FAC Explorer

Audit 299438

FY End
2023-06-30
Total Expended
$74.52M
Findings
14
Programs
15
Organization: Alhambra Unified School District (CA)
Year: 2023 Accepted: 2024-03-28
Auditor: Christy White INC

Organization Exclusion Status:

Findings

ID Ref Severity Repeat Requirement
387149 2023-001 Significant Deficiency - B
387150 2023-001 Significant Deficiency - B
387151 2023-001 Significant Deficiency - B
387152 2023-001 Significant Deficiency - B
387153 2023-001 Significant Deficiency - B
387154 2023-001 Significant Deficiency - B
387155 2023-001 Significant Deficiency - B
963591 2023-001 Significant Deficiency - B
963592 2023-001 Significant Deficiency - B
963593 2023-001 Significant Deficiency - B
963594 2023-001 Significant Deficiency - B
963595 2023-001 Significant Deficiency - B
963596 2023-001 Significant Deficiency - B
963597 2023-001 Significant Deficiency - B

Programs

ALN Program Spent Major Findings
84.010 Title I Grants to Local Educational Agencies $6.45M - 0
10.553 School Breakfast Program $1.46M - 0
10.558 Child and Adult Care Food Program $888,940 - 0
84.367 Improving Teacher Quality State Grants $809,427 - 0
84.424 Student Support and Academic Enrichment Program $568,627 - 0
10.555 National School Lunch Program $364,595 - 0
84.048 Career and Technical Education -- Basic Grants to States $237,104 - 0
84.181 Special Education-Grants for Infants and Families $203,543 - 0
84.365 English Language Acquisition State Grants $123,823 - 0
93.575 Child Care and Development Block Grant $123,560 - 0
84.126 Rehabilitation Services_vocational Rehabilitation Grants to States $108,076 - 0
84.425 Education Stabilization Fund $46,185 Yes 1
84.027 Special Education_grants to States $8,439 Yes 0
84.011 Migrant Education_state Grant Program $3,662 - 0
84.173 Special Education_preschool Grants $2,735 Yes 0

Contacts

Name Title Type
HNEAQFHNYBB3 Juanita Orta Auditee
6269436550 John Whitehouse Auditor
No contacts on file

Notes to SEFA

Title: Purpose of schedules – Schedule of Expenditures of Federal Awards 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. De Minimis Rate Used: N Rate Explanation: As the agency authorized by the United States Department of Education to approve California kindergarten through grade twelve (K–12) local educational agency (LEA) indirect cost rates, the California Department of Education (CDE) has reviewed the 2020–21 standardized account code structure (SACS) expenditure data and has finalized the approved indirect cost rates. The rates are for use, as allowable, with 2022–23 federal and state programs.  As such the district may not use the de minimis rate. 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 following schedule provides reconciliation between revenues reported on the Statement of Revenue, Expenditures, and Changes in Fund Balance, and the related expenditures reported on the Schedule of Expenditures of Federal Awards. The reconciling amounts represent Federal funds that have been recorded as revenues in a prior year that have been expended by June 30, 2023 or federal funds that have been recorded as revenues in the current year and were not expended by June 30, 2023.

