EIN: 946002379
UEI: TULVPF5533H7
Audited by: Eide Bailly
Oversight agency: 84 [Department of Education]
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Data as of August 28, 2026
Management decision deadline — for entities that funded this organization
The FAC accepted this audit on December 19, 2025. 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 June 19, 2026 (73 days ago).
What is a management decision? →FAC accepted this audit on December 19, 2025 — management decision was due June 19, 2026.
FAC accepted this audit on December 30, 2025 — management decision was due June 30, 2026.
FAC accepted this audit on February 20, 2026 — management decision was due August 20, 2026.
FAC accepted this audit on December 27, 2024 — management decision was due June 27, 2025.
FAC accepted this audit on January 8, 2025 — management decision was due July 8, 2025.
FAC accepted this audit on January 8, 2025 — management decision was due July 8, 2025.
FAC accepted this audit on January 15, 2025 — management decision was due July 15, 2025.
FAC accepted this audit on March 15, 2024 — management decision was due September 15, 2024.
2023‐001 50000 Federal Program Affected Program Name: Education Stabilization Funds Assistance Listing Number: 84.425 Pass‐Through Entity Number: 15559, 10155 Pass‐Through Entity: California Department of Education (CDE) Federal Agency: U.S. Department of Treasury Compliance Requirement: Reporting Type of Finding: Material Weakness in Controls over Compliance Criteria or Specific Requirements Local education agencies must comply with all reporting requirements that the Department of Education may reasonably require. Section 15011 of Division B of the Coronavirus Aid, Relief, and Economic Security (CARES) Act requires that a grantee submit annual reports. In addition, the Uniform Guidance, Section 200.303 Internal Controls, requires that the non‐Federal entity must establish and maintain documentation of effective internal controls over Federal awards that provide reasonable assurance that awards are being managed in compliance with Federal statutes, regulations and the terms and conditions of the Federal award. Condition During our testing over reporting of the Education Stabilization Fund awards, we noted that the County did complete the required annual reports on time. However, the County reported the accumulation of the previous quarterly reports rather than the final end of year accumulation. This did not agree with the most up to date general ledger reports that supported the prior year ending Schedule of Expenditures of Federal Awards (SEFA) amounts, which should have been the proper amounts reported on the annual expenditure reports. ESSER III, Resource 3213, reported expenditures of $901,021 while the SEFA reported $952,102. ESSER III ‐ Learning Loss, Resource 3214, reported expenditures of $145,070 while the SEFA reported $159,989. Questioned Costs Since the correct expenditures were reported on the SEFA, and the annual expenditure reports were only off due to incorrect dates being used to run general ledger reports, the likely questioned cost will be $0. Context The County did not comply with the reporting requirements as specified by the California Department of Education because of the incorrect date used to run reports. Effect The County did not comply with the reporting requirements as specified by the California Department of Education, as well as the internal control requirements for Federal awards. Cause The condition identified appears to have materialized due to the Business Services personnel not using the most up to date general ledger reports when preparing their annual expenditure reports. Repeat Finding No. Recommendation The District should review their policies and procedures related to required reporting requirements of federal awards and ensure that general ledger reports being used are the most accurate and up to date reports.
