FAC Explorer

Audit 300075

FY End
2023-06-30
Total Expended
$22.41M
Findings
8
Programs
18
Organization: Shasta County Office of Education (CA)
Year: 2023 Accepted: 2024-03-28
Auditor: Eide Bailly LLP

Organization Exclusion Status:

Findings

ID Ref Severity Repeat Requirement
388289 2023-002 Significant Deficiency - B
388290 2023-001 Significant Deficiency - E
388291 2023-001 Significant Deficiency - E
388292 2023-001 Significant Deficiency - E
964731 2023-002 Significant Deficiency - B
964732 2023-001 Significant Deficiency - E
964733 2023-001 Significant Deficiency - E
964734 2023-001 Significant Deficiency - E

Programs

ALN Program Spent Major Findings
93.489 Child Care Disaster Relief (a) $1.98M - 0
10.665 Schools and Roads - Grants to States $792,823 Yes 0
84.287 Twenty-First Century Community Learning Centers $271,931 - 0
93.354 Public Health Emergency Response: Cooperative Agreement for Emergency Response: Public Health Crisis Response $258,015 - 0
84.010 Title I Grants to Local Educational Agencies $160,604 - 0
93.596 Child Care Mandatory and Matching Funds of the Child Care and Development Fund $150,058 - 0
93.658 Foster Care_title IV-E $128,493 - 0
93.575 Child Care and Development Block Grant $126,425 - 0
10.561 State Administrative Matching Grants for the Supplemental Nutrition Assistance Program $106,598 - 0
84.173 Special Education_preschool Grants $87,169 - 0
84.196 Education for Homeless Children and Youth $75,568 - 0
84.181 Special Education-Grants for Infants and Families $53,991 - 0
10.558 Child and Adult Care Food Program $35,799 Yes 1
10.649 Pandemic Ebt Administrative Costs $32,000 - 0
84.424 Student Support and Academic Enrichment Program $11,702 - 0
84.027 Special Education_grants to States $11,134 - 0
84.425 Education Stabilization Fund $5,834 Yes 0
84.367 Improving Teacher Quality State Grants $4,851 - 0

Contacts

Name Title Type
YLSGLCFLVTU1 Lyndsey Gilstrap Auditee
5302250287 Bobby J. Patel Auditor
No contacts on file

Notes to SEFA

Title: Basis of Presentation Accounting Policies: Expenditures reported in the schedule are reported on the modified accrual basis of accounting except for subrecipient expenditures, which are recorded on the cash basis. 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. De Minimis Rate Used: N Rate Explanation: The County 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 Shasta County Office of Education (the County) 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 County, it is not intended to and does not present the financial position, changes in net position or fund balance of the County.
Title: Food Donation Accounting Policies: Expenditures reported in the schedule are reported on the modified accrual basis of accounting except for subrecipient expenditures, which are recorded on the cash basis. 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. De Minimis Rate Used: N Rate Explanation: The County has not elected to use the ten percent 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 County did not report any commodities in inventory.

