Audit 354064

Federal Agencies: U.S. Department of Education, U.S. Department of Justice Pass-Through Entity: California Department of Education, except for Indian Education and School Violence Prevention, which are direct awards Program Name: Various, see Condition below Federal Financial Assistance Listing: Various, see Condition below Compliance Requirements: A/B – Activities Allowed or Unallowed & Allowable Costs/Cost Principles Type of Finding: Material Weakness and Noncompliance Criteria or Specific Requirements Title 2 Code of Federal Regulations 200.403(e) requires costs to be determined in accordance with generally accepted accounting principles (GAAP), which requires expenditures to be accrued in the period in which they are incurred. Condition The District accrued balances on open purchase orders at year-end, resulting in over-accrual of expenditures which did not have related services rendered or goods received by June 30, 2024 for various federal programs which were not identified as major programs. Additionally, this resulted in unallowable indirect costs charged to various federal programs which were not identified as major programs. Detailed information for unallowable direct and indirect costs charged related to this issue is as follows: SEE TABLE IN THE FINDING Cause The cause appears to be due to lack of sufficient internal controls over year-end financial statement preparation. Effect The District is not in compliance with Activities Allowed or Unallowed and Allowable Costs/Cost Principles for various federal programs not identified as major programs Questioned Costs The condition identified above resulted in known questioned costs of $537,362 in direct costs and $14,784 in related indirect costs charged, resulting in total questioned costs of $552,146. Context/Sampling: Unallowable costs were identified through a review of accounts payable for the District as a whole and not through the sample selected for major program testing. Repeat Finding No. Recommendation The District should implement controls to ensure that all expenditures charged to federal programs are allowable.

Federal Agencies: U.S. Department of Education, U.S. Department of Justice Pass-Through Entity: California Department of Education, except for Indian Education and School Violence Prevention, which are direct awards Program Name: Various, see Condition below Federal Financial Assistance Listing: Various, see Condition below Compliance Requirements: A/B – Activities Allowed or Unallowed & Allowable Costs/Cost Principles Type of Finding: Material Weakness and Noncompliance Criteria or Specific Requirements Title 2 Code of Federal Regulations 200.403(e) requires costs to be determined in accordance with generally accepted accounting principles (GAAP), which requires expenditures to be accrued in the period in which they are incurred. Condition The District accrued balances on open purchase orders at year-end, resulting in over-accrual of expenditures which did not have related services rendered or goods received by June 30, 2024 for various federal programs which were not identified as major programs. Additionally, this resulted in unallowable indirect costs charged to various federal programs which were not identified as major programs. Detailed information for unallowable direct and indirect costs charged related to this issue is as follows: SEE TABLE IN THE FINDING Cause The cause appears to be due to lack of sufficient internal controls over year-end financial statement preparation. Effect The District is not in compliance with Activities Allowed or Unallowed and Allowable Costs/Cost Principles for various federal programs not identified as major programs Questioned Costs The condition identified above resulted in known questioned costs of $537,362 in direct costs and $14,784 in related indirect costs charged, resulting in total questioned costs of $552,146. Context/Sampling: Unallowable costs were identified through a review of accounts payable for the District as a whole and not through the sample selected for major program testing. Repeat Finding No. Recommendation The District should implement controls to ensure that all expenditures charged to federal programs are allowable.

Federal Agencies: U.S. Department of Education, U.S. Department of Justice Pass-Through Entity: California Department of Education, except for Indian Education and School Violence Prevention, which are direct awards Program Name: Various, see Condition below Federal Financial Assistance Listing: Various, see Condition below Compliance Requirements: A/B – Activities Allowed or Unallowed & Allowable Costs/Cost Principles Type of Finding: Material Weakness and Noncompliance Criteria or Specific Requirements Title 2 Code of Federal Regulations 200.403(e) requires costs to be determined in accordance with generally accepted accounting principles (GAAP), which requires expenditures to be accrued in the period in which they are incurred. Condition The District accrued balances on open purchase orders at year-end, resulting in over-accrual of expenditures which did not have related services rendered or goods received by June 30, 2024 for various federal programs which were not identified as major programs. Additionally, this resulted in unallowable indirect costs charged to various federal programs which were not identified as major programs. Detailed information for unallowable direct and indirect costs charged related to this issue is as follows: SEE TABLE IN THE FINDING Cause The cause appears to be due to lack of sufficient internal controls over year-end financial statement preparation. Effect The District is not in compliance with Activities Allowed or Unallowed and Allowable Costs/Cost Principles for various federal programs not identified as major programs Questioned Costs The condition identified above resulted in known questioned costs of $537,362 in direct costs and $14,784 in related indirect costs charged, resulting in total questioned costs of $552,146. Context/Sampling: Unallowable costs were identified through a review of accounts payable for the District as a whole and not through the sample selected for major program testing. Repeat Finding No. Recommendation The District should implement controls to ensure that all expenditures charged to federal programs are allowable.