Finding Details

Finding 2023-001
FINDING #2023-001: EDUCATION STABILZIATION FUNDS – INDIRECT COSTS (50000) Federal Programs Affected: Program Name: Expanded Learning Opportunities (ELO) Grant ESSER II State Reserve Assistance Listing Number: 84.425 Pass-Through Agency: California Department of Education (CDE) Federal Agency: U.S. Department of Education Program Name: Expanded Learning Opportunities (ELO) Grant GEER II Assistance Listing Number: 84.425 Pass-Through Agency: California Department of Education (CDE) Federal Agency: U.S. Department of Education Program Name: Expanded Learning Opportunities (ELO) Grant: ESSER III State Reserve Emergency Needs Assistance Listing Number: 84.425 Pass-Through Agency: 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 establish indirect cost rates for California 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) Program, Education Code Section 38101(c) limits school district indirect costs to the lesser of the District’s individual CDE approved indirect cost rate or the statewide average indirect rate. For ESF programs included under the Expanded Learning Opportunities (ELO) Grant, indirect costs are not allowable. Condition: During our compliance procedures related to activities allowed or unallowed, we noted that the District charged unallowable indirect costs totaling $176,938 to the ELO Grant portions of the ESF Program. Context: The condition was identified through recalculation of the indirect costs charged to the federal programs. Cause: The condition identified appears to be due to the District not being familiar with the indirect cost requirements for each of the affected federal grants. Effect: The District charged unallowed expenditures to the programs. Questioned Costs: $176,938, the amount of indirect costs charged to the programs. Repeat Finding: This is not a repeat finding. Recommendation: It is recommended that the District implements a review process for indirect costs, which should include review of relevant grant agreements and relevant federal guidance. Views of Responsible Officials: See Corrective Action Plan on following page.
Finding 2023-001
FINDING #2023-001: EDUCATION STABILZIATION FUNDS – INDIRECT COSTS (50000) Federal Programs Affected: Program Name: Expanded Learning Opportunities (ELO) Grant ESSER II State Reserve Assistance Listing Number: 84.425 Pass-Through Agency: California Department of Education (CDE) Federal Agency: U.S. Department of Education Program Name: Expanded Learning Opportunities (ELO) Grant GEER II Assistance Listing Number: 84.425 Pass-Through Agency: California Department of Education (CDE) Federal Agency: U.S. Department of Education Program Name: Expanded Learning Opportunities (ELO) Grant: ESSER III State Reserve Emergency Needs Assistance Listing Number: 84.425 Pass-Through Agency: 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 establish indirect cost rates for California 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) Program, Education Code Section 38101(c) limits school district indirect costs to the lesser of the District’s individual CDE approved indirect cost rate or the statewide average indirect rate. For ESF programs included under the Expanded Learning Opportunities (ELO) Grant, indirect costs are not allowable. Condition: During our compliance procedures related to activities allowed or unallowed, we noted that the District charged unallowable indirect costs totaling $176,938 to the ELO Grant portions of the ESF Program. Context: The condition was identified through recalculation of the indirect costs charged to the federal programs. Cause: The condition identified appears to be due to the District not being familiar with the indirect cost requirements for each of the affected federal grants. Effect: The District charged unallowed expenditures to the programs. Questioned Costs: $176,938, the amount of indirect costs charged to the programs. Repeat Finding: This is not a repeat finding. Recommendation: It is recommended that the District implements a review process for indirect costs, which should include review of relevant grant agreements and relevant federal guidance. Views of Responsible Officials: See Corrective Action Plan on following page.
Finding 2023-001
