Audit 343203

50000 – 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 Agency: California Department of Education Program Name: Education Stabilization Fund Federal Financial Assistance Listing: 84.425C, 84.425D, 84.425U, 84.425W Compliance Requirement: A/B - Allowed or Unallowed & Allowable Costs/Cost Principles Type of Finding: Material weakness 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 four of 60 expenditures sampled. 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 200.333. Questioned Costs The condition identified above resulted in known questioned costs of $376,240. Context/Sampling A nonstatistical sample of 60 transactions out of 856 total transactions were selected for testing, which accounted for $3,795,432 of $7,419,851 of federal program expenditures. Repeat Finding No. Recommendation The District should ensure that all federal expenditures are supported by financial reports. These records should be maintained for a period of three years from the date the expenditure is incurred.

50000 – 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 Agency: California Department of Education Program Name: Education Stabilization Fund Federal Financial Assistance Listing: 84.425C, 84.425D, 84.425U, 84.425W Compliance Requirement: A/B - Allowed or Unallowed & Allowable Costs/Cost Principles Type of Finding: Material weakness 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 four of 60 expenditures sampled. 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 200.333. Questioned Costs The condition identified above resulted in known questioned costs of $376,240. Context/Sampling A nonstatistical sample of 60 transactions out of 856 total transactions were selected for testing, which accounted for $3,795,432 of $7,419,851 of federal program expenditures. Repeat Finding No. Recommendation The District should ensure that all federal expenditures are supported by financial reports. These records should be maintained for a period of three years from the date the expenditure is incurred.

50000 – 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 Agency: California Department of Education Program Name: Education Stabilization Fund Federal Financial Assistance Listing: 84.425C, 84.425D, 84.425U, 84.425W Compliance Requirement: A/B - Allowed or Unallowed & Allowable Costs/Cost Principles Type of Finding: Material weakness 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 four of 60 expenditures sampled. 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 200.333. Questioned Costs The condition identified above resulted in known questioned costs of $376,240. Context/Sampling A nonstatistical sample of 60 transactions out of 856 total transactions were selected for testing, which accounted for $3,795,432 of $7,419,851 of federal program expenditures. Repeat Finding No. Recommendation The District should ensure that all federal expenditures are supported by financial reports. These records should be maintained for a period of three years from the date the expenditure is incurred.

50000 – 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 Agency: California Department of Education Program Name: Education Stabilization Fund Federal Financial Assistance Listing: 84.425C, 84.425D, 84.425U, 84.425W Compliance Requirement: A/B - Allowed or Unallowed & Allowable Costs/Cost Principles Type of Finding: Material weakness 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 four of 60 expenditures sampled. 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 200.333. Questioned Costs The condition identified above resulted in known questioned costs of $376,240. Context/Sampling A nonstatistical sample of 60 transactions out of 856 total transactions were selected for testing, which accounted for $3,795,432 of $7,419,851 of federal program expenditures. Repeat Finding No. Recommendation The District should ensure that all federal expenditures are supported by financial reports. These records should be maintained for a period of three years from the date the expenditure is incurred.

50000 – 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 Agency: California Department of Education Program Name: Education Stabilization Fund Federal Financial Assistance Listing: 84.425C, 84.425D, 84.425U, 84.425W Compliance Requirement: A/B - Allowed or Unallowed & Allowable Costs/Cost Principles Type of Finding: Material weakness 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 four of 60 expenditures sampled. 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 200.333. Questioned Costs The condition identified above resulted in known questioned costs of $376,240. Context/Sampling A nonstatistical sample of 60 transactions out of 856 total transactions were selected for testing, which accounted for $3,795,432 of $7,419,851 of federal program expenditures. Repeat Finding No. Recommendation The District should ensure that all federal expenditures are supported by financial reports. These records should be maintained for a period of three years from the date the expenditure is incurred.

50000 – 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 Agency: California Department of Education Program Name: Education Stabilization Fund Federal Financial Assistance Listing: 84.425C, 84.425D, 84.425U, 84.425W Compliance Requirement: A/B - Allowed or Unallowed & Allowable Costs/Cost Principles Type of Finding: Material weakness 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 four of 60 expenditures sampled. 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 200.333. Questioned Costs The condition identified above resulted in known questioned costs of $376,240. Context/Sampling A nonstatistical sample of 60 transactions out of 856 total transactions were selected for testing, which accounted for $3,795,432 of $7,419,851 of federal program expenditures. Repeat Finding No. Recommendation The District should ensure that all federal expenditures are supported by financial reports. These records should be maintained for a period of three years from the date the expenditure is incurred.

50000 – 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 Agency: California Department of Education Program Name: Education Stabilization Fund Federal Financial Assistance Listing: 84.425C, 84.425D, 84.425U, 84.425W Compliance Requirement: A/B - Allowed or Unallowed & Allowable Costs/Cost Principles Type of Finding: Material weakness 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 four of 60 expenditures sampled. 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 200.333. Questioned Costs The condition identified above resulted in known questioned costs of $376,240. Context/Sampling A nonstatistical sample of 60 transactions out of 856 total transactions were selected for testing, which accounted for $3,795,432 of $7,419,851 of federal program expenditures. Repeat Finding No. Recommendation The District should ensure that all federal expenditures are supported by financial reports. These records should be maintained for a period of three years from the date the expenditure is incurred.

50000 – 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 Agency: California Department of Education Program Name: Education Stabilization Fund Federal Financial Assistance Listing: 84.425C, 84.425D, 84.425U, 84.425W Compliance Requirement: A/B - Allowed or Unallowed & Allowable Costs/Cost Principles Type of Finding: Material weakness 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 four of 60 expenditures sampled. 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 200.333. Questioned Costs The condition identified above resulted in known questioned costs of $376,240. Context/Sampling A nonstatistical sample of 60 transactions out of 856 total transactions were selected for testing, which accounted for $3,795,432 of $7,419,851 of federal program expenditures. Repeat Finding No. Recommendation The District should ensure that all federal expenditures are supported by financial reports. These records should be maintained for a period of three years from the date the expenditure is incurred.

50000 – Reporting (Material Weakness in Internal Control Over Compliance, Material Noncompliance) Federal Agency: U.S. Department of Education Pass-Through Agency: California Department of Education Program Name: Education Stabilization Fund Federal Financial Assistance Listing: 84.425C, 84.425D, 84.425U, 84.425W Compliance Requirement: L - Reporting Type of Finding: Material weakness 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 that agreed to the expenditure information and full-time equivalent positions reported on the ESSER annual report. In addition, the District was unable to provide financial records or supporting documents that agreed to the expenditure information reported on the quarterly reports for the seven of eight quarterly reports that were tested. Lastly, two of seven reports tested were not reviewed by an individual independent of the report preparation process. 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 200.333. Questioned Costs There were no questioned costs associated with the identified condition. Context/Sampling A nonstatistical sample of eight of out of 14 quarterly reports to the State and one of one annual reports submitted to the State were selected for testing. Repeat Finding No. Recommendation The District should ensure that all federal expenditures and full-time equivalent positions are reported accurately on the ESSER annual and quarterly reports, and that supporting documentation is maintained to support the amounts reported.

50000 – Reporting (Material Weakness in Internal Control Over Compliance, Material Noncompliance) Federal Agency: U.S. Department of Education Pass-Through Agency: California Department of Education Program Name: Education Stabilization Fund Federal Financial Assistance Listing: 84.425C, 84.425D, 84.425U, 84.425W Compliance Requirement: L - Reporting Type of Finding: Material weakness 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 that agreed to the expenditure information and full-time equivalent positions reported on the ESSER annual report. In addition, the District was unable to provide financial records or supporting documents that agreed to the expenditure information reported on the quarterly reports for the seven of eight quarterly reports that were tested. Lastly, two of seven reports tested were not reviewed by an individual independent of the report preparation process. 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 200.333. Questioned Costs There were no questioned costs associated with the identified condition. Context/Sampling A nonstatistical sample of eight of out of 14 quarterly reports to the State and one of one annual reports submitted to the State were selected for testing. Repeat Finding No. Recommendation The District should ensure that all federal expenditures and full-time equivalent positions are reported accurately on the ESSER annual and quarterly reports, and that supporting documentation is maintained to support the amounts reported.

50000 – Reporting (Material Weakness in Internal Control Over Compliance, Material Noncompliance) Federal Agency: U.S. Department of Education Pass-Through Agency: California Department of Education Program Name: Education Stabilization Fund Federal Financial Assistance Listing: 84.425C, 84.425D, 84.425U, 84.425W Compliance Requirement: L - Reporting Type of Finding: Material weakness 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 that agreed to the expenditure information and full-time equivalent positions reported on the ESSER annual report. In addition, the District was unable to provide financial records or supporting documents that agreed to the expenditure information reported on the quarterly reports for the seven of eight quarterly reports that were tested. Lastly, two of seven reports tested were not reviewed by an individual independent of the report preparation process. 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 200.333. Questioned Costs There were no questioned costs associated with the identified condition. Context/Sampling A nonstatistical sample of eight of out of 14 quarterly reports to the State and one of one annual reports submitted to the State were selected for testing. Repeat Finding No. Recommendation The District should ensure that all federal expenditures and full-time equivalent positions are reported accurately on the ESSER annual and quarterly reports, and that supporting documentation is maintained to support the amounts reported.

