FAC Explorer

Audit 338734

FY End
2024-06-30
Total Expended
$22.67M
Findings
16
Programs
11
Organization: Upland Unified School District (CA)
Year: 2024 Accepted: 2025-01-17
Auditor: Eide Bailly LLP

Organization Exclusion Status:

Findings

ID Ref Severity Repeat Requirement
519633 2024-003 Material Weakness - AB
519634 2024-003 Material Weakness - AB
519635 2024-003 Material Weakness - AB
519636 2024-005 Material Weakness - M
519637 2024-005 Material Weakness - M
519638 2024-004 Material Weakness - F
519639 2024-004 Material Weakness - F
519640 2024-004 Material Weakness - F
1096075 2024-003 Material Weakness - AB
1096076 2024-003 Material Weakness - AB
1096077 2024-003 Material Weakness - AB
1096078 2024-005 Material Weakness - M
1096079 2024-005 Material Weakness - M
1096080 2024-004 Material Weakness - F
1096081 2024-004 Material Weakness - F
1096082 2024-004 Material Weakness - F

Programs

ALN Program Spent Major Findings
84.027 Special Education Grants to States $2.35M - 0
10.553 School Breakfast Program $835,603 Yes 0
10.555 National School Lunch Program $315,013 Yes 0
84.367 Supporting Effective Instruction State Grants (formerly Improving Teacher Quality State Grants) $232,768 - 0
84.424 Student Support and Academic Enrichment Program $190,081 - 0
84.010 Title I Grants to Local Educational Agencies $116,697 - 0
84.048 Career and Technical Education -- Basic Grants to States $86,340 - 0
10.558 Child and Adult Care Food Program $48,390 Yes 1
84.425 Education Stabilization Fund $42,553 Yes 2
84.365 English Language Acquisition State Grants $17,937 - 0
84.002 Adult Education - Basic Grants to States $8,340 - 0

Contacts

Name Title Type
D9E1FJEHYHJ1 Jennifer De Andra Auditee
9099851864 Bobby J. Patel Auditor
No contacts on file

Notes to SEFA

Title: Basis of Presentation Accounting Policies: Expenditures reported in the schedule are reported on the modified accrual basis of accounting. When applicable, such expenditures are recognized following the cost principles contained in the Uniform Guidance, wherein certain types of expenditures are not allowable or are limited as to reimbursement. No federal financial assistance has been provided to a subrecipient. De Minimis Rate Used: N Rate Explanation: The District has not elected to use the ten percent de minimis cost rate. The accompanying Schedule of Expenditures of Federal Awards (the schedule) includes the federal award activity of the Upland Unified School District (the District) under programs of the federal government for the year ended June 30, 2024. The information is presented in accordance with the requirements of Title 2 U.S. Code of Federal Regulations Part 200, Uniform Administrative Requirements, Cost Principles, and Audit Requirements for Federal Awards (Uniform Guidance). Because the schedule presents only a selected portion of the operations of the District, it is not intended to and does not present the financial position, changes in net position or fund balance Upland Unified School District.
Title: Summary of Significant Accounting Policies Accounting Policies: Expenditures reported in the schedule are reported on the modified accrual basis of accounting. When applicable, such expenditures are recognized following the cost principles contained in the Uniform Guidance, wherein certain types of expenditures are not allowable or are limited as to reimbursement. No federal financial assistance has been provided to a subrecipient. De Minimis Rate Used: N Rate Explanation: The District has not elected to use the ten percent de minimis cost rate. Expenditures reported in the schedule are reported on the modified accrual basis of accounting. When applicable, such expenditures are recognized following the cost principles contained in the Uniform Guidance, wherein certain types of expenditures are not allowable or are limited as to reimbursement. No federal financial assistance has been provided to a subrecipient.
Title: Indirect Cost Rate Accounting Policies: Expenditures reported in the schedule are reported on the modified accrual basis of accounting. When applicable, such expenditures are recognized following the cost principles contained in the Uniform Guidance, wherein certain types of expenditures are not allowable or are limited as to reimbursement. No federal financial assistance has been provided to a subrecipient. De Minimis Rate Used: N Rate Explanation: The District has not elected to use the ten percent de minimis cost rate. The District has not elected to use the ten percent de minimis cost rate.
Title: Food Donation Accounting Policies: Expenditures reported in the schedule are reported on the modified accrual basis of accounting. When applicable, such expenditures are recognized following the cost principles contained in the Uniform Guidance, wherein certain types of expenditures are not allowable or are limited as to reimbursement. No federal financial assistance has been provided to a subrecipient. De Minimis Rate Used: N Rate Explanation: The District has not elected to use the ten percent de minimis cost rate. Nonmonetary assistance is reported in this schedule at the fair market value of the commodities received and disbursed. At June 30, 2024, the District did not report any commodities in inventory.

