Audit 335998

50000 – Equipment and Real Property Management (Material Weakness in Internal Control over Compliance, Material Noncompliance) Federal Agency: U.S. Department of Education Pass-Through Entity: California Department of Education (CDE) Program Name: Education Stabilization Fund Federal Financial Assistance Listing: 84.425D, 84.425U, 84.425W Compliance Requirement: F. Equipment and Real Property Management Type of Finding: Material Weakness in Internal Control over Compliance and Material Noncompliance Criteria or Specific Requirements Title 2, Code of Federal Regulations, Part 200, Subpart E, Section 200.313 requires the District to maintain inventory of equipment purchased with federal awards. In addition, 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 does not maintain a capital asset inventory. In addition, the District expended $833,253 of ESSER III and ESSER III State Reserve Learning Loss funds on capital expenditures that were not preapproved by the pass-through agency, as required. One in four transactions tested, the District did not have a preapproval from CDE. Cause The condition identified appears to have materialized due to the District's lack of awareness of requirements under Title 2, Code of Federal Regulations, Part 200, Subpart E, Sections 200.313 and 200.439. Effect The District currently assumes all the risk of non-compliance with requirements stated underTitle 2, Code of Federal Regulations, Part 200, Subpart E, Sections 200.313 and 200.439 due to the lack of maintaining a capital asset inventory and lack of preapproval from the pass-through agency, as required. Questioned Costs As a result of the condition identified above, a total of $833,253 in questioned costs were identified. Context/Sampling: The condition was identified as a result of inquiry with the District’s personnel and review of ESSER III and ESSER III State Reserve Learning Loss expenditures and related invoices. Nonstatistical sample of four of six transactions were selected for testing. The District did not have a preapproval from CDE for one of the four transactions tested. Repeat Finding Yes, see prior year finding 2023-004. Recommendation The District should review the requirements stated in Title 2, Code of Federal Regulations, Part200, Subpart E, Sections 200.313 and 200.439 and implement procedures to address the deficiencies currently identified.

50000 – Equipment and Real Property Management (Material Weakness in Internal Control over Compliance, Material Noncompliance) Federal Agency: U.S. Department of Education Pass-Through Entity: California Department of Education (CDE) Program Name: Education Stabilization Fund Federal Financial Assistance Listing: 84.425D, 84.425U, 84.425W Compliance Requirement: F. Equipment and Real Property Management Type of Finding: Material Weakness in Internal Control over Compliance and Material Noncompliance Criteria or Specific Requirements Title 2, Code of Federal Regulations, Part 200, Subpart E, Section 200.313 requires the District to maintain inventory of equipment purchased with federal awards. In addition, 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 does not maintain a capital asset inventory. In addition, the District expended $833,253 of ESSER III and ESSER III State Reserve Learning Loss funds on capital expenditures that were not preapproved by the pass-through agency, as required. One in four transactions tested, the District did not have a preapproval from CDE. Cause The condition identified appears to have materialized due to the District's lack of awareness of requirements under Title 2, Code of Federal Regulations, Part 200, Subpart E, Sections 200.313 and 200.439. Effect The District currently assumes all the risk of non-compliance with requirements stated underTitle 2, Code of Federal Regulations, Part 200, Subpart E, Sections 200.313 and 200.439 due to the lack of maintaining a capital asset inventory and lack of preapproval from the pass-through agency, as required. Questioned Costs As a result of the condition identified above, a total of $833,253 in questioned costs were identified. Context/Sampling: The condition was identified as a result of inquiry with the District’s personnel and review of ESSER III and ESSER III State Reserve Learning Loss expenditures and related invoices. Nonstatistical sample of four of six transactions were selected for testing. The District did not have a preapproval from CDE for one of the four transactions tested. Repeat Finding Yes, see prior year finding 2023-004. Recommendation The District should review the requirements stated in Title 2, Code of Federal Regulations, Part200, Subpart E, Sections 200.313 and 200.439 and implement procedures to address the deficiencies currently identified.

50000 – Equipment and Real Property Management (Material Weakness in Internal Control over Compliance, Material Noncompliance) Federal Agency: U.S. Department of Education Pass-Through Entity: California Department of Education (CDE) Program Name: Education Stabilization Fund Federal Financial Assistance Listing: 84.425D, 84.425U, 84.425W Compliance Requirement: F. Equipment and Real Property Management Type of Finding: Material Weakness in Internal Control over Compliance and Material Noncompliance Criteria or Specific Requirements Title 2, Code of Federal Regulations, Part 200, Subpart E, Section 200.313 requires the District to maintain inventory of equipment purchased with federal awards. In addition, 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 does not maintain a capital asset inventory. In addition, the District expended $833,253 of ESSER III and ESSER III State Reserve Learning Loss funds on capital expenditures that were not preapproved by the pass-through agency, as required. One in four transactions tested, the District did not have a preapproval from CDE. Cause The condition identified appears to have materialized due to the District's lack of awareness of requirements under Title 2, Code of Federal Regulations, Part 200, Subpart E, Sections 200.313 and 200.439. Effect The District currently assumes all the risk of non-compliance with requirements stated underTitle 2, Code of Federal Regulations, Part 200, Subpart E, Sections 200.313 and 200.439 due to the lack of maintaining a capital asset inventory and lack of preapproval from the pass-through agency, as required. Questioned Costs As a result of the condition identified above, a total of $833,253 in questioned costs were identified. Context/Sampling: The condition was identified as a result of inquiry with the District’s personnel and review of ESSER III and ESSER III State Reserve Learning Loss expenditures and related invoices. Nonstatistical sample of four of six transactions were selected for testing. The District did not have a preapproval from CDE for one of the four transactions tested. Repeat Finding Yes, see prior year finding 2023-004. Recommendation The District should review the requirements stated in Title 2, Code of Federal Regulations, Part200, Subpart E, Sections 200.313 and 200.439 and implement procedures to address the deficiencies currently identified.