50000 – Reporting (Material Weakness in Internal Control Over Compliance, Material Noncompliance) Federal Agency: U.S. Department of Education Pass-Through Agency: California Department of Education Program Name: Education Stabilization Fund Federal Financial Assistance Listing: 84.425C, 84.425D, 84.425U, 84.425W Compliance Requirement: L - Reporting Type of Finding: Material weakness 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 that agreed to the expenditure information and full-time equivalent positions reported on the ESSER annual report. In addition, the District was unable to provide financial records or supporting documents that agreed to the expenditure information reported on the quarterly reports for the seven of eight quarterly reports that were tested. Lastly, two of seven reports tested were not reviewed by an individual independent of the report preparation process. 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 200.333. Questioned Costs There were no questioned costs associated with the identified condition. Context/Sampling A nonstatistical sample of eight of out of 14 quarterly reports to the State and one of one annual reports submitted to the State were selected for testing. Repeat Finding No. Recommendation The District should ensure that all federal expenditures and full-time equivalent positions are reported accurately on the ESSER annual and quarterly reports, and that supporting documentation is maintained to support the amounts reported.

50000 – Reporting (Material Weakness in Internal Control Over Compliance, Material Noncompliance) Federal Agency: U.S. Department of Education Pass-Through Agency: California Department of Education Program Name: Education Stabilization Fund Federal Financial Assistance Listing: 84.425C, 84.425D, 84.425U, 84.425W Compliance Requirement: L - Reporting Type of Finding: Material weakness 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 that agreed to the expenditure information and full-time equivalent positions reported on the ESSER annual report. In addition, the District was unable to provide financial records or supporting documents that agreed to the expenditure information reported on the quarterly reports for the seven of eight quarterly reports that were tested. Lastly, two of seven reports tested were not reviewed by an individual independent of the report preparation process. 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 200.333. Questioned Costs There were no questioned costs associated with the identified condition. Context/Sampling A nonstatistical sample of eight of out of 14 quarterly reports to the State and one of one annual reports submitted to the State were selected for testing. Repeat Finding No. Recommendation The District should ensure that all federal expenditures and full-time equivalent positions are reported accurately on the ESSER annual and quarterly reports, and that supporting documentation is maintained to support the amounts reported.

50000 – Reporting (Material Weakness in Internal Control Over Compliance, Material Noncompliance) Federal Agency: U.S. Department of Education Pass-Through Agency: California Department of Education Program Name: Education Stabilization Fund Federal Financial Assistance Listing: 84.425C, 84.425D, 84.425U, 84.425W Compliance Requirement: L - Reporting Type of Finding: Material weakness 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 that agreed to the expenditure information and full-time equivalent positions reported on the ESSER annual report. In addition, the District was unable to provide financial records or supporting documents that agreed to the expenditure information reported on the quarterly reports for the seven of eight quarterly reports that were tested. Lastly, two of seven reports tested were not reviewed by an individual independent of the report preparation process. 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 200.333. Questioned Costs There were no questioned costs associated with the identified condition. Context/Sampling A nonstatistical sample of eight of out of 14 quarterly reports to the State and one of one annual reports submitted to the State were selected for testing. Repeat Finding No. Recommendation The District should ensure that all federal expenditures and full-time equivalent positions are reported accurately on the ESSER annual and quarterly reports, and that supporting documentation is maintained to support the amounts reported.

50000 – Reporting (Material Weakness in Internal Control Over Compliance, Material Noncompliance) Federal Agency: U.S. Department of Education Pass-Through Agency: California Department of Education Program Name: Education Stabilization Fund Federal Financial Assistance Listing: 84.425C, 84.425D, 84.425U, 84.425W Compliance Requirement: L - Reporting Type of Finding: Material weakness 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 that agreed to the expenditure information and full-time equivalent positions reported on the ESSER annual report. In addition, the District was unable to provide financial records or supporting documents that agreed to the expenditure information reported on the quarterly reports for the seven of eight quarterly reports that were tested. Lastly, two of seven reports tested were not reviewed by an individual independent of the report preparation process. 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 200.333. Questioned Costs There were no questioned costs associated with the identified condition. Context/Sampling A nonstatistical sample of eight of out of 14 quarterly reports to the State and one of one annual reports submitted to the State were selected for testing. Repeat Finding No. Recommendation The District should ensure that all federal expenditures and full-time equivalent positions are reported accurately on the ESSER annual and quarterly reports, and that supporting documentation is maintained to support the amounts reported.

50000 – Reporting (Material Weakness in Internal Control Over Compliance, Material Noncompliance) Federal Agency: U.S. Department of Education Pass-Through Agency: California Department of Education Program Name: Education Stabilization Fund Federal Financial Assistance Listing: 84.425C, 84.425D, 84.425U, 84.425W Compliance Requirement: L - Reporting Type of Finding: Material weakness 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 that agreed to the expenditure information and full-time equivalent positions reported on the ESSER annual report. In addition, the District was unable to provide financial records or supporting documents that agreed to the expenditure information reported on the quarterly reports for the seven of eight quarterly reports that were tested. Lastly, two of seven reports tested were not reviewed by an individual independent of the report preparation process. 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 200.333. Questioned Costs There were no questioned costs associated with the identified condition. Context/Sampling A nonstatistical sample of eight of out of 14 quarterly reports to the State and one of one annual reports submitted to the State were selected for testing. Repeat Finding No. Recommendation The District should ensure that all federal expenditures and full-time equivalent positions are reported accurately on the ESSER annual and quarterly reports, and that supporting documentation is maintained to support the amounts reported.

50000 – Special Tests and Provisions (Material Weakness in Internal Control Over Compliance, Material Noncompliance) Federal Agency: U.S. Department of Education Pass-Through Agency: California Department of Education Program Name: Education Stabilization Fund Federal Financial Assistance Listing: 84.425C, 84.425D, 84.425U, 84.425W Compliance Requirement: N – Special Tests and Provisions – Wage Rate Requirement Type of Finding: Material weakness and material noncompliance Criteria or Specific Requirements In accordance with U.S. Code Title 40 Subtitle II Part A Chapter 31 Subchapter IV sections 3142 and 3145, each contract in excess of $2,000 to which the Federal Government or the District of Columbia is a party, for construction, alteration, or repair, shall contain a prevailing wage provision. In addition, each contractor and subcontractor shall be required to submit a weekly statement on the wages paid. Condition The District did not include the prevailing wage rate requirement clause in the one of four contracts for the construction project completed during the period using the program. In addition, for three of four the weekly certified payrolls were not submitted by the contractor. Cause No specific cause was identified other than oversight. Effect The County is not in compliance with U.S. Code Title 40 Subtitle II Part A Chapter 31 Subchapter IV section 3145. Questioned Costs There are no questioned costs associated with the condition identified. Context/Sampling A nonstatistical sample of four out of 11 total construction projects completed using the program funds were selected for testing. Repeat Finding No. Recommendation The District should assign a responsible member of management to ensure that all contractors and subcontractor submit required certified payrolls weekly. In addition, the District should ensure that all construction contracts funded by the program include the prevailing wage rate requirement clause.

50000 – Special Tests and Provisions (Material Weakness in Internal Control Over Compliance, Material Noncompliance) Federal Agency: U.S. Department of Education Pass-Through Agency: California Department of Education Program Name: Education Stabilization Fund Federal Financial Assistance Listing: 84.425C, 84.425D, 84.425U, 84.425W Compliance Requirement: N – Special Tests and Provisions – Wage Rate Requirement Type of Finding: Material weakness and material noncompliance Criteria or Specific Requirements In accordance with U.S. Code Title 40 Subtitle II Part A Chapter 31 Subchapter IV sections 3142 and 3145, each contract in excess of $2,000 to which the Federal Government or the District of Columbia is a party, for construction, alteration, or repair, shall contain a prevailing wage provision. In addition, each contractor and subcontractor shall be required to submit a weekly statement on the wages paid. Condition The District did not include the prevailing wage rate requirement clause in the one of four contracts for the construction project completed during the period using the program. In addition, for three of four the weekly certified payrolls were not submitted by the contractor. Cause No specific cause was identified other than oversight. Effect The County is not in compliance with U.S. Code Title 40 Subtitle II Part A Chapter 31 Subchapter IV section 3145. Questioned Costs There are no questioned costs associated with the condition identified. Context/Sampling A nonstatistical sample of four out of 11 total construction projects completed using the program funds were selected for testing. Repeat Finding No. Recommendation The District should assign a responsible member of management to ensure that all contractors and subcontractor submit required certified payrolls weekly. In addition, the District should ensure that all construction contracts funded by the program include the prevailing wage rate requirement clause.

