Audit 328293

Federal Agency: U.S. Department of Education Pass-Through Entity: California Department of Education Federal Program: Education Stabilization Fund Assistance Listing Number: 84.425 Compliance Requirement: Reporting Type of Finding: Significant Deficiency and Non-Compliance Criteria or Specific Requirements Per Title 2, Code of Federal Regulations, Part 200, Subpart D, Section 200.334, records and supporting documents pertinent to a Federal award must be retained for a period of three years from the date of submission of reports to the awarding agency or pass-through entity. Condition The District did not properly prepare two annual reports for the Elementary and Secondary School Emergency Relief Fund. The District was unable to provide supporting documentation that agreed to the expenditures reported to the California Department of Education. The District was unable to provide supporting documents that agreed to the fulltime equivalent (FTE) information reported to the California Department of Education. Questioned Costs There are no questioned costs associated with the condition identified. Context The condition was identified through inquiry with District personnel and through review of available supporting documentation. Effect The District has not complied with the requirements identified in Title 2, Code of Federal Regulations, Part 200, Subpart D, Section 200.334. Cause It appears that the condition has materialized due to the District not properly entering program expenditures from their financial system into the quarterly reports for each reporting date. Repeat Finding No. Recommendation The District should ensure that all federal program reports are supported by adequate records. These records should be maintained for a period of three years from the date of submission of the reports to the awarding agency or pass-through entity. Corrective Action Plan and Views of Responsible Officials Moving forward, the District will ensure that all items reported to various agencies, including the California Department of Education, are supported and are retained to external review.

Federal Agency: U.S. Department of Education Pass-Through Entity: California Department of Education Federal Program: Education Stabilization Fund Assistance Listing Number: 84.425 Compliance Requirement: Reporting Type of Finding: Significant Deficiency and Non-Compliance Criteria or Specific Requirements Per Title 2, Code of Federal Regulations, Part 200, Subpart D, Section 200.334, records and supporting documents pertinent to a Federal award must be retained for a period of three years from the date of submission of reports to the awarding agency or pass-through entity. Condition The District did not properly prepare two annual reports for the Elementary and Secondary School Emergency Relief Fund. The District was unable to provide supporting documentation that agreed to the expenditures reported to the California Department of Education. The District was unable to provide supporting documents that agreed to the fulltime equivalent (FTE) information reported to the California Department of Education. Questioned Costs There are no questioned costs associated with the condition identified. Context The condition was identified through inquiry with District personnel and through review of available supporting documentation. Effect The District has not complied with the requirements identified in Title 2, Code of Federal Regulations, Part 200, Subpart D, Section 200.334. Cause It appears that the condition has materialized due to the District not properly entering program expenditures from their financial system into the quarterly reports for each reporting date. Repeat Finding No. Recommendation The District should ensure that all federal program reports are supported by adequate records. These records should be maintained for a period of three years from the date of submission of the reports to the awarding agency or pass-through entity. Corrective Action Plan and Views of Responsible Officials Moving forward, the District will ensure that all items reported to various agencies, including the California Department of Education, are supported and are retained to external review.

Federal Agency: U.S. Department of Education Pass-Through Entity: California Department of Education Federal Program: Education Stabilization Fund Assistance Listing Number: 84.425 Compliance Requirement: Reporting Type of Finding: Significant Deficiency and Non-Compliance Criteria or Specific Requirements Per Title 2, Code of Federal Regulations, Part 200, Subpart D, Section 200.334, records and supporting documents pertinent to a Federal award must be retained for a period of three years from the date of submission of reports to the awarding agency or pass-through entity. Condition The District did not properly prepare two annual reports for the Elementary and Secondary School Emergency Relief Fund. The District was unable to provide supporting documentation that agreed to the expenditures reported to the California Department of Education. The District was unable to provide supporting documents that agreed to the fulltime equivalent (FTE) information reported to the California Department of Education. Questioned Costs There are no questioned costs associated with the condition identified. Context The condition was identified through inquiry with District personnel and through review of available supporting documentation. Effect The District has not complied with the requirements identified in Title 2, Code of Federal Regulations, Part 200, Subpart D, Section 200.334. Cause It appears that the condition has materialized due to the District not properly entering program expenditures from their financial system into the quarterly reports for each reporting date. Repeat Finding No. Recommendation The District should ensure that all federal program reports are supported by adequate records. These records should be maintained for a period of three years from the date of submission of the reports to the awarding agency or pass-through entity. Corrective Action Plan and Views of Responsible Officials Moving forward, the District will ensure that all items reported to various agencies, including the California Department of Education, are supported and are retained to external review.

Federal Agency: U.S. Department of Education Pass-Through Entity: California Department of Education Federal Program: Education Stabilization Fund Assistance Listing Number: 84.425 Compliance Requirement: Reporting Type of Finding: Significant Deficiency and Non-Compliance Criteria or Specific Requirements Per Title 2, Code of Federal Regulations, Part 200, Subpart D, Section 200.334, records and supporting documents pertinent to a Federal award must be retained for a period of three years from the date of submission of reports to the awarding agency or pass-through entity. Condition The District did not properly prepare two annual reports for the Elementary and Secondary School Emergency Relief Fund. The District was unable to provide supporting documentation that agreed to the expenditures reported to the California Department of Education. The District was unable to provide supporting documents that agreed to the fulltime equivalent (FTE) information reported to the California Department of Education. Questioned Costs There are no questioned costs associated with the condition identified. Context The condition was identified through inquiry with District personnel and through review of available supporting documentation. Effect The District has not complied with the requirements identified in Title 2, Code of Federal Regulations, Part 200, Subpart D, Section 200.334. Cause It appears that the condition has materialized due to the District not properly entering program expenditures from their financial system into the quarterly reports for each reporting date. Repeat Finding No. Recommendation The District should ensure that all federal program reports are supported by adequate records. These records should be maintained for a period of three years from the date of submission of the reports to the awarding agency or pass-through entity. Corrective Action Plan and Views of Responsible Officials Moving forward, the District will ensure that all items reported to various agencies, including the California Department of Education, are supported and are retained to external review.