Federal Agencies: U.S. Department of Education, U.S. Department of Justice Pass-Through Entity: California Department of Education, except for Indian Education and School Violence Prevention, which are direct awards Program Name: Various, see Condition below Federal Financial Assistance Listing: Various, see Condition below Compliance Requirements: A/B – Activities Allowed or Unallowed & Allowable Costs/Cost Principles Type of Finding: Material Weakness and Noncompliance Criteria or Specific Requirements Title 2 Code of Federal Regulations 200.403(e) requires costs to be determined in accordance with generally accepted accounting principles (GAAP), which requires expenditures to be accrued in the period in which they are incurred. Condition The District accrued balances on open purchase orders at year-end, resulting in over-accrual of expenditures which did not have related services rendered or goods received by June 30, 2024 for various federal programs which were not identified as major programs. Additionally, this resulted in unallowable indirect costs charged to various federal programs which were not identified as major programs. Detailed information for unallowable direct and indirect costs charged related to this issue is as follows: SEE TABLE IN THE FINDING Cause The cause appears to be due to lack of sufficient internal controls over year-end financial statement preparation. Effect The District is not in compliance with Activities Allowed or Unallowed and Allowable Costs/Cost Principles for various federal programs not identified as major programs Questioned Costs The condition identified above resulted in known questioned costs of $537,362 in direct costs and $14,784 in related indirect costs charged, resulting in total questioned costs of $552,146. Context/Sampling: Unallowable costs were identified through a review of accounts payable for the District as a whole and not through the sample selected for major program testing. Repeat Finding No. Recommendation The District should implement controls to ensure that all expenditures charged to federal programs are allowable.

Federal Agencies: U.S. Department of Education, U.S. Department of Justice Pass-Through Entity: California Department of Education, except for Indian Education and School Violence Prevention, which are direct awards Program Name: Various, see Condition below Federal Financial Assistance Listing: Various, see Condition below Compliance Requirements: A/B – Activities Allowed or Unallowed & Allowable Costs/Cost Principles Type of Finding: Material Weakness and Noncompliance Criteria or Specific Requirements Title 2 Code of Federal Regulations 200.403(e) requires costs to be determined in accordance with generally accepted accounting principles (GAAP), which requires expenditures to be accrued in the period in which they are incurred. Condition The District accrued balances on open purchase orders at year-end, resulting in over-accrual of expenditures which did not have related services rendered or goods received by June 30, 2024 for various federal programs which were not identified as major programs. Additionally, this resulted in unallowable indirect costs charged to various federal programs which were not identified as major programs. Detailed information for unallowable direct and indirect costs charged related to this issue is as follows: SEE TABLE IN THE FINDING Cause The cause appears to be due to lack of sufficient internal controls over year-end financial statement preparation. Effect The District is not in compliance with Activities Allowed or Unallowed and Allowable Costs/Cost Principles for various federal programs not identified as major programs Questioned Costs The condition identified above resulted in known questioned costs of $537,362 in direct costs and $14,784 in related indirect costs charged, resulting in total questioned costs of $552,146. Context/Sampling: Unallowable costs were identified through a review of accounts payable for the District as a whole and not through the sample selected for major program testing. Repeat Finding No. Recommendation The District should implement controls to ensure that all expenditures charged to federal programs are allowable.

Federal Agencies: U.S. Department of Education, U.S. Department of Justice Pass-Through Entity: California Department of Education, except for Indian Education and School Violence Prevention, which are direct awards Program Name: Various, see Condition below Federal Financial Assistance Listing: Various, see Condition below Compliance Requirements: A/B – Activities Allowed or Unallowed & Allowable Costs/Cost Principles Type of Finding: Material Weakness and Noncompliance Criteria or Specific Requirements Title 2 Code of Federal Regulations 200.403(e) requires costs to be determined in accordance with generally accepted accounting principles (GAAP), which requires expenditures to be accrued in the period in which they are incurred. Condition The District accrued balances on open purchase orders at year-end, resulting in over-accrual of expenditures which did not have related services rendered or goods received by June 30, 2024 for various federal programs which were not identified as major programs. Additionally, this resulted in unallowable indirect costs charged to various federal programs which were not identified as major programs. Detailed information for unallowable direct and indirect costs charged related to this issue is as follows: SEE TABLE IN THE FINDING Cause The cause appears to be due to lack of sufficient internal controls over year-end financial statement preparation. Effect The District is not in compliance with Activities Allowed or Unallowed and Allowable Costs/Cost Principles for various federal programs not identified as major programs Questioned Costs The condition identified above resulted in known questioned costs of $537,362 in direct costs and $14,784 in related indirect costs charged, resulting in total questioned costs of $552,146. Context/Sampling: Unallowable costs were identified through a review of accounts payable for the District as a whole and not through the sample selected for major program testing. Repeat Finding No. Recommendation The District should implement controls to ensure that all expenditures charged to federal programs are allowable.

Federal Agencies: U.S. Department of Education, U.S. Department of Justice Pass-Through Entity: California Department of Education, except for Indian Education and School Violence Prevention, which are direct awards Program Name: Various, see Condition below Federal Financial Assistance Listing: Various, see Condition below Compliance Requirements: A/B – Activities Allowed or Unallowed & Allowable Costs/Cost Principles Type of Finding: Material Weakness and Noncompliance Criteria or Specific Requirements Title 2 Code of Federal Regulations 200.403(e) requires costs to be determined in accordance with generally accepted accounting principles (GAAP), which requires expenditures to be accrued in the period in which they are incurred. Condition The District accrued balances on open purchase orders at year-end, resulting in over-accrual of expenditures which did not have related services rendered or goods received by June 30, 2024 for various federal programs which were not identified as major programs. Additionally, this resulted in unallowable indirect costs charged to various federal programs which were not identified as major programs. Detailed information for unallowable direct and indirect costs charged related to this issue is as follows: SEE TABLE IN THE FINDING Cause The cause appears to be due to lack of sufficient internal controls over year-end financial statement preparation. Effect The District is not in compliance with Activities Allowed or Unallowed and Allowable Costs/Cost Principles for various federal programs not identified as major programs Questioned Costs The condition identified above resulted in known questioned costs of $537,362 in direct costs and $14,784 in related indirect costs charged, resulting in total questioned costs of $552,146. Context/Sampling: Unallowable costs were identified through a review of accounts payable for the District as a whole and not through the sample selected for major program testing. Repeat Finding No. Recommendation The District should implement controls to ensure that all expenditures charged to federal programs are allowable.

