FAC Explorer

Audit 293975

FY End
2023-06-30
Total Expended
$10.45M
Findings
6
Programs
20
Organization: Empire Union School District (CA)
Year: 2023 Accepted: 2024-03-07
Auditor: Eide Bailly LLP

Organization Exclusion Status:

Findings

ID Ref Severity Repeat Requirement
374369 2023-002 Significant Deficiency - B
374370 2023-002 Significant Deficiency - B
374371 2023-002 Significant Deficiency - B
950811 2023-002 Significant Deficiency - B
950812 2023-002 Significant Deficiency - B
950813 2023-002 Significant Deficiency - B

Programs

ALN Program Spent Major Findings
84.425 Covid‐19, Elementary and Secondary School Emergency Relief II (esser Ii) Fund $1.95M Yes 0
93.600 Head Start $1.81M Yes 0
10.555 National School Lunch Program $1.38M - 0
84.425 Covid‐19, Elementary and Secondary School Emergency Relief (esser Iii) Fund $1.02M Yes 0
84.010 Title I ‐ Part A, Basic $986,895 - 0
84.027 Special Education, Basic Local Assistance Entitlement, Part B, Section 611 $593,926 - 0
10.558 Child and Adult Care Food Program $522,250 - 0
84.425 Covid‐19, Elementary and Secondary School Emergency Relief III (esser Iii) Fund: Learning Loss $515,552 Yes 1
10.553 School Breakfast Program ‐ Especially Needy Breakfast $439,566 - 0
84.425 Covid‐19, Expanded Learning Opportunities (elo) Grant Esser II State Reserve $317,651 Yes 1
10.555 National School Lunch Program ‐ Commodity Supplemental Food $155,361 - 0
84.367 Title II ‐ Part A, Supporting Effectiveness Instruction $153,219 - 0
84.027 Covid‐19, Special Education: Arp Edea Part B, Sec. 611, Local Assistance Entitlement $137,207 - 0
84.365 Title III ‐ English Language Acquisition ‐ Lep $117,210 - 0
84.424 Title IV ‐ Part A, Student Support and Academic Enrichment Program $114,227 - 0
93.575 Covid‐19, Child Development: Arp California State Preschool Program One‐time Stipend $88,037 - 0
84.425 Covid‐19, Expanded Opportunities (elo) Grant Geer II $72,904 Yes 1
10.559 Summer Food Service Program $36,994 - 0
93.575 Covid‐19, Child Development: Coronavirus Response and Relief Appropriations (crrsa) Act $27,007 - 0
84.365 Title III ‐ English Language Acquisition ‐ Iep $9,586 - 0

Contacts

Name Title Type
P564VF4QCA53 Andreya Viscovich Auditee
2095212800 Bill Williams Auditor
No contacts on file