Federal Agency: U.S. Department of Education Pass-Through Entity: California Department of Education Federal Program: Education Stabilization Fund Assistance Listing Number: 84.425 Compliance Requirement: Reporting Type of Finding: Significant Deficiency and Non-Compliance Criteria or Specific Requirements Per Title 2, Code of Federal Regulations, Part 200, Subpart D, Section 200.334, records and supporting documents pertinent to a Federal award must be retained for a period of three years from the date of submission of reports to the awarding agency or pass-through entity. Condition The District did not properly prepare two annual reports for the Elementary and Secondary School Emergency Relief Fund. The District was unable to provide supporting documentation that agreed to the expenditures reported to the California Department of Education. The District was unable to provide supporting documents that agreed to the fulltime equivalent (FTE) information reported to the California Department of Education. Questioned Costs There are no questioned costs associated with the condition identified. Context The condition was identified through inquiry with District personnel and through review of available supporting documentation. Effect The District has not complied with the requirements identified in Title 2, Code of Federal Regulations, Part 200, Subpart D, Section 200.334. Cause It appears that the condition has materialized due to the District not properly entering program expenditures from their financial system into the quarterly reports for each reporting date. Repeat Finding No. Recommendation The District should ensure that all federal program reports are supported by adequate records. These records should be maintained for a period of three years from the date of submission of the reports to the awarding agency or pass-through entity. Corrective Action Plan and Views of Responsible Officials Moving forward, the District will ensure that all items reported to various agencies, including the California Department of Education, are supported and are retained to external review.

Federal Agency: U.S. Department of Education Pass-Through Entity: California Department of Education Federal Program: Education Stabilization Fund Assistance Listing Number: 84.425 Compliance Requirement: Reporting Type of Finding: Significant Deficiency and Non-Compliance Criteria or Specific Requirements Per Title 2, Code of Federal Regulations, Part 200, Subpart D, Section 200.334, records and supporting documents pertinent to a Federal award must be retained for a period of three years from the date of submission of reports to the awarding agency or pass-through entity. Condition The District did not properly prepare two annual reports for the Elementary and Secondary School Emergency Relief Fund. The District was unable to provide supporting documentation that agreed to the expenditures reported to the California Department of Education. The District was unable to provide supporting documents that agreed to the fulltime equivalent (FTE) information reported to the California Department of Education. Questioned Costs There are no questioned costs associated with the condition identified. Context The condition was identified through inquiry with District personnel and through review of available supporting documentation. Effect The District has not complied with the requirements identified in Title 2, Code of Federal Regulations, Part 200, Subpart D, Section 200.334. Cause It appears that the condition has materialized due to the District not properly entering program expenditures from their financial system into the quarterly reports for each reporting date. Repeat Finding No. Recommendation The District should ensure that all federal program reports are supported by adequate records. These records should be maintained for a period of three years from the date of submission of the reports to the awarding agency or pass-through entity. Corrective Action Plan and Views of Responsible Officials Moving forward, the District will ensure that all items reported to various agencies, including the California Department of Education, are supported and are retained to external review.

Federal Agency: U.S. Department of Education Pass-through Entity: California Department of Education Federal Program: Education Stabilization Fund (ESF) ALN: 84.425D & 84.425U (FY 2022-2023) Compliance Requirement: Allowable Costs/Cost Principles Type of Finding: Significant Deficiency and Non-Compliance Criteria or Specific Requirements The Code of Federal Regulations, Title 2, Subtitle A, Chapter II, Part 200, Subpart E, Section 200.439(a)(1) states: “Capital expenditures for general purpose equipment, buildings, and land are unallowable as direct charges, except with the prior written approval of the Federal awarding agency or pass- through entity.” Furthermore, the California Department of Education’s (CDE) FAQs on Capital Expenditures state the following: “In accordance with 2 CFR 200.439, prior approval is required for any single big-ticket purchases at the cost of $5,000 or more using the funding sources cited above. These purchases can include general purpose equipment, buildings, and land, including material improvements. This means one costly item (or several items which make up one unit) and the cost includes all the ancillary expenses such as design costs, new electrical circuit for the item, and other related fees. To obtain approval, an LEA must fill out the Capital Expenditures Pre-Approval Application Form” Condition The District had a total of $33,200 in capital expenditures charged to ESF that was not preapproved by CDE. Questioned Costs A total of $33,200 in questioned costs were noted based on the condition identified. Context The condition was identified as a result of our review and testing of expenditures charged to various ESF programs. Effect As a result of the condition identified, the District was not in compliance with the Code of Federal Regulations, Title 2, Subtitle A, Chapter II, Part 200, Subpart E, Section 200.439(a)(1). Cause The cause appears to be attribute to the District’s improper monitoring and lack of knowledge over this specific compliance requirement. Additionally, a contributing factor appears to be a turnover in a key position that provides oversight for this program. Repeat Finding No. Recommendation The District should become familiar with all of the compliance requirements with ESF. As a resource, the District should utilize a combination of guidance provided by CDE and also by Subpart E of the Uniform Guidance that provides guidance on cost principles. Additionally, the District should establish more effective control activities and monitoring over how Federal funds are spent to ensure compliance, moving forward. Corrective Action Plan and Views of Responsible Officials The District will ensure that all proposed capital expenditures originating from any Federal sources that are in excess of $5,000 are pre-approved by CDE prior to executing the proposed transaction.