Federal Agencies: U.S. Department of Education, U.S. Department of Justice Pass-Through Entity: California Department of Education, except for Indian Education and School Violence Prevention, which are direct awards Program Name: Various, see Condition below Federal Financial Assistance Listing: Various, see Condition below Compliance Requirements: A/B – Activities Allowed or Unallowed & Allowable Costs/Cost Principles Type of Finding: Material Weakness and Noncompliance Criteria or Specific Requirements Title 2 Code of Federal Regulations 200.403(e) requires costs to be determined in accordance with generally accepted accounting principles (GAAP), which requires expenditures to be accrued in the period in which they are incurred. Condition The District accrued balances on open purchase orders at year-end, resulting in over-accrual of expenditures which did not have related services rendered or goods received by June 30, 2024 for various federal programs which were not identified as major programs. Additionally, this resulted in unallowable indirect costs charged to various federal programs which were not identified as major programs. Detailed information for unallowable direct and indirect costs charged related to this issue is as follows: SEE TABLE IN THE FINDING Cause The cause appears to be due to lack of sufficient internal controls over year-end financial statement preparation. Effect The District is not in compliance with Activities Allowed or Unallowed and Allowable Costs/Cost Principles for various federal programs not identified as major programs Questioned Costs The condition identified above resulted in known questioned costs of $537,362 in direct costs and $14,784 in related indirect costs charged, resulting in total questioned costs of $552,146. Context/Sampling: Unallowable costs were identified through a review of accounts payable for the District as a whole and not through the sample selected for major program testing. Repeat Finding No. Recommendation The District should implement controls to ensure that all expenditures charged to federal programs are allowable.

Federal Agencies: U.S. Department of Education, U.S. Department of Justice Pass-Through Entity: California Department of Education, except for Indian Education and School Violence Prevention, which are direct awards Program Name: Various, see Condition below Federal Financial Assistance Listing: Various, see Condition below Compliance Requirements: A/B – Activities Allowed or Unallowed & Allowable Costs/Cost Principles Type of Finding: Material Weakness and Noncompliance Criteria or Specific Requirements Title 2 Code of Federal Regulations 200.403(e) requires costs to be determined in accordance with generally accepted accounting principles (GAAP), which requires expenditures to be accrued in the period in which they are incurred. Condition The District accrued balances on open purchase orders at year-end, resulting in over-accrual of expenditures which did not have related services rendered or goods received by June 30, 2024 for various federal programs which were not identified as major programs. Additionally, this resulted in unallowable indirect costs charged to various federal programs which were not identified as major programs. Detailed information for unallowable direct and indirect costs charged related to this issue is as follows: SEE TABLE IN THE FINDING Cause The cause appears to be due to lack of sufficient internal controls over year-end financial statement preparation. Effect The District is not in compliance with Activities Allowed or Unallowed and Allowable Costs/Cost Principles for various federal programs not identified as major programs Questioned Costs The condition identified above resulted in known questioned costs of $537,362 in direct costs and $14,784 in related indirect costs charged, resulting in total questioned costs of $552,146. Context/Sampling: Unallowable costs were identified through a review of accounts payable for the District as a whole and not through the sample selected for major program testing. Repeat Finding No. Recommendation The District should implement controls to ensure that all expenditures charged to federal programs are allowable.

Federal Agencies: U.S. Department of Education, U.S. Department of Justice Pass-Through Entity: California Department of Education, except for Indian Education and School Violence Prevention, which are direct awards Program Name: Various, see Condition below Federal Financial Assistance Listing: Various, see Condition below Compliance Requirements: A/B – Activities Allowed or Unallowed & Allowable Costs/Cost Principles Type of Finding: Material Weakness and Noncompliance Criteria or Specific Requirements Title 2 Code of Federal Regulations 200.403(e) requires costs to be determined in accordance with generally accepted accounting principles (GAAP), which requires expenditures to be accrued in the period in which they are incurred. Condition The District accrued balances on open purchase orders at year-end, resulting in over-accrual of expenditures which did not have related services rendered or goods received by June 30, 2024 for various federal programs which were not identified as major programs. Additionally, this resulted in unallowable indirect costs charged to various federal programs which were not identified as major programs. Detailed information for unallowable direct and indirect costs charged related to this issue is as follows: SEE TABLE IN THE FINDING Cause The cause appears to be due to lack of sufficient internal controls over year-end financial statement preparation. Effect The District is not in compliance with Activities Allowed or Unallowed and Allowable Costs/Cost Principles for various federal programs not identified as major programs Questioned Costs The condition identified above resulted in known questioned costs of $537,362 in direct costs and $14,784 in related indirect costs charged, resulting in total questioned costs of $552,146. Context/Sampling: Unallowable costs were identified through a review of accounts payable for the District as a whole and not through the sample selected for major program testing. Repeat Finding No. Recommendation The District should implement controls to ensure that all expenditures charged to federal programs are allowable.