50000 – Special Tests and Provisions (Material Weakness in Internal Control Over Compliance, Material Noncompliance) Federal Agency: U.S. Department of Education Pass-Through Agency: California Department of Education Program Name: Education Stabilization Fund Federal Financial Assistance Listing: 84.425C, 84.425D, 84.425U, 84.425W Compliance Requirement: N – Special Tests and Provisions – Wage Rate Requirement Type of Finding: Material weakness and material noncompliance Criteria or Specific Requirements In accordance with U.S. Code Title 40 Subtitle II Part A Chapter 31 Subchapter IV sections 3142 and 3145, each contract in excess of $2,000 to which the Federal Government or the District of Columbia is a party, for construction, alteration, or repair, shall contain a prevailing wage provision. In addition, each contractor and subcontractor shall be required to submit a weekly statement on the wages paid. Condition The District did not include the prevailing wage rate requirement clause in the one of four contracts for the construction project completed during the period using the program. In addition, for three of four the weekly certified payrolls were not submitted by the contractor. Cause No specific cause was identified other than oversight. Effect The County is not in compliance with U.S. Code Title 40 Subtitle II Part A Chapter 31 Subchapter IV section 3145. Questioned Costs There are no questioned costs associated with the condition identified. Context/Sampling A nonstatistical sample of four out of 11 total construction projects completed using the program funds were selected for testing. Repeat Finding No. Recommendation The District should assign a responsible member of management to ensure that all contractors and subcontractor submit required certified payrolls weekly. In addition, the District should ensure that all construction contracts funded by the program include the prevailing wage rate requirement clause.

50000 – Special Tests and Provisions (Material Weakness in Internal Control Over Compliance, Material Noncompliance) Federal Agency: U.S. Department of Education Pass-Through Agency: California Department of Education Program Name: Education Stabilization Fund Federal Financial Assistance Listing: 84.425C, 84.425D, 84.425U, 84.425W Compliance Requirement: N – Special Tests and Provisions – Wage Rate Requirement Type of Finding: Material weakness and material noncompliance Criteria or Specific Requirements In accordance with U.S. Code Title 40 Subtitle II Part A Chapter 31 Subchapter IV sections 3142 and 3145, each contract in excess of $2,000 to which the Federal Government or the District of Columbia is a party, for construction, alteration, or repair, shall contain a prevailing wage provision. In addition, each contractor and subcontractor shall be required to submit a weekly statement on the wages paid. Condition The District did not include the prevailing wage rate requirement clause in the one of four contracts for the construction project completed during the period using the program. In addition, for three of four the weekly certified payrolls were not submitted by the contractor. Cause No specific cause was identified other than oversight. Effect The County is not in compliance with U.S. Code Title 40 Subtitle II Part A Chapter 31 Subchapter IV section 3145. Questioned Costs There are no questioned costs associated with the condition identified. Context/Sampling A nonstatistical sample of four out of 11 total construction projects completed using the program funds were selected for testing. Repeat Finding No. Recommendation The District should assign a responsible member of management to ensure that all contractors and subcontractor submit required certified payrolls weekly. In addition, the District should ensure that all construction contracts funded by the program include the prevailing wage rate requirement clause.

50000 – Special Tests and Provisions (Material Weakness in Internal Control Over Compliance, Material Noncompliance) Federal Agency: U.S. Department of Education Pass-Through Agency: California Department of Education Program Name: Education Stabilization Fund Federal Financial Assistance Listing: 84.425C, 84.425D, 84.425U, 84.425W Compliance Requirement: N – Special Tests and Provisions – Wage Rate Requirement Type of Finding: Material weakness and material noncompliance Criteria or Specific Requirements In accordance with U.S. Code Title 40 Subtitle II Part A Chapter 31 Subchapter IV sections 3142 and 3145, each contract in excess of $2,000 to which the Federal Government or the District of Columbia is a party, for construction, alteration, or repair, shall contain a prevailing wage provision. In addition, each contractor and subcontractor shall be required to submit a weekly statement on the wages paid. Condition The District did not include the prevailing wage rate requirement clause in the one of four contracts for the construction project completed during the period using the program. In addition, for three of four the weekly certified payrolls were not submitted by the contractor. Cause No specific cause was identified other than oversight. Effect The County is not in compliance with U.S. Code Title 40 Subtitle II Part A Chapter 31 Subchapter IV section 3145. Questioned Costs There are no questioned costs associated with the condition identified. Context/Sampling A nonstatistical sample of four out of 11 total construction projects completed using the program funds were selected for testing. Repeat Finding No. Recommendation The District should assign a responsible member of management to ensure that all contractors and subcontractor submit required certified payrolls weekly. In addition, the District should ensure that all construction contracts funded by the program include the prevailing wage rate requirement clause.

50000 – Special Tests and Provisions (Material Weakness in Internal Control Over Compliance, Material Noncompliance) Federal Agency: U.S. Department of Education Pass-Through Agency: California Department of Education Program Name: Education Stabilization Fund Federal Financial Assistance Listing: 84.425C, 84.425D, 84.425U, 84.425W Compliance Requirement: N – Special Tests and Provisions – Wage Rate Requirement Type of Finding: Material weakness and material noncompliance Criteria or Specific Requirements In accordance with U.S. Code Title 40 Subtitle II Part A Chapter 31 Subchapter IV sections 3142 and 3145, each contract in excess of $2,000 to which the Federal Government or the District of Columbia is a party, for construction, alteration, or repair, shall contain a prevailing wage provision. In addition, each contractor and subcontractor shall be required to submit a weekly statement on the wages paid. Condition The District did not include the prevailing wage rate requirement clause in the one of four contracts for the construction project completed during the period using the program. In addition, for three of four the weekly certified payrolls were not submitted by the contractor. Cause No specific cause was identified other than oversight. Effect The County is not in compliance with U.S. Code Title 40 Subtitle II Part A Chapter 31 Subchapter IV section 3145. Questioned Costs There are no questioned costs associated with the condition identified. Context/Sampling A nonstatistical sample of four out of 11 total construction projects completed using the program funds were selected for testing. Repeat Finding No. Recommendation The District should assign a responsible member of management to ensure that all contractors and subcontractor submit required certified payrolls weekly. In addition, the District should ensure that all construction contracts funded by the program include the prevailing wage rate requirement clause.

50000 – Special Tests and Provisions (Material Weakness in Internal Control Over Compliance, Material Noncompliance) Federal Agency: U.S. Department of Education Pass-Through Agency: California Department of Education Program Name: Education Stabilization Fund Federal Financial Assistance Listing: 84.425C, 84.425D, 84.425U, 84.425W Compliance Requirement: N – Special Tests and Provisions – Wage Rate Requirement Type of Finding: Material weakness and material noncompliance Criteria or Specific Requirements In accordance with U.S. Code Title 40 Subtitle II Part A Chapter 31 Subchapter IV sections 3142 and 3145, each contract in excess of $2,000 to which the Federal Government or the District of Columbia is a party, for construction, alteration, or repair, shall contain a prevailing wage provision. In addition, each contractor and subcontractor shall be required to submit a weekly statement on the wages paid. Condition The District did not include the prevailing wage rate requirement clause in the one of four contracts for the construction project completed during the period using the program. In addition, for three of four the weekly certified payrolls were not submitted by the contractor. Cause No specific cause was identified other than oversight. Effect The County is not in compliance with U.S. Code Title 40 Subtitle II Part A Chapter 31 Subchapter IV section 3145. Questioned Costs There are no questioned costs associated with the condition identified. Context/Sampling A nonstatistical sample of four out of 11 total construction projects completed using the program funds were selected for testing. Repeat Finding No. Recommendation The District should assign a responsible member of management to ensure that all contractors and subcontractor submit required certified payrolls weekly. In addition, the District should ensure that all construction contracts funded by the program include the prevailing wage rate requirement clause.

50000 – Special Tests and Provisions (Material Weakness in Internal Control Over Compliance, Material Noncompliance) Federal Agency: U.S. Department of Education Pass-Through Agency: California Department of Education Program Name: Education Stabilization Fund Federal Financial Assistance Listing: 84.425C, 84.425D, 84.425U, 84.425W Compliance Requirement: N – Special Tests and Provisions – Wage Rate Requirement Type of Finding: Material weakness and material noncompliance Criteria or Specific Requirements In accordance with U.S. Code Title 40 Subtitle II Part A Chapter 31 Subchapter IV sections 3142 and 3145, each contract in excess of $2,000 to which the Federal Government or the District of Columbia is a party, for construction, alteration, or repair, shall contain a prevailing wage provision. In addition, each contractor and subcontractor shall be required to submit a weekly statement on the wages paid. Condition The District did not include the prevailing wage rate requirement clause in the one of four contracts for the construction project completed during the period using the program. In addition, for three of four the weekly certified payrolls were not submitted by the contractor. Cause No specific cause was identified other than oversight. Effect The County is not in compliance with U.S. Code Title 40 Subtitle II Part A Chapter 31 Subchapter IV section 3145. Questioned Costs There are no questioned costs associated with the condition identified. Context/Sampling A nonstatistical sample of four out of 11 total construction projects completed using the program funds were selected for testing. Repeat Finding No. Recommendation The District should assign a responsible member of management to ensure that all contractors and subcontractor submit required certified payrolls weekly. In addition, the District should ensure that all construction contracts funded by the program include the prevailing wage rate requirement clause.