Federal Agency: U.S. Department of Education Pass-through Entity: California Department of Education Federal Program: Education Stabilization Fund (ESF) ALN: 84.425D & 84.425U (FY 2022-2023) Compliance Requirement: Allowable Costs/Cost Principles Type of Finding: Significant Deficiency and Non-Compliance Criteria or Specific Requirements The Code of Federal Regulations, Title 2, Subtitle A, Chapter II, Part 200, Subpart E, Section 200.439(a)(1) states: “Capital expenditures for general purpose equipment, buildings, and land are unallowable as direct charges, except with the prior written approval of the Federal awarding agency or pass- through entity.” Furthermore, the California Department of Education’s (CDE) FAQs on Capital Expenditures state the following: “In accordance with 2 CFR 200.439, prior approval is required for any single big-ticket purchases at the cost of $5,000 or more using the funding sources cited above. These purchases can include general purpose equipment, buildings, and land, including material improvements. This means one costly item (or several items which make up one unit) and the cost includes all the ancillary expenses such as design costs, new electrical circuit for the item, and other related fees. To obtain approval, an LEA must fill out the Capital Expenditures Pre-Approval Application Form” Condition The District had a total of $33,200 in capital expenditures charged to ESF that was not preapproved by CDE. Questioned Costs A total of $33,200 in questioned costs were noted based on the condition identified. Context The condition was identified as a result of our review and testing of expenditures charged to various ESF programs. Effect As a result of the condition identified, the District was not in compliance with the Code of Federal Regulations, Title 2, Subtitle A, Chapter II, Part 200, Subpart E, Section 200.439(a)(1). Cause The cause appears to be attribute to the District’s improper monitoring and lack of knowledge over this specific compliance requirement. Additionally, a contributing factor appears to be a turnover in a key position that provides oversight for this program. Repeat Finding No. Recommendation The District should become familiar with all of the compliance requirements with ESF. As a resource, the District should utilize a combination of guidance provided by CDE and also by Subpart E of the Uniform Guidance that provides guidance on cost principles. Additionally, the District should establish more effective control activities and monitoring over how Federal funds are spent to ensure compliance, moving forward. Corrective Action Plan and Views of Responsible Officials The District will ensure that all proposed capital expenditures originating from any Federal sources that are in excess of $5,000 are pre-approved by CDE prior to executing the proposed transaction.

Federal Agency: U.S. Department of Education Pass-through Entity: California Department of Education Federal Program: Education Stabilization Fund (ESF) ALN: 84.425D & 84.425U (FY 2022-2023) Compliance Requirement: Allowable Costs/Cost Principles Type of Finding: Significant Deficiency and Non-Compliance Criteria or Specific Requirements The Code of Federal Regulations, Title 2, Subtitle A, Chapter II, Part 200, Subpart E, Section 200.439(a)(1) states: “Capital expenditures for general purpose equipment, buildings, and land are unallowable as direct charges, except with the prior written approval of the Federal awarding agency or pass- through entity.” Furthermore, the California Department of Education’s (CDE) FAQs on Capital Expenditures state the following: “In accordance with 2 CFR 200.439, prior approval is required for any single big-ticket purchases at the cost of $5,000 or more using the funding sources cited above. These purchases can include general purpose equipment, buildings, and land, including material improvements. This means one costly item (or several items which make up one unit) and the cost includes all the ancillary expenses such as design costs, new electrical circuit for the item, and other related fees. To obtain approval, an LEA must fill out the Capital Expenditures Pre-Approval Application Form” Condition The District had a total of $33,200 in capital expenditures charged to ESF that was not preapproved by CDE. Questioned Costs A total of $33,200 in questioned costs were noted based on the condition identified. Context The condition was identified as a result of our review and testing of expenditures charged to various ESF programs. Effect As a result of the condition identified, the District was not in compliance with the Code of Federal Regulations, Title 2, Subtitle A, Chapter II, Part 200, Subpart E, Section 200.439(a)(1). Cause The cause appears to be attribute to the District’s improper monitoring and lack of knowledge over this specific compliance requirement. Additionally, a contributing factor appears to be a turnover in a key position that provides oversight for this program. Repeat Finding No. Recommendation The District should become familiar with all of the compliance requirements with ESF. As a resource, the District should utilize a combination of guidance provided by CDE and also by Subpart E of the Uniform Guidance that provides guidance on cost principles. Additionally, the District should establish more effective control activities and monitoring over how Federal funds are spent to ensure compliance, moving forward. Corrective Action Plan and Views of Responsible Officials The District will ensure that all proposed capital expenditures originating from any Federal sources that are in excess of $5,000 are pre-approved by CDE prior to executing the proposed transaction.

Federal Agency: U.S. Department of Education Pass-through Entity: California Department of Education Federal Program: Education Stabilization Fund (ESF) ALN: 84.425D & 84.425U (FY 2022-2023) Compliance Requirement: Allowable Costs/Cost Principles Type of Finding: Significant Deficiency and Non-Compliance Criteria or Specific Requirements The Code of Federal Regulations, Title 2, Subtitle A, Chapter II, Part 200, Subpart E, Section 200.439(a)(1) states: “Capital expenditures for general purpose equipment, buildings, and land are unallowable as direct charges, except with the prior written approval of the Federal awarding agency or pass- through entity.” Furthermore, the California Department of Education’s (CDE) FAQs on Capital Expenditures state the following: “In accordance with 2 CFR 200.439, prior approval is required for any single big-ticket purchases at the cost of $5,000 or more using the funding sources cited above. These purchases can include general purpose equipment, buildings, and land, including material improvements. This means one costly item (or several items which make up one unit) and the cost includes all the ancillary expenses such as design costs, new electrical circuit for the item, and other related fees. To obtain approval, an LEA must fill out the Capital Expenditures Pre-Approval Application Form” Condition The District had a total of $33,200 in capital expenditures charged to ESF that was not preapproved by CDE. Questioned Costs A total of $33,200 in questioned costs were noted based on the condition identified. Context The condition was identified as a result of our review and testing of expenditures charged to various ESF programs. Effect As a result of the condition identified, the District was not in compliance with the Code of Federal Regulations, Title 2, Subtitle A, Chapter II, Part 200, Subpart E, Section 200.439(a)(1). Cause The cause appears to be attribute to the District’s improper monitoring and lack of knowledge over this specific compliance requirement. Additionally, a contributing factor appears to be a turnover in a key position that provides oversight for this program. Repeat Finding No. Recommendation The District should become familiar with all of the compliance requirements with ESF. As a resource, the District should utilize a combination of guidance provided by CDE and also by Subpart E of the Uniform Guidance that provides guidance on cost principles. Additionally, the District should establish more effective control activities and monitoring over how Federal funds are spent to ensure compliance, moving forward. Corrective Action Plan and Views of Responsible Officials The District will ensure that all proposed capital expenditures originating from any Federal sources that are in excess of $5,000 are pre-approved by CDE prior to executing the proposed transaction.