50000 – Equipment and Real Property Management (Material Weakness in Internal Control over Compliance, Material Noncompliance) Federal Agency: U.S. Department of Education Pass-Through Entity: California Department of Education (CDE) Program Name: Education Stabilization Fund Federal Financial Assistance Listing: 84.425D, 84.425U, 84.425W Compliance Requirement: F. Equipment and Real Property Management Type of Finding: Material Weakness in Internal Control over Compliance and Material Noncompliance Criteria or Specific Requirements Title 2, Code of Federal Regulations, Part 200, Subpart E, Section 200.313 requires the District to maintain inventory of equipment purchased with federal awards. In addition, 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 does not maintain a capital asset inventory. In addition, the District expended $833,253 of ESSER III and ESSER III State Reserve Learning Loss funds on capital expenditures that were not preapproved by the pass-through agency, as required. One in four transactions tested, the District did not have a preapproval from CDE. Cause The condition identified appears to have materialized due to the District's lack of awareness of requirements under Title 2, Code of Federal Regulations, Part 200, Subpart E, Sections 200.313 and 200.439. Effect The District currently assumes all the risk of non-compliance with requirements stated underTitle 2, Code of Federal Regulations, Part 200, Subpart E, Sections 200.313 and 200.439 due to the lack of maintaining a capital asset inventory and lack of preapproval from the pass-through agency, as required. Questioned Costs As a result of the condition identified above, a total of $833,253 in questioned costs were identified. Context/Sampling: The condition was identified as a result of inquiry with the District’s personnel and review of ESSER III and ESSER III State Reserve Learning Loss expenditures and related invoices. Nonstatistical sample of four of six transactions were selected for testing. The District did not have a preapproval from CDE for one of the four transactions tested. Repeat Finding Yes, see prior year finding 2023-004. Recommendation The District should review the requirements stated in Title 2, Code of Federal Regulations, Part200, Subpart E, Sections 200.313 and 200.439 and implement procedures to address the deficiencies currently identified.

50000 – Equipment and Real Property Management (Material Weakness in Internal Control over Compliance, Material Noncompliance) Federal Agency: U.S. Department of Education Pass-Through Entity: California Department of Education (CDE) Program Name: Education Stabilization Fund Federal Financial Assistance Listing: 84.425D, 84.425U, 84.425W Compliance Requirement: F. Equipment and Real Property Management Type of Finding: Material Weakness in Internal Control over Compliance and Material Noncompliance Criteria or Specific Requirements Title 2, Code of Federal Regulations, Part 200, Subpart E, Section 200.313 requires the District to maintain inventory of equipment purchased with federal awards. In addition, 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 does not maintain a capital asset inventory. In addition, the District expended $833,253 of ESSER III and ESSER III State Reserve Learning Loss funds on capital expenditures that were not preapproved by the pass-through agency, as required. One in four transactions tested, the District did not have a preapproval from CDE. Cause The condition identified appears to have materialized due to the District's lack of awareness of requirements under Title 2, Code of Federal Regulations, Part 200, Subpart E, Sections 200.313 and 200.439. Effect The District currently assumes all the risk of non-compliance with requirements stated underTitle 2, Code of Federal Regulations, Part 200, Subpart E, Sections 200.313 and 200.439 due to the lack of maintaining a capital asset inventory and lack of preapproval from the pass-through agency, as required. Questioned Costs As a result of the condition identified above, a total of $833,253 in questioned costs were identified. Context/Sampling: The condition was identified as a result of inquiry with the District’s personnel and review of ESSER III and ESSER III State Reserve Learning Loss expenditures and related invoices. Nonstatistical sample of four of six transactions were selected for testing. The District did not have a preapproval from CDE for one of the four transactions tested. Repeat Finding Yes, see prior year finding 2023-004. Recommendation The District should review the requirements stated in Title 2, Code of Federal Regulations, Part200, Subpart E, Sections 200.313 and 200.439 and implement procedures to address the deficiencies currently identified.

50000 – Equipment and Real Property Management (Material Weakness in Internal Control over Compliance, Material Noncompliance) Federal Agency: U.S. Department of Education Pass-Through Entity: California Department of Education (CDE) Program Name: Education Stabilization Fund Federal Financial Assistance Listing: 84.425D, 84.425U, 84.425W Compliance Requirement: F. Equipment and Real Property Management Type of Finding: Material Weakness in Internal Control over Compliance and Material Noncompliance Criteria or Specific Requirements Title 2, Code of Federal Regulations, Part 200, Subpart E, Section 200.313 requires the District to maintain inventory of equipment purchased with federal awards. In addition, 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 does not maintain a capital asset inventory. In addition, the District expended $833,253 of ESSER III and ESSER III State Reserve Learning Loss funds on capital expenditures that were not preapproved by the pass-through agency, as required. One in four transactions tested, the District did not have a preapproval from CDE. Cause The condition identified appears to have materialized due to the District's lack of awareness of requirements under Title 2, Code of Federal Regulations, Part 200, Subpart E, Sections 200.313 and 200.439. Effect The District currently assumes all the risk of non-compliance with requirements stated underTitle 2, Code of Federal Regulations, Part 200, Subpart E, Sections 200.313 and 200.439 due to the lack of maintaining a capital asset inventory and lack of preapproval from the pass-through agency, as required. Questioned Costs As a result of the condition identified above, a total of $833,253 in questioned costs were identified. Context/Sampling: The condition was identified as a result of inquiry with the District’s personnel and review of ESSER III and ESSER III State Reserve Learning Loss expenditures and related invoices. Nonstatistical sample of four of six transactions were selected for testing. The District did not have a preapproval from CDE for one of the four transactions tested. Repeat Finding Yes, see prior year finding 2023-004. Recommendation The District should review the requirements stated in Title 2, Code of Federal Regulations, Part200, Subpart E, Sections 200.313 and 200.439 and implement procedures to address the deficiencies currently identified.