Show full finding ▾Hide full finding ▴2023‐001 50000 Federal Program Affected Program Name: Education Stabilization Funds Assistance Listing Number: 84.425 Pass‐Through Entity Number: 15559, 10155 Pass‐Through Entity: California Department of Education (CDE) Federal Agency: U.S. Department of Treasury Compliance Requirement: Reporting Type of Finding: Material Weakness in Controls over Compliance Criteria or Specific Requirements Local education agencies must comply with all reporting requirements that the Department of Education may reasonably require. Section 15011 of Division B of the Coronavirus Aid, Relief, and Economic Security (CARES) Act requires that a grantee submit annual reports. In addition, the Uniform Guidance, Section 200.303 Internal Controls, requires that the non‐Federal entity must establish and maintain documentation of effective internal controls over Federal awards that provide reasonable assurance that awards are being managed in compliance with Federal statutes, regulations and the terms and conditions of the Federal award. Condition During our testing over reporting of the Education Stabilization Fund awards, we noted that the County did complete the required annual reports on time. However, the County reported the accumulation of the previous quarterly reports rather than the final end of year accumulation. This did not agree with the most up to date general ledger reports that supported the prior year ending Schedule of Expenditures of Federal Awards (SEFA) amounts, which should have been the proper amounts reported on the annual expenditure reports. ESSER III, Resource 3213, reported expenditures of $901,021 while the SEFA reported $952,102. ESSER III ‐ Learning Loss, Resource 3214, reported expenditures of $145,070 while the SEFA reported $159,989. Questioned Costs Since the correct expenditures were reported on the SEFA, and the annual expenditure reports were only off due to incorrect dates being used to run general ledger reports, the likely questioned cost will be $0. Context The County did not comply with the reporting requirements as specified by the California Department of Education because of the incorrect date used to run reports. Effect The County did not comply with the reporting requirements as specified by the California Department of Education, as well as the internal control requirements for Federal awards. Cause The condition identified appears to have materialized due to the Business Services personnel not using the most up to date general ledger reports when preparing their annual expenditure reports. Repeat Finding No. Recommendation The District should review their policies and procedures related to required reporting requirements of federal awards and ensure that general ledger reports being used are the most accurate and up to date reports.
Corrective Action Plan and Views of Responsible Officials All staff responsible for reporting have reviewed all established procedures to avoid a date error in the future.
Federal Program Affected Program Name: COVID-19 - Elementary and Secondary School Emergency Relief (ESSER III) Fund (Resource 3213) Federal Financial Assistance Listing Number: 84.425U Pass-Through Entity: California Department of Education (CDE) Federal Agency: U.S. Department of Education Non-Compliance and Material Weakness of Internal Control Over Compliance: Activities Allowed or Unallowed and Allowable Costs and Cost Principles. Criteria The United States Department of Education has approved a delegation agreement with the California Department of Education (CDE) that authorizes the CDE to establish indirect cost rates for California’s local education agencies (LEAs). The CDE has been delegated authority to calculate and approve indirect cost rates annually for LEAs. For the Education Stabilization Fund (ESF) Programs in fiscal year 2022-2023, Education Code Section 38101(c) limits school districts’ indirect costs to the lesser of the District’s individual CDE approved indirect cost rate, or the statewide average indirect cost rate. Indirect costs for the total ESSER III allocation (Resource 3213 and 3214 combined) should be charged to Resource 3213 only using the LEA allowable indirect cost rate (7.63%). In addition, the Uniform Guidance, Section 200.303 Internal Controls, requires that the non-Federal entity must establish and maintain documentation of effective internal controls over Federal awards that provide reasonable assurance that awards are being managed in compliance with Federal statutes, regulations and the terms and conditions of the Federal award. Condition During our audit, we found the District incorrectly overcharged $118,834 of indirect costs to Resource 3213. The District used the incorrect total expenditure amount when calculating the indirect cost charge; therefore, the indirect cost rate was wrong. Questioned Costs A total of $118,834 in questioned costs was identified as a result of the condition identified above. Context The condition was identified through review of the general ledger and indirect cost recalculations for all programs under the ESF Programs. Effect The District is out of compliance with allowable indirect cost charge requirements of the COVID-19 - Elementary and Secondary School Emergency Relief Fund programs. Cause The condition identified above appears to be due to the District not being familiar with the indirect cost requirements for each of the ESF federal programs. In addition, the District’s independent reviewer did not complete a thorough review of the indirect cost calculation. Repeat Finding No Recommendation In the 2023-2024 fiscal year, the District should transfer $118,834 from the District’s General Fund unrestricted resource to the District’s General Fund Resource 3213. In addition, the District should revamp its internal control procedures over indirect cost calculation to ensure that amounts charged are not in excess of approved rate.