Federal Agency: U.S. Department of Education Pass-through Entity: California Department of Education Federal Program: Education Stabilization Fund (ESF) ALN: 84.425D & 84.425U (FY 2022-2023) Compliance Requirement: Allowable Costs/Cost Principles Type of Finding: Significant Deficiency and Non-Compliance Criteria or Specific Requirements The Code of Federal Regulations, Title 2, Subtitle A, Chapter II, Part 200, Subpart E, Section 200.439(a)(1) states: “Capital expenditures for general purpose equipment, buildings, and land are unallowable as direct charges, except with the prior written approval of the Federal awarding agency or pass- through entity.” Furthermore, the California Department of Education’s (CDE) FAQs on Capital Expenditures state the following: “In accordance with 2 CFR 200.439, prior approval is required for any single big-ticket purchases at the cost of $5,000 or more using the funding sources cited above. These purchases can include general purpose equipment, buildings, and land, including material improvements. This means one costly item (or several items which make up one unit) and the cost includes all the ancillary expenses such as design costs, new electrical circuit for the item, and other related fees. To obtain approval, an LEA must fill out the Capital Expenditures Pre-Approval Application Form” Condition The District had a total of $33,200 in capital expenditures charged to ESF that was not preapproved by CDE. Questioned Costs A total of $33,200 in questioned costs were noted based on the condition identified. Context The condition was identified as a result of our review and testing of expenditures charged to various ESF programs. Effect As a result of the condition identified, the District was not in compliance with the Code of Federal Regulations, Title 2, Subtitle A, Chapter II, Part 200, Subpart E, Section 200.439(a)(1). Cause The cause appears to be attribute to the District’s improper monitoring and lack of knowledge over this specific compliance requirement. Additionally, a contributing factor appears to be a turnover in a key position that provides oversight for this program. Repeat Finding No. Recommendation The District should become familiar with all of the compliance requirements with ESF. As a resource, the District should utilize a combination of guidance provided by CDE and also by Subpart E of the Uniform Guidance that provides guidance on cost principles. Additionally, the District should establish more effective control activities and monitoring over how Federal funds are spent to ensure compliance, moving forward. Corrective Action Plan and Views of Responsible Officials The District will ensure that all proposed capital expenditures originating from any Federal sources that are in excess of $5,000 are pre-approved by CDE prior to executing the proposed transaction.

Federal Agency: U.S. Department of Education Pass-through Entity: California Department of Education Federal Program: Education Stabilization Fund (ESF) ALN: 84.425D & 84.425U (FY 2022-2023) Compliance Requirement: Allowable Costs/Cost Principles Type of Finding: Significant Deficiency and Non-Compliance Criteria or Specific Requirements The Code of Federal Regulations, Title 2, Subtitle A, Chapter II, Part 200, Subpart E, Section 200.439(a)(1) states: “Capital expenditures for general purpose equipment, buildings, and land are unallowable as direct charges, except with the prior written approval of the Federal awarding agency or pass- through entity.” Furthermore, the California Department of Education’s (CDE) FAQs on Capital Expenditures state the following: “In accordance with 2 CFR 200.439, prior approval is required for any single big-ticket purchases at the cost of $5,000 or more using the funding sources cited above. These purchases can include general purpose equipment, buildings, and land, including material improvements. This means one costly item (or several items which make up one unit) and the cost includes all the ancillary expenses such as design costs, new electrical circuit for the item, and other related fees. To obtain approval, an LEA must fill out the Capital Expenditures Pre-Approval Application Form” Condition The District had a total of $33,200 in capital expenditures charged to ESF that was not preapproved by CDE. Questioned Costs A total of $33,200 in questioned costs were noted based on the condition identified. Context The condition was identified as a result of our review and testing of expenditures charged to various ESF programs. Effect As a result of the condition identified, the District was not in compliance with the Code of Federal Regulations, Title 2, Subtitle A, Chapter II, Part 200, Subpart E, Section 200.439(a)(1). Cause The cause appears to be attribute to the District’s improper monitoring and lack of knowledge over this specific compliance requirement. Additionally, a contributing factor appears to be a turnover in a key position that provides oversight for this program. Repeat Finding No. Recommendation The District should become familiar with all of the compliance requirements with ESF. As a resource, the District should utilize a combination of guidance provided by CDE and also by Subpart E of the Uniform Guidance that provides guidance on cost principles. Additionally, the District should establish more effective control activities and monitoring over how Federal funds are spent to ensure compliance, moving forward. Corrective Action Plan and Views of Responsible Officials The District will ensure that all proposed capital expenditures originating from any Federal sources that are in excess of $5,000 are pre-approved by CDE prior to executing the proposed transaction.