Finding Details

Finding 2024-003
2024-003 50000 – COVID-19 - Education Stabilization Fund – Activities Allowed or Unallowed and Allowable Costs/Cost Principles (Material Weakness in Internal Control Over Compliance, Material Noncompliance) Federal Agency: U.S. Department of Education Pass-Through Entity: California Department of Education Program Name: COVID-19 - Education Stabilization Fund Federal Financial Assistance Listing: 84.425U Compliance Requirements: A/B - Allowed or Unallowed & Allowable Costs/Cost Principles Type of Finding: Material Weakness and Material Noncompliance Criteria or Specific Requirements Title 2, Code of Federal Regulations, Part 200.431(h)(1) states that for post-retirement health plans financed on a pay-as-you-go method, allowable costs are limited to those representing actual payments to retirees or their beneficiaries. Condition The District used program funds to make a contribution of $1,500,000 to a trust held for postemployment benefits which is financed using the pay-as-you-go method. Additionally, the District charged indirect costs of $48,789 in direct relation to the unallowable direct costs charged. Cause The District appears to have been unaware of this requirement. Effect The District is not in compliance with the provisions of Title 2, Code of Federal Regulations, Part 200.431(h)(1). Questioned Costs The condition identified above resulted in known questioned costs of $1,548,789. Context/Sampling The condition was identified through review of post-retirement health plan trust contributions. We reviewed 100% of such contributions. Repeat Finding No. Recommendation The District should implement controls to ensure that all expenditures charged to federal programs are allowable.
Finding 2024-003
2024-003 50000 – COVID-19 - Education Stabilization Fund – Activities Allowed or Unallowed and Allowable Costs/Cost Principles (Material Weakness in Internal Control Over Compliance, Material Noncompliance) Federal Agency: U.S. Department of Education Pass-Through Entity: California Department of Education Program Name: COVID-19 - Education Stabilization Fund Federal Financial Assistance Listing: 84.425U Compliance Requirements: A/B - Allowed or Unallowed & Allowable Costs/Cost Principles Type of Finding: Material Weakness and Material Noncompliance Criteria or Specific Requirements Title 2, Code of Federal Regulations, Part 200.431(h)(1) states that for post-retirement health plans financed on a pay-as-you-go method, allowable costs are limited to those representing actual payments to retirees or their beneficiaries. Condition The District used program funds to make a contribution of $1,500,000 to a trust held for postemployment benefits which is financed using the pay-as-you-go method. Additionally, the District charged indirect costs of $48,789 in direct relation to the unallowable direct costs charged. Cause The District appears to have been unaware of this requirement. Effect The District is not in compliance with the provisions of Title 2, Code of Federal Regulations, Part 200.431(h)(1). Questioned Costs The condition identified above resulted in known questioned costs of $1,548,789. Context/Sampling The condition was identified through review of post-retirement health plan trust contributions. We reviewed 100% of such contributions. Repeat Finding No. Recommendation The District should implement controls to ensure that all expenditures charged to federal programs are allowable.
Finding 2024-003
2024-003 50000 – COVID-19 - Education Stabilization Fund – Activities Allowed or Unallowed and Allowable Costs/Cost Principles (Material Weakness in Internal Control Over Compliance, Material Noncompliance) Federal Agency: U.S. Department of Education Pass-Through Entity: California Department of Education Program Name: COVID-19 - Education Stabilization Fund Federal Financial Assistance Listing: 84.425U Compliance Requirements: A/B - Allowed or Unallowed & Allowable Costs/Cost Principles Type of Finding: Material Weakness and Material Noncompliance Criteria or Specific Requirements Title 2, Code of Federal Regulations, Part 200.431(h)(1) states that for post-retirement health plans financed on a pay-as-you-go method, allowable costs are limited to those representing actual payments to retirees or their beneficiaries. Condition The District used program funds to make a contribution of $1,500,000 to a trust held for postemployment benefits which is financed using the pay-as-you-go method. Additionally, the District charged indirect costs of $48,789 in direct relation to the unallowable direct costs charged. Cause The District appears to have been unaware of this requirement. Effect The District is not in compliance with the provisions of Title 2, Code of Federal Regulations, Part 200.431(h)(1). Questioned Costs The condition identified above resulted in known questioned costs of $1,548,789. Context/Sampling The condition was identified through review of post-retirement health plan trust contributions. We reviewed 100% of such contributions. Repeat Finding No. Recommendation The District should implement controls to ensure that all expenditures charged to federal programs are allowable.
Finding 2024-005