Show full finding ▾Hide full finding ▴Federal Program Affected Program Name: COVID-19 - Elementary and Secondary School Emergency Relief (ESSER III) Fund (Resource 3213) Federal Financial Assistance Listing Number: 84.425U Pass-Through Entity: California Department of Education (CDE) Federal Agency: U.S. Department of Education Non-Compliance and Material Weakness of Internal Control Over Compliance: Activities Allowed or Unallowed and Allowable Costs and Cost Principles. Criteria The United States Department of Education has approved a delegation agreement with the California Department of Education (CDE) that authorizes the CDE to establish indirect cost rates for California’s local education agencies (LEAs). The CDE has been delegated authority to calculate and approve indirect cost rates annually for LEAs. For the Education Stabilization Fund (ESF) Programs in fiscal year 2022-2023, Education Code Section 38101(c) limits school districts’ indirect costs to the lesser of the District’s individual CDE approved indirect cost rate, or the statewide average indirect cost rate. Indirect costs for the total ESSER III allocation (Resource 3213 and 3214 combined) should be charged to Resource 3213 only using the LEA allowable indirect cost rate (7.63%). In addition, the Uniform Guidance, Section 200.303 Internal Controls, requires that the non-Federal entity must establish and maintain documentation of effective internal controls over Federal awards that provide reasonable assurance that awards are being managed in compliance with Federal statutes, regulations and the terms and conditions of the Federal award. Condition During our audit, we found the District incorrectly overcharged $118,834 of indirect costs to Resource 3213. The District used the incorrect total expenditure amount when calculating the indirect cost charge; therefore, the indirect cost rate was wrong. Questioned Costs A total of $118,834 in questioned costs was identified as a result of the condition identified above. Context The condition was identified through review of the general ledger and indirect cost recalculations for all programs under the ESF Programs. Effect The District is out of compliance with allowable indirect cost charge requirements of the COVID-19 - Elementary and Secondary School Emergency Relief Fund programs. Cause The condition identified above appears to be due to the District not being familiar with the indirect cost requirements for each of the ESF federal programs. In addition, the District’s independent reviewer did not complete a thorough review of the indirect cost calculation. Repeat Finding No Recommendation In the 2023-2024 fiscal year, the District should transfer $118,834 from the District’s General Fund unrestricted resource to the District’s General Fund Resource 3213. In addition, the District should revamp its internal control procedures over indirect cost calculation to ensure that amounts charged are not in excess of approved rate.
Corrective Action Plan and Views of Responsible Officials The District will make a transfer in the 2023-2024 fiscal year as described in the finding 2023-002. Furthermore, the District agrees that having a review of internal control systems is an important part of the District’s overall internal control process. The District will review and revise processes to monitor and implement necessary controls.
FAC accepted this audit on March 15, 2024 — management decision was due September 15, 2024.
2023‐001 50000 Federal Program Affected Program Name: Education Stabilization Funds Assistance Listing Number: 84.425 Pass‐Through Entity Number: 15559, 10155 Pass‐Through Entity: California Department of Education (CDE) Federal Agency: U.S. Department of Treasury Compliance Requirement: Reporting Type of Finding: Material Weakness in Controls over Compliance Criteria or Specific Requirements Local education agencies must comply with all reporting requirements that the Department of Education may reasonably require. Section 15011 of Division B of the Coronavirus Aid, Relief, and Economic Security (CARES) Act requires that a grantee submit annual reports. In addition, the Uniform Guidance, Section 200.303 Internal Controls, requires that the non‐Federal entity must establish and maintain documentation of effective internal controls over Federal awards that provide reasonable assurance that awards are being managed in compliance with Federal statutes, regulations and the terms and conditions of the Federal award. Condition During our testing over reporting of the Education Stabilization Fund awards, we noted that the County did complete the required annual reports on time. However, the County reported the accumulation of the previous quarterly reports rather than the final end of year accumulation. This did not agree with the most up to date general ledger reports that supported the prior year ending Schedule of Expenditures of Federal Awards (SEFA) amounts, which should have been the proper amounts reported on the annual expenditure reports. ESSER III, Resource 3213, reported expenditures of $901,021 while the SEFA reported $952,102. ESSER III ‐ Learning Loss, Resource 3214, reported expenditures of $145,070 while the SEFA reported $159,989. Questioned Costs Since the correct expenditures were reported on the SEFA, and the annual expenditure reports were only off due to incorrect dates being used to run general ledger reports, the likely questioned cost will be $0. Context The County did not comply with the reporting requirements as specified by the California Department of Education because of the incorrect date used to run reports. Effect The County did not comply with the reporting requirements as specified by the California Department of Education, as well as the internal control requirements for Federal awards. Cause The condition identified appears to have materialized due to the Business Services personnel not using the most up to date general ledger reports when preparing their annual expenditure reports. Repeat Finding No. Recommendation The District should review their policies and procedures related to required reporting requirements of federal awards and ensure that general ledger reports being used are the most accurate and up to date reports.