50000 – Equipment and Real Property Management (Material Weakness in Internal Control over Compliance, Material Noncompliance) Federal Agency: U.S. Department of Education Pass-Through Entity: California Department of Education (CDE) Program Name: Education Stabilization Fund Federal Financial Assistance Listing: 84.425D, 84.425U, 84.425W Compliance Requirement: F. Equipment and Real Property Management Type of Finding: Material Weakness in Internal Control over Compliance and Material Noncompliance Criteria or Specific Requirements Title 2, Code of Federal Regulations, Part 200, Subpart E, Section 200.313 requires the District to maintain inventory of equipment purchased with federal awards. In addition, 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 does not maintain a capital asset inventory. In addition, the District expended $833,253 of ESSER III and ESSER III State Reserve Learning Loss funds on capital expenditures that were not preapproved by the pass-through agency, as required. One in four transactions tested, the District did not have a preapproval from CDE. Cause The condition identified appears to have materialized due to the District's lack of awareness of requirements under Title 2, Code of Federal Regulations, Part 200, Subpart E, Sections 200.313 and 200.439. Effect The District currently assumes all the risk of non-compliance with requirements stated underTitle 2, Code of Federal Regulations, Part 200, Subpart E, Sections 200.313 and 200.439 due to the lack of maintaining a capital asset inventory and lack of preapproval from the pass-through agency, as required. Questioned Costs As a result of the condition identified above, a total of $833,253 in questioned costs were identified. Context/Sampling: The condition was identified as a result of inquiry with the District’s personnel and review of ESSER III and ESSER III State Reserve Learning Loss expenditures and related invoices. Nonstatistical sample of four of six transactions were selected for testing. The District did not have a preapproval from CDE for one of the four transactions tested. Repeat Finding Yes, see prior year finding 2023-004. Recommendation The District should review the requirements stated in Title 2, Code of Federal Regulations, Part200, Subpart E, Sections 200.313 and 200.439 and implement procedures to address the deficiencies currently identified.

50000 – Reporting (Material Weakness in Internal Control Over Compliance, Material Noncompliance) Federal Agency: U.S. Department of Education Pass-Through Entity: California Department of Education (CDE) Program Name: Education Stabilization Fund Federal Financial Assistance Listing: 84.425D, 84.425U, 84.425W Compliance Requirement: L. Reporting Type of Finding: Material Weakness in Internal Control over Compliance and Material Noncompliance Criteria or Specific Requirements Per Title 2, Code of Federal Regulations, Part 200, Subpart D, Section 200.333, financial records and supporting documents pertinent to a Federal award must be retained for a period of three years from the date of submission of expenditure reports to the awarding agency or passthrough entity. Condition The District was unable to provide financial records or supporting documents, for two of the two annual reports tested, that agreed to the expenditures reported to the California Department of Education, or that agreed to the full-time equivalent positions required by the ESSER annual report. Cause The identified condition appears to have materialized due to insufficient procedures related to the retention of financial records. Effect The District has not complied with the requirements identified in Title 2, Code of Federal Regulations, Part 200, Subpart D, Section 200.333. Questioned Costs There were no questioned costs associated with the identified condition. Context/Sampling The condition was identified through inquiry with District personnel and through the review of documentation used to prepare the reports. Two of the two annual reports were tested. Repeat Finding Yes, see prior year finding 2023-005. Recommendation The District should ensure that all federal expenditure reports are supported by financial reports. These records should be maintained for a period of three years from the date of submission of the expenditure reports to the awarding agency or pass-through entity.

50000 – Reporting (Material Weakness in Internal Control Over Compliance, Material Noncompliance) Federal Agency: U.S. Department of Education Pass-Through Entity: California Department of Education (CDE) Program Name: Education Stabilization Fund Federal Financial Assistance Listing: 84.425D, 84.425U, 84.425W Compliance Requirement: L. Reporting Type of Finding: Material Weakness in Internal Control over Compliance and Material Noncompliance Criteria or Specific Requirements Per Title 2, Code of Federal Regulations, Part 200, Subpart D, Section 200.333, financial records and supporting documents pertinent to a Federal award must be retained for a period of three years from the date of submission of expenditure reports to the awarding agency or passthrough entity. Condition The District was unable to provide financial records or supporting documents, for two of the two annual reports tested, that agreed to the expenditures reported to the California Department of Education, or that agreed to the full-time equivalent positions required by the ESSER annual report. Cause The identified condition appears to have materialized due to insufficient procedures related to the retention of financial records. Effect The District has not complied with the requirements identified in Title 2, Code of Federal Regulations, Part 200, Subpart D, Section 200.333. Questioned Costs There were no questioned costs associated with the identified condition. Context/Sampling The condition was identified through inquiry with District personnel and through the review of documentation used to prepare the reports. Two of the two annual reports were tested. Repeat Finding Yes, see prior year finding 2023-005. Recommendation The District should ensure that all federal expenditure reports are supported by financial reports. These records should be maintained for a period of three years from the date of submission of the expenditure reports to the awarding agency or pass-through entity.

50000 – Reporting (Material Weakness in Internal Control Over Compliance, Material Noncompliance) Federal Agency: U.S. Department of Education Pass-Through Entity: California Department of Education (CDE) Program Name: Education Stabilization Fund Federal Financial Assistance Listing: 84.425D, 84.425U, 84.425W Compliance Requirement: L. Reporting Type of Finding: Material Weakness in Internal Control over Compliance and Material Noncompliance Criteria or Specific Requirements Per Title 2, Code of Federal Regulations, Part 200, Subpart D, Section 200.333, financial records and supporting documents pertinent to a Federal award must be retained for a period of three years from the date of submission of expenditure reports to the awarding agency or passthrough entity. Condition The District was unable to provide financial records or supporting documents, for two of the two annual reports tested, that agreed to the expenditures reported to the California Department of Education, or that agreed to the full-time equivalent positions required by the ESSER annual report. Cause The identified condition appears to have materialized due to insufficient procedures related to the retention of financial records. Effect The District has not complied with the requirements identified in Title 2, Code of Federal Regulations, Part 200, Subpart D, Section 200.333. Questioned Costs There were no questioned costs associated with the identified condition. Context/Sampling The condition was identified through inquiry with District personnel and through the review of documentation used to prepare the reports. Two of the two annual reports were tested. Repeat Finding Yes, see prior year finding 2023-005. Recommendation The District should ensure that all federal expenditure reports are supported by financial reports. These records should be maintained for a period of three years from the date of submission of the expenditure reports to the awarding agency or pass-through entity.