50000 – Child and Adult Care Food Program (CACFP) – Subrecipient Monitoring (Material Weakness in Internal Control Over Compliance, Noncompliance) Federal Agency: U.S. Department of Agriculture Pass-Through Entity: California Department of Social Services Program Name: Child and Adult Care Food Program (CACFP) Federal Financial Assistance Listing: 10.558 Compliance Requirement: Subrecipient Monitoring Type of Finding: Material Weakness and Material Noncompliance Criteria or Specific Requirements Title 7, Code of Federal Regulations, Part 226.16(d)(4)(iii) requires sponsoring organizations to review each subrecipient facility a minimum of three times per year. Additionally, at least two of the three reviews must be unannounced. Condition At three of six sites tested, the District has not met the minimum monitoring requirements. Two of six sites tested had only two monitoring visits total during the year. One of six sites tested had three visits; however, two of the three visits were announced visits. Cause The cause appears to be due to lack of internal controls over compliance for subrecipient monitoring. Effect The District is not in compliance with the provisions of Title 7, Code of Federal Regulations, Part 226.16(d)(4)(iii). Questioned Costs None reported. Context/Sampling A nonstatistical sample of three out of thirteen sites was initially tested. This resulted in one instance of noncompliance for a site which had only two of the three required monitoring visits. In response to this noncompliance, three additional sites were tested for a total of six out of thirteen sites. This resulted in two additional instances of noncompliance for one site that had only two of the three required monitoring visits and one site that had three visits but only one of which was unannounced. Repeat Finding No. Recommendation The District should implement internal controls over subrecipient monitoring to ensure that an adequate number of monitoring visits of each type are made during each year.
Finding 2024-005
50000 – Child and Adult Care Food Program (CACFP) – Subrecipient Monitoring (Material Weakness in Internal Control Over Compliance, Noncompliance) Federal Agency: U.S. Department of Agriculture Pass-Through Entity: California Department of Social Services Program Name: Child and Adult Care Food Program (CACFP) Federal Financial Assistance Listing: 10.558 Compliance Requirement: Subrecipient Monitoring Type of Finding: Material Weakness and Material Noncompliance Criteria or Specific Requirements Title 7, Code of Federal Regulations, Part 226.16(d)(4)(iii) requires sponsoring organizations to review each subrecipient facility a minimum of three times per year. Additionally, at least two of the three reviews must be unannounced. Condition At three of six sites tested, the District has not met the minimum monitoring requirements. Two of six sites tested had only two monitoring visits total during the year. One of six sites tested had three visits; however, two of the three visits were announced visits. Cause The cause appears to be due to lack of internal controls over compliance for subrecipient monitoring. Effect The District is not in compliance with the provisions of Title 7, Code of Federal Regulations, Part 226.16(d)(4)(iii). Questioned Costs None reported. Context/Sampling A nonstatistical sample of three out of thirteen sites was initially tested. This resulted in one instance of noncompliance for a site which had only two of the three required monitoring visits. In response to this noncompliance, three additional sites were tested for a total of six out of thirteen sites. This resulted in two additional instances of noncompliance for one site that had only two of the three required monitoring visits and one site that had three visits but only one of which was unannounced. Repeat Finding No. Recommendation The District should implement internal controls over subrecipient monitoring to ensure that an adequate number of monitoring visits of each type are made during each year.
Finding 2024-004
50000 – COVID-19 - Education Stabilization Fund – Equipment/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 Program Name: COVID-19 - Education Stabilization Fund Federal Financial Assistance Listing: 84.425U Compliance Requirements: F – Equipment/Real Property Management Type of Finding: Material Weakness and Material Noncompliance Criteria or Specific Requirements Title 2, Code of Federal Regulations, Part 200.313(d)(2) requires that a physical inventory of federally funded property be conducted at least every two years. The results of the inventory must be reconciled with the property records. Condition The District’s last physical inventory of federally funded property did not take place within the last two years. Cause The cause appears to be due to delays in the District arranging for a physical inventory. Effect The District is not in compliance with the provisions of Title 2, Code of Federal Regulations, Part 200.313(d)(2). Questioned Costs None reported. Context/Sampling The condition was identified through inquiry with District personnel and through review of available District records related to physical inventory of equipment. Repeat Finding No. Recommendation The District should implement internal controls to ensure that physical inventories are performed at least every two years.
Finding 2024-004
