Alpaugh Unified School District

FINDING 2021-001 30000150000 SIGNIFICANT DEFICIENCY IN INTERNAL CONTROL OVER FEDERAL COMPLIANCE - WRITTEN PROCEDURES Federal Program Information Elementary and Secondary School Emergency Relief (ESSER) Fund U.S. Department of Education Passed through California Department of Education Federal Catalog No. 84.425D Federal Award Identification Number S425D200016 (July 1, 2020 - June 30, 2021) Federal Program Information Governor's Emergency Education Relief (GEER) Fund: Learning Loss Mitigation U.S. Department of Education Passed through California Department of Education Federal Catalog No. 84.425C Federal Award Identification Number S425C200012 (July 1, 2020 - June 30, 2021) Federal Program Information Coronavirus Relief Fund (CRF): Learning Loss Mitigation U.S. Department of Treasury Passed through California Department of Education Federal Catalog No. 21 .019 Account Identification Number 20-1892-0-1-806 (July 1, 2020 - June 30, 2021) Criteria Title 2 U.S. Code of Federal Regulations Part 200, Uniform Administrative Requirements, Cost Principles and Audit Requirements for Federal Awards (Uniform Guidance), The Internal Control - Integrated Framework, published by the Committee of Sponsoring Organizations of the Treadway Commission (COSO) and numerous federal guidelines require the establishment and maintenance of internal control designed to reasonably ensure accurate financial reporting and compliance with laws, regulations and program requirements. Pursuant to 2 CFR section 200.302(b)(6) and 2 CFR section 200.300.305 the non-federal entity must have written procedures for cash management procedures. Pursuant to 2 CFR section 200.319(c) the non-federal entity must have written procedures for procurement transactions. Condition The District did not adopt written procedures over cash management and procurement transactions for the year ended June 30, 2021 . Questioned Costs Not Applicable Proper Perspective This significant deficiency was discovered during our procedures to gain an understanding of internal controls of the District. It is systemic to the District. Effect The District is out of compliance with the Uniform Guidance requirements for cash management and procurement standards. Without a written cash management policy, the District may not ensure advance payments are held in an interest-bearing account and may not remit interest earned on advanced payments back to the awarding agency as required. Without a written procurement policy, the District could potentially enter into procurement transactions without providing full and open competition in accordance with procurement standards. Cause The District was not aware of the requirement to have written procedures for cash management and procurement transactions. Recommendation We recommend the District adopt written procedures for cash management and procurement transactions 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). Corrective Action Plan The District will adopt cash management and procurement policies in accordance with Code of Federal Regulations Part 200, at their next regularly scheduled board meeting.

The District will adopt cash management and procurement policies in accordance with Code of Federal Regulations Part 200, at their next regularly scheduled board meeting.