Finding Details

Finding 2023-002
50000 – COVID-19 - Elementary and Secondary School Emergency Relief III (ESSER III) Fund: Learning Loss (Significant Deficiency) Federal Program Affected Federal Agency: U.S. Department of Education Pass-Through Entity: California Department of Education Program Name: COVID-19 - Elementary and Secondary School Emergency Relief III (ESSER III) Fund: Learning Loss Assistance Listing Number: 84.425U Compliance Requirements: B (Allowable Costs/Cost Principles) Criteria or Specific Requirements 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 in fiscal year 2022-2023, Education Code Section 38101(c) limits County Office of Education indirect costs to the County’s individual CDE approved indirect cost rat; however, COVID-19 - Elementary and Secondary School Emergency Relief III (ESSER III) Fund: Learning Loss, indirect costs are not allowable. Condition The County charged unallowable indirect costs totaling $15,184 to the COVID-19 - Elementary and Secondary School Emergency Relief III (ESSER III) Fund: Learning Loss portion of the ESF Program. Questioned Costs There were no direct questioned costs associated with the condition identified. Context The condition was identified through recalculation of the indirect costs charged to the federal programs. Effect The County has charged unallowable expenditures to the federal programs. Cause The condition identified appears to be due to the County not being familiar with the indirect cost requirements for each of the federal programs. Repeat Finding No. Recommendation It is recommended that the County implements a review process for indirect costs, which should include review of relevant grant agreements and relevant federal guidance.
Finding 2023-001
50000 – Child and Adult Care Food Program (Significant Deficiency) Federal Program Affected Federal Agency: U.S. Department of Agriculture Pass-Through Entity: California Department of Social Services Program Name: Child and Adult Care Food Program Assistance Listing Number: 10.558 Compliance Requirements: E (Eligibility) Criteria or Specific Requirements Per Title 7, U.S. Code of Federal Regulation, Part 245, Section 245.6(c)(4) states that the local educational agency must use the income information provided by the household on the application to calculate the household’s total current income. When a household submits an application containing completed documentation, as defined in Title 7, U.S. Code of Federal Regulation, Part 245, Section 245.2, and the household’s total current income is at or below the eligibility limits specified in the Income Eligibility Guidelines as defined in Title 7, U.S. Code of Federal Regulation, Part 245, Section 245.2, the children in that household must be approved for free or reduced price benefits, as applicable. Condition The County was not in compliance with the requirements of Title 7, U.S. Code of Federal Regulation, Part 245, Section 245.6(c)(4). We noted the County had made incorrect eligibility status determinations for 1 of 38 sampled annual meal applications for the school year. Questioned Costs There were no direct questioned costs associated with the condition identified. Context The condition was identified as a result of the auditor’s review of sample annual meal applications submitted by households. Effect The eligibility determination process is a direct and material compliance requirement that the County must adhere to. The County is noncompliant with the requirements identified in Title 7, U.S. Code of Federal Regulation, Part 245, Section 245.6(c)(4). Cause The condition identified appears to have resulted due to clerical error. Repeat Finding No. Recommendation The County should ensure that it performs the eligibility determination in accordance with Title 7, U.S. Code of Federal Regulation, Part 245, Section 245.6(c)(4). To prevent future noncompliance, the County should implement an additional review process of eligibility status determination for all applications processed each year.
Finding 2023-001
50000 – Child and Adult Care Food Program (Significant Deficiency) Federal Program Affected Federal Agency: U.S. Department of Agriculture Pass-Through Entity: California Department of Social Services Program Name: Child and Adult Care Food Program Assistance Listing Number: 10.558 Compliance Requirements: E (Eligibility) Criteria or Specific Requirements Per Title 7, U.S. Code of Federal Regulation, Part 245, Section 245.6(c)(4) states that the local educational agency must use the income information provided by the household on the application to calculate the household’s total current income. When a household submits an application containing completed documentation, as defined in Title 7, U.S. Code of Federal Regulation, Part 245, Section 245.2, and the household’s total current income is at or below the eligibility limits specified in the Income Eligibility Guidelines as defined in Title 7, U.S. Code of Federal Regulation, Part 245, Section 245.2, the children in that household must be approved for free or reduced price benefits, as applicable. Condition The County was not in compliance with the requirements of Title 7, U.S. Code of Federal Regulation, Part 245, Section 245.6(c)(4). We noted the County had made incorrect eligibility status determinations for 1 of 38 sampled annual meal applications for the school year. Questioned Costs There were no direct questioned costs associated with the condition identified. Context The condition was identified as a result of the auditor’s review of sample annual meal applications submitted by households. Effect The eligibility determination process is a direct and material compliance requirement that the County must adhere to. The County is noncompliant with the requirements identified in Title 7, U.S. Code of Federal Regulation, Part 245, Section 245.6(c)(4). Cause The condition identified appears to have resulted due to clerical error. Repeat Finding No. Recommendation The County should ensure that it performs the eligibility determination in accordance with Title 7, U.S. Code of Federal Regulation, Part 245, Section 245.6(c)(4). To prevent future noncompliance, the County should implement an additional review process of eligibility status determination for all applications processed each year.