Federal Agency: U.S. Department of Education Pass-Through Entity: California Department of Education Federal Program: Education Stabilization Fund Assistance Listing Number: 84.425 Compliance Requirement: Reporting Type of Finding: Significant Deficiency and Non-Compliance Criteria or Specific Requirements Per Title 2, Code of Federal Regulations, Part 200, Subpart D, Section 200.334, records and supporting documents pertinent to a Federal award must be retained for a period of three years from the date of submission of reports to the awarding agency or pass-through entity. Condition The District did not properly prepare two annual reports for the Elementary and Secondary School Emergency Relief Fund. The District was unable to provide supporting documentation that agreed to the expenditures reported to the California Department of Education. The District was unable to provide supporting documents that agreed to the fulltime equivalent (FTE) information reported to the California Department of Education. Questioned Costs There are no questioned costs associated with the condition identified. Context The condition was identified through inquiry with District personnel and through review of available supporting documentation. Effect The District has not complied with the requirements identified in Title 2, Code of Federal Regulations, Part 200, Subpart D, Section 200.334. Cause It appears that the condition has materialized due to the District not properly entering program expenditures from their financial system into the quarterly reports for each reporting date. Repeat Finding No. Recommendation The District should ensure that all federal program reports are supported by adequate records. These records should be maintained for a period of three years from the date of submission of the reports to the awarding agency or pass-through entity. Corrective Action Plan and Views of Responsible Officials Moving forward, the District will ensure that all items reported to various agencies, including the California Department of Education, are supported and are retained to external review.

Federal Agency: U.S. Department of Education Pass-Through Entity: California Department of Education Federal Program: Education Stabilization Fund Assistance Listing Number: 84.425 Compliance Requirement: Reporting Type of Finding: Significant Deficiency and Non-Compliance Criteria or Specific Requirements Per Title 2, Code of Federal Regulations, Part 200, Subpart D, Section 200.334, records and supporting documents pertinent to a Federal award must be retained for a period of three years from the date of submission of reports to the awarding agency or pass-through entity. Condition The District did not properly prepare two annual reports for the Elementary and Secondary School Emergency Relief Fund. The District was unable to provide supporting documentation that agreed to the expenditures reported to the California Department of Education. The District was unable to provide supporting documents that agreed to the fulltime equivalent (FTE) information reported to the California Department of Education. Questioned Costs There are no questioned costs associated with the condition identified. Context The condition was identified through inquiry with District personnel and through review of available supporting documentation. Effect The District has not complied with the requirements identified in Title 2, Code of Federal Regulations, Part 200, Subpart D, Section 200.334. Cause It appears that the condition has materialized due to the District not properly entering program expenditures from their financial system into the quarterly reports for each reporting date. Repeat Finding No. Recommendation The District should ensure that all federal program reports are supported by adequate records. These records should be maintained for a period of three years from the date of submission of the reports to the awarding agency or pass-through entity. Corrective Action Plan and Views of Responsible Officials Moving forward, the District will ensure that all items reported to various agencies, including the California Department of Education, are supported and are retained to external review.

Federal Agency: U.S. Department of Education Pass-Through Entity: California Department of Education Federal Program: Education Stabilization Fund Assistance Listing Number: 84.425 Compliance Requirement: Reporting Type of Finding: Significant Deficiency and Non-Compliance Criteria or Specific Requirements Per Title 2, Code of Federal Regulations, Part 200, Subpart D, Section 200.334, records and supporting documents pertinent to a Federal award must be retained for a period of three years from the date of submission of reports to the awarding agency or pass-through entity. Condition The District did not properly prepare two annual reports for the Elementary and Secondary School Emergency Relief Fund. The District was unable to provide supporting documentation that agreed to the expenditures reported to the California Department of Education. The District was unable to provide supporting documents that agreed to the fulltime equivalent (FTE) information reported to the California Department of Education. Questioned Costs There are no questioned costs associated with the condition identified. Context The condition was identified through inquiry with District personnel and through review of available supporting documentation. Effect The District has not complied with the requirements identified in Title 2, Code of Federal Regulations, Part 200, Subpart D, Section 200.334. Cause It appears that the condition has materialized due to the District not properly entering program expenditures from their financial system into the quarterly reports for each reporting date. Repeat Finding No. Recommendation The District should ensure that all federal program reports are supported by adequate records. These records should be maintained for a period of three years from the date of submission of the reports to the awarding agency or pass-through entity. Corrective Action Plan and Views of Responsible Officials Moving forward, the District will ensure that all items reported to various agencies, including the California Department of Education, are supported and are retained to external review.

Federal Agency: U.S. Department of Education Pass-Through Entity: California Department of Education Federal Program: Education Stabilization Fund Assistance Listing Number: 84.425 Compliance Requirement: Reporting Type of Finding: Significant Deficiency and Non-Compliance Criteria or Specific Requirements Per Title 2, Code of Federal Regulations, Part 200, Subpart D, Section 200.334, records and supporting documents pertinent to a Federal award must be retained for a period of three years from the date of submission of reports to the awarding agency or pass-through entity. Condition The District did not properly prepare two annual reports for the Elementary and Secondary School Emergency Relief Fund. The District was unable to provide supporting documentation that agreed to the expenditures reported to the California Department of Education. The District was unable to provide supporting documents that agreed to the fulltime equivalent (FTE) information reported to the California Department of Education. Questioned Costs There are no questioned costs associated with the condition identified. Context The condition was identified through inquiry with District personnel and through review of available supporting documentation. Effect The District has not complied with the requirements identified in Title 2, Code of Federal Regulations, Part 200, Subpart D, Section 200.334. Cause It appears that the condition has materialized due to the District not properly entering program expenditures from their financial system into the quarterly reports for each reporting date. Repeat Finding No. Recommendation The District should ensure that all federal program reports are supported by adequate records. These records should be maintained for a period of three years from the date of submission of the reports to the awarding agency or pass-through entity. Corrective Action Plan and Views of Responsible Officials Moving forward, the District will ensure that all items reported to various agencies, including the California Department of Education, are supported and are retained to external review.