50000 – COVID-19 - Education Stabilization Fund – Equipment/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 Program Name: COVID-19 - Education Stabilization Fund Federal Financial Assistance Listing: 84.425U Compliance Requirements: F – Equipment/Real Property Management Type of Finding: Material Weakness and Material Noncompliance Criteria or Specific Requirements Title 2, Code of Federal Regulations, Part 200.313(d)(2) requires that a physical inventory of federally funded property be conducted at least every two years. The results of the inventory must be reconciled with the property records. Condition The District’s last physical inventory of federally funded property did not take place within the last two years. Cause The cause appears to be due to delays in the District arranging for a physical inventory. Effect The District is not in compliance with the provisions of Title 2, Code of Federal Regulations, Part 200.313(d)(2). Questioned Costs None reported. Context/Sampling The condition was identified through inquiry with District personnel and through review of available District records related to physical inventory of equipment. Repeat Finding No. Recommendation The District should implement internal controls to ensure that physical inventories are performed at least every two years.
Finding 2024-004
50000 – COVID-19 - Education Stabilization Fund – Equipment/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 Program Name: COVID-19 - Education Stabilization Fund Federal Financial Assistance Listing: 84.425U Compliance Requirements: F – Equipment/Real Property Management Type of Finding: Material Weakness and Material Noncompliance Criteria or Specific Requirements Title 2, Code of Federal Regulations, Part 200.313(d)(2) requires that a physical inventory of federally funded property be conducted at least every two years. The results of the inventory must be reconciled with the property records. Condition The District’s last physical inventory of federally funded property did not take place within the last two years. Cause The cause appears to be due to delays in the District arranging for a physical inventory. Effect The District is not in compliance with the provisions of Title 2, Code of Federal Regulations, Part 200.313(d)(2). Questioned Costs None reported. Context/Sampling The condition was identified through inquiry with District personnel and through review of available District records related to physical inventory of equipment. Repeat Finding No. Recommendation The District should implement internal controls to ensure that physical inventories are performed at least every two years.
Finding 2024-003
2024-003 50000 – COVID-19 - Education Stabilization Fund – Activities Allowed or Unallowed and Allowable Costs/Cost Principles (Material Weakness in Internal Control Over Compliance, Material Noncompliance) Federal Agency: U.S. Department of Education Pass-Through Entity: California Department of Education Program Name: COVID-19 - Education Stabilization Fund Federal Financial Assistance Listing: 84.425U Compliance Requirements: A/B - Allowed or Unallowed & Allowable Costs/Cost Principles Type of Finding: Material Weakness and Material Noncompliance Criteria or Specific Requirements Title 2, Code of Federal Regulations, Part 200.431(h)(1) states that for post-retirement health plans financed on a pay-as-you-go method, allowable costs are limited to those representing actual payments to retirees or their beneficiaries. Condition The District used program funds to make a contribution of $1,500,000 to a trust held for postemployment benefits which is financed using the pay-as-you-go method. Additionally, the District charged indirect costs of $48,789 in direct relation to the unallowable direct costs charged. Cause The District appears to have been unaware of this requirement. Effect The District is not in compliance with the provisions of Title 2, Code of Federal Regulations, Part 200.431(h)(1). Questioned Costs The condition identified above resulted in known questioned costs of $1,548,789. Context/Sampling The condition was identified through review of post-retirement health plan trust contributions. We reviewed 100% of such contributions. Repeat Finding No. Recommendation The District should implement controls to ensure that all expenditures charged to federal programs are allowable.
Finding 2024-003
2024-003 50000 – COVID-19 - Education Stabilization Fund – Activities Allowed or Unallowed and Allowable Costs/Cost Principles (Material Weakness in Internal Control Over Compliance, Material Noncompliance) Federal Agency: U.S. Department of Education Pass-Through Entity: California Department of Education Program Name: COVID-19 - Education Stabilization Fund Federal Financial Assistance Listing: 84.425U Compliance Requirements: A/B - Allowed or Unallowed & Allowable Costs/Cost Principles Type of Finding: Material Weakness and Material Noncompliance Criteria or Specific Requirements Title 2, Code of Federal Regulations, Part 200.431(h)(1) states that for post-retirement health plans financed on a pay-as-you-go method, allowable costs are limited to those representing actual payments to retirees or their beneficiaries. Condition The District used program funds to make a contribution of $1,500,000 to a trust held for postemployment benefits which is financed using the pay-as-you-go method. Additionally, the District charged indirect costs of $48,789 in direct relation to the unallowable direct costs charged. Cause The District appears to have been unaware of this requirement. Effect The District is not in compliance with the provisions of Title 2, Code of Federal Regulations, Part 200.431(h)(1). Questioned Costs The condition identified above resulted in known questioned costs of $1,548,789. Context/Sampling The condition was identified through review of post-retirement health plan trust contributions. We reviewed 100% of such contributions. Repeat Finding No. Recommendation The District should implement controls to ensure that all expenditures charged to federal programs are allowable.
Finding 2024-003
2024-003 50000 – COVID-19 - Education Stabilization Fund – Activities Allowed or Unallowed and Allowable Costs/Cost Principles (Material Weakness in Internal Control Over Compliance, Material Noncompliance) Federal Agency: U.S. Department of Education Pass-Through Entity: California Department of Education Program Name: COVID-19 - Education Stabilization Fund Federal Financial Assistance Listing: 84.425U Compliance Requirements: A/B - Allowed or Unallowed & Allowable Costs/Cost Principles Type of Finding: Material Weakness and Material Noncompliance Criteria or Specific Requirements Title 2, Code of Federal Regulations, Part 200.431(h)(1) states that for post-retirement health plans financed on a pay-as-you-go method, allowable costs are limited to those representing actual payments to retirees or their beneficiaries. Condition The District used program funds to make a contribution of $1,500,000 to a trust held for postemployment benefits which is financed using the pay-as-you-go method. Additionally, the District charged indirect costs of $48,789 in direct relation to the unallowable direct costs charged. Cause The District appears to have been unaware of this requirement. Effect The District is not in compliance with the provisions of Title 2, Code of Federal Regulations, Part 200.431(h)(1). Questioned Costs The condition identified above resulted in known questioned costs of $1,548,789. Context/Sampling The condition was identified through review of post-retirement health plan trust contributions. We reviewed 100% of such contributions. Repeat Finding No. Recommendation The District should implement controls to ensure that all expenditures charged to federal programs are allowable.
Finding 2024-005
50000 – Child and Adult Care Food Program (CACFP) – Subrecipient Monitoring (Material Weakness in Internal Control Over Compliance, Noncompliance) Federal Agency: U.S. Department of Agriculture Pass-Through Entity: California Department of Social Services Program Name: Child and Adult Care Food Program (CACFP) Federal Financial Assistance Listing: 10.558 Compliance Requirement: Subrecipient Monitoring Type of Finding: Material Weakness and Material Noncompliance Criteria or Specific Requirements Title 7, Code of Federal Regulations, Part 226.16(d)(4)(iii) requires sponsoring organizations to review each subrecipient facility a minimum of three times per year. Additionally, at least two of the three reviews must be unannounced. Condition At three of six sites tested, the District has not met the minimum monitoring requirements. Two of six sites tested had only two monitoring visits total during the year. One of six sites tested had three visits; however, two of the three visits were announced visits. Cause The cause appears to be due to lack of internal controls over compliance for subrecipient monitoring. Effect The District is not in compliance with the provisions of Title 7, Code of Federal Regulations, Part 226.16(d)(4)(iii). Questioned Costs None reported. Context/Sampling A nonstatistical sample of three out of thirteen sites was initially tested. This resulted in one instance of noncompliance for a site which had only two of the three required monitoring visits. In response to this noncompliance, three additional sites were tested for a total of six out of thirteen sites. This resulted in two additional instances of noncompliance for one site that had only two of the three required monitoring visits and one site that had three visits but only one of which was unannounced. Repeat Finding No. Recommendation The District should implement internal controls over subrecipient monitoring to ensure that an adequate number of monitoring visits of each type are made during each year.
Finding 2024-005