50000 – Reporting (Material Weakness in Internal Control Over Compliance, Material Noncompliance) Federal Agency: U.S. Department of Education Pass-Through Entity: California Department of Education (CDE) Program Name: Education Stabilization Fund Federal Financial Assistance Listing: 84.425D, 84.425U, 84.425W Compliance Requirement: L. Reporting Type of Finding: Material Weakness in Internal Control over Compliance and Material Noncompliance Criteria or Specific Requirements Per Title 2, Code of Federal Regulations, Part 200, Subpart D, Section 200.333, financial records and supporting documents pertinent to a Federal award must be retained for a period of three years from the date of submission of expenditure reports to the awarding agency or passthrough entity. Condition The District was unable to provide financial records or supporting documents, for two of the two annual reports tested, that agreed to the expenditures reported to the California Department of Education, or that agreed to the full-time equivalent positions required by the ESSER annual report. Cause The identified condition appears to have materialized due to insufficient procedures related to the retention of financial records. Effect The District has not complied with the requirements identified in Title 2, Code of Federal Regulations, Part 200, Subpart D, Section 200.333. Questioned Costs There were no questioned costs associated with the identified condition. Context/Sampling The condition was identified through inquiry with District personnel and through the review of documentation used to prepare the reports. Two of the two annual reports were tested. Repeat Finding Yes, see prior year finding 2023-005. Recommendation The District should ensure that all federal expenditure reports are supported by financial reports. These records should be maintained for a period of three years from the date of submission of the expenditure reports to the awarding agency or pass-through entity.

50000 – Reporting (Material Weakness in Internal Control Over Compliance, Material Noncompliance) Federal Agency: U.S. Department of Education Pass-Through Entity: California Department of Education (CDE) Program Name: Education Stabilization Fund Federal Financial Assistance Listing: 84.425D, 84.425U, 84.425W Compliance Requirement: L. Reporting Type of Finding: Material Weakness in Internal Control over Compliance and Material Noncompliance Criteria or Specific Requirements Per Title 2, Code of Federal Regulations, Part 200, Subpart D, Section 200.333, financial records and supporting documents pertinent to a Federal award must be retained for a period of three years from the date of submission of expenditure reports to the awarding agency or passthrough entity. Condition The District was unable to provide financial records or supporting documents, for two of the two annual reports tested, that agreed to the expenditures reported to the California Department of Education, or that agreed to the full-time equivalent positions required by the ESSER annual report. Cause The identified condition appears to have materialized due to insufficient procedures related to the retention of financial records. Effect The District has not complied with the requirements identified in Title 2, Code of Federal Regulations, Part 200, Subpart D, Section 200.333. Questioned Costs There were no questioned costs associated with the identified condition. Context/Sampling The condition was identified through inquiry with District personnel and through the review of documentation used to prepare the reports. Two of the two annual reports were tested. Repeat Finding Yes, see prior year finding 2023-005. Recommendation The District should ensure that all federal expenditure reports are supported by financial reports. These records should be maintained for a period of three years from the date of submission of the expenditure reports to the awarding agency or pass-through entity.

50000 – Reporting (Material Weakness in Internal Control Over Compliance, Material Noncompliance) Federal Agency: U.S. Department of Education Pass-Through Entity: California Department of Education (CDE) Program Name: Education Stabilization Fund Federal Financial Assistance Listing: 84.425D, 84.425U, 84.425W Compliance Requirement: L. Reporting Type of Finding: Material Weakness in Internal Control over Compliance and Material Noncompliance Criteria or Specific Requirements Per Title 2, Code of Federal Regulations, Part 200, Subpart D, Section 200.333, financial records and supporting documents pertinent to a Federal award must be retained for a period of three years from the date of submission of expenditure reports to the awarding agency or passthrough entity. Condition The District was unable to provide financial records or supporting documents, for two of the two annual reports tested, that agreed to the expenditures reported to the California Department of Education, or that agreed to the full-time equivalent positions required by the ESSER annual report. Cause The identified condition appears to have materialized due to insufficient procedures related to the retention of financial records. Effect The District has not complied with the requirements identified in Title 2, Code of Federal Regulations, Part 200, Subpart D, Section 200.333. Questioned Costs There were no questioned costs associated with the identified condition. Context/Sampling The condition was identified through inquiry with District personnel and through the review of documentation used to prepare the reports. Two of the two annual reports were tested. Repeat Finding Yes, see prior year finding 2023-005. Recommendation The District should ensure that all federal expenditure reports are supported by financial reports. These records should be maintained for a period of three years from the date of submission of the expenditure reports to the awarding agency or pass-through entity.

50000 – Reporting (Material Weakness in Internal Control Over Compliance, Material Noncompliance) Federal Agency: U.S. Department of Education Pass-Through Entity: California Department of Education (CDE) Program Name: Education Stabilization Fund Federal Financial Assistance Listing: 84.425D, 84.425U, 84.425W Compliance Requirement: L. Reporting Type of Finding: Material Weakness in Internal Control over Compliance and Material Noncompliance Criteria or Specific Requirements Per Title 2, Code of Federal Regulations, Part 200, Subpart D, Section 200.333, financial records and supporting documents pertinent to a Federal award must be retained for a period of three years from the date of submission of expenditure reports to the awarding agency or passthrough entity. Condition The District was unable to provide financial records or supporting documents, for two of the two annual reports tested, that agreed to the expenditures reported to the California Department of Education, or that agreed to the full-time equivalent positions required by the ESSER annual report. Cause The identified condition appears to have materialized due to insufficient procedures related to the retention of financial records. Effect The District has not complied with the requirements identified in Title 2, Code of Federal Regulations, Part 200, Subpart D, Section 200.333. Questioned Costs There were no questioned costs associated with the identified condition. Context/Sampling The condition was identified through inquiry with District personnel and through the review of documentation used to prepare the reports. Two of the two annual reports were tested. Repeat Finding Yes, see prior year finding 2023-005. Recommendation The District should ensure that all federal expenditure reports are supported by financial reports. These records should be maintained for a period of three years from the date of submission of the expenditure reports to the awarding agency or pass-through entity.