Finding 2023-001
50000 – Child and Adult Care Food Program (Significant Deficiency) Federal Program Affected Federal Agency: U.S. Department of Agriculture Pass-Through Entity: California Department of Social Services Program Name: Child and Adult Care Food Program Assistance Listing Number: 10.558 Compliance Requirements: E (Eligibility) Criteria or Specific Requirements Per Title 7, U.S. Code of Federal Regulation, Part 245, Section 245.6(c)(4) states that the local educational agency must use the income information provided by the household on the application to calculate the household’s total current income. When a household submits an application containing completed documentation, as defined in Title 7, U.S. Code of Federal Regulation, Part 245, Section 245.2, and the household’s total current income is at or below the eligibility limits specified in the Income Eligibility Guidelines as defined in Title 7, U.S. Code of Federal Regulation, Part 245, Section 245.2, the children in that household must be approved for free or reduced price benefits, as applicable. Condition The County was not in compliance with the requirements of Title 7, U.S. Code of Federal Regulation, Part 245, Section 245.6(c)(4). We noted the County had made incorrect eligibility status determinations for 1 of 38 sampled annual meal applications for the school year. Questioned Costs There were no direct questioned costs associated with the condition identified. Context The condition was identified as a result of the auditor’s review of sample annual meal applications submitted by households. Effect The eligibility determination process is a direct and material compliance requirement that the County must adhere to. The County is noncompliant with the requirements identified in Title 7, U.S. Code of Federal Regulation, Part 245, Section 245.6(c)(4). Cause The condition identified appears to have resulted due to clerical error. Repeat Finding No. Recommendation The County should ensure that it performs the eligibility determination in accordance with Title 7, U.S. Code of Federal Regulation, Part 245, Section 245.6(c)(4). To prevent future noncompliance, the County should implement an additional review process of eligibility status determination for all applications processed each year.
Finding 2023-002
50000 – COVID-19 - Elementary and Secondary School Emergency Relief III (ESSER III) Fund: Learning Loss (Significant Deficiency) Federal Program Affected Federal Agency: U.S. Department of Education Pass-Through Entity: California Department of Education Program Name: COVID-19 - Elementary and Secondary School Emergency Relief III (ESSER III) Fund: Learning Loss Assistance Listing Number: 84.425U Compliance Requirements: B (Allowable Costs/Cost Principles) Criteria or Specific Requirements 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 in fiscal year 2022-2023, Education Code Section 38101(c) limits County Office of Education indirect costs to the County’s individual CDE approved indirect cost rat; however, COVID-19 - Elementary and Secondary School Emergency Relief III (ESSER III) Fund: Learning Loss, indirect costs are not allowable. Condition The County charged unallowable indirect costs totaling $15,184 to the COVID-19 - Elementary and Secondary School Emergency Relief III (ESSER III) Fund: Learning Loss portion of the ESF Program. Questioned Costs There were no direct questioned costs associated with the condition identified. Context The condition was identified through recalculation of the indirect costs charged to the federal programs. Effect The County has charged unallowable expenditures to the federal programs. Cause The condition identified appears to be due to the County not being familiar with the indirect cost requirements for each of the federal programs. Repeat Finding No. Recommendation It is recommended that the County implements a review process for indirect costs, which should include review of relevant grant agreements and relevant federal guidance.
Finding 2023-001
50000 – Child and Adult Care Food Program (Significant Deficiency) Federal Program Affected Federal Agency: U.S. Department of Agriculture Pass-Through Entity: California Department of Social Services Program Name: Child and Adult Care Food Program Assistance Listing Number: 10.558 Compliance Requirements: E (Eligibility) Criteria or Specific Requirements Per Title 7, U.S. Code of Federal Regulation, Part 245, Section 245.6(c)(4) states that the local educational agency must use the income information provided by the household on the application to calculate the household’s total current income. When a household submits an application containing completed documentation, as defined in Title 7, U.S. Code of Federal Regulation, Part 245, Section 245.2, and the household’s total current income is at or below the eligibility limits specified in the Income Eligibility Guidelines as defined in Title 7, U.S. Code of Federal Regulation, Part 245, Section 245.2, the children in that household must be approved for free or reduced price benefits, as applicable. Condition The County was not in compliance with the requirements