Federal Agency: U.S. Department of Education Pass-Through Entity: California Department of Education Federal Program: Education Stabilization Fund Assistance Listing Number: 84.425 Compliance Requirement: Reporting Type of Finding: Significant Deficiency and Non-Compliance Criteria or Specific Requirements Per Title 2, Code of Federal Regulations, Part 200, Subpart D, Section 200.334, records and supporting documents pertinent to a Federal award must be retained for a period of three years from the date of submission of reports to the awarding agency or pass-through entity. Condition The District did not properly prepare two annual reports for the Elementary and Secondary School Emergency Relief Fund. The District was unable to provide supporting documentation that agreed to the expenditures reported to the California Department of Education. The District was unable to provide supporting documents that agreed to the fulltime equivalent (FTE) information reported to the California Department of Education. Questioned Costs There are no questioned costs associated with the condition identified. Context The condition was identified through inquiry with District personnel and through review of available supporting documentation. Effect The District has not complied with the requirements identified in Title 2, Code of Federal Regulations, Part 200, Subpart D, Section 200.334. Cause It appears that the condition has materialized due to the District not properly entering program expenditures from their financial system into the quarterly reports for each reporting date. Repeat Finding No. Recommendation The District should ensure that all federal program reports are supported by adequate records. These records should be maintained for a period of three years from the date of submission of the reports to the awarding agency or pass-through entity. Corrective Action Plan and Views of Responsible Officials Moving forward, the District will ensure that all items reported to various agencies, including the California Department of Education, are supported and are retained to external review.

Federal Agency: U.S. Department of Education Pass-Through Entity: California Department of Education Federal Program: Education Stabilization Fund Assistance Listing Number: 84.425 Compliance Requirement: Reporting Type of Finding: Significant Deficiency and Non-Compliance Criteria or Specific Requirements Per Title 2, Code of Federal Regulations, Part 200, Subpart D, Section 200.334, records and supporting documents pertinent to a Federal award must be retained for a period of three years from the date of submission of reports to the awarding agency or pass-through entity. Condition The District did not properly prepare two annual reports for the Elementary and Secondary School Emergency Relief Fund. The District was unable to provide supporting documentation that agreed to the expenditures reported to the California Department of Education. The District was unable to provide supporting documents that agreed to the fulltime equivalent (FTE) information reported to the California Department of Education. Questioned Costs There are no questioned costs associated with the condition identified. Context The condition was identified through inquiry with District personnel and through review of available supporting documentation. Effect The District has not complied with the requirements identified in Title 2, Code of Federal Regulations, Part 200, Subpart D, Section 200.334. Cause It appears that the condition has materialized due to the District not properly entering program expenditures from their financial system into the quarterly reports for each reporting date. Repeat Finding No. Recommendation The District should ensure that all federal program reports are supported by adequate records. These records should be maintained for a period of three years from the date of submission of the reports to the awarding agency or pass-through entity. Corrective Action Plan and Views of Responsible Officials Moving forward, the District will ensure that all items reported to various agencies, including the California Department of Education, are supported and are retained to external review.

Federal Agency: U.S. Department of Education Pass-through Entity: California Department of Education Federal Program: Education Stabilization Fund (ESF) ALN: 84.425D & 84.425U (FY 2022-2023) Compliance Requirement: Allowable Costs/Cost Principles Type of Finding: Significant Deficiency and Non-Compliance Criteria or Specific Requirements The Code of Federal Regulations, Title 2, Subtitle A, Chapter II, Part 200, Subpart E, Section 200.439(a)(1) states: “Capital expenditures for general purpose equipment, buildings, and land are unallowable as direct charges, except with the prior written approval of the Federal awarding agency or pass- through entity.” Furthermore, the California Department of Education’s (CDE) FAQs on Capital Expenditures state the following: “In accordance with 2 CFR 200.439, prior approval is required for any single big-ticket purchases at the cost of $5,000 or more using the funding sources cited above. These purchases can include general purpose equipment, buildings, and land, including material improvements. This means one costly item (or several items which make up one unit) and the cost includes all the ancillary expenses such as design costs, new electrical circuit for the item, and other related fees. To obtain approval, an LEA must fill out the Capital Expenditures Pre-Approval Application Form” Condition The District had a total of $33,200 in capital expenditures charged to ESF that was not preapproved by CDE. Questioned Costs A total of $33,200 in questioned costs were noted based on the condition identified. Context The condition was identified as a result of our review and testing of expenditures charged to various ESF programs. Effect As a result of the condition identified, the District was not in compliance with the Code of Federal Regulations, Title 2, Subtitle A, Chapter II, Part 200, Subpart E, Section 200.439(a)(1). Cause The cause appears to be attribute to the District’s improper monitoring and lack of knowledge over this specific compliance requirement. Additionally, a contributing factor appears to be a turnover in a key position that provides oversight for this program. Repeat Finding No. Recommendation The District should become familiar with all of the compliance requirements with ESF. As a resource, the District should utilize a combination of guidance provided by CDE and also by Subpart E of the Uniform Guidance that provides guidance on cost principles. Additionally, the District should establish more effective control activities and monitoring over how Federal funds are spent to ensure compliance, moving forward. Corrective Action Plan and Views of Responsible Officials The District will ensure that all proposed capital expenditures originating from any Federal sources that are in excess of $5,000 are pre-approved by CDE prior to executing the proposed transaction.