Federal Agencies: U.S. Department of Education, U.S. Department of Justice Pass-Through Entity: California Department of Education, except for Indian Education and School Violence Prevention, which are direct awards Program Name: Various, see Condition below Federal Financial Assistance Listing: Various, see Condition below Compliance Requirements: A/B – Activities Allowed or Unallowed & Allowable Costs/Cost Principles Type of Finding: Material Weakness and Noncompliance Criteria or Specific Requirements Title 2 Code of Federal Regulations 200.403(e) requires costs to be determined in accordance with generally accepted accounting principles (GAAP), which requires expenditures to be accrued in the period in which they are incurred. Condition The District accrued balances on open purchase orders at year-end, resulting in over-accrual of expenditures which did not have related services rendered or goods received by June 30, 2024 for various federal programs which were not identified as major programs. Additionally, this resulted in unallowable indirect costs charged to various federal programs which were not identified as major programs. Detailed information for unallowable direct and indirect costs charged related to this issue is as follows: SEE TABLE IN THE FINDING Cause The cause appears to be due to lack of sufficient internal controls over year-end financial statement preparation. Effect The District is not in compliance with Activities Allowed or Unallowed and Allowable Costs/Cost Principles for various federal programs not identified as major programs Questioned Costs The condition identified above resulted in known questioned costs of $537,362 in direct costs and $14,784 in related indirect costs charged, resulting in total questioned costs of $552,146. Context/Sampling: Unallowable costs were identified through a review of accounts payable for the District as a whole and not through the sample selected for major program testing. Repeat Finding No. Recommendation The District should implement controls to ensure that all expenditures charged to federal programs are allowable.

Federal Agency: U.S. Department of Education Pass-Through Entity: California Department of Education Program Name: COVID-19 – Education Stabilization Fund Federal Financial Assistance Listing: 84.425D, 84.425U, 84.425W Compliance Requirements: A/B – Activities Allowed or Unallowed & Allowable Costs/Cost Principles Type of Finding: Material Weakness and Noncompliance Criteria or Specific Requirements Title 2 Code of Federal Regulations 200.403(e) requires costs to be determined in accordance with generally accepted accounting principles (GAAP), which requires expenditures to be accrued in the period in which they are incurred. Condition The District accrued balances on open purchase orders at year-end, resulting in over-accrual of expenditures of $1,172,500 which did not have related services rendered or goods received by June 30, 2024. Additionally, this resulted in $176 of unallowable indirect costs charged to the program. Cause The cause appears to be due to lack of sufficient internal controls over year-end financial statement preparation. Effect The District is not in compliance with Activities Allowed or Unallowed and Allowable Costs/Cost Principles related to the Education Stabilization Fund program. Questioned Costs The condition identified above resulted in known questioned costs of $1,172,500 in direct costs and $176 in related indirect costs charged, resulting in total questioned costs of $1,172,676. Context/Sampling: Unallowable costs were identified through a review of accounts payable for the District as a whole and not through the sample selected for major program testing. Repeat Finding No. Recommendation The District should implement controls to ensure that all expenditures charged to federal programs are allowable.

Federal Agency: U.S. Department of Education Pass-Through Entity: California Department of Education Program Name: COVID-19 – Education Stabilization Fund Federal Financial Assistance Listing: 84.425D, 84.425U, 84.425W Compliance Requirements: A/B – Activities Allowed or Unallowed & Allowable Costs/Cost Principles Type of Finding: Material Weakness and Noncompliance Criteria or Specific Requirements Title 2 Code of Federal Regulations 200.403(e) requires costs to be determined in accordance with generally accepted accounting principles (GAAP), which requires expenditures to be accrued in the period in which they are incurred. Condition The District accrued balances on open purchase orders at year-end, resulting in over-accrual of expenditures of $1,172,500 which did not have related services rendered or goods received by June 30, 2024. Additionally, this resulted in $176 of unallowable indirect costs charged to the program. Cause The cause appears to be due to lack of sufficient internal controls over year-end financial statement preparation. Effect The District is not in compliance with Activities Allowed or Unallowed and Allowable Costs/Cost Principles related to the Education Stabilization Fund program. Questioned Costs The condition identified above resulted in known questioned costs of $1,172,500 in direct costs and $176 in related indirect costs charged, resulting in total questioned costs of $1,172,676. Context/Sampling: Unallowable costs were identified through a review of accounts payable for the District as a whole and not through the sample selected for major program testing. Repeat Finding No. Recommendation The District should implement controls to ensure that all expenditures charged to federal programs are allowable.

Federal Agency: U.S. Department of Education Pass-Through Entity: California Department of Education Program Name: COVID-19 – Education Stabilization Fund Federal Financial Assistance Listing: 84.425D, 84.425U, 84.425W Compliance Requirements: A/B – Activities Allowed or Unallowed & Allowable Costs/Cost Principles Type of Finding: Material Weakness and Noncompliance Criteria or Specific Requirements Title 2 Code of Federal Regulations 200.403(e) requires costs to be determined in accordance with generally accepted accounting principles (GAAP), which requires expenditures to be accrued in the period in which they are incurred. Condition The District accrued balances on open purchase orders at year-end, resulting in over-accrual of expenditures of $1,172,500 which did not have related services rendered or goods received by June 30, 2024. Additionally, this resulted in $176 of unallowable indirect costs charged to the program. Cause The cause appears to be due to lack of sufficient internal controls over year-end financial statement preparation. Effect The District is not in compliance with Activities Allowed or Unallowed and Allowable Costs/Cost Principles related to the Education Stabilization Fund program. Questioned Costs The condition identified above resulted in known questioned costs of $1,172,500 in direct costs and $176 in related indirect costs charged, resulting in total questioned costs of $1,172,676. Context/Sampling: Unallowable costs were identified through a review of accounts payable for the District as a whole and not through the sample selected for major program testing. Repeat Finding No. Recommendation The District should implement controls to ensure that all expenditures charged to federal programs are allowable.

