Audit 295419

FY End
2023-06-30
Total Expended
$57.69M
Findings
4
Programs
48
Year: 2023 Accepted: 2024-03-15
Auditor: Eide Bailly LLP

Organization Exclusion Status:

Checking exclusion status...

Findings

ID Ref Severity Repeat Requirement
380751 2023-001 Material Weakness - L
380752 2023-001 Material Weakness - L
957193 2023-001 Material Weakness - L
957194 2023-001 Material Weakness - L

Programs

ALN Program Spent Major Findings
93.600 Head Start $18.53M - 0
93.596 Child Development: Federal Alternative Payment, Stage 3 (contract Prefix C3ap) $8.97M - 0
84.011 Esea (essa): Title I, Part C, Migrant Ed (regular and Summer Program) $8.28M - 0
84.027 Special Education Grants to States ‐ Basic Local Assistance $5.28M Yes 0
93.575 Child Care and Development Programs Administered by Ca Department of Social Services (federal Funds) $2.98M - 0
93.596 Child Development: Federal Alternative Payment (contract Prefix Capp) $2.02M - 0
84.425 Covid‐19: Elementary and Secondary School Emergency Relief III (esser Iii) Fund $1.42M Yes 1
84.027 Covid‐19: Special Ed: Arp Idea Part B, Section 611, Local Assistance Entitlement $1.41M Yes 0
17.259 Workforce Investment Act‐youth Activities $1.03M - 0
93.575 Child Development: Quality Improvement Activities $889,528 - 0
84.425 Covid‐19: After School Education and Safety (ases) Rate Increase: Esser III State Reserve Afterschool Programs $722,997 Yes 0
84.027 Special Ed: Idea Mental Health Average Daily Attendance (ada) Allocation, Part B, Section 611 $663,177 Yes 0
84.010 Esea (essa): Title I, Part A, Basic Grants Low‐income and Neglected $619,097 Yes 0
93.575 Child Development: Federal Alternative Payment, Stage 3 (contract Prefix C2ap) $585,896 - 0
10.558 Child and Adult Care Food Program $545,353 - 0
84.425 Covid‐19: Elementary and Secondary School Emergency Relief III (esser Iii) Fund Learning Loss $495,502 Yes 1
84.425 Covid‐19 Elementary and Secondary School Emergency Relief Fund II (esser Ii) $454,289 Yes 0
93.575 Child Development: Federal General Child Care and Dev (cctr) $253,139 - 0
84.173 Special Education Preschool Grants $235,104 Yes 0
84.425 Covid‐19: Expanded Learning Opportunities (elo) Grant Esser II State Reserve $230,453 Yes 0
84.010 Esea (essa) School Improvement (csi) Funding for Leas $229,655 Yes 0
84.425 Covid‐19: Expanded Learning Opportunities (elo) Grant: Esser III State Reserve Learning Loss $220,098 Yes 0
84.010 Esea (essa): Title I, Part D, Subpart 2, Local Delinquent Programs $146,108 Yes 0
84.365 Esea (essa): Title Iii, English Learner Student Program $144,007 - 0
84.216 We‐can‐work $128,285 - 0
84.425 Covid‐19: After School Education and Safety (ases) Rate Increase: Esser III State Reserve Summer Learning Programs $126,301 Yes 0
93.575 Child Development: Federal Local Planning Councils (contract Prefix Clpc) $100,610 - 0
84.425 Covid‐19: Expanded Learning Opportunities (elo) Grant: Esser III State Reserve Emergency Needs $97,252 Yes 0
84.181 Special Education‐grants for Infants and Families $89,865 - 0
84.181 Family Resource Center/network $88,073 - 0
84.196 Education for Homeless Children and Youth $74,550 - 0
84.287 Twenty‐first Century Community Learning Centers $73,296 - 0
84.010 Esea (essa) School Improvement (csi) Funding for Coes $62,505 Yes 0
84.367 Supporting Effective Instruction State Grants ‐ Teacher Quality $56,154 - 0
84.173 Covid‐19: Special Ed: Arp Idea Part B, Section 619, Preschool Grants $46,832 Yes 0
84.424 Student Support and Academic Enrichment Program $43,686 - 0
84.425 Covid‐19: Expanded Learning Opportunities (elo) Grant Geer II $42,773 Yes 0
84.048 Strengthening Career and Technical Education for the 21st Century $40,301 - 0
10.553 Child Nutrition School Program $38,977 - 0
84.181 Covid-19, Special Education‐ Arp Idea Part C, Early Education Program $22,455 - 0
10.553 School Breakfast Program ‐ Especially Needy Breakfast $16,372 - 0
84.425 Covid‐19: American Rescue Plan‐homeless Children and Youth (arp‐hcy) Program $15,633 Yes 0
84.027 Special Ed: Alternate Dispute Resolution, Part B, Section 611 $14,922 Yes 0
10.555 Supply Chain Assistance (sca) Funds $8,950 - 0
84.173 Special Ed: Alternate Dispute Resolution, Part B, Section 611 $2,517 Yes 0
84.425 Covid‐19: American Rescue Plan ‐ Homeless Children and Youth II (arp Hyc Ii) $2,049 Yes 0
84.425 Covid‐19: American Rescue Plan‐homeless Children and Youth (arp‐hcy) Program Statewide Activities $214 Yes 0
84.173 Special Ed: Idea Preschool Staff Development, Part B, Section 619 $0 Yes 0

Contacts

Name Title Type
NG4HWLWBMBF5 Janet Riley Auditee
2093816725 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 the 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: MCOE has not elected to use the ten percent de minimis cost rate. The accompanying Schedule of Expenditures of Federal Awards (the schedule) includes the federal award activity of the Merced County Office of Education (MCOE) 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 Merced County Office of Education, it is not intended to and does not present the net position, changes in net position or fund balances of Merced County Office of Education.
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 the 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: MCOE has not elected to use the ten percent 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 the 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: MCOE has not elected to use the ten percent de minimis cost rate. MCOE has not elected to use the ten percent de minimis cost rate.
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 the 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: MCOE has not elected to use the ten percent 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 amounts consist of Child Care and Development Programs Administered by California Department of Social Services (Federal Funds) prior year revenues expended in the current year, the National School Lunch Program – Supply Chain Assistance Funds and Child Development: ARP California State Preschool Program One‐time Stipend revenue received that is not required to be reflected on the Schedule of Expenditures of Federal Awards but has been recorded as revenues.

Finding Details

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.
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.
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.
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.