Notes to SEFA

Title: Basis of Presentation Accounting Policies: The accompanying Schedule of Expenditures of Federal Awards includes the Federal grant activity of the District and is presented on the modified accrual basis of accounting. The information in this schedule is presented in accordance with the requirements of Title 2 U.S. Code of Federal Regulations Part 200, Uniform Administrative Requirements, Cost Principles, and Audit Requirements for Federal Awards (Uniform Guidance). Therefore, some amounts presented in this schedule may differ from amounts presented in, or used in the preparation of, the financial statements. The District has not elected to use the ten percent de minimis cost rate as covered in Section 200.414 Indirect (F&A) costs of the Uniform Guidance. De Minimis Rate Used: N Rate Explanation: The auditee did not use the de minimis cost rate. The accompanying Schedule of Expenditures of Federal Awards (the schedule) includes the federal award activity of the Empire Union School District (the District) under programs of the federal government for the year ended June 30, 2023. The information is presented in accordance with the requirements of Title 2 U.S. Code of Federal Regulations Part 200, Uniform Administrative Requirements, Cost Principles, and Audit Requirements for Federal Awards (Uniform Guidance). Because the schedule presents only a selected portion of the operations of the Empire Union School District, it is not intended to and does not present the net position, changes in net position or fund balances of Empire Union School District.
Title: Summary of Significant Accounting Policies Accounting Policies: The accompanying Schedule of Expenditures of Federal Awards includes the Federal grant activity of the District and is presented on the modified accrual basis of accounting. The information in this schedule is presented in accordance with the requirements of Title 2 U.S. Code of Federal Regulations Part 200, Uniform Administrative Requirements, Cost Principles, and Audit Requirements for Federal Awards (Uniform Guidance). Therefore, some amounts presented in this schedule may differ from amounts presented in, or used in the preparation of, the financial statements. The District has not elected to use the ten percent de minimis cost rate as covered in Section 200.414 Indirect (F&A) costs of the Uniform Guidance. De Minimis Rate Used: N Rate Explanation: The auditee did not use the de minimis cost rate. Expenditures reported in the schedule are reported on the modified accrual basis of accounting. When applicable, such expenditures are recognized following the cost principles contained in the Uniform Guidance, wherein certain types of expenditures are not allowable or are limited as to reimbursement. No federal financial assistance has been provided to a subrecipient.
Title: Indirect Cost Rate Accounting Policies: The accompanying Schedule of Expenditures of Federal Awards includes the Federal grant activity of the District and is presented on the modified accrual basis of accounting. The information in this schedule is presented in accordance with the requirements of Title 2 U.S. Code of Federal Regulations Part 200, Uniform Administrative Requirements, Cost Principles, and Audit Requirements for Federal Awards (Uniform Guidance). Therefore, some amounts presented in this schedule may differ from amounts presented in, or used in the preparation of, the financial statements. The District has not elected to use the ten percent de minimis cost rate as covered in Section 200.414 Indirect (F&A) costs of the Uniform Guidance. De Minimis Rate Used: N Rate Explanation: The auditee did not use the de minimis cost rate. The District has not elected to use the ten percent de minimis cost rate.
Title: Food Donation Accounting Policies: The accompanying Schedule of Expenditures of Federal Awards includes the Federal grant activity of the District and is presented on the modified accrual basis of accounting. The information in this schedule is presented in accordance with the requirements of Title 2 U.S. Code of Federal Regulations Part 200, Uniform Administrative Requirements, Cost Principles, and Audit Requirements for Federal Awards (Uniform Guidance). Therefore, some amounts presented in this schedule may differ from amounts presented in, or used in the preparation of, the financial statements. The District has not elected to use the ten percent de minimis cost rate as covered in Section 200.414 Indirect (F&A) costs of the Uniform Guidance. De Minimis Rate Used: N Rate Explanation: The auditee did not use the de minimis cost rate. Nonmonetary assistance is reported in this schedule at the fair market value of the commodities received and disbursed. At June 30, 2023, the District had used such food commodities in the 2022‐2023 fiscal year totaling $155,361.
Title: SEFA Reconciliation Accounting Policies: The accompanying Schedule of Expenditures of Federal Awards includes the Federal grant activity of the District and is presented on the modified accrual basis of accounting. The information in this schedule is presented in accordance with the requirements of Title 2 U.S. Code of Federal Regulations Part 200, Uniform Administrative Requirements, Cost Principles, and Audit Requirements for Federal Awards (Uniform Guidance). Therefore, some amounts presented in this schedule may differ from amounts presented in, or used in the preparation of, the financial statements. The District has not elected to use the ten percent de minimis cost rate as covered in Section 200.414 Indirect (F&A) costs of the Uniform Guidance. De Minimis Rate Used: N Rate Explanation: The auditee did not use the de minimis cost rate. The following schedule provides reconciliation between revenues reported on the Statement of Revenues, Expenditures, and Changes in Fund Balances, and the related expenditures reported on the Schedule of Expenditures of Federal Awards. The reconciling amount consists of the unspent portion of funds received for the Supply Chain Assistance (SCA) grant.