Federal Agency: U.S. Department of Education Pass-Through Entity: California Department of Education Program Name: COVID-19 – Education Stabilization Fund Federal Financial Assistance Listing: 84.425D, 84.425U, 84.425W Compliance Requirements: A/B – Activities Allowed or Unallowed & Allowable Costs/Cost Principles Type of Finding: Material Weakness and Noncompliance Criteria or Specific Requirements Title 2 Code of Federal Regulations 200.403(e) requires costs to be determined in accordance with generally accepted accounting principles (GAAP), which requires expenditures to be accrued in the period in which they are incurred. Condition The District accrued balances on open purchase orders at year-end, resulting in over-accrual of expenditures of $1,172,500 which did not have related services rendered or goods received by June 30, 2024. Additionally, this resulted in $176 of unallowable indirect costs charged to the program. Cause The cause appears to be due to lack of sufficient internal controls over year-end financial statement preparation. Effect The District is not in compliance with Activities Allowed or Unallowed and Allowable Costs/Cost Principles related to the Education Stabilization Fund program. Questioned Costs The condition identified above resulted in known questioned costs of $1,172,500 in direct costs and $176 in related indirect costs charged, resulting in total questioned costs of $1,172,676. Context/Sampling: Unallowable costs were identified through a review of accounts payable for the District as a whole and not through the sample selected for major program testing. Repeat Finding No. Recommendation The District should implement controls to ensure that all expenditures charged to federal programs are allowable.

Federal Agency: U.S. Department of Education Pass-Through Entity: California Department of Education Program Name: COVID-19 – Education Stabilization Fund Federal Financial Assistance Listing: 84.425D, 84.425U, 84.425W Compliance Requirements: A/B – Activities Allowed or Unallowed & Allowable Costs/Cost Principles Type of Finding: Material Weakness and Noncompliance Criteria or Specific Requirements Title 2 Code of Federal Regulations 200.403(e) requires costs to be determined in accordance with generally accepted accounting principles (GAAP), which requires expenditures to be accrued in the period in which they are incurred. Condition The District accrued balances on open purchase orders at year-end, resulting in over-accrual of expenditures of $1,172,500 which did not have related services rendered or goods received by June 30, 2024. Additionally, this resulted in $176 of unallowable indirect costs charged to the program. Cause The cause appears to be due to lack of sufficient internal controls over year-end financial statement preparation. Effect The District is not in compliance with Activities Allowed or Unallowed and Allowable Costs/Cost Principles related to the Education Stabilization Fund program. Questioned Costs The condition identified above resulted in known questioned costs of $1,172,500 in direct costs and $176 in related indirect costs charged, resulting in total questioned costs of $1,172,676. Context/Sampling: Unallowable costs were identified through a review of accounts payable for the District as a whole and not through the sample selected for major program testing. Repeat Finding No. Recommendation The District should implement controls to ensure that all expenditures charged to federal programs are allowable.

Federal Agency: U.S. Department of Education Pass-Through Entity: California Department of Education Program Name: COVID-19 – Education Stabilization Fund Federal Financial Assistance Listing: 84.425D, 84.425U, 84.425W Compliance Requirements: A/B – Activities Allowed or Unallowed & Allowable Costs/Cost Principles Type of Finding: Material Weakness and Noncompliance Criteria or Specific Requirements Title 2 Code of Federal Regulations 200.403(e) requires costs to be determined in accordance with generally accepted accounting principles (GAAP), which requires expenditures to be accrued in the period in which they are incurred. Condition The District accrued balances on open purchase orders at year-end, resulting in over-accrual of expenditures of $1,172,500 which did not have related services rendered or goods received by June 30, 2024. Additionally, this resulted in $176 of unallowable indirect costs charged to the program. Cause The cause appears to be due to lack of sufficient internal controls over year-end financial statement preparation. Effect The District is not in compliance with Activities Allowed or Unallowed and Allowable Costs/Cost Principles related to the Education Stabilization Fund program. Questioned Costs The condition identified above resulted in known questioned costs of $1,172,500 in direct costs and $176 in related indirect costs charged, resulting in total questioned costs of $1,172,676. Context/Sampling: Unallowable costs were identified through a review of accounts payable for the District as a whole and not through the sample selected for major program testing. Repeat Finding No. Recommendation The District should implement controls to ensure that all expenditures charged to federal programs are allowable.

Federal Agency: U.S. Department of Education Pass-Through Entity: California Department of Education Program Name: COVID-19 – Education Stabilization Fund Federal Financial Assistance Listing: 84.425D, 84.425U, 84.425W Compliance Requirements: A/B – Activities Allowed or Unallowed & Allowable Costs/Cost Principles Type of Finding: Material Weakness and Noncompliance Criteria or Specific Requirements Title 2 Code of Federal Regulations 200.403(e) requires costs to be determined in accordance with generally accepted accounting principles (GAAP), which requires expenditures to be accrued in the period in which they are incurred. Condition The District accrued balances on open purchase orders at year-end, resulting in over-accrual of expenditures of $1,172,500 which did not have related services rendered or goods received by June 30, 2024. Additionally, this resulted in $176 of unallowable indirect costs charged to the program. Cause The cause appears to be due to lack of sufficient internal controls over year-end financial statement preparation. Effect The District is not in compliance with Activities Allowed or Unallowed and Allowable Costs/Cost Principles related to the Education Stabilization Fund program. Questioned Costs The condition identified above resulted in known questioned costs of $1,172,500 in direct costs and $176 in related indirect costs charged, resulting in total questioned costs of $1,172,676. Context/Sampling: Unallowable costs were identified through a review of accounts payable for the District as a whole and not through the sample selected for major program testing. Repeat Finding No. Recommendation The District should implement controls to ensure that all expenditures charged to federal programs are allowable.