Show full finding ▾Hide full finding ▴2023‐001 50000 Federal Program Affected Program Name: Education Stabilization Funds Assistance Listing Number: 84.425 Pass‐Through Entity Number: 15559, 10155 Pass‐Through Entity: California Department of Education (CDE) Federal Agency: U.S. Department of Treasury Compliance Requirement: Reporting Type of Finding: Material Weakness in Controls over Compliance Criteria or Specific Requirements Local education agencies must comply with all reporting requirements that the Department of Education may reasonably require. Section 15011 of Division B of the Coronavirus Aid, Relief, and Economic Security (CARES) Act requires that a grantee submit annual reports. In addition, the Uniform Guidance, Section 200.303 Internal Controls, requires that the non‐Federal entity must establish and maintain documentation of effective internal controls over Federal awards that provide reasonable assurance that awards are being managed in compliance with Federal statutes, regulations and the terms and conditions of the Federal award. Condition During our testing over reporting of the Education Stabilization Fund awards, we noted that the County did complete the required annual reports on time. However, the County reported the accumulation of the previous quarterly reports rather than the final end of year accumulation. This did not agree with the most up to date general ledger reports that supported the prior year ending Schedule of Expenditures of Federal Awards (SEFA) amounts, which should have been the proper amounts reported on the annual expenditure reports. ESSER III, Resource 3213, reported expenditures of $901,021 while the SEFA reported $952,102. ESSER III ‐ Learning Loss, Resource 3214, reported expenditures of $145,070 while the SEFA reported $159,989. Questioned Costs Since the correct expenditures were reported on the SEFA, and the annual expenditure reports were only off due to incorrect dates being used to run general ledger reports, the likely questioned cost will be $0. Context The County did not comply with the reporting requirements as specified by the California Department of Education because of the incorrect date used to run reports. Effect The County did not comply with the reporting requirements as specified by the California Department of Education, as well as the internal control requirements for Federal awards. Cause The condition identified appears to have materialized due to the Business Services personnel not using the most up to date general ledger reports when preparing their annual expenditure reports. Repeat Finding No. Recommendation The District should review their policies and procedures related to required reporting requirements of federal awards and ensure that general ledger reports being used are the most accurate and up to date reports.
Corrective Action Plan and Views of Responsible Officials All staff responsible for reporting have reviewed all established procedures to avoid a date error in the future.