50000 – Equipment and Real Property Management (Material Weakness in Internal Control over Compliance, Material Noncompliance) Federal Agency: U.S. Department of Education Pass-Through Entity: California Department of Education (CDE) Program Name: Education Stabilization Fund Federal Financial Assistance Listing: 84.425D, 84.425U, 84.425W Compliance Requirement: F. Equipment and Real Property Management Type of Finding: Material Weakness in Internal Control over Compliance and Material Noncompliance Criteria or Specific Requirements Title 2, Code of Federal Regulations, Part 200, Subpart E, Section 200.313 requires the District to maintain inventory of equipment purchased with federal awards. In addition, 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 does not maintain a capital asset inventory. In addition, the District expended $833,253 of ESSER III and ESSER III State Reserve Learning Loss funds on capital expenditures that were not preapproved by the pass-through agency, as required. One in four transactions tested, the District did not have a preapproval from CDE. Cause The condition identified appears to have materialized due to the District's lack of awareness of requirements under Title 2, Code of Federal Regulations, Part 200, Subpart E, Sections 200.313 and 200.439. Effect The District currently assumes all the risk of non-compliance with requirements stated underTitle 2, Code of Federal Regulations, Part 200, Subpart E, Sections 200.313 and 200.439 due to the lack of maintaining a capital asset inventory and lack of preapproval from the pass-through agency, as required. Questioned Costs As a result of the condition identified above, a total of $833,253 in questioned costs were identified. Context/Sampling: The condition was identified as a result of inquiry with the District’s personnel and review of ESSER III and ESSER III State Reserve Learning Loss expenditures and related invoices. Nonstatistical sample of four of six transactions were selected for testing. The District did not have a preapproval from CDE for one of the four transactions tested. Repeat Finding Yes, see prior year finding 2023-004. Recommendation The District should review the requirements stated in Title 2, Code of Federal Regulations, Part200, Subpart E, Sections 200.313 and 200.439 and implement procedures to address the deficiencies currently identified.

50000 – Equipment and Real Property Management (Material Weakness in Internal Control over Compliance, Material Noncompliance) Federal Agency: U.S. Department of Education Pass-Through Entity: California Department of Education (CDE) Program Name: Education Stabilization Fund Federal Financial Assistance Listing: 84.425D, 84.425U, 84.425W Compliance Requirement: F. Equipment and Real Property Management Type of Finding: Material Weakness in Internal Control over Compliance and Material Noncompliance Criteria or Specific Requirements Title 2, Code of Federal Regulations, Part 200, Subpart E, Section 200.313 requires the District to maintain inventory of equipment purchased with federal awards. In addition, 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 does not maintain a capital asset inventory. In addition, the District expended $833,253 of ESSER III and ESSER III State Reserve Learning Loss funds on capital expenditures that were not preapproved by the pass-through agency, as required. One in four transactions tested, the District did not have a preapproval from CDE. Cause The condition identified appears to have materialized due to the District's lack of awareness of requirements under Title 2, Code of Federal Regulations, Part 200, Subpart E, Sections 200.313 and 200.439. Effect The District currently assumes all the risk of non-compliance with requirements stated underTitle 2, Code of Federal Regulations, Part 200, Subpart E, Sections 200.313 and 200.439 due to the lack of maintaining a capital asset inventory and lack of preapproval from the pass-through agency, as required. Questioned Costs As a result of the condition identified above, a total of $833,253 in questioned costs were identified. Context/Sampling: The condition was identified as a result of inquiry with the District’s personnel and review of ESSER III and ESSER III State Reserve Learning Loss expenditures and related invoices. Nonstatistical sample of four of six transactions were selected for testing. The District did not have a preapproval from CDE for one of the four transactions tested. Repeat Finding Yes, see prior year finding 2023-004. Recommendation The District should review the requirements stated in Title 2, Code of Federal Regulations, Part200, Subpart E, Sections 200.313 and 200.439 and implement procedures to address the deficiencies currently identified.

50000 – Equipment and Real Property Management (Material Weakness in Internal Control over Compliance, Material Noncompliance) Federal Agency: U.S. Department of Education Pass-Through Entity: California Department of Education (CDE) Program Name: Education Stabilization Fund Federal Financial Assistance Listing: 84.425D, 84.425U, 84.425W Compliance Requirement: F. Equipment and Real Property Management Type of Finding: Material Weakness in Internal Control over Compliance and Material Noncompliance Criteria or Specific Requirements Title 2, Code of Federal Regulations, Part 200, Subpart E, Section 200.313 requires the District to maintain inventory of equipment purchased with federal awards. In addition, 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 does not maintain a capital asset inventory. In addition, the District expended $833,253 of ESSER III and ESSER III State Reserve Learning Loss funds on capital expenditures that were not preapproved by the pass-through agency, as required. One in four transactions tested, the District did not have a preapproval from CDE. Cause The condition identified appears to have materialized due to the District's lack of awareness of requirements under Title 2, Code of Federal Regulations, Part 200, Subpart E, Sections 200.313 and 200.439. Effect The District currently assumes all the risk of non-compliance with requirements stated underTitle 2, Code of Federal Regulations, Part 200, Subpart E, Sections 200.313 and 200.439 due to the lack of maintaining a capital asset inventory and lack of preapproval from the pass-through agency, as required. Questioned Costs As a result of the condition identified above, a total of $833,253 in questioned costs were identified. Context/Sampling: The condition was identified as a result of inquiry with the District’s personnel and review of ESSER III and ESSER III State Reserve Learning Loss expenditures and related invoices. Nonstatistical sample of four of six transactions were selected for testing. The District did not have a preapproval from CDE for one of the four transactions tested. Repeat Finding Yes, see prior year finding 2023-004. Recommendation The District should review the requirements stated in Title 2, Code of Federal Regulations, Part200, Subpart E, Sections 200.313 and 200.439 and implement procedures to address the deficiencies currently identified.