50000 – Child Nutrition Cluster – Indirect Costs (Significant Deficiency in Internal Control Over Compliance, Noncompliance) Federal Agency: U.S. Department of Agriculture Pass-Through Agency: California Department of Education Program Name: Child Nutrition Cluster Federal Financial Assistance Listing: 10.553, 10.555 Compliance Requirement: A/B - Allowed or Unallowed & Allowable Costs/Cost Principles Type of Finding: Significant deficiency and noncompliance Criteria or Specific Requirements The United States Department of Education has approved a delegation agreement with the California Department of Education (CDE) that authorizes the CDE to establish indirect cost rates for California local education agencies (LEAs). The CDE has been delegated authority to calculate and approve indirect cost rates annually for LEAs. For the Child Nutrition Cluster in fiscal year 2022-2023, California Education Code Section 38101(c) limits school district indirect costs to the lesser of the District’s individual CDE approved indirect cost rate or the statewide average indirect rate. Condition The District charged unallowable indirect costs totaling $60,269 to the Child Nutrition Cluster. Cause The condition identified appears to be due to the District not being familiar with the indirect cost requirements for each of the federal programs. Effect The District has charged unallowable expenditures to the federal programs. Questioned Costs The condition identified above resulted in $60,269 of questioned costs for unallowable indirect costs charged to the grant funds. Context/Sampling The condition was identified through recalculation of the indirect costs charged to the federal programs. Repeat Finding No. Recommendation It is recommended that the District implements a review process for indirect costs, which should include review of relevant grant agreements and relevant federal guidance.

50000 – Child Nutrition Cluster – Indirect Costs (Significant Deficiency in Internal Control Over Compliance, Noncompliance) Federal Agency: U.S. Department of Agriculture Pass-Through Agency: California Department of Education Program Name: Child Nutrition Cluster Federal Financial Assistance Listing: 10.553, 10.555 Compliance Requirement: A/B - Allowed or Unallowed & Allowable Costs/Cost Principles Type of Finding: Significant deficiency and noncompliance Criteria or Specific Requirements The United States Department of Education has approved a delegation agreement with the California Department of Education (CDE) that authorizes the CDE to establish indirect cost rates for California local education agencies (LEAs). The CDE has been delegated authority to calculate and approve indirect cost rates annually for LEAs. For the Child Nutrition Cluster in fiscal year 2022-2023, California Education Code Section 38101(c) limits school district indirect costs to the lesser of the District’s individual CDE approved indirect cost rate or the statewide average indirect rate. Condition The District charged unallowable indirect costs totaling $60,269 to the Child Nutrition Cluster. Cause The condition identified appears to be due to the District not being familiar with the indirect cost requirements for each of the federal programs. Effect The District has charged unallowable expenditures to the federal programs. Questioned Costs The condition identified above resulted in $60,269 of questioned costs for unallowable indirect costs charged to the grant funds. Context/Sampling The condition was identified through recalculation of the indirect costs charged to the federal programs. Repeat Finding No. Recommendation It is recommended that the District implements a review process for indirect costs, which should include review of relevant grant agreements and relevant federal guidance.

50000 – Child Nutrition Cluster – Indirect Costs (Significant Deficiency in Internal Control Over Compliance, Noncompliance) Federal Agency: U.S. Department of Agriculture Pass-Through Agency: California Department of Education Program Name: Child Nutrition Cluster Federal Financial Assistance Listing: 10.553, 10.555 Compliance Requirement: A/B - Allowed or Unallowed & Allowable Costs/Cost Principles Type of Finding: Significant deficiency and noncompliance Criteria or Specific Requirements The United States Department of Education has approved a delegation agreement with the California Department of Education (CDE) that authorizes the CDE to establish indirect cost rates for California local education agencies (LEAs). The CDE has been delegated authority to calculate and approve indirect cost rates annually for LEAs. For the Child Nutrition Cluster in fiscal year 2022-2023, California Education Code Section 38101(c) limits school district indirect costs to the lesser of the District’s individual CDE approved indirect cost rate or the statewide average indirect rate. Condition The District charged unallowable indirect costs totaling $60,269 to the Child Nutrition Cluster. Cause The condition identified appears to be due to the District not being familiar with the indirect cost requirements for each of the federal programs. Effect The District has charged unallowable expenditures to the federal programs. Questioned Costs The condition identified above resulted in $60,269 of questioned costs for unallowable indirect costs charged to the grant funds. Context/Sampling The condition was identified through recalculation of the indirect costs charged to the federal programs. Repeat Finding No. Recommendation It is recommended that the District implements a review process for indirect costs, which should include review of relevant grant agreements and relevant federal guidance.

50000 – Child Nutrition Cluster – Indirect Costs (Significant Deficiency in Internal Control Over Compliance, Noncompliance) Federal Agency: U.S. Department of Agriculture Pass-Through Agency: California Department of Education Program Name: Child Nutrition Cluster Federal Financial Assistance Listing: 10.553, 10.555 Compliance Requirement: A/B - Allowed or Unallowed & Allowable Costs/Cost Principles Type of Finding: Significant deficiency and noncompliance Criteria or Specific Requirements The United States Department of Education has approved a delegation agreement with the California Department of Education (CDE) that authorizes the CDE to establish indirect cost rates for California local education agencies (LEAs). The CDE has been delegated authority to calculate and approve indirect cost rates annually for LEAs. For the Child Nutrition Cluster in fiscal year 2022-2023, California Education Code Section 38101(c) limits school district indirect costs to the lesser of the District’s individual CDE approved indirect cost rate or the statewide average indirect rate. Condition The District charged unallowable indirect costs totaling $60,269 to the Child Nutrition Cluster. Cause The condition identified appears to be due to the District not being familiar with the indirect cost requirements for each of the federal programs. Effect The District has charged unallowable expenditures to the federal programs. Questioned Costs The condition identified above resulted in $60,269 of questioned costs for unallowable indirect costs charged to the grant funds. Context/Sampling The condition was identified through recalculation of the indirect costs charged to the federal programs. Repeat Finding No. Recommendation It is recommended that the District implements a review process for indirect costs, which should include review of relevant grant agreements and relevant federal guidance.

50000 – Child Nutrition Cluster – Indirect Costs (Significant Deficiency in Internal Control Over Compliance, Noncompliance) Federal Agency: U.S. Department of Agriculture Pass-Through Agency: California Department of Education Program Name: Child Nutrition Cluster Federal Financial Assistance Listing: 10.553, 10.555 Compliance Requirement: A/B - Allowed or Unallowed & Allowable Costs/Cost Principles Type of Finding: Significant deficiency and noncompliance Criteria or Specific Requirements The United States Department of Education has approved a delegation agreement with the California Department of Education (CDE) that authorizes the CDE to establish indirect cost rates for California local education agencies (LEAs). The CDE has been delegated authority to calculate and approve indirect cost rates annually for LEAs. For the Child Nutrition Cluster in fiscal year 2022-2023, California Education Code Section 38101(c) limits school district indirect costs to the lesser of the District’s individual CDE approved indirect cost rate or the statewide average indirect rate. Condition The District charged unallowable indirect costs totaling $60,269 to the Child Nutrition Cluster. Cause The condition identified appears to be due to the District not being familiar with the indirect cost requirements for each of the federal programs. Effect The District has charged unallowable expenditures to the federal programs. Questioned Costs The condition identified above resulted in $60,269 of questioned costs for unallowable indirect costs charged to the grant funds. Context/Sampling The condition was identified through recalculation of the indirect costs charged to the federal programs. Repeat Finding No. Recommendation It is recommended that the District implements a review process for indirect costs, which should include review of relevant grant agreements and relevant federal guidance.

50000 – Activities Allowed or Unallowed and Allowable Costs/Cost Principles (Significant Deficiency in Internal Control Over Compliance, Noncompliance) Federal Agency: U.S. Department of Education Pass-Through Agency: California Department of Education Program Name: Title III, English Learner Student Program Federal Financial Assistance Listing: 84.365 Compliance Requirement: A/B - Allowed or Unallowed & Allowable Costs/Cost Principles Type of Finding: Significant deficiency and 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 one of seven expenditures sampled. 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 200.333. Questioned Costs The condition identified above resulted in $221 of questioned costs. Context/Sampling A nonstatistical sample of seven transactions out of 33 total transactions were selected for testing, which accounted for $314,170 of $856,804 of federal program expenditures. Repeat Finding No. Recommendation The District should ensure that all federal expenditures are supported by financial reports. These records should be maintained for a period of three years from the date the expenditure is incurred.

