Newport-Mesa Unified School District

50000 ? Education Stabilization Fund Reporting (Significant Deficiency, Noncompliance) Federal Program Affected Program Name: Elementary and Secondary School Emergency Relief Fund III (ESSER III): Learning Loss Assistance Listing Number: 84.425U Pass-Through Entity: California Department of Education (CDE) Federal Agency: U.S. Department of Education 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 quarterly reports. ESSER Funds awarded under the American Rescue Plan (ARP) Act of 2021 are subject to the same quarterly reporting requirements. Condition The District did not properly prepare the quarterly reports for the Elementary and Secondary School Emergency Relief Fund III (ESSER III): Learning Loss program. Questioned Costs There are no questioned costs associated with the condition identified. Context The condition was identified through review of a sample of the quarterly reports prepared for the program. In a sample of 11 quarterly reports, it was noted that one report did not accurately report the expenditures incurred for that quarter. Effect The District overreported expenditures for ARP ESSER funds and, as such, is not in compliance with the reporting requirements for the program. Cause It appears that the condition has materialized due to an anticipated year-end closing entry to transfer expenditures into the program not being posted. Repeat Finding No. Recommendation The District should implement a review process to ensure that the information reported in the quarterly reports is accurate. Corrective Action Plan and Views of Responsible Officials The District reported what was believed to be transferred into the program by the close of the fiscal year. Unfortunately, those expenses were not moved as the books were closed long after the reporting deadline. The report was adjusted with the CDE at the following reporting period and now reflect the correct expenditures. In the future, all related year-end transfers will be prioritized and completed prior to the reporting deadlines to ensure that they match.

The District reported what was believed to be transferred into the program by the close of the fiscal year. Unfortunately, those expenses were not moved as the books were closed long after the reporting deadline. The report was adjusted with the CDE at the following reporting period and now reflect the correct expenditures. In the future, all related year-end transfers will be prioritized and completed prior to the reporting deadlines to ensure that they match.