of Title 7, U.S. Code of Federal Regulation, Part 245, Section 245.6(c)(4). We noted the County had made incorrect eligibility status determinations for 1 of 38 sampled annual meal applications for the school year. Questioned Costs There were no direct questioned costs associated with the condition identified. Context The condition was identified as a result of the auditor’s review of sample annual meal applications submitted by households. Effect The eligibility determination process is a direct and material compliance requirement that the County must adhere to. The County is noncompliant with the requirements identified in Title 7, U.S. Code of Federal Regulation, Part 245, Section 245.6(c)(4). Cause The condition identified appears to have resulted due to clerical error. Repeat Finding No. Recommendation The County should ensure that it performs the eligibility determination in accordance with Title 7, U.S. Code of Federal Regulation, Part 245, Section 245.6(c)(4). To prevent future noncompliance, the County should implement an additional review process of eligibility status determination for all applications processed each year.
Finding 2023-001
50000 – Child and Adult Care Food Program (Significant Deficiency) Federal Program Affected Federal Agency: U.S. Department of Agriculture Pass-Through Entity: California Department of Social Services Program Name: Child and Adult Care Food Program Assistance Listing Number: 10.558 Compliance Requirements: E (Eligibility) Criteria or Specific Requirements Per Title 7, U.S. Code of Federal Regulation, Part 245, Section 245.6(c)(4) states that the local educational agency must use the income information provided by the household on the application to calculate the household’s total current income. When a household submits an application containing completed documentation, as defined in Title 7, U.S. Code of Federal Regulation, Part 245, Section 245.2, and the household’s total current income is at or below the eligibility limits specified in the Income Eligibility Guidelines as defined in Title 7, U.S. Code of Federal Regulation, Part 245, Section 245.2, the children in that household must be approved for free or reduced price benefits, as applicable. Condition The County was not in compliance with the requirements of Title 7, U.S. Code of Federal Regulation, Part 245, Section 245.6(c)(4). We noted the County had made incorrect eligibility status determinations for 1 of 38 sampled annual meal applications for the school year. Questioned Costs There were no direct questioned costs associated with the condition identified. Context The condition was identified as a result of the auditor’s review of sample annual meal applications submitted by households. Effect The eligibility determination process is a direct and material compliance requirement that the County must adhere to. The County is noncompliant with the requirements identified in Title 7, U.S. Code of Federal Regulation, Part 245, Section 245.6(c)(4). Cause The condition identified appears to have resulted due to clerical error. Repeat Finding No. Recommendation The County should ensure that it performs the eligibility determination in accordance with Title 7, U.S. Code of Federal Regulation, Part 245, Section 245.6(c)(4). To prevent future noncompliance, the County should implement an additional review process of eligibility status determination for all applications processed each year.
Finding 2023-001
50000 – Child and Adult Care Food Program (Significant Deficiency) Federal Program Affected Federal Agency: U.S. Department of Agriculture Pass-Through Entity: California Department of Social Services Program Name: Child and Adult Care Food Program Assistance Listing Number: 10.558 Compliance Requirements: E (Eligibility) Criteria or Specific Requirements Per Title 7, U.S. Code of Federal Regulation, Part 245, Section 245.6(c)(4) states that the local educational agency must use the income information provided by the household on the application to calculate the household’s total current income. When a household submits an application containing completed documentation, as defined in Title 7, U.S. Code of Federal Regulation, Part 245, Section 245.2, and the household’s total current income is at or below the eligibility limits specified in the Income Eligibility Guidelines as defined in Title 7, U.S. Code of Federal Regulation, Part 245, Section 245.2, the children in that household must be approved for free or reduced price benefits, as applicable. Condition The County was not in compliance with the requirements of Title 7, U.S. Code of Federal Regulation, Part 245, Section 245.6(c)(4). We noted the County had made incorrect eligibility status determinations for 1 of 38 sampled annual meal applications for the school year. Questioned Costs There were no direct questioned costs associated with the condition identified. Context The condition was identified as a result of the auditor’s review of sample annual meal applications submitted by households. Effect The eligibility determination process is a direct and material compliance requirement that the County must adhere to. The County is noncompliant with the requirements identified in Title 7, U.S. Code of Federal Regulation, Part 245, Section 245.6(c)(4). Cause The condition identified appears to have resulted due to clerical error. Repeat Finding No. Recommendation The County should ensure that it performs the eligibility determination in accordance with Title 7, U.S. Code of Federal Regulation, Part 245, Section 245.6(c)(4). To prevent future noncompliance, the County should implement an additional review process of eligibility status determination for all applications processed each year.