50000 – 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 Agency: California Department of Education Program Name: Education Stabilization Fund Federal Financial Assistance Listing: 84.425C, 84.425D, 84.425U, 84.425W Compliance Requirement: A/B - Allowed or Unallowed & Allowable Costs/Cost Principles Type of Finding: Material weakness 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 four of 60 expenditures sampled. 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 200.333. Questioned Costs The condition identified above resulted in known questioned costs of $376,240. Context/Sampling A nonstatistical sample of 60 transactions out of 856 total transactions were selected for testing, which accounted for $3,795,432 of $7,419,851 of federal program expenditures. Repeat Finding No. Recommendation The District should ensure that all federal expenditures are supported by financial reports. These records should be maintained for a period of three years from the date the expenditure is incurred.

50000 – 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 Agency: California Department of Education Program Name: Education Stabilization Fund Federal Financial Assistance Listing: 84.425C, 84.425D, 84.425U, 84.425W Compliance Requirement: A/B - Allowed or Unallowed & Allowable Costs/Cost Principles Type of Finding: Material weakness 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 four of 60 expenditures sampled. 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 200.333. Questioned Costs The condition identified above resulted in known questioned costs of $376,240. Context/Sampling A nonstatistical sample of 60 transactions out of 856 total transactions were selected for testing, which accounted for $3,795,432 of $7,419,851 of federal program expenditures. Repeat Finding No. Recommendation The District should ensure that all federal expenditures are supported by financial reports. These records should be maintained for a period of three years from the date the expenditure is incurred.

50000 – 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 Agency: California Department of Education Program Name: Education Stabilization Fund Federal Financial Assistance Listing: 84.425C, 84.425D, 84.425U, 84.425W Compliance Requirement: A/B - Allowed or Unallowed & Allowable Costs/Cost Principles Type of Finding: Material weakness 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 four of 60 expenditures sampled. 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 200.333. Questioned Costs The condition identified above resulted in known questioned costs of $376,240. Context/Sampling A nonstatistical sample of 60 transactions out of 856 total transactions were selected for testing, which accounted for $3,795,432 of $7,419,851 of federal program expenditures. Repeat Finding No. Recommendation The District should ensure that all federal expenditures are supported by financial reports. These records should be maintained for a period of three years from the date the expenditure is incurred.

50000 – 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 Agency: California Department of Education Program Name: Education Stabilization Fund Federal Financial Assistance Listing: 84.425C, 84.425D, 84.425U, 84.425W Compliance Requirement: A/B - Allowed or Unallowed & Allowable Costs/Cost Principles Type of Finding: Material weakness 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 four of 60 expenditures sampled. 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 200.333. Questioned Costs The condition identified above resulted in known questioned costs of $376,240. Context/Sampling A nonstatistical sample of 60 transactions out of 856 total transactions were selected for testing, which accounted for $3,795,432 of $7,419,851 of federal program expenditures. Repeat Finding No. Recommendation The District should ensure that all federal expenditures are supported by financial reports. These records should be maintained for a period of three years from the date the expenditure is incurred.

50000 – 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 Agency: California Department of Education Program Name: Education Stabilization Fund Federal Financial Assistance Listing: 84.425C, 84.425D, 84.425U, 84.425W Compliance Requirement: A/B - Allowed or Unallowed & Allowable Costs/Cost Principles Type of Finding: Material weakness 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 four of 60 expenditures sampled. 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 200.333. Questioned Costs The condition identified above resulted in known questioned costs of $376,240. Context/Sampling A nonstatistical sample of 60 transactions out of 856 total transactions were selected for testing, which accounted for $3,795,432 of $7,419,851 of federal program expenditures. Repeat Finding No. Recommendation The District should ensure that all federal expenditures are supported by financial reports. These records should be maintained for a period of three years from the date the expenditure is incurred.

50000 – 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 Agency: California Department of Education Program Name: Education Stabilization Fund Federal Financial Assistance Listing: 84.425C, 84.425D, 84.425U, 84.425W Compliance Requirement: A/B - Allowed or Unallowed & Allowable Costs/Cost Principles Type of Finding: Material weakness 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 four of 60 expenditures sampled. 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 200.333. Questioned Costs The condition identified above resulted in known questioned costs of $376,240. Context/Sampling A nonstatistical sample of 60 transactions out of 856 total transactions were selected for testing, which accounted for $3,795,432 of $7,419,851 of federal program expenditures. Repeat Finding No. Recommendation The District should ensure that all federal expenditures are supported by financial reports. These records should be maintained for a period of three years from the date the expenditure is incurred.

50000 – 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 Agency: California Department of Education Program Name: Education Stabilization Fund Federal Financial Assistance Listing: 84.425C, 84.425D, 84.425U, 84.425W Compliance Requirement: A/B - Allowed or Unallowed & Allowable Costs/Cost Principles Type of Finding: Material weakness 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 four of 60 expenditures sampled. 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 200.333. Questioned Costs The condition identified above resulted in known questioned costs of $376,240. Context/Sampling A nonstatistical sample of 60 transactions out of 856 total transactions were selected for testing, which accounted for $3,795,432 of $7,419,851 of federal program expenditures. Repeat Finding No. Recommendation The District should ensure that all federal expenditures are supported by financial reports. These records should be maintained for a period of three years from the date the expenditure is incurred.

50000 – 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 Agency: California Department of Education Program Name: Education Stabilization Fund Federal Financial Assistance Listing: 84.425C, 84.425D, 84.425U, 84.425W Compliance Requirement: A/B - Allowed or Unallowed & Allowable Costs/Cost Principles Type of Finding: Material weakness 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 four of 60 expenditures sampled. 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 200.333. Questioned Costs The condition identified above resulted in known questioned costs of $376,240. Context/Sampling A nonstatistical sample of 60 transactions out of 856 total transactions were selected for testing, which accounted for $3,795,432 of $7,419,851 of federal program expenditures. Repeat Finding No. Recommendation The District should ensure that all federal expenditures are supported by financial reports. These records should be maintained for a period of three years from the date the expenditure is incurred.

50000 – Reporting (Material Weakness in Internal Control Over Compliance, Material Noncompliance) Federal Agency: U.S. Department of Education Pass-Through Agency: California Department of Education Program Name: Education Stabilization Fund Federal Financial Assistance Listing: 84.425C, 84.425D, 84.425U, 84.425W Compliance Requirement: L - Reporting Type of Finding: Material weakness 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 that agreed to the expenditure information and full-time equivalent positions reported on the ESSER annual report. In addition, the District was unable to provide financial records or supporting documents that agreed to the expenditure information reported on the quarterly reports for the seven of eight quarterly reports that were tested. Lastly, two of seven reports tested were not reviewed by an individual independent of the report preparation process. 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 200.333. Questioned Costs There were no questioned costs associated with the identified condition. Context/Sampling A nonstatistical sample of eight of out of 14 quarterly reports to the State and one of one annual reports submitted to the State were selected for testing. Repeat Finding No. Recommendation The District should ensure that all federal expenditures and full-time equivalent positions are reported accurately on the ESSER annual and quarterly reports, and that supporting documentation is maintained to support the amounts reported.

50000 – Reporting (Material Weakness in Internal Control Over Compliance, Material Noncompliance) Federal Agency: U.S. Department of Education Pass-Through Agency: California Department of Education Program Name: Education Stabilization Fund Federal Financial Assistance Listing: 84.425C, 84.425D, 84.425U, 84.425W Compliance Requirement: L - Reporting Type of Finding: Material weakness 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 that agreed to the expenditure information and full-time equivalent positions reported on the ESSER annual report. In addition, the District was unable to provide financial records or supporting documents that agreed to the expenditure information reported on the quarterly reports for the seven of eight quarterly reports that were tested. Lastly, two of seven reports tested were not reviewed by an individual independent of the report preparation process. 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 200.333. Questioned Costs There were no questioned costs associated with the identified condition. Context/Sampling A nonstatistical sample of eight of out of 14 quarterly reports to the State and one of one annual reports submitted to the State were selected for testing. Repeat Finding No. Recommendation The District should ensure that all federal expenditures and full-time equivalent positions are reported accurately on the ESSER annual and quarterly reports, and that supporting documentation is maintained to support the amounts reported.

50000 – Reporting (Material Weakness in Internal Control Over Compliance, Material Noncompliance) Federal Agency: U.S. Department of Education Pass-Through Agency: California Department of Education Program Name: Education Stabilization Fund Federal Financial Assistance Listing: 84.425C, 84.425D, 84.425U, 84.425W Compliance Requirement: L - Reporting Type of Finding: Material weakness 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 that agreed to the expenditure information and full-time equivalent positions reported on the ESSER annual report. In addition, the District was unable to provide financial records or supporting documents that agreed to the expenditure information reported on the quarterly reports for the seven of eight quarterly reports that were tested. Lastly, two of seven reports tested were not reviewed by an individual independent of the report preparation process. 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 200.333. Questioned Costs There were no questioned costs associated with the identified condition. Context/Sampling A nonstatistical sample of eight of out of 14 quarterly reports to the State and one of one annual reports submitted to the State were selected for testing. Repeat Finding No. Recommendation The District should ensure that all federal expenditures and full-time equivalent positions are reported accurately on the ESSER annual and quarterly reports, and that supporting documentation is maintained to support the amounts reported.

