Audit 313807

Finding 2022-001: Period of Performance (50000)This is a repeat of Finding 2021-004.Assistance Listing No. 21.019 ? Coronavirus Relief Funds (CRF): Learning Loss MitigationU.S. Department of TreasuryPassed through California Department of EducationCriteria: An eligible LEA with unspent funds as of December 30, 2020, shall recertify that funding received from the CR Fund will be used in full compliance with federal law by May 31, 2021. The recertification shall be made by the LEA as part of the reporting required for the quarterly period ending March 31, 2021. If an eligible LEA does not recertify as required, unspent funds received from the CR Fund may be reallocated upon order of the Director of Finance pursuant to Section 11.90 of the Budget Act of 2020 (Chapters 6 and 7 of the Statutes of 2020). Funds that are not expended by May 31, 2021, shall be reported to the Superintendent as part of the quarterly reporting period ending June 30, 2021, and the Superintendent shall recover funds from the eligible local educational agency.The only exception would be for items or goods not received by May 31, 2021 due to supply chain issues provided the goods or items at the time the order is placed are expected to be received by May 31, 2021. In these cases, obligations must have been liquidated by the end of the reporting window on October 6, 2021.Condition: The District charged $108,000 for the cost of an annual subscription to ?Kids? Internet Defense Shield? for the period 8/25/2021 through 8/24/2022, so the full amount of the services were not rendered by October 6, 2021.Cause: The District earnestly attempted to utilize the money from the CARES Act, but the guidance regarding the use and documentation needed was frequently changing and often confusing.Context: The error appears to be isolated. Other expenditures that we reviewed were timely, according to the program guidelines.Questioned Cost: By pro-rating a portion of the amount, we determined that $95,573 of the costs are attributable to the period after October 6, 2021 and are unallowable costs of the program.Recommendation: The District should reimburse Resource 3220 in the 2022-23 fiscal year for the amount charged for services beyond October 6, 2021.Views of Responsible Officials: The District, as stated in the cause, earnestly attempted to use the funds to benefit students and meet all the requirements from the CARES Act, being that guidance and deadlines were not clear. The District will follow the auditors? recommendations and work with CDE in the future to retain backup documentation as needed. We will also seek the guidance of our auditors if needed.

Finding 2022-001: Period of Performance (50000)This is a repeat of Finding 2021-004.Assistance Listing No. 21.019 ? Coronavirus Relief Funds (CRF): Learning Loss MitigationU.S. Department of TreasuryPassed through California Department of EducationCriteria: An eligible LEA with unspent funds as of December 30, 2020, shall recertify that funding received from the CR Fund will be used in full compliance with federal law by May 31, 2021. The recertification shall be made by the LEA as part of the reporting required for the quarterly period ending March 31, 2021. If an eligible LEA does not recertify as required, unspent funds received from the CR Fund may be reallocated upon order of the Director of Finance pursuant to Section 11.90 of the Budget Act of 2020 (Chapters 6 and 7 of the Statutes of 2020). Funds that are not expended by May 31, 2021, shall be reported to the Superintendent as part of the quarterly reporting period ending June 30, 2021, and the Superintendent shall recover funds from the eligible local educational agency.The only exception would be for items or goods not received by May 31, 2021 due to supply chain issues provided the goods or items at the time the order is placed are expected to be received by May 31, 2021. In these cases, obligations must have been liquidated by the end of the reporting window on October 6, 2021.Condition: The District charged $108,000 for the cost of an annual subscription to ?Kids? Internet Defense Shield? for the period 8/25/2021 through 8/24/2022, so the full amount of the services were not rendered by October 6, 2021.Cause: The District earnestly attempted to utilize the money from the CARES Act, but the guidance regarding the use and documentation needed was frequently changing and often confusing.Context: The error appears to be isolated. Other expenditures that we reviewed were timely, according to the program guidelines.Questioned Cost: By pro-rating a portion of the amount, we determined that $95,573 of the costs are attributable to the period after October 6, 2021 and are unallowable costs of the program.Recommendation: The District should reimburse Resource 3220 in the 2022-23 fiscal year for the amount charged for services beyond October 6, 2021.Views of Responsible Officials: The District, as stated in the cause, earnestly attempted to use the funds to benefit students and meet all the requirements from the CARES Act, being that guidance and deadlines were not clear. The District will follow the auditors? recommendations and work with CDE in the future to retain backup documentation as needed. We will also seek the guidance of our auditors if needed.