Federal Program Affected Program Name: COVID-19 - Elementary and Secondary School Emergency Relief (ESSER III) Fund (Resource 3213) Federal Financial Assistance Listing Number: 84.425U Pass-Through Entity: California Department of Education (CDE) Federal Agency: U.S. Department of Education Non-Compliance and Material Weakness of Internal Control Over Compliance: Activities Allowed or Unallowed and Allowable Costs and Cost Principles. Criteria The United States Department of Education has approved a delegation agreement with the California Department of Education (CDE) that authorizes the CDE to establish indirect cost rates for California’s local education agencies (LEAs). The CDE has been delegated authority to calculate and approve indirect cost rates annually for LEAs. For the Education Stabilization Fund (ESF) Programs in fiscal year 2022-2023, Education Code Section 38101(c) limits school districts’ indirect costs to the lesser of the District’s individual CDE approved indirect cost rate, or the statewide average indirect cost rate. Indirect costs for the total ESSER III allocation (Resource 3213 and 3214 combined) should be charged to Resource 3213 only using the LEA allowable indirect cost rate (7.63%). In addition, the Uniform Guidance, Section 200.303 Internal Controls, requires that the non-Federal entity must establish and maintain documentation of effective internal controls over Federal awards that provide reasonable assurance that awards are being managed in compliance with Federal statutes, regulations and the terms and conditions of the Federal award. Condition During our audit, we found the District incorrectly overcharged $118,834 of indirect costs to Resource 3213. The District used the incorrect total expenditure amount when calculating the indirect cost charge; therefore, the indirect cost rate was wrong. Questioned Costs A total of $118,834 in questioned costs was identified as a result of the condition identified above. Context The condition was identified through review of the general ledger and indirect cost recalculations for all programs under the ESF Programs. Effect The District is out of compliance with allowable indirect cost charge requirements of the COVID-19 - Elementary and Secondary School Emergency Relief Fund programs. Cause The condition identified above appears to be due to the District not being familiar with the indirect cost requirements for each of the ESF federal programs. In addition, the District’s independent reviewer did not complete a thorough review of the indirect cost calculation. Repeat Finding No Recommendation In the 2023-2024 fiscal year, the District should transfer $118,834 from the District’s General Fund unrestricted resource to the District’s General Fund Resource 3213. In addition, the District should revamp its internal control procedures over indirect cost calculation to ensure that amounts charged are not in excess of approved rate.
Show full finding ▾Hide full finding ▴Federal Program Affected Program Name: COVID-19 - Elementary and Secondary School Emergency Relief (ESSER III) Fund (Resource 3213) Federal Financial Assistance Listing Number: 84.425U Pass-Through Entity: California Department of Education (CDE) Federal Agency: U.S. Department of Education Non-Compliance and Material Weakness of Internal Control Over Compliance: Activities Allowed or Unallowed and Allowable Costs and Cost Principles. Criteria The United States Department of Education has approved a delegation agreement with the California Department of Education (CDE) that authorizes the CDE to establish indirect cost rates for California’s local education agencies (LEAs). The CDE has been delegated authority to calculate and approve indirect cost rates annually for LEAs. For the Education Stabilization Fund (ESF) Programs in fiscal year 2022-2023, Education Code Section 38101(c) limits school districts’ indirect costs to the lesser of the District’s individual CDE approved indirect cost rate, or the statewide average indirect cost rate. Indirect costs for the total ESSER III allocation (Resource 3213 and 3214 combined) should be charged to Resource 3213 only using the LEA allowable indirect cost rate (7.63%). In addition, the Uniform Guidance, Section 200.303 Internal Controls, requires that the non-Federal entity must establish and maintain documentation of effective internal controls over Federal awards that provide reasonable assurance that awards are being managed in compliance with Federal statutes, regulations and the terms and conditions of the Federal award. Condition During our audit, we found the District incorrectly overcharged $118,834 of indirect costs to Resource 3213. The District used the incorrect total expenditure amount when calculating the indirect cost charge; therefore, the indirect cost rate was wrong. Questioned Costs A total of $118,834 in questioned costs was identified as a result of the condition identified above. Context The condition was identified through review of the general ledger and indirect cost recalculations for all programs under the ESF Programs. Effect The District is out of compliance with allowable indirect cost charge requirements of the COVID-19 - Elementary and Secondary School Emergency Relief Fund programs. Cause The condition identified above appears to be due to the District not being familiar with the indirect cost requirements for each of the ESF federal programs. In addition, the District’s independent reviewer did not complete a thorough review of the indirect cost calculation. Repeat Finding No Recommendation In the 2023-2024 fiscal year, the District should transfer $118,834 from the District’s General Fund unrestricted resource to the District’s General Fund Resource 3213. In addition, the District should revamp its internal control procedures over indirect cost calculation to ensure that amounts charged are not in excess of approved rate.