50000 – Reporting (Material Weakness in Internal Control Over Compliance, Material Noncompliance) Federal Agency: U.S. Department of Education Pass-Through Agency: California Department of Education Program Name: Education Stabilization Fund Federal Financial Assistance Listing: 84.425C, 84.425D, 84.425U, 84.425W Compliance Requirement: L - Reporting Type of Finding: Material weakness 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 that agreed to the expenditure information and full-time equivalent positions reported on the ESSER annual report. In addition, the District was unable to provide financial records or supporting documents that agreed to the expenditure information reported on the quarterly reports for the seven of eight quarterly reports that were tested. Lastly, two of seven reports tested were not reviewed by an individual independent of the report preparation process. 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 200.333. Questioned Costs There were no questioned costs associated with the identified condition. Context/Sampling A nonstatistical sample of eight of out of 14 quarterly reports to the State and one of one annual reports submitted to the State were selected for testing. Repeat Finding No. Recommendation The District should ensure that all federal expenditures and full-time equivalent positions are reported accurately on the ESSER annual and quarterly reports, and that supporting documentation is maintained to support the amounts reported.

50000 – Reporting (Material Weakness in Internal Control Over Compliance, Material Noncompliance) Federal Agency: U.S. Department of Education Pass-Through Agency: California Department of Education Program Name: Education Stabilization Fund Federal Financial Assistance Listing: 84.425C, 84.425D, 84.425U, 84.425W Compliance Requirement: L - Reporting Type of Finding: Material weakness 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 that agreed to the expenditure information and full-time equivalent positions reported on the ESSER annual report. In addition, the District was unable to provide financial records or supporting documents that agreed to the expenditure information reported on the quarterly reports for the seven of eight quarterly reports that were tested. Lastly, two of seven reports tested were not reviewed by an individual independent of the report preparation process. 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 200.333. Questioned Costs There were no questioned costs associated with the identified condition. Context/Sampling A nonstatistical sample of eight of out of 14 quarterly reports to the State and one of one annual reports submitted to the State were selected for testing. Repeat Finding No. Recommendation The District should ensure that all federal expenditures and full-time equivalent positions are reported accurately on the ESSER annual and quarterly reports, and that supporting documentation is maintained to support the amounts reported.

50000 – Reporting (Material Weakness in Internal Control Over Compliance, Material Noncompliance) Federal Agency: U.S. Department of Education Pass-Through Agency: California Department of Education Program Name: Education Stabilization Fund Federal Financial Assistance Listing: 84.425C, 84.425D, 84.425U, 84.425W Compliance Requirement: L - Reporting Type of Finding: Material weakness 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 that agreed to the expenditure information and full-time equivalent positions reported on the ESSER annual report. In addition, the District was unable to provide financial records or supporting documents that agreed to the expenditure information reported on the quarterly reports for the seven of eight quarterly reports that were tested. Lastly, two of seven reports tested were not reviewed by an individual independent of the report preparation process. 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 200.333. Questioned Costs There were no questioned costs associated with the identified condition. Context/Sampling A nonstatistical sample of eight of out of 14 quarterly reports to the State and one of one annual reports submitted to the State were selected for testing. Repeat Finding No. Recommendation The District should ensure that all federal expenditures and full-time equivalent positions are reported accurately on the ESSER annual and quarterly reports, and that supporting documentation is maintained to support the amounts reported.

50000 – Reporting (Material Weakness in Internal Control Over Compliance, Material Noncompliance) Federal Agency: U.S. Department of Education Pass-Through Agency: California Department of Education Program Name: Education Stabilization Fund Federal Financial Assistance Listing: 84.425C, 84.425D, 84.425U, 84.425W Compliance Requirement: L - Reporting Type of Finding: Material weakness 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 that agreed to the expenditure information and full-time equivalent positions reported on the ESSER annual report. In addition, the District was unable to provide financial records or supporting documents that agreed to the expenditure information reported on the quarterly reports for the seven of eight quarterly reports that were tested. Lastly, two of seven reports tested were not reviewed by an individual independent of the report preparation process. 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 200.333. Questioned Costs There were no questioned costs associated with the identified condition. Context/Sampling A nonstatistical sample of eight of out of 14 quarterly reports to the State and one of one annual reports submitted to the State were selected for testing. Repeat Finding No. Recommendation The District should ensure that all federal expenditures and full-time equivalent positions are reported accurately on the ESSER annual and quarterly reports, and that supporting documentation is maintained to support the amounts reported.

50000 – Reporting (Material Weakness in Internal Control Over Compliance, Material Noncompliance) Federal Agency: U.S. Department of Education Pass-Through Agency: California Department of Education Program Name: Education Stabilization Fund Federal Financial Assistance Listing: 84.425C, 84.425D, 84.425U, 84.425W Compliance Requirement: L - Reporting Type of Finding: Material weakness 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 that agreed to the expenditure information and full-time equivalent positions reported on the ESSER annual report. In addition, the District was unable to provide financial records or supporting documents that agreed to the expenditure information reported on the quarterly reports for the seven of eight quarterly reports that were tested. Lastly, two of seven reports tested were not reviewed by an individual independent of the report preparation process. 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 200.333. Questioned Costs There were no questioned costs associated with the identified condition. Context/Sampling A nonstatistical sample of eight of out of 14 quarterly reports to the State and one of one annual reports submitted to the State were selected for testing. Repeat Finding No. Recommendation The District should ensure that all federal expenditures and full-time equivalent positions are reported accurately on the ESSER annual and quarterly reports, and that supporting documentation is maintained to support the amounts reported.

50000 – Special Tests and Provisions (Material Weakness in Internal Control Over Compliance, Material Noncompliance) Federal Agency: U.S. Department of Education Pass-Through Agency: California Department of Education Program Name: Education Stabilization Fund Federal Financial Assistance Listing: 84.425C, 84.425D, 84.425U, 84.425W Compliance Requirement: N – Special Tests and Provisions – Wage Rate Requirement Type of Finding: Material weakness and material noncompliance Criteria or Specific Requirements In accordance with U.S. Code Title 40 Subtitle II Part A Chapter 31 Subchapter IV sections 3142 and 3145, each contract in excess of $2,000 to which the Federal Government or the District of Columbia is a party, for construction, alteration, or repair, shall contain a prevailing wage provision. In addition, each contractor and subcontractor shall be required to submit a weekly statement on the wages paid. Condition The District did not include the prevailing wage rate requirement clause in the one of four contracts for the construction project completed during the period using the program. In addition, for three of four the weekly certified payrolls were not submitted by the contractor. Cause No specific cause was identified other than oversight. Effect The County is not in compliance with U.S. Code Title 40 Subtitle II Part A Chapter 31 Subchapter IV section 3145. Questioned Costs There are no questioned costs associated with the condition identified. Context/Sampling A nonstatistical sample of four out of 11 total construction projects completed using the program funds were selected for testing. Repeat Finding No. Recommendation The District should assign a responsible member of management to ensure that all contractors and subcontractor submit required certified payrolls weekly. In addition, the District should ensure that all construction contracts funded by the program include the prevailing wage rate requirement clause.

50000 – Special Tests and Provisions (Material Weakness in Internal Control Over Compliance, Material Noncompliance) Federal Agency: U.S. Department of Education Pass-Through Agency: California Department of Education Program Name: Education Stabilization Fund Federal Financial Assistance Listing: 84.425C, 84.425D, 84.425U, 84.425W Compliance Requirement: N – Special Tests and Provisions – Wage Rate Requirement Type of Finding: Material weakness and material noncompliance Criteria or Specific Requirements In accordance with U.S. Code Title 40 Subtitle II Part A Chapter 31 Subchapter IV sections 3142 and 3145, each contract in excess of $2,000 to which the Federal Government or the District of Columbia is a party, for construction, alteration, or repair, shall contain a prevailing wage provision. In addition, each contractor and subcontractor shall be required to submit a weekly statement on the wages paid. Condition The District did not include the prevailing wage rate requirement clause in the one of four contracts for the construction project completed during the period using the program. In addition, for three of four the weekly certified payrolls were not submitted by the contractor. Cause No specific cause was identified other than oversight. Effect The County is not in compliance with U.S. Code Title 40 Subtitle II Part A Chapter 31 Subchapter IV section 3145. Questioned Costs There are no questioned costs associated with the condition identified. Context/Sampling A nonstatistical sample of four out of 11 total construction projects completed using the program funds were selected for testing. Repeat Finding No. Recommendation The District should assign a responsible member of management to ensure that all contractors and subcontractor submit required certified payrolls weekly. In addition, the District should ensure that all construction contracts funded by the program include the prevailing wage rate requirement clause.