Federal Agency: U.S. Department of Education Pass-Through Entity: California Department of Education Program Name: COVID-19 – Education Stabilization Fund Federal Financial Assistance Listing: 84.425D, 84.425U, 84.425W Compliance Requirements: A/B – Activities Allowed or Unallowed & Allowable Costs/Cost Principles Type of Finding: Material Weakness and Noncompliance Criteria or Specific Requirements Title 2 Code of Federal Regulations 200.403(e) requires costs to be determined in accordance with generally accepted accounting principles (GAAP), which requires expenditures to be accrued in the period in which they are incurred. Condition The District accrued balances on open purchase orders at year-end, resulting in over-accrual of expenditures of $1,172,500 which did not have related services rendered or goods received by June 30, 2024. Additionally, this resulted in $176 of unallowable indirect costs charged to the program. Cause The cause appears to be due to lack of sufficient internal controls over year-end financial statement preparation. Effect The District is not in compliance with Activities Allowed or Unallowed and Allowable Costs/Cost Principles related to the Education Stabilization Fund program. Questioned Costs The condition identified above resulted in known questioned costs of $1,172,500 in direct costs and $176 in related indirect costs charged, resulting in total questioned costs of $1,172,676. Context/Sampling: Unallowable costs were identified through a review of accounts payable for the District as a whole and not through the sample selected for major program testing. Repeat Finding No. Recommendation The District should implement controls to ensure that all expenditures charged to federal programs are allowable.

Federal Agency: U.S. Department of Education Pass-Through Entity: California Department of Education Program Name: COVID-19 – Education Stabilization Fund Federal Financial Assistance Listing: 84.425D, 84.425U, 84.425W Compliance Requirements: A/B – Activities Allowed or Unallowed & Allowable Costs/Cost Principles Type of Finding: Material Weakness and Noncompliance Criteria or Specific Requirements Title 2 Code of Federal Regulations 200.403(e) requires costs to be determined in accordance with generally accepted accounting principles (GAAP), which requires expenditures to be accrued in the period in which they are incurred. Condition The District accrued balances on open purchase orders at year-end, resulting in over-accrual of expenditures of $1,172,500 which did not have related services rendered or goods received by June 30, 2024. Additionally, this resulted in $176 of unallowable indirect costs charged to the program. Cause The cause appears to be due to lack of sufficient internal controls over year-end financial statement preparation. Effect The District is not in compliance with Activities Allowed or Unallowed and Allowable Costs/Cost Principles related to the Education Stabilization Fund program. Questioned Costs The condition identified above resulted in known questioned costs of $1,172,500 in direct costs and $176 in related indirect costs charged, resulting in total questioned costs of $1,172,676. Context/Sampling: Unallowable costs were identified through a review of accounts payable for the District as a whole and not through the sample selected for major program testing. Repeat Finding No. Recommendation The District should implement controls to ensure that all expenditures charged to federal programs are allowable.

Federal Agency: U.S. Department of Education Pass-Through Entity: California Department of Education Program Name: COVID-19 – Education Stabilization Fund Federal Financial Assistance Listing: 84.425D, 84.425U, 84.425W Compliance Requirements: L – Reporting Type of Finding: Material Weakness and Noncompliance Criteria or Specific Requirements Title 2 Code of Federal Regulations 200.328 requires financial reports to be collected no less than annually. Reports should reflect financial information for the period reported on. Condition The District charged unallowable direct and indirect costs to the program totaling $1,172,676 which resulted in expenditure reports reflecting unallowable expenditures. Cause The cause appears to be due to lack of sufficient internal controls over compliance with reporting requirements. Effect The District is not in compliance with Reporting related to the Education Stabilization Fund program. Questioned Costs There are no questioned costs identified. Context/Sampling: Inaccurate reporting was identified through a review accounts payable for the District as a whole which identified unallowable costs charged to the program. Repeat Finding No. Recommendation The District should implement controls to ensure that all reports are prepared accurately.

Federal Agency: U.S. Department of Education Pass-Through Entity: California Department of Education Program Name: COVID-19 – Education Stabilization Fund Federal Financial Assistance Listing: 84.425D, 84.425U, 84.425W Compliance Requirements: L – Reporting Type of Finding: Material Weakness and Noncompliance Criteria or Specific Requirements Title 2 Code of Federal Regulations 200.328 requires financial reports to be collected no less than annually. Reports should reflect financial information for the period reported on. Condition The District charged unallowable direct and indirect costs to the program totaling $1,172,676 which resulted in expenditure reports reflecting unallowable expenditures. Cause The cause appears to be due to lack of sufficient internal controls over compliance with reporting requirements. Effect The District is not in compliance with Reporting related to the Education Stabilization Fund program. Questioned Costs There are no questioned costs identified. Context/Sampling: Inaccurate reporting was identified through a review accounts payable for the District as a whole which identified unallowable costs charged to the program. Repeat Finding No. Recommendation The District should implement controls to ensure that all reports are prepared accurately.

Federal Agency: U.S. Department of Education Pass-Through Entity: California Department of Education Program Name: COVID-19 – Education Stabilization Fund Federal Financial Assistance Listing: 84.425D, 84.425U, 84.425W Compliance Requirements: L – Reporting Type of Finding: Material Weakness and Noncompliance Criteria or Specific Requirements Title 2 Code of Federal Regulations 200.328 requires financial reports to be collected no less than annually. Reports should reflect financial information for the period reported on. Condition The District charged unallowable direct and indirect costs to the program totaling $1,172,676 which resulted in expenditure reports reflecting unallowable expenditures. Cause The cause appears to be due to lack of sufficient internal controls over compliance with reporting requirements. Effect The District is not in compliance with Reporting related to the Education Stabilization Fund program. Questioned Costs There are no questioned costs identified. Context/Sampling: Inaccurate reporting was identified through a review accounts payable for the District as a whole which identified unallowable costs charged to the program. Repeat Finding No. Recommendation The District should implement controls to ensure that all reports are prepared accurately.