Federal Agency: U.S. Department of Education Pass-through Entity: California Department of Education Federal Program: Education Stabilization Fund (ESF) ALN: 84.425D & 84.425U (FY 2022-2023) Compliance Requirement: Allowable Costs/Cost Principles Type of Finding: Significant Deficiency and Non-Compliance Criteria or Specific Requirements The Code of Federal Regulations, Title 2, Subtitle A, Chapter II, Part 200, Subpart E, Section 200.439(a)(1) states: “Capital expenditures for general purpose equipment, buildings, and land are unallowable as direct charges, except with the prior written approval of the Federal awarding agency or pass- through entity.” Furthermore, the California Department of Education’s (CDE) FAQs on Capital Expenditures state the following: “In accordance with 2 CFR 200.439, prior approval is required for any single big-ticket purchases at the cost of $5,000 or more using the funding sources cited above. These purchases can include general purpose equipment, buildings, and land, including material improvements. This means one costly item (or several items which make up one unit) and the cost includes all the ancillary expenses such as design costs, new electrical circuit for the item, and other related fees. To obtain approval, an LEA must fill out the Capital Expenditures Pre-Approval Application Form” Condition The District had a total of $33,200 in capital expenditures charged to ESF that was not preapproved by CDE. Questioned Costs A total of $33,200 in questioned costs were noted based on the condition identified. Context The condition was identified as a result of our review and testing of expenditures charged to various ESF programs. Effect As a result of the condition identified, the District was not in compliance with the Code of Federal Regulations, Title 2, Subtitle A, Chapter II, Part 200, Subpart E, Section 200.439(a)(1). Cause The cause appears to be attribute to the District’s improper monitoring and lack of knowledge over this specific compliance requirement. Additionally, a contributing factor appears to be a turnover in a key position that provides oversight for this program. Repeat Finding No. Recommendation The District should become familiar with all of the compliance requirements with ESF. As a resource, the District should utilize a combination of guidance provided by CDE and also by Subpart E of the Uniform Guidance that provides guidance on cost principles. Additionally, the District should establish more effective control activities and monitoring over how Federal funds are spent to ensure compliance, moving forward. Corrective Action Plan and Views of Responsible Officials The District will ensure that all proposed capital expenditures originating from any Federal sources that are in excess of $5,000 are pre-approved by CDE prior to executing the proposed transaction.

Federal Agency: U.S. Department of Education Pass-through Entity: California Department of Education Federal Program: Education Stabilization Fund (ESF) ALN: 84.425D & 84.425U (FY 2022-2023) Compliance Requirement: Allowable Costs/Cost Principles Type of Finding: Significant Deficiency and Non-Compliance Criteria or Specific Requirements The Code of Federal Regulations, Title 2, Subtitle A, Chapter II, Part 200, Subpart E, Section 200.439(a)(1) states: “Capital expenditures for general purpose equipment, buildings, and land are unallowable as direct charges, except with the prior written approval of the Federal awarding agency or pass- through entity.” Furthermore, the California Department of Education’s (CDE) FAQs on Capital Expenditures state the following: “In accordance with 2 CFR 200.439, prior approval is required for any single big-ticket purchases at the cost of $5,000 or more using the funding sources cited above. These purchases can include general purpose equipment, buildings, and land, including material improvements. This means one costly item (or several items which make up one unit) and the cost includes all the ancillary expenses such as design costs, new electrical circuit for the item, and other related fees. To obtain approval, an LEA must fill out the Capital Expenditures Pre-Approval Application Form” Condition The District had a total of $33,200 in capital expenditures charged to ESF that was not preapproved by CDE. Questioned Costs A total of $33,200 in questioned costs were noted based on the condition identified. Context The condition was identified as a result of our review and testing of expenditures charged to various ESF programs. Effect As a result of the condition identified, the District was not in compliance with the Code of Federal Regulations, Title 2, Subtitle A, Chapter II, Part 200, Subpart E, Section 200.439(a)(1). Cause The cause appears to be attribute to the District’s improper monitoring and lack of knowledge over this specific compliance requirement. Additionally, a contributing factor appears to be a turnover in a key position that provides oversight for this program. Repeat Finding No. Recommendation The District should become familiar with all of the compliance requirements with ESF. As a resource, the District should utilize a combination of guidance provided by CDE and also by Subpart E of the Uniform Guidance that provides guidance on cost principles. Additionally, the District should establish more effective control activities and monitoring over how Federal funds are spent to ensure compliance, moving forward. Corrective Action Plan and Views of Responsible Officials The District will ensure that all proposed capital expenditures originating from any Federal sources that are in excess of $5,000 are pre-approved by CDE prior to executing the proposed transaction.

Federal Agency: U.S. Department of Education Pass-through Entity: California Department of Education Federal Program: Education Stabilization Fund (ESF) ALN: 84.425D & 84.425U (FY 2022-2023) Compliance Requirement: Allowable Costs/Cost Principles Type of Finding: Significant Deficiency and Non-Compliance Criteria or Specific Requirements The Code of Federal Regulations, Title 2, Subtitle A, Chapter II, Part 200, Subpart E, Section 200.439(a)(1) states: “Capital expenditures for general purpose equipment, buildings, and land are unallowable as direct charges, except with the prior written approval of the Federal awarding agency or pass- through entity.” Furthermore, the California Department of Education’s (CDE) FAQs on Capital Expenditures state the following: “In accordance with 2 CFR 200.439, prior approval is required for any single big-ticket purchases at the cost of $5,000 or more using the funding sources cited above. These purchases can include general purpose equipment, buildings, and land, including material improvements. This means one costly item (or several items which make up one unit) and the cost includes all the ancillary expenses such as design costs, new electrical circuit for the item, and other related fees. To obtain approval, an LEA must fill out the Capital Expenditures Pre-Approval Application Form” Condition The District had a total of $33,200 in capital expenditures charged to ESF that was not preapproved by CDE. Questioned Costs A total of $33,200 in questioned costs were noted based on the condition identified. Context The condition was identified as a result of our review and testing of expenditures charged to various ESF programs. Effect As a result of the condition identified, the District was not in compliance with the Code of Federal Regulations, Title 2, Subtitle A, Chapter II, Part 200, Subpart E, Section 200.439(a)(1). Cause The cause appears to be attribute to the District’s improper monitoring and lack of knowledge over this specific compliance requirement. Additionally, a contributing factor appears to be a turnover in a key position that provides oversight for this program. Repeat Finding No. Recommendation The District should become familiar with all of the compliance requirements with ESF. As a resource, the District should utilize a combination of guidance provided by CDE and also by Subpart E of the Uniform Guidance that provides guidance on cost principles. Additionally, the District should establish more effective control activities and monitoring over how Federal funds are spent to ensure compliance, moving forward. Corrective Action Plan and Views of Responsible Officials The District will ensure that all proposed capital expenditures originating from any Federal sources that are in excess of $5,000 are pre-approved by CDE prior to executing the proposed transaction.