50000 – Special Tests and Provisions (Material Weakness in Internal Control Over Compliance, Material Noncompliance) Federal Agency: U.S. Department of Education Pass-Through Agency: California Department of Education Program Name: Education Stabilization Fund Federal Financial Assistance Listing: 84.425C, 84.425D, 84.425U, 84.425W Compliance Requirement: N – Special Tests and Provisions – Wage Rate Requirement Type of Finding: Material weakness and material noncompliance Criteria or Specific Requirements In accordance with U.S. Code Title 40 Subtitle II Part A Chapter 31 Subchapter IV sections 3142 and 3145, each contract in excess of $2,000 to which the Federal Government or the District of Columbia is a party, for construction, alteration, or repair, shall contain a prevailing wage provision. In addition, each contractor and subcontractor shall be required to submit a weekly statement on the wages paid. Condition The District did not include the prevailing wage rate requirement clause in the one of four contracts for the construction project completed during the period using the program. In addition, for three of four the weekly certified payrolls were not submitted by the contractor. Cause No specific cause was identified other than oversight. Effect The County is not in compliance with U.S. Code Title 40 Subtitle II Part A Chapter 31 Subchapter IV section 3145. Questioned Costs There are no questioned costs associated with the condition identified. Context/Sampling A nonstatistical sample of four out of 11 total construction projects completed using the program funds were selected for testing. Repeat Finding No. Recommendation The District should assign a responsible member of management to ensure that all contractors and subcontractor submit required certified payrolls weekly. In addition, the District should ensure that all construction contracts funded by the program include the prevailing wage rate requirement clause.

50000 – Special Tests and Provisions (Material Weakness in Internal Control Over Compliance, Material Noncompliance) Federal Agency: U.S. Department of Education Pass-Through Agency: California Department of Education Program Name: Education Stabilization Fund Federal Financial Assistance Listing: 84.425C, 84.425D, 84.425U, 84.425W Compliance Requirement: N – Special Tests and Provisions – Wage Rate Requirement Type of Finding: Material weakness and material noncompliance Criteria or Specific Requirements In accordance with U.S. Code Title 40 Subtitle II Part A Chapter 31 Subchapter IV sections 3142 and 3145, each contract in excess of $2,000 to which the Federal Government or the District of Columbia is a party, for construction, alteration, or repair, shall contain a prevailing wage provision. In addition, each contractor and subcontractor shall be required to submit a weekly statement on the wages paid. Condition The District did not include the prevailing wage rate requirement clause in the one of four contracts for the construction project completed during the period using the program. In addition, for three of four the weekly certified payrolls were not submitted by the contractor. Cause No specific cause was identified other than oversight. Effect The County is not in compliance with U.S. Code Title 40 Subtitle II Part A Chapter 31 Subchapter IV section 3145. Questioned Costs There are no questioned costs associated with the condition identified. Context/Sampling A nonstatistical sample of four out of 11 total construction projects completed using the program funds were selected for testing. Repeat Finding No. Recommendation The District should assign a responsible member of management to ensure that all contractors and subcontractor submit required certified payrolls weekly. In addition, the District should ensure that all construction contracts funded by the program include the prevailing wage rate requirement clause.

50000 – Special Tests and Provisions (Material Weakness in Internal Control Over Compliance, Material Noncompliance) Federal Agency: U.S. Department of Education Pass-Through Agency: California Department of Education Program Name: Education Stabilization Fund Federal Financial Assistance Listing: 84.425C, 84.425D, 84.425U, 84.425W Compliance Requirement: N – Special Tests and Provisions – Wage Rate Requirement Type of Finding: Material weakness and material noncompliance Criteria or Specific Requirements In accordance with U.S. Code Title 40 Subtitle II Part A Chapter 31 Subchapter IV sections 3142 and 3145, each contract in excess of $2,000 to which the Federal Government or the District of Columbia is a party, for construction, alteration, or repair, shall contain a prevailing wage provision. In addition, each contractor and subcontractor shall be required to submit a weekly statement on the wages paid. Condition The District did not include the prevailing wage rate requirement clause in the one of four contracts for the construction project completed during the period using the program. In addition, for three of four the weekly certified payrolls were not submitted by the contractor. Cause No specific cause was identified other than oversight. Effect The County is not in compliance with U.S. Code Title 40 Subtitle II Part A Chapter 31 Subchapter IV section 3145. Questioned Costs There are no questioned costs associated with the condition identified. Context/Sampling A nonstatistical sample of four out of 11 total construction projects completed using the program funds were selected for testing. Repeat Finding No. Recommendation The District should assign a responsible member of management to ensure that all contractors and subcontractor submit required certified payrolls weekly. In addition, the District should ensure that all construction contracts funded by the program include the prevailing wage rate requirement clause.

50000 – Special Tests and Provisions (Material Weakness in Internal Control Over Compliance, Material Noncompliance) Federal Agency: U.S. Department of Education Pass-Through Agency: California Department of Education Program Name: Education Stabilization Fund Federal Financial Assistance Listing: 84.425C, 84.425D, 84.425U, 84.425W Compliance Requirement: N – Special Tests and Provisions – Wage Rate Requirement Type of Finding: Material weakness and material noncompliance Criteria or Specific Requirements In accordance with U.S. Code Title 40 Subtitle II Part A Chapter 31 Subchapter IV sections 3142 and 3145, each contract in excess of $2,000 to which the Federal Government or the District of Columbia is a party, for construction, alteration, or repair, shall contain a prevailing wage provision. In addition, each contractor and subcontractor shall be required to submit a weekly statement on the wages paid. Condition The District did not include the prevailing wage rate requirement clause in the one of four contracts for the construction project completed during the period using the program. In addition, for three of four the weekly certified payrolls were not submitted by the contractor. Cause No specific cause was identified other than oversight. Effect The County is not in compliance with U.S. Code Title 40 Subtitle II Part A Chapter 31 Subchapter IV section 3145. Questioned Costs There are no questioned costs associated with the condition identified. Context/Sampling A nonstatistical sample of four out of 11 total construction projects completed using the program funds were selected for testing. Repeat Finding No. Recommendation The District should assign a responsible member of management to ensure that all contractors and subcontractor submit required certified payrolls weekly. In addition, the District should ensure that all construction contracts funded by the program include the prevailing wage rate requirement clause.

50000 – Special Tests and Provisions (Material Weakness in Internal Control Over Compliance, Material Noncompliance) Federal Agency: U.S. Department of Education Pass-Through Agency: California Department of Education Program Name: Education Stabilization Fund Federal Financial Assistance Listing: 84.425C, 84.425D, 84.425U, 84.425W Compliance Requirement: N – Special Tests and Provisions – Wage Rate Requirement Type of Finding: Material weakness and material noncompliance Criteria or Specific Requirements In accordance with U.S. Code Title 40 Subtitle II Part A Chapter 31 Subchapter IV sections 3142 and 3145, each contract in excess of $2,000 to which the Federal Government or the District of Columbia is a party, for construction, alteration, or repair, shall contain a prevailing wage provision. In addition, each contractor and subcontractor shall be required to submit a weekly statement on the wages paid. Condition The District did not include the prevailing wage rate requirement clause in the one of four contracts for the construction project completed during the period using the program. In addition, for three of four the weekly certified payrolls were not submitted by the contractor. Cause No specific cause was identified other than oversight. Effect The County is not in compliance with U.S. Code Title 40 Subtitle II Part A Chapter 31 Subchapter IV section 3145. Questioned Costs There are no questioned costs associated with the condition identified. Context/Sampling A nonstatistical sample of four out of 11 total construction projects completed using the program funds were selected for testing. Repeat Finding No. Recommendation The District should assign a responsible member of management to ensure that all contractors and subcontractor submit required certified payrolls weekly. In addition, the District should ensure that all construction contracts funded by the program include the prevailing wage rate requirement clause.

50000 – Special Tests and Provisions (Material Weakness in Internal Control Over Compliance, Material Noncompliance) Federal Agency: U.S. Department of Education Pass-Through Agency: California Department of Education Program Name: Education Stabilization Fund Federal Financial Assistance Listing: 84.425C, 84.425D, 84.425U, 84.425W Compliance Requirement: N – Special Tests and Provisions – Wage Rate Requirement Type of Finding: Material weakness and material noncompliance Criteria or Specific Requirements In accordance with U.S. Code Title 40 Subtitle II Part A Chapter 31 Subchapter IV sections 3142 and 3145, each contract in excess of $2,000 to which the Federal Government or the District of Columbia is a party, for construction, alteration, or repair, shall contain a prevailing wage provision. In addition, each contractor and subcontractor shall be required to submit a weekly statement on the wages paid. Condition The District did not include the prevailing wage rate requirement clause in the one of four contracts for the construction project completed during the period using the program. In addition, for three of four the weekly certified payrolls were not submitted by the contractor. Cause No specific cause was identified other than oversight. Effect The County is not in compliance with U.S. Code Title 40 Subtitle II Part A Chapter 31 Subchapter IV section 3145. Questioned Costs There are no questioned costs associated with the condition identified. Context/Sampling A nonstatistical sample of four out of 11 total construction projects completed using the program funds were selected for testing. Repeat Finding No. Recommendation The District should assign a responsible member of management to ensure that all contractors and subcontractor submit required certified payrolls weekly. In addition, the District should ensure that all construction contracts funded by the program include the prevailing wage rate requirement clause.