FINDING #2023-001: EDUCATION STABILZIATION FUNDS – INDIRECT COSTS (50000) Federal Programs Affected: Program Name: Expanded Learning Opportunities (ELO) Grant ESSER II State Reserve Assistance Listing Number: 84.425 Pass-Through Agency: California Department of Education (CDE) Federal Agency: U.S. Department of Education Program Name: Expanded Learning Opportunities (ELO) Grant GEER II Assistance Listing Number: 84.425 Pass-Through Agency: California Department of Education (CDE) Federal Agency: U.S. Department of Education Program Name: Expanded Learning Opportunities (ELO) Grant: ESSER III State Reserve Emergency Needs Assistance Listing Number: 84.425 Pass-Through Agency: 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 establish indirect cost rates for California 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) Program, Education Code Section 38101(c) limits school district indirect costs to the lesser of the District’s individual CDE approved indirect cost rate or the statewide average indirect rate. For ESF programs included under the Expanded Learning Opportunities (ELO) Grant, indirect costs are not allowable. Condition: During our compliance procedures related to activities allowed or unallowed, we noted that the District charged unallowable indirect costs totaling $176,938 to the ELO Grant portions of the ESF Program. Context: The condition was identified through recalculation of the indirect costs charged to the federal programs. Cause: The condition identified appears to be due to the District not being familiar with the indirect cost requirements for each of the affected federal grants. Effect: The District charged unallowed expenditures to the programs. Questioned Costs: $176,938, the amount of indirect costs charged to the programs. Repeat Finding: This is not a repeat finding. Recommendation: It is recommended that the District implements a review process for indirect costs, which should include review of relevant grant agreements and relevant federal guidance. Views of Responsible Officials: See Corrective Action Plan on following page.
Finding 2023-001
FINDING #2023-001: EDUCATION STABILZIATION FUNDS – INDIRECT COSTS (50000) Federal Programs Affected: Program Name: Expanded Learning Opportunities (ELO) Grant ESSER II State Reserve Assistance Listing Number: 84.425 Pass-Through Agency: California Department of Education (CDE) Federal Agency: U.S. Department of Education Program Name: Expanded Learning Opportunities (ELO) Grant GEER II Assistance Listing Number: 84.425 Pass-Through Agency: California Department of Education (CDE) Federal Agency: U.S. Department of Education Program Name: Expanded Learning Opportunities (ELO) Grant: ESSER III State Reserve Emergency Needs Assistance Listing Number: 84.425 Pass-Through Agency: 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 establish indirect cost rates for California 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) Program, Education Code Section 38101(c) limits school district indirect costs to the lesser of the District’s individual CDE approved indirect cost rate or the statewide average indirect rate. For ESF programs included under the Expanded Learning Opportunities (ELO) Grant, indirect costs are not allowable. Condition: During our compliance procedures related to activities allowed or unallowed, we noted that the District charged unallowable indirect costs totaling $176,938 to the ELO Grant portions of the ESF Program. Context: The condition was identified through recalculation of the indirect costs charged to the federal programs. Cause: The condition identified appears to be due to the District not being familiar with the indirect cost requirements for each of the affected federal grants. Effect: The District charged unallowed expenditures to the programs. Questioned Costs: $176,938, the amount of indirect costs charged to the programs. Repeat Finding: This is not a repeat finding. Recommendation: It is recommended that the District implements a review process for indirect costs, which should include review of relevant grant agreements and relevant federal guidance. Views of Responsible Officials: See Corrective Action Plan on following page.
Finding 2023-001
FINDING #2023-001: EDUCATION STABILZIATION FUNDS – INDIRECT COSTS (50000) Federal Programs Affected: Program Name: Expanded Learning Opportunities (ELO) Grant ESSER II State Reserve Assistance Listing Number: 84.425 Pass-Through Agency: California Department of Education (CDE) Federal Agency: U.S. Department of Education Program Name: Expanded Learning Opportunities (ELO) Grant GEER II Assistance Listing Number: 84.425 Pass-Through Agency: California Department of Education (CDE) Federal Agency: U.S. Department of Education Program Name: Expanded Learning Opportunities (ELO) Grant: ESSER III State Reserve Emergency Needs Assistance Listing Number: 84.425 Pass-Through Agency: 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 establish indirect cost rates for California 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) Program, Education Code Section 38101(c) limits school district indirect costs to the lesser of the District’s individual CDE approved indirect cost rate or the statewide average indirect rate. For ESF programs included under the Expanded Learning Opportunities (ELO) Grant, indirect costs are not allowable. Condition: During our compliance procedures related to activities allowed or unallowed, we noted that the District charged unallowable indirect costs totaling $176,938 to the ELO Grant portions of the ESF Program. Context: The condition was identified through recalculation of the indirect costs charged to the federal programs. Cause: The condition identified appears to be due to the District not being familiar with the indirect cost requirements for each of the affected federal grants. Effect: The District charged unallowed expenditures to the programs. Questioned Costs: $176,938, the amount of indirect costs charged to the programs. Repeat Finding: This is not a repeat finding. Recommendation: It is recommended that the District implements a review process for indirect costs, which should include review of relevant grant agreements and relevant federal guidance. Views of Responsible Officials: See Corrective Action Plan on following page.