Finding Details

Finding 2023-002
Federal Program Affected Program Name: COVID‐19 ‐ Elementary and Secondary School Emergency Relief (ESSER III) Fund: Learning Loss (Resource 3214), Expanded Learning Opportunities (ELO) Grant: ESSER II State Reserve (Resource 3216), and Expanded Learning Opportunities (ELO) Grant: GEER II (Resource 3217) Assistance Listing Number: 84.425U, 84.425D, 84.425C Pass‐Through Entity: California Department of Education (CDE) Federal Agency: U.S. Department of Education Criteria The United States Department of Education has approved a delegation agreement with the California Department of Education (CDE) that authorizes the CDE to provide funding to LEAs pursuant to the American Rescue Plan of 2021 (ARP Act) to address the learning loss requirement portion of ESSER III funds. Indirect costs for the total ESSER III allocation (Resource 3213 and 3214 combined) should be charged to Resource 3213 only. In addition, indirect cost for the Expanded Learning Opportunities, ESSER II State Reserves program (Resource 3216) and the Expanded Learning Opportunities, GEER II program (Resource 3217) is not allowable. Additional information is available on the on the CDE’s ARP Act Funding web page at https://www.cde.ca.gov/fg/cr/arpact.asp#esseriiialloc. Condition During our audit, we found the District incorrectly charged $24,363 of indirect costs to Resource 3214. The District’s total indirect costs, $42,097, for Resources 3213 and 3214 combined were under the LEA approved rate of 4.96%. In addition, the District incorrectly charged $15,008 of indirect costs to Resource 3216 and $3,440 of indirect costs to Resource 3217, which do not allow indirect costs for those resources. Questioned Costs A total of $42,811 in questioned costs was identified as a result of the conditions identified above. As the total indirect costs charged to resources 3213 and 3214 were under the District’s approved rate, the likely questioned cost is deemed to be $18,448 for resources 3216 (Expanding Learning Opportunities Grant (ESSER II) and Expanding Learning Opportunities Grant (GEER II). Context The conditions were identified as a result of the auditor’s federal program testing of the District’s indirect cost charges. 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 varying indirect cost requirements for each of the ESF federal programs. Recommendation In the 2023‐2024 fiscal year, the District should transfer $24,363 from the District’s General Fund Resource 3213 to the District’s General Fund Resource 3214, as well as, transferring $15,008 and $3,440 from the District’s General Fund unrestricted resource to Resources 3216 and 3217. In addition, the District should review their procedures to ensure it is only charging indirect costs to those programs that allow it.
Finding 2023-002
Federal Program Affected Program Name: COVID‐19 ‐ Elementary and Secondary School Emergency Relief (ESSER III) Fund: Learning Loss (Resource 3214), Expanded Learning Opportunities (ELO) Grant: ESSER II State Reserve (Resource 3216), and Expanded Learning Opportunities (ELO) Grant: GEER II (Resource 3217) Assistance Listing Number: 84.425U, 84.425D, 84.425C Pass‐Through Entity: California Department of Education (CDE) Federal Agency: U.S. Department of Education Criteria The United States Department of Education has approved a delegation agreement with the California Department of Education (CDE) that authorizes the CDE to provide funding to LEAs pursuant to the American Rescue Plan of 2021 (ARP Act) to address the learning loss requirement portion of ESSER III funds. Indirect costs for the total ESSER III allocation (Resource 3213 and 3214 combined) should be charged to Resource 3213 only. In addition, indirect cost for the Expanded Learning Opportunities, ESSER II State Reserves program (Resource 3216) and the Expanded Learning Opportunities, GEER II program (Resource 3217) is not allowable. Additional information is available on the on the CDE’s ARP Act Funding web page at https://www.cde.ca.gov/fg/cr/arpact.asp#esseriiialloc. Condition During our audit, we found the District incorrectly charged $24,363 of indirect costs to Resource 3214. The District’s total indirect costs, $42,097, for Resources 3213 and 3214 combined were under the LEA approved rate of 4.96%. In addition, the District incorrectly charged $15,008 of indirect costs to Resource 3216 and $3,440 of indirect costs to Resource 3217, which do not allow indirect costs for those resources. Questioned Costs A total of $42,811 in questioned costs was identified as a result of the conditions identified above. As the total indirect costs charged to resources 3213 and 3214 were under the District’s approved rate, the likely questioned cost is deemed to be $18,448 for resources 3216 (Expanding Learning Opportunities Grant (ESSER II) and Expanding Learning Opportunities Grant (GEER II). Context The conditions were identified as a result of the auditor’s federal program testing of the District’s indirect cost charges. 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 varying indirect cost requirements for each of the ESF federal programs. Recommendation In the 2023‐2024 fiscal year, the District should transfer $24,363 from the District’s General Fund Resource 3213 to the District’s General Fund Resource 3214, as well as, transferring $15,008 and $3,440 from the District’s General Fund unrestricted resource to Resources 3216 and 3217. In addition, the District should review their procedures to ensure it is only charging indirect costs to those programs that allow it.