50000 – Child and Adult Care Food Program (CACFP) – Subrecipient Monitoring (Material Weakness in Internal Control Over Compliance, Noncompliance) Federal Agency: U.S. Department of Agriculture Pass-Through Entity: California Department of Social Services Program Name: Child and Adult Care Food Program (CACFP) Federal Financial Assistance Listing: 10.558 Compliance Requirement: Subrecipient Monitoring Type of Finding: Material Weakness and Material Noncompliance Criteria or Specific Requirements Title 7, Code of Federal Regulations, Part 226.16(d)(4)(iii) requires sponsoring organizations to review each subrecipient facility a minimum of three times per year. Additionally, at least two of the three reviews must be unannounced. Condition At three of six sites tested, the District has not met the minimum monitoring requirements. Two of six sites tested had only two monitoring visits total during the year. One of six sites tested had three visits; however, two of the three visits were announced visits. Cause The cause appears to be due to lack of internal controls over compliance for subrecipient monitoring. Effect The District is not in compliance with the provisions of Title 7, Code of Federal Regulations, Part 226.16(d)(4)(iii). Questioned Costs None reported. Context/Sampling A nonstatistical sample of three out of thirteen sites was initially tested. This resulted in one instance of noncompliance for a site which had only two of the three required monitoring visits. In response to this noncompliance, three additional sites were tested for a total of six out of thirteen sites. This resulted in two additional instances of noncompliance for one site that had only two of the three required monitoring visits and one site that had three visits but only one of which was unannounced. Repeat Finding No. Recommendation The District should implement internal controls over subrecipient monitoring to ensure that an adequate number of monitoring visits of each type are made during each year.
Finding 2024-004
50000 – COVID-19 - Education Stabilization Fund – Equipment/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 Program Name: COVID-19 - Education Stabilization Fund Federal Financial Assistance Listing: 84.425U Compliance Requirements: F – Equipment/Real Property Management Type of Finding: Material Weakness and Material Noncompliance Criteria or Specific Requirements Title 2, Code of Federal Regulations, Part 200.313(d)(2) requires that a physical inventory of federally funded property be conducted at least every two years. The results of the inventory must be reconciled with the property records. Condition The District’s last physical inventory of federally funded property did not take place within the last two years. Cause The cause appears to be due to delays in the District arranging for a physical inventory. Effect The District is not in compliance with the provisions of Title 2, Code of Federal Regulations, Part 200.313(d)(2). Questioned Costs None reported. Context/Sampling The condition was identified through inquiry with District personnel and through review of available District records related to physical inventory of equipment. Repeat Finding No. Recommendation The District should implement internal controls to ensure that physical inventories are performed at least every two years.
Finding 2024-004
50000 – COVID-19 - Education Stabilization Fund – Equipment/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 Program Name: COVID-19 - Education Stabilization Fund Federal Financial Assistance Listing: 84.425U Compliance Requirements: F – Equipment/Real Property Management Type of Finding: Material Weakness and Material Noncompliance Criteria or Specific Requirements Title 2, Code of Federal Regulations, Part 200.313(d)(2) requires that a physical inventory of federally funded property be conducted at least every two years. The results of the inventory must be reconciled with the property records. Condition The District’s last physical inventory of federally funded property did not take place within the last two years. Cause The cause appears to be due to delays in the District arranging for a physical inventory. Effect The District is not in compliance with the provisions of Title 2, Code of Federal Regulations, Part 200.313(d)(2). Questioned Costs None reported. Context/Sampling The condition was identified through inquiry with District personnel and through review of available District records related to physical inventory of equipment. Repeat Finding No. Recommendation The District should implement internal controls to ensure that physical inventories are performed at least every two years.
Finding 2024-004
50000 – COVID-19 - Education Stabilization Fund – Equipment/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 Program Name: COVID-19 - Education Stabilization Fund Federal Financial Assistance Listing: 84.425U Compliance Requirements: F – Equipment/Real Property Management Type of Finding: Material Weakness and Material Noncompliance Criteria or Specific Requirements Title 2, Code of Federal Regulations, Part 200.313(d)(2) requires that a physical inventory of federally funded property be conducted at least every two years. The results of the inventory must be reconciled with the property records. Condition The District’s last physical inventory of federally funded property did not take place within the last two years. Cause The cause appears to be due to delays in the District arranging for a physical inventory. Effect The District is not in compliance with the provisions of Title 2, Code of Federal Regulations, Part 200.313(d)(2). Questioned Costs None reported. Context/Sampling The condition was identified through inquiry with District personnel and through review of available District records related to physical inventory of equipment. Repeat Finding No. Recommendation The District should implement internal controls to ensure that physical inventories are performed at least every two years.