50000 – Equipment and Real Property Management (Material Weakness in Internal Control over Compliance, Material Noncompliance) Federal Agency: U.S. Department of Education Pass-Through Entity: California Department of Education (CDE) Program Name: Education Stabilization Fund Federal Financial Assistance Listing: 84.425D, 84.425U, 84.425W Compliance Requirement: F. Equipment and Real Property Management Type of Finding: Material Weakness in Internal Control over Compliance and Material Noncompliance Criteria or Specific Requirements Title 2, Code of Federal Regulations, Part 200, Subpart E, Section 200.313 requires the District to maintain inventory of equipment purchased with federal awards. In addition, 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 does not maintain a capital asset inventory. In addition, the District expended $833,253 of ESSER III and ESSER III State Reserve Learning Loss funds on capital expenditures that were not preapproved by the pass-through agency, as required. One in four transactions tested, the District did not have a preapproval from CDE. Cause The condition identified appears to have materialized due to the District's lack of awareness of requirements under Title 2, Code of Federal Regulations, Part 200, Subpart E, Sections 200.313 and 200.439. Effect The District currently assumes all the risk of non-compliance with requirements stated underTitle 2, Code of Federal Regulations, Part 200, Subpart E, Sections 200.313 and 200.439 due to the lack of maintaining a capital asset inventory and lack of preapproval from the pass-through agency, as required. Questioned Costs As a result of the condition identified above, a total of $833,253 in questioned costs were identified. Context/Sampling: The condition was identified as a result of inquiry with the District’s personnel and review of ESSER III and ESSER III State Reserve Learning Loss expenditures and related invoices. Nonstatistical sample of four of six transactions were selected for testing. The District did not have a preapproval from CDE for one of the four transactions tested. Repeat Finding Yes, see prior year finding 2023-004. Recommendation The District should review the requirements stated in Title 2, Code of Federal Regulations, Part200, Subpart E, Sections 200.313 and 200.439 and implement procedures to address the deficiencies currently identified.

50000 – Equipment and Real Property Management (Material Weakness in Internal Control over Compliance, Material Noncompliance) Federal Agency: U.S. Department of Education Pass-Through Entity: California Department of Education (CDE) Program Name: Education Stabilization Fund Federal Financial Assistance Listing: 84.425D, 84.425U, 84.425W Compliance Requirement: F. Equipment and Real Property Management Type of Finding: Material Weakness in Internal Control over Compliance and Material Noncompliance Criteria or Specific Requirements Title 2, Code of Federal Regulations, Part 200, Subpart E, Section 200.313 requires the District to maintain inventory of equipment purchased with federal awards. In addition, 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 does not maintain a capital asset inventory. In addition, the District expended $833,253 of ESSER III and ESSER III State Reserve Learning Loss funds on capital expenditures that were not preapproved by the pass-through agency, as required. One in four transactions tested, the District did not have a preapproval from CDE. Cause The condition identified appears to have materialized due to the District's lack of awareness of requirements under Title 2, Code of Federal Regulations, Part 200, Subpart E, Sections 200.313 and 200.439. Effect The District currently assumes all the risk of non-compliance with requirements stated underTitle 2, Code of Federal Regulations, Part 200, Subpart E, Sections 200.313 and 200.439 due to the lack of maintaining a capital asset inventory and lack of preapproval from the pass-through agency, as required. Questioned Costs As a result of the condition identified above, a total of $833,253 in questioned costs were identified. Context/Sampling: The condition was identified as a result of inquiry with the District’s personnel and review of ESSER III and ESSER III State Reserve Learning Loss expenditures and related invoices. Nonstatistical sample of four of six transactions were selected for testing. The District did not have a preapproval from CDE for one of the four transactions tested. Repeat Finding Yes, see prior year finding 2023-004. Recommendation The District should review the requirements stated in Title 2, Code of Federal Regulations, Part200, Subpart E, Sections 200.313 and 200.439 and implement procedures to address the deficiencies currently identified.

50000 – Equipment and Real Property Management (Material Weakness in Internal Control over Compliance, Material Noncompliance) Federal Agency: U.S. Department of Education Pass-Through Entity: California Department of Education (CDE) Program Name: Education Stabilization Fund Federal Financial Assistance Listing: 84.425D, 84.425U, 84.425W Compliance Requirement: F. Equipment and Real Property Management Type of Finding: Material Weakness in Internal Control over Compliance and Material Noncompliance Criteria or Specific Requirements Title 2, Code of Federal Regulations, Part 200, Subpart E, Section 200.313 requires the District to maintain inventory of equipment purchased with federal awards. In addition, 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 does not maintain a capital asset inventory. In addition, the District expended $833,253 of ESSER III and ESSER III State Reserve Learning Loss funds on capital expenditures that were not preapproved by the pass-through agency, as required. One in four transactions tested, the District did not have a preapproval from CDE. Cause The condition identified appears to have materialized due to the District's lack of awareness of requirements under Title 2, Code of Federal Regulations, Part 200, Subpart E, Sections 200.313 and 200.439. Effect The District currently assumes all the risk of non-compliance with requirements stated underTitle 2, Code of Federal Regulations, Part 200, Subpart E, Sections 200.313 and 200.439 due to the lack of maintaining a capital asset inventory and lack of preapproval from the pass-through agency, as required. Questioned Costs As a result of the condition identified above, a total of $833,253 in questioned costs were identified. Context/Sampling: The condition was identified as a result of inquiry with the District’s personnel and review of ESSER III and ESSER III State Reserve Learning Loss expenditures and related invoices. Nonstatistical sample of four of six transactions were selected for testing. The District did not have a preapproval from CDE for one of the four transactions tested. Repeat Finding Yes, see prior year finding 2023-004. Recommendation The District should review the requirements stated in Title 2, Code of Federal Regulations, Part200, Subpart E, Sections 200.313 and 200.439 and implement procedures to address the deficiencies currently identified.