Finding 2023-001
FINDING #2023-001: EDUCATION STABILZIATION FUNDS – INDIRECT COSTS (50000) Federal Programs Affected: Program Name: Expanded Learning Opportunities (ELO) Grant ESSER II State Reserve Assistance Listing Number: 84.425 Pass-Through Agency: California Department of Education (CDE) Federal Agency: U.S. Department of Education Program Name: Expanded Learning Opportunities (ELO) Grant GEER II Assistance Listing Number: 84.425 Pass-Through Agency: California Department of Education (CDE) Federal Agency: U.S. Department of Education Program Name: Expanded Learning Opportunities (ELO) Grant: ESSER III State Reserve Emergency Needs Assistance Listing Number: 84.425 Pass-Through Agency: 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 establish indirect cost rates for California 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) Program, Education Code Section 38101(c) limits school district indirect costs to the lesser of the District’s individual CDE approved indirect cost rate or the statewide average indirect rate. For ESF programs included under the Expanded Learning Opportunities (ELO) Grant, indirect costs are not allowable. Condition: During our compliance procedures related to activities allowed or unallowed, we noted that the District charged unallowable indirect costs totaling $176,938 to the ELO Grant portions of the ESF Program. Context: The condition was identified through recalculation of the indirect costs charged to the federal programs. Cause: The condition identified appears to be due to the District not being familiar with the indirect cost requirements for each of the affected federal grants. Effect: The District charged unallowed expenditures to the programs. Questioned Costs: $176,938, the amount of indirect costs charged to the programs. Repeat Finding: This is not a repeat finding. Recommendation: It is recommended that the District implements a review process for indirect costs, which should include review of relevant grant agreements and relevant federal guidance. Views of Responsible Officials: See Corrective Action Plan on following page.
Finding 2023-001
FINDING #2023-001: EDUCATION STABILZIATION FUNDS – INDIRECT COSTS (50000) Federal Programs Affected: Program Name: Expanded Learning Opportunities (ELO) Grant ESSER II State Reserve Assistance Listing Number: 84.425 Pass-Through Agency: California Department of Education (CDE) Federal Agency: U.S. Department of Education Program Name: Expanded Learning Opportunities (ELO) Grant GEER II Assistance Listing Number: 84.425 Pass-Through Agency: California Department of Education (CDE) Federal Agency: U.S. Department of Education Program Name: Expanded Learning Opportunities (ELO) Grant: ESSER III State Reserve Emergency Needs Assistance Listing Number: 84.425 Pass-Through Agency: 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 establish indirect cost rates for California 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) Program, Education Code Section 38101(c) limits school district indirect costs to the lesser of the District’s individual CDE approved indirect cost rate or the statewide average indirect rate. For ESF programs included under the Expanded Learning Opportunities (ELO) Grant, indirect costs are not allowable. Condition: During our compliance procedures related to activities allowed or unallowed, we noted that the District charged unallowable indirect costs totaling $176,938 to the ELO Grant portions of the ESF Program. Context: The condition was identified through recalculation of the indirect costs charged to the federal programs. Cause: The condition identified appears to be due to the District not being familiar with the indirect cost requirements for each of the affected federal grants. Effect: The District charged unallowed expenditures to the programs. Questioned Costs: $176,938, the amount of indirect costs charged to the programs. Repeat Finding: This is not a repeat finding. Recommendation: It is recommended that the District implements a review process for indirect costs, which should include review of relevant grant agreements and relevant federal guidance. Views of Responsible Officials: See Corrective Action Plan on following page.
