Audit 308137

Federal Program Affected Federal Agency: U.S. Department of Education Pass‐Through Entity: California Department of Education (CDE) Program Name: COVID‐19: Elementary and Secondary School Emergency Relief II (ESSER II) Assistance Listing Number: 84.425D Criteria or Specific Requirements Title 2, Code of Federal Regulations, Part 200, Subpart E, Section 200.439 requires the District to obtain written approval from the California Department of Education (CDE) prior to purchasing equipment for which the per unit costs exceeds $5,000. Condition The District expended $91,781 of ESSER II funds on capital expenditures that were not preapproved by the pass‐through agency, as required. Questioned Costs As a result of the condition identified above, a total of $91,781 in questioned costs were identified. Context The conditioned was identified as a result of inquiry with the District’s personnel and review of ESSER II expenditures and related invoices. Effect The District currently assumes all the risk of non‐compliance with requirements stated underTitle 2, Code of Federal Regulations, Part 200, Subpart E, Section 200.439 due to the lack of preapproval from the pass‐through agency, as required. Cause The condition identified appears to have materialized due to oversight related to the requirement under Title 2, Code of Federal Regulations, Part 200, Subpart E, Section 200.439. Repeat Finding No. Recommendation The District should ensure all equipment purchases are subject to the pre‐approval process as stated in Title 2, Code of Federal Regulations, Part 200, Subpart E, Section 200.439, and implement procedures to address the deficiency currently identified. District Response and Corrective Action Fiscal Services is in the process of obtaining approval of the capital expense. Moving forward, all ESSER requisitions that require CDE approval will not be approved until written documentation has been received and is submitted as part of the back‐up documentation.

Federal Program Affected Federal Agency: U.S. Department of Education Pass‐Through Entity: California Department of Education (CDE) Program Name: COVID‐19: Elementary and Secondary School Emergency Relief II (ESSER II) Assistance Listing Number: 84.425D Criteria or Specific Requirements Title 2, Code of Federal Regulations, Part 200, Subpart E, Section 200.439 requires the District to obtain written approval from the California Department of Education (CDE) prior to purchasing equipment for which the per unit costs exceeds $5,000. Condition The District expended $91,781 of ESSER II funds on capital expenditures that were not preapproved by the pass‐through agency, as required. Questioned Costs As a result of the condition identified above, a total of $91,781 in questioned costs were identified. Context The conditioned was identified as a result of inquiry with the District’s personnel and review of ESSER II expenditures and related invoices. Effect The District currently assumes all the risk of non‐compliance with requirements stated underTitle 2, Code of Federal Regulations, Part 200, Subpart E, Section 200.439 due to the lack of preapproval from the pass‐through agency, as required. Cause The condition identified appears to have materialized due to oversight related to the requirement under Title 2, Code of Federal Regulations, Part 200, Subpart E, Section 200.439. Repeat Finding No. Recommendation The District should ensure all equipment purchases are subject to the pre‐approval process as stated in Title 2, Code of Federal Regulations, Part 200, Subpart E, Section 200.439, and implement procedures to address the deficiency currently identified. District Response and Corrective Action Fiscal Services is in the process of obtaining approval of the capital expense. Moving forward, all ESSER requisitions that require CDE approval will not be approved until written documentation has been received and is submitted as part of the back‐up documentation.