50000 – Equipment and Real Property Management (Material Weakness in Internal Control over Compliance, Material Noncompliance) Federal Agency: U.S. Department of Education Pass-Through Entity: California Department of Education (CDE) Program Name: Education Stabilization Fund Federal Financial Assistance Listing: 84.425D, 84.425U, 84.425W Compliance Requirement: F. Equipment and Real Property Management Type of Finding: Material Weakness in Internal Control over Compliance and Material Noncompliance Criteria or Specific Requirements Title 2, Code of Federal Regulations, Part 200, Subpart E, Section 200.313 requires the District to maintain inventory of equipment purchased with federal awards. In addition, 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 does not maintain a capital asset inventory. In addition, the District expended $833,253 of ESSER III and ESSER III State Reserve Learning Loss funds on capital expenditures that were not preapproved by the pass-through agency, as required. One in four transactions tested, the District did not have a preapproval from CDE. Cause The condition identified appears to have materialized due to the District's lack of awareness of requirements under Title 2, Code of Federal Regulations, Part 200, Subpart E, Sections 200.313 and 200.439. Effect The District currently assumes all the risk of non-compliance with requirements stated underTitle 2, Code of Federal Regulations, Part 200, Subpart E, Sections 200.313 and 200.439 due to the lack of maintaining a capital asset inventory and lack of preapproval from the pass-through agency, as required. Questioned Costs As a result of the condition identified above, a total of $833,253 in questioned costs were identified. Context/Sampling: The condition was identified as a result of inquiry with the District’s personnel and review of ESSER III and ESSER III State Reserve Learning Loss expenditures and related invoices. Nonstatistical sample of four of six transactions were selected for testing. The District did not have a preapproval from CDE for one of the four transactions tested. Repeat Finding Yes, see prior year finding 2023-004. Recommendation The District should review the requirements stated in Title 2, Code of Federal Regulations, Part200, Subpart E, Sections 200.313 and 200.439 and implement procedures to address the deficiencies currently identified.

50000 – Reporting (Material Weakness in Internal Control Over Compliance, Material Noncompliance) Federal Agency: U.S. Department of Education Pass-Through Entity: California Department of Education (CDE) Program Name: Education Stabilization Fund Federal Financial Assistance Listing: 84.425D, 84.425U, 84.425W Compliance Requirement: L. Reporting Type of Finding: Material Weakness in Internal Control over Compliance and Material Noncompliance Criteria or Specific Requirements Per Title 2, Code of Federal Regulations, Part 200, Subpart D, Section 200.333, financial records and supporting documents pertinent to a Federal award must be retained for a period of three years from the date of submission of expenditure reports to the awarding agency or passthrough entity. Condition The District was unable to provide financial records or supporting documents, for two of the two annual reports tested, that agreed to the expenditures reported to the California Department of Education, or that agreed to the full-time equivalent positions required by the ESSER annual report. Cause The identified condition appears to have materialized due to insufficient procedures related to the retention of financial records. Effect The District has not complied with the requirements identified in Title 2, Code of Federal Regulations, Part 200, Subpart D, Section 200.333. Questioned Costs There were no questioned costs associated with the identified condition. Context/Sampling The condition was identified through inquiry with District personnel and through the review of documentation used to prepare the reports. Two of the two annual reports were tested. Repeat Finding Yes, see prior year finding 2023-005. Recommendation The District should ensure that all federal expenditure reports are supported by financial reports. These records should be maintained for a period of three years from the date of submission of the expenditure reports to the awarding agency or pass-through entity.

50000 – Reporting (Material Weakness in Internal Control Over Compliance, Material Noncompliance) Federal Agency: U.S. Department of Education Pass-Through Entity: California Department of Education (CDE) Program Name: Education Stabilization Fund Federal Financial Assistance Listing: 84.425D, 84.425U, 84.425W Compliance Requirement: L. Reporting Type of Finding: Material Weakness in Internal Control over Compliance and Material Noncompliance Criteria or Specific Requirements Per Title 2, Code of Federal Regulations, Part 200, Subpart D, Section 200.333, financial records and supporting documents pertinent to a Federal award must be retained for a period of three years from the date of submission of expenditure reports to the awarding agency or passthrough entity. Condition The District was unable to provide financial records or supporting documents, for two of the two annual reports tested, that agreed to the expenditures reported to the California Department of Education, or that agreed to the full-time equivalent positions required by the ESSER annual report. Cause The identified condition appears to have materialized due to insufficient procedures related to the retention of financial records. Effect The District has not complied with the requirements identified in Title 2, Code of Federal Regulations, Part 200, Subpart D, Section 200.333. Questioned Costs There were no questioned costs associated with the identified condition. Context/Sampling The condition was identified through inquiry with District personnel and through the review of documentation used to prepare the reports. Two of the two annual reports were tested. Repeat Finding Yes, see prior year finding 2023-005. Recommendation The District should ensure that all federal expenditure reports are supported by financial reports. These records should be maintained for a period of three years from the date of submission of the expenditure reports to the awarding agency or pass-through entity.

50000 – Reporting (Material Weakness in Internal Control Over Compliance, Material Noncompliance) Federal Agency: U.S. Department of Education Pass-Through Entity: California Department of Education (CDE) Program Name: Education Stabilization Fund Federal Financial Assistance Listing: 84.425D, 84.425U, 84.425W Compliance Requirement: L. Reporting Type of Finding: Material Weakness in Internal Control over Compliance and Material Noncompliance Criteria or Specific Requirements Per Title 2, Code of Federal Regulations, Part 200, Subpart D, Section 200.333, financial records and supporting documents pertinent to a Federal award must be retained for a period of three years from the date of submission of expenditure reports to the awarding agency or passthrough entity. Condition The District was unable to provide financial records or supporting documents, for two of the two annual reports tested, that agreed to the expenditures reported to the California Department of Education, or that agreed to the full-time equivalent positions required by the ESSER annual report. Cause The identified condition appears to have materialized due to insufficient procedures related to the retention of financial records. Effect The District has not complied with the requirements identified in Title 2, Code of Federal Regulations, Part 200, Subpart D, Section 200.333. Questioned Costs There were no questioned costs associated with the identified condition. Context/Sampling The condition was identified through inquiry with District personnel and through the review of documentation used to prepare the reports. Two of the two annual reports were tested. Repeat Finding Yes, see prior year finding 2023-005. Recommendation The District should ensure that all federal expenditure reports are supported by financial reports. These records should be maintained for a period of three years from the date of submission of the expenditure reports to the awarding agency or pass-through entity.