Finding 2023-001
FINDING #2023-001: EDUCATION STABILZIATION FUNDS – INDIRECT COSTS (50000) Federal Programs Affected: Program Name: Expanded Learning Opportunities (ELO) Grant ESSER II State Reserve Assistance Listing Number: 84.425 Pass-Through Agency: California Department of Education (CDE) Federal Agency: U.S. Department of Education Program Name: Expanded Learning Opportunities (ELO) Grant GEER II Assistance Listing Number: 84.425 Pass-Through Agency: California Department of Education (CDE) Federal Agency: U.S. Department of Education Program Name: Expanded Learning Opportunities (ELO) Grant: ESSER III State Reserve Emergency Needs Assistance Listing Number: 84.425 Pass-Through Agency: 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 establish indirect cost rates for California 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) Program, Education Code Section 38101(c) limits school district indirect costs to the lesser of the District’s individual CDE approved indirect cost rate or the statewide average indirect rate. For ESF programs included under the Expanded Learning Opportunities (ELO) Grant, indirect costs are not allowable. Condition: During our compliance procedures related to activities allowed or unallowed, we noted that the District charged unallowable indirect costs totaling $176,938 to the ELO Grant portions of the ESF Program. Context: The condition was identified through recalculation of the indirect costs charged to the federal programs. Cause: The condition identified appears to be due to the District not being familiar with the indirect cost requirements for each of the affected federal grants. Effect: The District charged unallowed expenditures to the programs. Questioned Costs: $176,938, the amount of indirect costs charged to the programs. Repeat Finding: This is not a repeat finding. Recommendation: It is recommended that the District implements a review process for indirect costs, which should include review of relevant grant agreements and relevant federal guidance. Views of Responsible Officials: See Corrective Action Plan on following page.
Finding 2023-001
FINDING #2023-001: EDUCATION STABILZIATION FUNDS – INDIRECT COSTS (50000) Federal Programs Affected: Program Name: Expanded Learning Opportunities (ELO) Grant ESSER II State Reserve Assistance Listing Number: 84.425 Pass-Through Agency: California Department of Education (CDE) Federal Agency: U.S. Department of Education Program Name: Expanded Learning Opportunities (ELO) Grant GEER II Assistance Listing Number: 84.425 Pass-Through Agency: California Department of Education (CDE) Federal Agency: U.S. Department of Education Program Name: Expanded Learning Opportunities (ELO) Grant: ESSER III State Reserve Emergency Needs Assistance Listing Number: 84.425 Pass-Through Agency: 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 establish indirect cost rates for California 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) Program, Education Code Section 38101(c) limits school district indirect costs to the lesser of the District’s individual CDE approved indirect cost rate or the statewide average indirect rate. For ESF programs included under the Expanded Learning Opportunities (ELO) Grant, indirect costs are not allowable. Condition: During our compliance procedures related to activities allowed or unallowed, we noted that the District charged unallowable indirect costs totaling $176,938 to the ELO Grant portions of the ESF Program. Context: The condition was identified through recalculation of the indirect costs charged to the federal programs. Cause: The condition identified appears to be due to the District not being familiar with the indirect cost requirements for each of the affected federal grants. Effect: The District charged unallowed expenditures to the programs. Questioned Costs: $176,938, the amount of indirect costs charged to the programs. Repeat Finding: This is not a repeat finding. Recommendation: It is recommended that the District implements a review process for indirect costs, which should include review of relevant grant agreements and relevant federal guidance. Views of Responsible Officials: See Corrective Action Plan on following page.
Finding 2023-001
