Criteria or Specific Requirements Title 34, Code of Federal Regulations, Part 299, Subpart D, Section 299.5 requires an Organization receiving funds for Title I, Part A, Basic Grants Low-Income and Neglected program may receive its full allocation of funds only if the SEA finds that either the combined fiscal effort per student or the aggregate expenditures of State and local funds with respect to the provision of free public education in the LEA for the preceding fiscal year was not less than 90 percent of the combined fiscal effort per student or the aggregate expenditures for the second preceding fiscal year. Condition The Organization did not meet the required maintenance of effort requirement as outlined in Title 34, Code of Federal Regulations, Part 299, Subpart D, Section 299.5. Questioned Costs There were no direct questioned costs associated with the condition identified. However, the California Department of Education will reduce the Organization?s allocation for Title I, Part A, Basic Grants Low-Income and Neglected if the Organization also failed to maintain effort in one or more of the five immediately preceding fiscal years in the exact proportion by which the Organization fails to maintain effort by falling below 90 percent of both the combined fiscal effort per student and aggregate expenditures. Context The condition was identified as a result of inquiry with the Organization?s Business Services personnel and through review of the Every Student Succeeds Act Maintenance of Effort form. Effect The Organization has not complied with the requirements identified in Title 34, Code of Federal Regulations, Part 299, Subpart D, Section 299.5 Cause The condition identified appears to have materialized due to the Organization?s lack of awareness of requirements under Title 34, Code of Federal Regulations, Part 299, Subpart D, Section 299.5. Repeat Finding No. Recommendation The Organization should review the requirements stated in Title 34, Code of Federal Regulations, Part 299, Subpart D, Section 299.5 and implement a procedure to address the deficiency currently identified with the Organization?s documentation of procurement processes.
The Palmdale Aerospace Academy has used a back office financial company to process, monitor, and report the financials of the Academy for 10 years. The Academy has relied heavily on the back office provider to maintain the integrity of the financials and report any concerns throughout the fiscal year. The Academy never has had a fiscal department nor the ability to monitor, track, and process financials, payroll, and human resources in house. In 2020, after a change in administration, the Academy realized the need for a larger physical presence of fiscal personnel on campus. Until March of 2021 there was only one Accounts Payable Clerk who physically worked at the Academy. In March of 2021 a Director of Business Services and Finance was hired. Since the hiring of the Director of Business Services and Finance, the Academy had created a new Business Services Department, purchased and is installing a new HRIS system and new fiscal system. As of January 2022, the department was fully staffed and consists of the Director, a Business Service Technician, and two Accounting and Data Technicians. These three individuals have separate duties but yet are all crossed trained. The Business Service Technician is responsible for payroll (recently moved from HR), purchasing, and ASB banking. The two Accounting and Data Technicians are responsible for accounts payable, budgeting, reconciling, and reporting on the general fund and categorical funding. Each tech is assigned a section of that alphabet for accounts payable and each one is assigned a set of categorical resources. Due to the findings of the current audit, it has come to the attention that the Academy has not meet the maintenance of effort for funds received for Title I, Part A, Basic Grants Low-income and Neglected program. It has been determined that the back office financial company did not monitor the progress of MOE for the program for the year and never realized the possible potential of not meeting MOE. The following is the corrective action plan that the Academy will be implementing immediately to ensure that MOE is meet regarding Title I, Part A: ? Accounting and Data Technician B has been assigned and responsible for tracking, collecting, and retaining the expenses related to Title I, Part A ? Technician B will work along with the Director of Business Services and Finance to record and report expenses related to Title I, Part A quarterly ? The Director of Business Services and Finance will report quarterly to the Ed Service department along with the Executive Director/Superintendent the current standing and projection of the MOE ? Each quarter there will be a discussion on the additional actions that may need to be taken to make sure MOE will be met at end of each fiscal year This corrective action plan will be implemented the beginning of February 2022 and will continued to be followed in order to maintain the specific requirements as outlined in Title 34, Code of Federal Regulations, Part 299, Subpart D, Section 299.5.
FAC accepted this audit on January 11, 2021 — management decision was due July 11, 2021.
FAC accepted this audit on January 14, 2020 — management decision was due July 14, 2020.
FAC accepted this audit on January 13, 2019 — management decision was due July 13, 2019.
GSA_MIGRATION
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GSA_MIGRATION
FAC accepted this audit on March 12, 2018 — management decision was due September 12, 2018.
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