Federal Agency: U.S. Department of Education Pass-through Entity: California Department of Education Federal Program: Education Stabilization Fund (ESF) ALN: 84.425D & 84.425U (FY 2022-2023) Compliance Requirement: Allowable Costs/Cost Principles Type of Finding: Significant Deficiency and Non-Compliance Criteria or Specific Requirements The Code of Federal Regulations, Title 2, Subtitle A, Chapter II, Part 200, Subpart E, Section 200.439(a)(1) states: “Capital expenditures for general purpose equipment, buildings, and land are unallowable as direct charges, except with the prior written approval of the Federal awarding agency or pass- through entity.” Furthermore, the California Department of Education’s (CDE) FAQs on Capital Expenditures state the following: “In accordance with 2 CFR 200.439, prior approval is required for any single big-ticket purchases at the cost of $5,000 or more using the funding sources cited above. These purchases can include general purpose equipment, buildings, and land, including material improvements. This means one costly item (or several items which make up one unit) and the cost includes all the ancillary expenses such as design costs, new electrical circuit for the item, and other related fees. To obtain approval, an LEA must fill out the Capital Expenditures Pre-Approval Application Form” Condition The District had a total of $33,200 in capital expenditures charged to ESF that was not preapproved by CDE. Questioned Costs A total of $33,200 in questioned costs were noted based on the condition identified. Context The condition was identified as a result of our review and testing of expenditures charged to various ESF programs. Effect As a result of the condition identified, the District was not in compliance with the Code of Federal Regulations, Title 2, Subtitle A, Chapter II, Part 200, Subpart E, Section 200.439(a)(1). Cause The cause appears to be attribute to the District’s improper monitoring and lack of knowledge over this specific compliance requirement. Additionally, a contributing factor appears to be a turnover in a key position that provides oversight for this program. Repeat Finding No. Recommendation The District should become familiar with all of the compliance requirements with ESF. As a resource, the District should utilize a combination of guidance provided by CDE and also by Subpart E of the Uniform Guidance that provides guidance on cost principles. Additionally, the District should establish more effective control activities and monitoring over how Federal funds are spent to ensure compliance, moving forward. Corrective Action Plan and Views of Responsible Officials The District will ensure that all proposed capital expenditures originating from any Federal sources that are in excess of $5,000 are pre-approved by CDE prior to executing the proposed transaction.

Federal Agency: U.S. Department of Education Pass-through Entity: California Department of Education Federal Program: Education Stabilization Fund (ESF) ALN: 84.425D & 84.425U (FY 2022-2023) Compliance Requirement: Allowable Costs/Cost Principles Type of Finding: Significant Deficiency and Non-Compliance Criteria or Specific Requirements The Code of Federal Regulations, Title 2, Subtitle A, Chapter II, Part 200, Subpart E, Section 200.439(a)(1) states: “Capital expenditures for general purpose equipment, buildings, and land are unallowable as direct charges, except with the prior written approval of the Federal awarding agency or pass- through entity.” Furthermore, the California Department of Education’s (CDE) FAQs on Capital Expenditures state the following: “In accordance with 2 CFR 200.439, prior approval is required for any single big-ticket purchases at the cost of $5,000 or more using the funding sources cited above. These purchases can include general purpose equipment, buildings, and land, including material improvements. This means one costly item (or several items which make up one unit) and the cost includes all the ancillary expenses such as design costs, new electrical circuit for the item, and other related fees. To obtain approval, an LEA must fill out the Capital Expenditures Pre-Approval Application Form” Condition The District had a total of $33,200 in capital expenditures charged to ESF that was not preapproved by CDE. Questioned Costs A total of $33,200 in questioned costs were noted based on the condition identified. Context The condition was identified as a result of our review and testing of expenditures charged to various ESF programs. Effect As a result of the condition identified, the District was not in compliance with the Code of Federal Regulations, Title 2, Subtitle A, Chapter II, Part 200, Subpart E, Section 200.439(a)(1). Cause The cause appears to be attribute to the District’s improper monitoring and lack of knowledge over this specific compliance requirement. Additionally, a contributing factor appears to be a turnover in a key position that provides oversight for this program. Repeat Finding No. Recommendation The District should become familiar with all of the compliance requirements with ESF. As a resource, the District should utilize a combination of guidance provided by CDE and also by Subpart E of the Uniform Guidance that provides guidance on cost principles. Additionally, the District should establish more effective control activities and monitoring over how Federal funds are spent to ensure compliance, moving forward. Corrective Action Plan and Views of Responsible Officials The District will ensure that all proposed capital expenditures originating from any Federal sources that are in excess of $5,000 are pre-approved by CDE prior to executing the proposed transaction.