FINDING #2023-001: EDUCATION STABILZIATION FUNDS – INDIRECT COSTS (50000) Federal Programs Affected: Program Name: Expanded Learning Opportunities (ELO) Grant ESSER II State Reserve Assistance Listing Number: 84.425 Pass-Through Agency: California Department of Education (CDE) Federal Agency: U.S. Department of Education Program Name: Expanded Learning Opportunities (ELO) Grant GEER II Assistance Listing Number: 84.425 Pass-Through Agency: California Department of Education (CDE) Federal Agency: U.S. Department of Education Program Name: Expanded Learning Opportunities (ELO) Grant: ESSER III State Reserve Emergency Needs Assistance Listing Number: 84.425 Pass-Through Agency: 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 establish indirect cost rates for California 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) Program, Education Code Section 38101(c) limits school district indirect costs to the lesser of the District’s individual CDE approved indirect cost rate or the statewide average indirect rate. For ESF programs included under the Expanded Learning Opportunities (ELO) Grant, indirect costs are not allowable. Condition: During our compliance procedures related to activities allowed or unallowed, we noted that the District charged unallowable indirect costs totaling $176,938 to the ELO Grant portions of the ESF Program. Context: The condition was identified through recalculation of the indirect costs charged to the federal programs. Cause: The condition identified appears to be due to the District not being familiar with the indirect cost requirements for each of the affected federal grants. Effect: The District charged unallowed expenditures to the programs. Questioned Costs: $176,938, the amount of indirect costs charged to the programs. Repeat Finding: This is not a repeat finding. Recommendation: It is recommended that the District implements a review process for indirect costs, which should include review of relevant grant agreements and relevant federal guidance. Views of Responsible Officials: See Corrective Action Plan on following page.
Finding 2023-001
FINDING #2023-001: EDUCATION STABILZIATION FUNDS – INDIRECT COSTS (50000) Federal Programs Affected: Program Name: Expanded Learning Opportunities (ELO) Grant ESSER II State Reserve Assistance Listing Number: 84.425 Pass-Through Agency: California Department of Education (CDE) Federal Agency: U.S. Department of Education Program Name: Expanded Learning Opportunities (ELO) Grant GEER II Assistance Listing Number: 84.425 Pass-Through Agency: California Department of Education (CDE) Federal Agency: U.S. Department of Education Program Name: Expanded Learning Opportunities (ELO) Grant: ESSER III State Reserve Emergency Needs Assistance Listing Number: 84.425 Pass-Through Agency: 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 establish indirect cost rates for California 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) Program, Education Code Section 38101(c) limits school district indirect costs to the lesser of the District’s individual CDE approved indirect cost rate or the statewide average indirect rate. For ESF programs included under the Expanded Learning Opportunities (ELO) Grant, indirect costs are not allowable. Condition: During our compliance procedures related to activities allowed or unallowed, we noted that the District charged unallowable indirect costs totaling $176,938 to the ELO Grant portions of the ESF Program. Context: The condition was identified through recalculation of the indirect costs charged to the federal programs. Cause: The condition identified appears to be due to the District not being familiar with the indirect cost requirements for each of the affected federal grants. Effect: The District charged unallowed expenditures to the programs. Questioned Costs: $176,938, the amount of indirect costs charged to the programs. Repeat Finding: This is not a repeat finding. Recommendation: It is recommended that the District implements a review process for indirect costs, which should include review of relevant grant agreements and relevant federal guidance. Views of Responsible Officials: See Corrective Action Plan on following page.
Finding 2023-001
FINDING #2023-001: EDUCATION STABILZIATION FUNDS – INDIRECT COSTS (50000) Federal Programs Affected: Program Name: Expanded Learning Opportunities (ELO) Grant ESSER II State Reserve Assistance Listing Number: 84.425 Pass-Through Agency: California Department of Education (CDE) Federal Agency: U.S. Department of Education Program Name: Expanded Learning Opportunities (ELO) Grant GEER II Assistance Listing Number: 84.425 Pass-Through Agency: California Department of Education (CDE) Federal Agency: U.S. Department of Education Program Name: Expanded Learning Opportunities (ELO) Grant: ESSER III State Reserve Emergency Needs Assistance Listing Number: 84.425 Pass-Through Agency: 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 establish indirect cost rates for California 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) Program, Education Code Section 38101(c) limits school district indirect costs to the lesser of the District’s individual CDE approved indirect cost rate or the statewide average indirect rate. For ESF programs included under the Expanded Learning Opportunities (ELO) Grant, indirect costs are not allowable. Condition: During our compliance procedures related to activities allowed or unallowed, we noted that the District charged unallowable indirect costs totaling $176,938 to the ELO Grant portions of the ESF Program. Context: The condition was identified through recalculation of the indirect costs charged to the federal programs. Cause: The condition identified appears to be due to the District not being familiar with the indirect cost requirements for each of the affected federal grants. Effect: The District charged unallowed expenditures to the programs. Questioned Costs: $176,938, the amount of indirect costs charged to the programs. Repeat Finding: This is not a repeat finding. Recommendation: It is recommended that the District implements a review process for indirect costs, which should include review of relevant grant agreements and relevant federal guidance. Views of Responsible Officials: See Corrective Action Plan on following page.