Finding 2023-002
Federal Program Affected Program Name: COVID‐19 ‐ Elementary and Secondary School Emergency Relief (ESSER III) Fund: Learning Loss (Resource 3214), Expanded Learning Opportunities (ELO) Grant: ESSER II State Reserve (Resource 3216), and Expanded Learning Opportunities (ELO) Grant: GEER II (Resource 3217) Assistance Listing Number: 84.425U, 84.425D, 84.425C Pass‐Through Entity: California Department of Education (CDE) Federal Agency: U.S. Department of Education Criteria The United States Department of Education has approved a delegation agreement with the California Department of Education (CDE) that authorizes the CDE to provide funding to LEAs pursuant to the American Rescue Plan of 2021 (ARP Act) to address the learning loss requirement portion of ESSER III funds. Indirect costs for the total ESSER III allocation (Resource 3213 and 3214 combined) should be charged to Resource 3213 only. In addition, indirect cost for the Expanded Learning Opportunities, ESSER II State Reserves program (Resource 3216) and the Expanded Learning Opportunities, GEER II program (Resource 3217) is not allowable. Additional information is available on the on the CDE’s ARP Act Funding web page at https://www.cde.ca.gov/fg/cr/arpact.asp#esseriiialloc. Condition During our audit, we found the District incorrectly charged $24,363 of indirect costs to Resource 3214. The District’s total indirect costs, $42,097, for Resources 3213 and 3214 combined were under the LEA approved rate of 4.96%. In addition, the District incorrectly charged $15,008 of indirect costs to Resource 3216 and $3,440 of indirect costs to Resource 3217, which do not allow indirect costs for those resources. Questioned Costs A total of $42,811 in questioned costs was identified as a result of the conditions identified above. As the total indirect costs charged to resources 3213 and 3214 were under the District’s approved rate, the likely questioned cost is deemed to be $18,448 for resources 3216 (Expanding Learning Opportunities Grant (ESSER II) and Expanding Learning Opportunities Grant (GEER II). Context The conditions were identified as a result of the auditor’s federal program testing of the District’s indirect cost charges. 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 varying indirect cost requirements for each of the ESF federal programs. Recommendation In the 2023‐2024 fiscal year, the District should transfer $24,363 from the District’s General Fund Resource 3213 to the District’s General Fund Resource 3214, as well as, transferring $15,008 and $3,440 from the District’s General Fund unrestricted resource to Resources 3216 and 3217. In addition, the District should review their procedures to ensure it is only charging indirect costs to those programs that allow it.
Finding 2023-002
Federal Program Affected Program Name: COVID‐19 ‐ Elementary and Secondary School Emergency Relief (ESSER III) Fund: Learning Loss (Resource 3214), Expanded Learning Opportunities (ELO) Grant: ESSER II State Reserve (Resource 3216), and Expanded Learning Opportunities (ELO) Grant: GEER II (Resource 3217) Assistance Listing Number: 84.425U, 84.425D, 84.425C Pass‐Through Entity: California Department of Education (CDE) Federal Agency: U.S. Department of Education Criteria The United States Department of Education has approved a delegation agreement with the California Department of Education (CDE) that authorizes the CDE to provide funding to LEAs pursuant to the American Rescue Plan of 2021 (ARP Act) to address the learning loss requirement portion of ESSER III funds. Indirect costs for the total ESSER III allocation (Resource 3213 and 3214 combined) should be charged to Resource 3213 only. In addition, indirect cost for the Expanded Learning Opportunities, ESSER II State Reserves program (Resource 3216) and the Expanded Learning Opportunities, GEER II program (Resource 3217) is not allowable. Additional information is available on the on the CDE’s ARP Act Funding web page at https://www.cde.ca.gov/fg/cr/arpact.asp#esseriiialloc. Condition During our audit, we found the District incorrectly charged $24,363 of indirect costs to Resource 3214. The District’s total indirect costs, $42,097, for Resources 3213 and 3214 combined were under the LEA approved rate of 4.96%. In addition, the District incorrectly charged $15,008 of indirect costs to Resource 3216 and $3,440 of indirect costs to Resource 3217, which do not allow indirect costs for those resources. Questioned Costs A total of $42,811 in questioned costs was identified as a result of the conditions identified above. As the total indirect costs charged to resources 3213 and 3214 were under the District’s approved rate, the likely questioned cost is deemed to be $18,448 for resources 3216 (Expanding Learning Opportunities Grant (ESSER II) and Expanding Learning Opportunities Grant (GEER II). Context The conditions were identified as a result of the auditor’s federal program testing of the District’s indirect cost charges. 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 varying indirect cost requirements for each of the ESF federal programs. Recommendation In the 2023‐2024 fiscal year, the District should transfer $24,363 from the District’s General Fund Resource 3213 to the District’s General Fund Resource 3214, as well as, transferring $15,008 and $3,440 from the District’s General Fund unrestricted resource to Resources 3216 and 3217. In addition, the District should review their procedures to ensure it is only charging indirect costs to those programs that allow it.