Corrective Action Plan and Views of Responsible Officials The District will make a transfer in the 2023-2024 fiscal year as described in the finding 2023-002. Furthermore, the District agrees that having a review of internal control systems is an important part of the District’s overall internal control process. The District will review and revise processes to monitor and implement necessary controls.
FAC accepted this audit on March 15, 2024 — management decision was due September 15, 2024.
2023‐001 50000 Federal Program Affected Program Name: Education Stabilization Funds Assistance Listing Number: 84.425 Pass‐Through Entity Number: 15559, 10155 Pass‐Through Entity: California Department of Education (CDE) Federal Agency: U.S. Department of Treasury Compliance Requirement: Reporting Type of Finding: Material Weakness in Controls over Compliance Criteria or Specific Requirements Local education agencies must comply with all reporting requirements that the Department of Education may reasonably require. Section 15011 of Division B of the Coronavirus Aid, Relief, and Economic Security (CARES) Act requires that a grantee submit annual reports. In addition, the Uniform Guidance, Section 200.303 Internal Controls, requires that the non‐Federal entity must establish and maintain documentation of effective internal controls over Federal awards that provide reasonable assurance that awards are being managed in compliance with Federal statutes, regulations and the terms and conditions of the Federal award. Condition During our testing over reporting of the Education Stabilization Fund awards, we noted that the County did complete the required annual reports on time. However, the County reported the accumulation of the previous quarterly reports rather than the final end of year accumulation. This did not agree with the most up to date general ledger reports that supported the prior year ending Schedule of Expenditures of Federal Awards (SEFA) amounts, which should have been the proper amounts reported on the annual expenditure reports. ESSER III, Resource 3213, reported expenditures of $901,021 while the SEFA reported $952,102. ESSER III ‐ Learning Loss, Resource 3214, reported expenditures of $145,070 while the SEFA reported $159,989. Questioned Costs Since the correct expenditures were reported on the SEFA, and the annual expenditure reports were only off due to incorrect dates being used to run general ledger reports, the likely questioned cost will be $0. Context The County did not comply with the reporting requirements as specified by the California Department of Education because of the incorrect date used to run reports. Effect The County did not comply with the reporting requirements as specified by the California Department of Education, as well as the internal control requirements for Federal awards. Cause The condition identified appears to have materialized due to the Business Services personnel not using the most up to date general ledger reports when preparing their annual expenditure reports. Repeat Finding No. Recommendation The District should review their policies and procedures related to required reporting requirements of federal awards and ensure that general ledger reports being used are the most accurate and up to date reports.
Show full finding ▾Hide full finding ▴2023‐001 50000 Federal Program Affected Program Name: Education Stabilization Funds Assistance Listing Number: 84.425 Pass‐Through Entity Number: 15559, 10155 Pass‐Through Entity: California Department of Education (CDE) Federal Agency: U.S. Department of Treasury Compliance Requirement: Reporting Type of Finding: Material Weakness in Controls over Compliance Criteria or Specific Requirements Local education agencies must comply with all reporting requirements that the Department of Education may reasonably require. Section 15011 of Division B of the Coronavirus Aid, Relief, and Economic Security (CARES) Act requires that a grantee submit annual reports. In addition, the Uniform Guidance, Section 200.303 Internal Controls, requires that the non‐Federal entity must establish and maintain documentation of effective internal controls over Federal awards that provide reasonable assurance that awards are being managed in compliance with Federal statutes, regulations and the terms and conditions of the Federal award. Condition During our testing over reporting of the Education Stabilization Fund awards, we noted that the County did complete the required annual reports on time. However, the County reported the accumulation of the previous quarterly reports rather than the final end of year accumulation. This did not agree with the most up to date general ledger reports that supported the prior year ending Schedule of Expenditures of Federal Awards (SEFA) amounts, which should have been the proper amounts reported on the annual expenditure reports. ESSER III, Resource 3213, reported expenditures of $901,021 while the SEFA reported $952,102. ESSER III ‐ Learning Loss, Resource 3214, reported expenditures of $145,070 while the SEFA reported $159,989. Questioned Costs Since the correct expenditures were reported on the SEFA, and the annual expenditure reports were only off due to incorrect dates being used to run general ledger reports, the likely questioned cost will be $0. Context The County did not comply with the reporting requirements as specified by the California Department of Education because of the incorrect date used to run reports. Effect The County did not comply with the reporting requirements as specified by the California Department of Education, as well as the internal control requirements for Federal awards. Cause The condition identified appears to have materialized due to the Business Services personnel not using the most up to date general ledger reports when preparing their annual expenditure reports. Repeat Finding No. Recommendation The District should review their policies and procedures related to required reporting requirements of federal awards and ensure that general ledger reports being used are the most accurate and up to date reports.