Federal Agency: U.S. Department of Education Pass-Through Entity: California Department of Education Program Name: COVID-19 – Education Stabilization Fund Federal Financial Assistance Listing: 84.425D, 84.425U, 84.425W Compliance Requirements: L – Reporting Type of Finding: Material Weakness and Noncompliance Criteria or Specific Requirements Title 2 Code of Federal Regulations 200.328 requires financial reports to be collected no less than annually. Reports should reflect financial information for the period reported on. Condition The District charged unallowable direct and indirect costs to the program totaling $1,172,676 which resulted in expenditure reports reflecting unallowable expenditures. Cause The cause appears to be due to lack of sufficient internal controls over compliance with reporting requirements. Effect The District is not in compliance with Reporting related to the Education Stabilization Fund program. Questioned Costs There are no questioned costs identified. Context/Sampling: Inaccurate reporting was identified through a review accounts payable for the District as a whole which identified unallowable costs charged to the program. Repeat Finding No. Recommendation The District should implement controls to ensure that all reports are prepared accurately.

Federal Agency: U.S. Department of Education Pass-Through Entity: California Department of Education Program Name: COVID-19 – Education Stabilization Fund Federal Financial Assistance Listing: 84.425D, 84.425U, 84.425W Compliance Requirements: L – Reporting Type of Finding: Material Weakness and Noncompliance Criteria or Specific Requirements Title 2 Code of Federal Regulations 200.328 requires financial reports to be collected no less than annually. Reports should reflect financial information for the period reported on. Condition The District charged unallowable direct and indirect costs to the program totaling $1,172,676 which resulted in expenditure reports reflecting unallowable expenditures. Cause The cause appears to be due to lack of sufficient internal controls over compliance with reporting requirements. Effect The District is not in compliance with Reporting related to the Education Stabilization Fund program. Questioned Costs There are no questioned costs identified. Context/Sampling: Inaccurate reporting was identified through a review accounts payable for the District as a whole which identified unallowable costs charged to the program. Repeat Finding No. Recommendation The District should implement controls to ensure that all reports are prepared accurately.

Federal Agency: U.S. Department of Education Pass-Through Entity: California Department of Education Program Name: COVID-19 – Education Stabilization Fund Federal Financial Assistance Listing: 84.425D, 84.425U, 84.425W Compliance Requirements: L – Reporting Type of Finding: Material Weakness and Noncompliance Criteria or Specific Requirements Title 2 Code of Federal Regulations 200.328 requires financial reports to be collected no less than annually. Reports should reflect financial information for the period reported on. Condition The District charged unallowable direct and indirect costs to the program totaling $1,172,676 which resulted in expenditure reports reflecting unallowable expenditures. Cause The cause appears to be due to lack of sufficient internal controls over compliance with reporting requirements. Effect The District is not in compliance with Reporting related to the Education Stabilization Fund program. Questioned Costs There are no questioned costs identified. Context/Sampling: Inaccurate reporting was identified through a review accounts payable for the District as a whole which identified unallowable costs charged to the program. Repeat Finding No. Recommendation The District should implement controls to ensure that all reports are prepared accurately.

Federal Agency: U.S. Department of Education Pass-Through Entity: California Department of Education Program Name: COVID-19 – Education Stabilization Fund Federal Financial Assistance Listing: 84.425D, 84.425U, 84.425W Compliance Requirements: L – Reporting Type of Finding: Material Weakness and Noncompliance Criteria or Specific Requirements Title 2 Code of Federal Regulations 200.328 requires financial reports to be collected no less than annually. Reports should reflect financial information for the period reported on. Condition The District charged unallowable direct and indirect costs to the program totaling $1,172,676 which resulted in expenditure reports reflecting unallowable expenditures. Cause The cause appears to be due to lack of sufficient internal controls over compliance with reporting requirements. Effect The District is not in compliance with Reporting related to the Education Stabilization Fund program. Questioned Costs There are no questioned costs identified. Context/Sampling: Inaccurate reporting was identified through a review accounts payable for the District as a whole which identified unallowable costs charged to the program. Repeat Finding No. Recommendation The District should implement controls to ensure that all reports are prepared accurately.

Federal Agency: U.S. Department of Education Pass-Through Entity: California Department of Education Program Name: COVID-19 – Education Stabilization Fund Federal Financial Assistance Listing: 84.425D, 84.425U, 84.425W Compliance Requirements: L – Reporting Type of Finding: Material Weakness and Noncompliance Criteria or Specific Requirements Title 2 Code of Federal Regulations 200.328 requires financial reports to be collected no less than annually. Reports should reflect financial information for the period reported on. Condition The District charged unallowable direct and indirect costs to the program totaling $1,172,676 which resulted in expenditure reports reflecting unallowable expenditures. Cause The cause appears to be due to lack of sufficient internal controls over compliance with reporting requirements. Effect The District is not in compliance with Reporting related to the Education Stabilization Fund program. Questioned Costs There are no questioned costs identified. Context/Sampling: Inaccurate reporting was identified through a review accounts payable for the District as a whole which identified unallowable costs charged to the program. Repeat Finding No. Recommendation The District should implement controls to ensure that all reports are prepared accurately.