50000 – Reporting (Material Weakness in Internal Control Over Compliance, Material Noncompliance) Federal Agency: U.S. Department of Education Pass-Through Entity: California Department of Education (CDE) Program Name: Education Stabilization Fund Federal Financial Assistance Listing: 84.425D, 84.425U, 84.425W Compliance Requirement: L. Reporting Type of Finding: Material Weakness in Internal Control over Compliance and Material Noncompliance Criteria or Specific Requirements Per Title 2, Code of Federal Regulations, Part 200, Subpart D, Section 200.333, financial records and supporting documents pertinent to a Federal award must be retained for a period of three years from the date of submission of expenditure reports to the awarding agency or passthrough entity. Condition The District was unable to provide financial records or supporting documents, for two of the two annual reports tested, that agreed to the expenditures reported to the California Department of Education, or that agreed to the full-time equivalent positions required by the ESSER annual report. Cause The identified condition appears to have materialized due to insufficient procedures related to the retention of financial records. Effect The District has not complied with the requirements identified in Title 2, Code of Federal Regulations, Part 200, Subpart D, Section 200.333. Questioned Costs There were no questioned costs associated with the identified condition. Context/Sampling The condition was identified through inquiry with District personnel and through the review of documentation used to prepare the reports. Two of the two annual reports were tested. Repeat Finding Yes, see prior year finding 2023-005. Recommendation The District should ensure that all federal expenditure reports are supported by financial reports. These records should be maintained for a period of three years from the date of submission of the expenditure reports to the awarding agency or pass-through entity.

50000 – Reporting (Material Weakness in Internal Control Over Compliance, Material Noncompliance) Federal Agency: U.S. Department of Education Pass-Through Entity: California Department of Education (CDE) Program Name: Education Stabilization Fund Federal Financial Assistance Listing: 84.425D, 84.425U, 84.425W Compliance Requirement: L. Reporting Type of Finding: Material Weakness in Internal Control over Compliance and Material Noncompliance Criteria or Specific Requirements Per Title 2, Code of Federal Regulations, Part 200, Subpart D, Section 200.333, financial records and supporting documents pertinent to a Federal award must be retained for a period of three years from the date of submission of expenditure reports to the awarding agency or passthrough entity. Condition The District was unable to provide financial records or supporting documents, for two of the two annual reports tested, that agreed to the expenditures reported to the California Department of Education, or that agreed to the full-time equivalent positions required by the ESSER annual report. Cause The identified condition appears to have materialized due to insufficient procedures related to the retention of financial records. Effect The District has not complied with the requirements identified in Title 2, Code of Federal Regulations, Part 200, Subpart D, Section 200.333. Questioned Costs There were no questioned costs associated with the identified condition. Context/Sampling The condition was identified through inquiry with District personnel and through the review of documentation used to prepare the reports. Two of the two annual reports were tested. Repeat Finding Yes, see prior year finding 2023-005. Recommendation The District should ensure that all federal expenditure reports are supported by financial reports. These records should be maintained for a period of three years from the date of submission of the expenditure reports to the awarding agency or pass-through entity.

50000 – Reporting (Material Weakness in Internal Control Over Compliance, Material Noncompliance) Federal Agency: U.S. Department of Education Pass-Through Entity: California Department of Education (CDE) Program Name: Education Stabilization Fund Federal Financial Assistance Listing: 84.425D, 84.425U, 84.425W Compliance Requirement: L. Reporting Type of Finding: Material Weakness in Internal Control over Compliance and Material Noncompliance Criteria or Specific Requirements Per Title 2, Code of Federal Regulations, Part 200, Subpart D, Section 200.333, financial records and supporting documents pertinent to a Federal award must be retained for a period of three years from the date of submission of expenditure reports to the awarding agency or passthrough entity. Condition The District was unable to provide financial records or supporting documents, for two of the two annual reports tested, that agreed to the expenditures reported to the California Department of Education, or that agreed to the full-time equivalent positions required by the ESSER annual report. Cause The identified condition appears to have materialized due to insufficient procedures related to the retention of financial records. Effect The District has not complied with the requirements identified in Title 2, Code of Federal Regulations, Part 200, Subpart D, Section 200.333. Questioned Costs There were no questioned costs associated with the identified condition. Context/Sampling The condition was identified through inquiry with District personnel and through the review of documentation used to prepare the reports. Two of the two annual reports were tested. Repeat Finding Yes, see prior year finding 2023-005. Recommendation The District should ensure that all federal expenditure reports are supported by financial reports. These records should be maintained for a period of three years from the date of submission of the expenditure reports to the awarding agency or pass-through entity.

50000 – Reporting (Material Weakness in Internal Control Over Compliance, Material Noncompliance) Federal Agency: U.S. Department of Education Pass-Through Entity: California Department of Education (CDE) Program Name: Education Stabilization Fund Federal Financial Assistance Listing: 84.425D, 84.425U, 84.425W Compliance Requirement: L. Reporting Type of Finding: Material Weakness in Internal Control over Compliance and Material Noncompliance Criteria or Specific Requirements Per Title 2, Code of Federal Regulations, Part 200, Subpart D, Section 200.333, financial records and supporting documents pertinent to a Federal award must be retained for a period of three years from the date of submission of expenditure reports to the awarding agency or passthrough entity. Condition The District was unable to provide financial records or supporting documents, for two of the two annual reports tested, that agreed to the expenditures reported to the California Department of Education, or that agreed to the full-time equivalent positions required by the ESSER annual report. Cause The identified condition appears to have materialized due to insufficient procedures related to the retention of financial records. Effect The District has not complied with the requirements identified in Title 2, Code of Federal Regulations, Part 200, Subpart D, Section 200.333. Questioned Costs There were no questioned costs associated with the identified condition. Context/Sampling The condition was identified through inquiry with District personnel and through the review of documentation used to prepare the reports. Two of the two annual reports were tested. Repeat Finding Yes, see prior year finding 2023-005. Recommendation The District should ensure that all federal expenditure reports are supported by financial reports. These records should be maintained for a period of three years from the date of submission of the expenditure reports to the awarding agency or pass-through entity.