Finding 2023-002
Federal Program Affected Program Name: COVID‐19 ‐ Elementary and Secondary School Emergency Relief (ESSER III) Fund: Learning Loss (Resource 3214), Expanded Learning Opportunities (ELO) Grant: ESSER II State Reserve (Resource 3216), and Expanded Learning Opportunities (ELO) Grant: GEER II (Resource 3217) Assistance Listing Number: 84.425U, 84.425D, 84.425C Pass‐Through Entity: California Department of Education (CDE) Federal Agency: U.S. Department of Education Criteria The United States Department of Education has approved a delegation agreement with the California Department of Education (CDE) that authorizes the CDE to provide funding to LEAs pursuant to the American Rescue Plan of 2021 (ARP Act) to address the learning loss requirement portion of ESSER III funds. Indirect costs for the total ESSER III allocation (Resource 3213 and 3214 combined) should be charged to Resource 3213 only. In addition, indirect cost for the Expanded Learning Opportunities, ESSER II State Reserves program (Resource 3216) and the Expanded Learning Opportunities, GEER II program (Resource 3217) is not allowable. Additional information is available on the on the CDE’s ARP Act Funding web page at https://www.cde.ca.gov/fg/cr/arpact.asp#esseriiialloc. Condition During our audit, we found the District incorrectly charged $24,363 of indirect costs to Resource 3214. The District’s total indirect costs, $42,097, for Resources 3213 and 3214 combined were under the LEA approved rate of 4.96%. In addition, the District incorrectly charged $15,008 of indirect costs to Resource 3216 and $3,440 of indirect costs to Resource 3217, which do not allow indirect costs for those resources. Questioned Costs A total of $42,811 in questioned costs was identified as a result of the conditions identified above. As the total indirect costs charged to resources 3213 and 3214 were under the District’s approved rate, the likely questioned cost is deemed to be $18,448 for resources 3216 (Expanding Learning Opportunities Grant (ESSER II) and Expanding Learning Opportunities Grant (GEER II). Context The conditions were identified as a result of the auditor’s federal program testing of the District’s indirect cost charges. 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 varying indirect cost requirements for each of the ESF federal programs. Recommendation In the 2023‐2024 fiscal year, the District should transfer $24,363 from the District’s General Fund Resource 3213 to the District’s General Fund Resource 3214, as well as, transferring $15,008 and $3,440 from the District’s General Fund unrestricted resource to Resources 3216 and 3217. In addition, the District should review their procedures to ensure it is only charging indirect costs to those programs that allow it.
Finding 2023-002
Federal Program Affected Program Name: COVID‐19 ‐ Elementary and Secondary School Emergency Relief (ESSER III) Fund: Learning Loss (Resource 3214), Expanded Learning Opportunities (ELO) Grant: ESSER II State Reserve (Resource 3216), and Expanded Learning Opportunities (ELO) Grant: GEER II (Resource 3217) Assistance Listing Number: 84.425U, 84.425D, 84.425C Pass‐Through Entity: California Department of Education (CDE) Federal Agency: U.S. Department of Education Criteria The United States Department of Education has approved a delegation agreement with the California Department of Education (CDE) that authorizes the CDE to provide funding to LEAs pursuant to the American Rescue Plan of 2021 (ARP Act) to address the learning loss requirement portion of ESSER III funds. Indirect costs for the total ESSER III allocation (Resource 3213 and 3214 combined) should be charged to Resource 3213 only. In addition, indirect cost for the Expanded Learning Opportunities, ESSER II State Reserves program (Resource 3216) and the Expanded Learning Opportunities, GEER II program (Resource 3217) is not allowable. Additional information is available on the on the CDE’s ARP Act Funding web page at https://www.cde.ca.gov/fg/cr/arpact.asp#esseriiialloc. Condition During our audit, we found the District incorrectly charged $24,363 of indirect costs to Resource 3214. The District’s total indirect costs, $42,097, for Resources 3213 and 3214 combined were under the LEA approved rate of 4.96%. In addition, the District incorrectly charged $15,008 of indirect costs to Resource 3216 and $3,440 of indirect costs to Resource 3217, which do not allow indirect costs for those resources. Questioned Costs A total of $42,811 in questioned costs was identified as a result of the conditions identified above. As the total indirect costs charged to resources 3213 and 3214 were under the District’s approved rate, the likely questioned cost is deemed to be $18,448 for resources 3216 (Expanding Learning Opportunities Grant (ESSER II) and Expanding Learning Opportunities Grant (GEER II). Context The conditions were identified as a result of the auditor’s federal program testing of the District’s indirect cost charges. 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 varying indirect cost requirements for each of the ESF federal programs. Recommendation In the 2023‐2024 fiscal year, the District should transfer $24,363 from the District’s General Fund Resource 3213 to the District’s General Fund Resource 3214, as well as, transferring $15,008 and $3,440 from the District’s General Fund unrestricted resource to Resources 3216 and 3217. In addition, the District should review their procedures to ensure it is only charging indirect costs to those programs that allow it.