Corrective Action Plan and Views of Responsible Officials All staff responsible for reporting have reviewed all established procedures to avoid a date error in the future.
Federal Program Affected Program Name: COVID-19 - Elementary and Secondary School Emergency Relief (ESSER III) Fund (Resource 3213) Federal Financial Assistance Listing Number: 84.425U Pass-Through Entity: California Department of Education (CDE) Federal Agency: U.S. Department of Education Non-Compliance and Material Weakness of Internal Control Over Compliance: Activities Allowed or Unallowed and Allowable Costs and Cost Principles. Criteria The United States Department of Education has approved a delegation agreement with the California Department of Education (CDE) that authorizes the CDE to establish indirect cost rates for California’s local education agencies (LEAs). The CDE has been delegated authority to calculate and approve indirect cost rates annually for LEAs. For the Education Stabilization Fund (ESF) Programs in fiscal year 2022-2023, Education Code Section 38101(c) limits school districts’ indirect costs to the lesser of the District’s individual CDE approved indirect cost rate, or the statewide average indirect cost rate. Indirect costs for the total ESSER III allocation (Resource 3213 and 3214 combined) should be charged to Resource 3213 only using the LEA allowable indirect cost rate (7.63%). In addition, the Uniform Guidance, Section 200.303 Internal Controls, requires that the non-Federal entity must establish and maintain documentation of effective internal controls over Federal awards that provide reasonable assurance that awards are being managed in compliance with Federal statutes, regulations and the terms and conditions of the Federal award. Condition During our audit, we found the District incorrectly overcharged $118,834 of indirect costs to Resource 3213. The District used the incorrect total expenditure amount when calculating the indirect cost charge; therefore, the indirect cost rate was wrong. Questioned Costs A total of $118,834 in questioned costs was identified as a result of the condition identified above. Context The condition was identified through review of the general ledger and indirect cost recalculations for all programs under the ESF Programs. Effect The District is out of compliance with allowable indirect cost charge requirements of the COVID-19 - Elementary and Secondary School Emergency Relief Fund programs. Cause The condition identified above appears to be due to the District not being familiar with the indirect cost requirements for each of the ESF federal programs. In addition, the District’s independent reviewer did not complete a thorough review of the indirect cost calculation. Repeat Finding No Recommendation In the 2023-2024 fiscal year, the District should transfer $118,834 from the District’s General Fund unrestricted resource to the District’s General Fund Resource 3213. In addition, the District should revamp its internal control procedures over indirect cost calculation to ensure that amounts charged are not in excess of approved rate.