50000 – Child Nutrition Cluster – Indirect Costs (Significant Deficiency in Internal Control Over Compliance, Noncompliance) Federal Agency: U.S. Department of Agriculture Pass-Through Agency: California Department of Education Program Name: Child Nutrition Cluster Federal Financial Assistance Listing: 10.553, 10.555 Compliance Requirement: A/B - Allowed or Unallowed & Allowable Costs/Cost Principles Type of Finding: Significant deficiency and noncompliance Criteria or Specific Requirements The United States Department of Education has approved a delegation agreement with the California Department of Education (CDE) that authorizes the CDE to establish indirect cost rates for California local education agencies (LEAs). The CDE has been delegated authority to calculate and approve indirect cost rates annually for LEAs. For the Child Nutrition Cluster in fiscal year 2022-2023, California Education Code Section 38101(c) limits school district indirect costs to the lesser of the District’s individual CDE approved indirect cost rate or the statewide average indirect rate. Condition The District charged unallowable indirect costs totaling $60,269 to the Child Nutrition Cluster. Cause The condition identified appears to be due to the District not being familiar with the indirect cost requirements for each of the federal programs. Effect The District has charged unallowable expenditures to the federal programs. Questioned Costs The condition identified above resulted in $60,269 of questioned costs for unallowable indirect costs charged to the grant funds. Context/Sampling The condition was identified through recalculation of the indirect costs charged to the federal programs. Repeat Finding No. Recommendation It is recommended that the District implements a review process for indirect costs, which should include review of relevant grant agreements and relevant federal guidance.

50000 – Child Nutrition Cluster – Indirect Costs (Significant Deficiency in Internal Control Over Compliance, Noncompliance) Federal Agency: U.S. Department of Agriculture Pass-Through Agency: California Department of Education Program Name: Child Nutrition Cluster Federal Financial Assistance Listing: 10.553, 10.555 Compliance Requirement: A/B - Allowed or Unallowed & Allowable Costs/Cost Principles Type of Finding: Significant deficiency and noncompliance Criteria or Specific Requirements The United States Department of Education has approved a delegation agreement with the California Department of Education (CDE) that authorizes the CDE to establish indirect cost rates for California local education agencies (LEAs). The CDE has been delegated authority to calculate and approve indirect cost rates annually for LEAs. For the Child Nutrition Cluster in fiscal year 2022-2023, California Education Code Section 38101(c) limits school district indirect costs to the lesser of the District’s individual CDE approved indirect cost rate or the statewide average indirect rate. Condition The District charged unallowable indirect costs totaling $60,269 to the Child Nutrition Cluster. Cause The condition identified appears to be due to the District not being familiar with the indirect cost requirements for each of the federal programs. Effect The District has charged unallowable expenditures to the federal programs. Questioned Costs The condition identified above resulted in $60,269 of questioned costs for unallowable indirect costs charged to the grant funds. Context/Sampling The condition was identified through recalculation of the indirect costs charged to the federal programs. Repeat Finding No. Recommendation It is recommended that the District implements a review process for indirect costs, which should include review of relevant grant agreements and relevant federal guidance.

50000 – Child Nutrition Cluster – Indirect Costs (Significant Deficiency in Internal Control Over Compliance, Noncompliance) Federal Agency: U.S. Department of Agriculture Pass-Through Agency: California Department of Education Program Name: Child Nutrition Cluster Federal Financial Assistance Listing: 10.553, 10.555 Compliance Requirement: A/B - Allowed or Unallowed & Allowable Costs/Cost Principles Type of Finding: Significant deficiency and noncompliance Criteria or Specific Requirements The United States Department of Education has approved a delegation agreement with the California Department of Education (CDE) that authorizes the CDE to establish indirect cost rates for California local education agencies (LEAs). The CDE has been delegated authority to calculate and approve indirect cost rates annually for LEAs. For the Child Nutrition Cluster in fiscal year 2022-2023, California Education Code Section 38101(c) limits school district indirect costs to the lesser of the District’s individual CDE approved indirect cost rate or the statewide average indirect rate. Condition The District charged unallowable indirect costs totaling $60,269 to the Child Nutrition Cluster. Cause The condition identified appears to be due to the District not being familiar with the indirect cost requirements for each of the federal programs. Effect The District has charged unallowable expenditures to the federal programs. Questioned Costs The condition identified above resulted in $60,269 of questioned costs for unallowable indirect costs charged to the grant funds. Context/Sampling The condition was identified through recalculation of the indirect costs charged to the federal programs. Repeat Finding No. Recommendation It is recommended that the District implements a review process for indirect costs, which should include review of relevant grant agreements and relevant federal guidance.

50000 – Child Nutrition Cluster – Indirect Costs (Significant Deficiency in Internal Control Over Compliance, Noncompliance) Federal Agency: U.S. Department of Agriculture Pass-Through Agency: California Department of Education Program Name: Child Nutrition Cluster Federal Financial Assistance Listing: 10.553, 10.555 Compliance Requirement: A/B - Allowed or Unallowed & Allowable Costs/Cost Principles Type of Finding: Significant deficiency and noncompliance Criteria or Specific Requirements The United States Department of Education has approved a delegation agreement with the California Department of Education (CDE) that authorizes the CDE to establish indirect cost rates for California local education agencies (LEAs). The CDE has been delegated authority to calculate and approve indirect cost rates annually for LEAs. For the Child Nutrition Cluster in fiscal year 2022-2023, California Education Code Section 38101(c) limits school district indirect costs to the lesser of the District’s individual CDE approved indirect cost rate or the statewide average indirect rate. Condition The District charged unallowable indirect costs totaling $60,269 to the Child Nutrition Cluster. Cause The condition identified appears to be due to the District not being familiar with the indirect cost requirements for each of the federal programs. Effect The District has charged unallowable expenditures to the federal programs. Questioned Costs The condition identified above resulted in $60,269 of questioned costs for unallowable indirect costs charged to the grant funds. Context/Sampling The condition was identified through recalculation of the indirect costs charged to the federal programs. Repeat Finding No. Recommendation It is recommended that the District implements a review process for indirect costs, which should include review of relevant grant agreements and relevant federal guidance.

50000 – Child Nutrition Cluster – Indirect Costs (Significant Deficiency in Internal Control Over Compliance, Noncompliance) Federal Agency: U.S. Department of Agriculture Pass-Through Agency: California Department of Education Program Name: Child Nutrition Cluster Federal Financial Assistance Listing: 10.553, 10.555 Compliance Requirement: A/B - Allowed or Unallowed & Allowable Costs/Cost Principles Type of Finding: Significant deficiency and noncompliance Criteria or Specific Requirements The United States Department of Education has approved a delegation agreement with the California Department of Education (CDE) that authorizes the CDE to establish indirect cost rates for California local education agencies (LEAs). The CDE has been delegated authority to calculate and approve indirect cost rates annually for LEAs. For the Child Nutrition Cluster in fiscal year 2022-2023, California Education Code Section 38101(c) limits school district indirect costs to the lesser of the District’s individual CDE approved indirect cost rate or the statewide average indirect rate. Condition The District charged unallowable indirect costs totaling $60,269 to the Child Nutrition Cluster. Cause The condition identified appears to be due to the District not being familiar with the indirect cost requirements for each of the federal programs. Effect The District has charged unallowable expenditures to the federal programs. Questioned Costs The condition identified above resulted in $60,269 of questioned costs for unallowable indirect costs charged to the grant funds. Context/Sampling The condition was identified through recalculation of the indirect costs charged to the federal programs. Repeat Finding No. Recommendation It is recommended that the District implements a review process for indirect costs, which should include review of relevant grant agreements and relevant federal guidance.

50000 – Activities Allowed or Unallowed and Allowable Costs/Cost Principles (Significant Deficiency in Internal Control Over Compliance, Noncompliance) Federal Agency: U.S. Department of Education Pass-Through Agency: California Department of Education Program Name: Title III, English Learner Student Program Federal Financial Assistance Listing: 84.365 Compliance Requirement: A/B - Allowed or Unallowed & Allowable Costs/Cost Principles Type of Finding: Significant deficiency and 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 one of seven expenditures sampled. 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 200.333. Questioned Costs The condition identified above resulted in $221 of questioned costs. Context/Sampling A nonstatistical sample of seven transactions out of 33 total transactions were selected for testing, which accounted for $314,170 of $856,804 of federal program expenditures. Repeat Finding No. Recommendation The District should ensure that all federal expenditures are supported by financial reports. These records should be maintained for a period of three years from the date the expenditure is incurred.