Finding 2023-001
FINDING #2023-001: EDUCATION STABILZIATION FUNDS – INDIRECT COSTS (50000) Federal Programs Affected: Program Name: Expanded Learning Opportunities (ELO) Grant ESSER II State Reserve Assistance Listing Number: 84.425 Pass-Through Agency: California Department of Education (CDE) Federal Agency: U.S. Department of Education Program Name: Expanded Learning Opportunities (ELO) Grant GEER II Assistance Listing Number: 84.425 Pass-Through Agency: California Department of Education (CDE) Federal Agency: U.S. Department of Education Program Name: Expanded Learning Opportunities (ELO) Grant: ESSER III State Reserve Emergency Needs Assistance Listing Number: 84.425 Pass-Through Agency: 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 establish indirect cost rates for California 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) Program, Education Code Section 38101(c) limits school district indirect costs to the lesser of the District’s individual CDE approved indirect cost rate or the statewide average indirect rate. For ESF programs included under the Expanded Learning Opportunities (ELO) Grant, indirect costs are not allowable. Condition: During our compliance procedures related to activities allowed or unallowed, we noted that the District charged unallowable indirect costs totaling $176,938 to the ELO Grant portions of the ESF Program. Context: The condition was identified through recalculation of the indirect costs charged to the federal programs. Cause: The condition identified appears to be due to the District not being familiar with the indirect cost requirements for each of the affected federal grants. Effect: The District charged unallowed expenditures to the programs. Questioned Costs: $176,938, the amount of indirect costs charged to the programs. Repeat Finding: This is not a repeat finding. Recommendation: It is recommended that the District implements a review process for indirect costs, which should include review of relevant grant agreements and relevant federal guidance. Views of Responsible Officials: See Corrective Action Plan on following page.
Finding 2023-001
FINDING #2023-001: EDUCATION STABILZIATION FUNDS – INDIRECT COSTS (50000) Federal Programs Affected: Program Name: Expanded Learning Opportunities (ELO) Grant ESSER II State Reserve Assistance Listing Number: 84.425 Pass-Through Agency: California Department of Education (CDE) Federal Agency: U.S. Department of Education Program Name: Expanded Learning Opportunities (ELO) Grant GEER II Assistance Listing Number: 84.425 Pass-Through Agency: California Department of Education (CDE) Federal Agency: U.S. Department of Education Program Name: Expanded Learning Opportunities (ELO) Grant: ESSER III State Reserve Emergency Needs Assistance Listing Number: 84.425 Pass-Through Agency: 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 establish indirect cost rates for California 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) Program, Education Code Section 38101(c) limits school district indirect costs to the lesser of the District’s individual CDE approved indirect cost rate or the statewide average indirect rate. For ESF programs included under the Expanded Learning Opportunities (ELO) Grant, indirect costs are not allowable. Condition: During our compliance procedures related to activities allowed or unallowed, we noted that the District charged unallowable indirect costs totaling $176,938 to the ELO Grant portions of the ESF Program. Context: The condition was identified through recalculation of the indirect costs charged to the federal programs. Cause: The condition identified appears to be due to the District not being familiar with the indirect cost requirements for each of the affected federal grants. Effect: The District charged unallowed expenditures to the programs. Questioned Costs: $176,938, the amount of indirect costs charged to the programs. Repeat Finding: This is not a repeat finding. Recommendation: It is recommended that the District implements a review process for indirect costs, which should include review of relevant grant agreements and relevant federal guidance. Views of Responsible Officials: See Corrective Action Plan on following page.