Show full finding ▾Hide full finding ▴Federal Program Affected Program Name: COVID-19 - Elementary and Secondary School Emergency Relief (ESSER III) Fund (Resource 3213) Federal Financial Assistance Listing Number: 84.425U Pass-Through Entity: California Department of Education (CDE) Federal Agency: U.S. Department of Education Non-Compliance and Material Weakness of Internal Control Over Compliance: Activities Allowed or Unallowed and Allowable Costs and Cost Principles. Criteria The United States Department of Education has approved a delegation agreement with the California Department of Education (CDE) that authorizes the CDE to establish indirect cost rates for California’s local education agencies (LEAs). The CDE has been delegated authority to calculate and approve indirect cost rates annually for LEAs. For the Education Stabilization Fund (ESF) Programs in fiscal year 2022-2023, Education Code Section 38101(c) limits school districts’ indirect costs to the lesser of the District’s individual CDE approved indirect cost rate, or the statewide average indirect cost rate. Indirect costs for the total ESSER III allocation (Resource 3213 and 3214 combined) should be charged to Resource 3213 only using the LEA allowable indirect cost rate (7.63%). In addition, the Uniform Guidance, Section 200.303 Internal Controls, requires that the non-Federal entity must establish and maintain documentation of effective internal controls over Federal awards that provide reasonable assurance that awards are being managed in compliance with Federal statutes, regulations and the terms and conditions of the Federal award. Condition During our audit, we found the District incorrectly overcharged $118,834 of indirect costs to Resource 3213. The District used the incorrect total expenditure amount when calculating the indirect cost charge; therefore, the indirect cost rate was wrong. Questioned Costs A total of $118,834 in questioned costs was identified as a result of the condition identified above. Context The condition was identified through review of the general ledger and indirect cost recalculations for all programs under the ESF Programs. Effect The District is out of compliance with allowable indirect cost charge requirements of the COVID-19 - Elementary and Secondary School Emergency Relief Fund programs. Cause The condition identified above appears to be due to the District not being familiar with the indirect cost requirements for each of the ESF federal programs. In addition, the District’s independent reviewer did not complete a thorough review of the indirect cost calculation. Repeat Finding No Recommendation In the 2023-2024 fiscal year, the District should transfer $118,834 from the District’s General Fund unrestricted resource to the District’s General Fund Resource 3213. In addition, the District should revamp its internal control procedures over indirect cost calculation to ensure that amounts charged are not in excess of approved rate.
Corrective Action Plan and Views of Responsible Officials The District will make a transfer in the 2023-2024 fiscal year as described in the finding 2023-002. Furthermore, the District agrees that having a review of internal control systems is an important part of the District’s overall internal control process. The District will review and revise processes to monitor and implement necessary controls.
FAC accepted this audit on March 15, 2023 — management decision was due September 15, 2023.
FAC accepted this audit on April 10, 2023 — management decision was due October 10, 2023.
FAC accepted this audit on February 26, 2023 — management decision was due August 26, 2023.
FAC accepted this audit on July 10, 2022 — management decision was due January 10, 2023.
FAC accepted this audit on April 27, 2022 — management decision was due October 27, 2022.
FAC accepted this audit on April 19, 2022 — management decision was due October 19, 2022.
FAC accepted this audit on April 22, 2021 — management decision was due October 22, 2021.
FAC accepted this audit on March 31, 2021 — management decision was due October 1, 2021.
FAC accepted this audit on April 25, 2021 — management decision was due October 25, 2021.
FAC accepted this audit on November 19, 2019 — management decision was due May 19, 2020.
FAC accepted this audit on November 19, 2019 — management decision was due May 19, 2020.
FAC accepted this audit on November 19, 2019 — management decision was due May 19, 2020.
FAC accepted this audit on December 17, 2018 — management decision was due June 17, 2019.
FAC accepted this audit on December 17, 2018 — management decision was due June 17, 2019.
FAC accepted this audit on December 19, 2018 — management decision was due June 19, 2019.
FAC accepted this audit on December 18, 2017 — management decision was due June 18, 2018.
FAC accepted this audit on December 19, 2017 — management decision was due June 19, 2018.
FAC accepted this audit on December 19, 2017 — management decision was due June 19, 2018.
FAC accepted this audit on December 19, 2016 — management decision was due June 19, 2017.
FAC accepted this audit on December 18, 2016 — management decision was due June 18, 2017.
FAC accepted this audit on December 21, 2016 — management decision was due June 21, 2017.
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