Federal Agency: U.S. Department of Education Pass-Through Entity: California Department of Education Program Name: COVID-19 – Education Stabilization Fund Federal Financial Assistance Listing: 84.425D, 84.425U, 84.425W Compliance Requirements: L – Reporting Type of Finding: Material Weakness and Noncompliance Criteria or Specific Requirements Title 2 Code of Federal Regulations 200.328 requires financial reports to be collected no less than annually. Reports should reflect financial information for the period reported on. Condition The District charged unallowable direct and indirect costs to the program totaling $1,172,676 which resulted in expenditure reports reflecting unallowable expenditures. Cause The cause appears to be due to lack of sufficient internal controls over compliance with reporting requirements. Effect The District is not in compliance with Reporting related to the Education Stabilization Fund program. Questioned Costs There are no questioned costs identified. Context/Sampling: Inaccurate reporting was identified through a review accounts payable for the District as a whole which identified unallowable costs charged to the program. Repeat Finding No. Recommendation The District should implement controls to ensure that all reports are prepared accurately.

Federal Agencies: U.S. Department of Education, U.S. Department of Justice Pass-Through Entity: California Department of Education, except for Indian Education and School Violence Prevention, which are direct awards Program Name: Various, see Condition below Federal Financial Assistance Listing: Various, see Condition below Compliance Requirements: A/B – Activities Allowed or Unallowed & Allowable Costs/Cost Principles Type of Finding: Material Weakness and Noncompliance Criteria or Specific Requirements Title 2 Code of Federal Regulations 200.403(e) requires costs to be determined in accordance with generally accepted accounting principles (GAAP), which requires expenditures to be accrued in the period in which they are incurred. Condition The District accrued balances on open purchase orders at year-end, resulting in over-accrual of expenditures which did not have related services rendered or goods received by June 30, 2024 for various federal programs which were not identified as major programs. Additionally, this resulted in unallowable indirect costs charged to various federal programs which were not identified as major programs. Detailed information for unallowable direct and indirect costs charged related to this issue is as follows: SEE TABLE IN THE FINDING Cause The cause appears to be due to lack of sufficient internal controls over year-end financial statement preparation. Effect The District is not in compliance with Activities Allowed or Unallowed and Allowable Costs/Cost Principles for various federal programs not identified as major programs Questioned Costs The condition identified above resulted in known questioned costs of $537,362 in direct costs and $14,784 in related indirect costs charged, resulting in total questioned costs of $552,146. Context/Sampling: Unallowable costs were identified through a review of accounts payable for the District as a whole and not through the sample selected for major program testing. Repeat Finding No. Recommendation The District should implement controls to ensure that all expenditures charged to federal programs are allowable.

Federal Agencies: U.S. Department of Education, U.S. Department of Justice Pass-Through Entity: California Department of Education, except for Indian Education and School Violence Prevention, which are direct awards Program Name: Various, see Condition below Federal Financial Assistance Listing: Various, see Condition below Compliance Requirements: A/B – Activities Allowed or Unallowed & Allowable Costs/Cost Principles Type of Finding: Material Weakness and Noncompliance Criteria or Specific Requirements Title 2 Code of Federal Regulations 200.403(e) requires costs to be determined in accordance with generally accepted accounting principles (GAAP), which requires expenditures to be accrued in the period in which they are incurred. Condition The District accrued balances on open purchase orders at year-end, resulting in over-accrual of expenditures which did not have related services rendered or goods received by June 30, 2024 for various federal programs which were not identified as major programs. Additionally, this resulted in unallowable indirect costs charged to various federal programs which were not identified as major programs. Detailed information for unallowable direct and indirect costs charged related to this issue is as follows: SEE TABLE IN THE FINDING Cause The cause appears to be due to lack of sufficient internal controls over year-end financial statement preparation. Effect The District is not in compliance with Activities Allowed or Unallowed and Allowable Costs/Cost Principles for various federal programs not identified as major programs Questioned Costs The condition identified above resulted in known questioned costs of $537,362 in direct costs and $14,784 in related indirect costs charged, resulting in total questioned costs of $552,146. Context/Sampling: Unallowable costs were identified through a review of accounts payable for the District as a whole and not through the sample selected for major program testing. Repeat Finding No. Recommendation The District should implement controls to ensure that all expenditures charged to federal programs are allowable.

Federal Agencies: U.S. Department of Education, U.S. Department of Justice Pass-Through Entity: California Department of Education, except for Indian Education and School Violence Prevention, which are direct awards Program Name: Various, see Condition below Federal Financial Assistance Listing: Various, see Condition below Compliance Requirements: A/B – Activities Allowed or Unallowed & Allowable Costs/Cost Principles Type of Finding: Material Weakness and Noncompliance Criteria or Specific Requirements Title 2 Code of Federal Regulations 200.403(e) requires costs to be determined in accordance with generally accepted accounting principles (GAAP), which requires expenditures to be accrued in the period in which they are incurred. Condition The District accrued balances on open purchase orders at year-end, resulting in over-accrual of expenditures which did not have related services rendered or goods received by June 30, 2024 for various federal programs which were not identified as major programs. Additionally, this resulted in unallowable indirect costs charged to various federal programs which were not identified as major programs. Detailed information for unallowable direct and indirect costs charged related to this issue is as follows: SEE TABLE IN THE FINDING Cause The cause appears to be due to lack of sufficient internal controls over year-end financial statement preparation. Effect The District is not in compliance with Activities Allowed or Unallowed and Allowable Costs/Cost Principles for various federal programs not identified as major programs Questioned Costs The condition identified above resulted in known questioned costs of $537,362 in direct costs and $14,784 in related indirect costs charged, resulting in total questioned costs of $552,146. Context/Sampling: Unallowable costs were identified through a review of accounts payable for the District as a whole and not through the sample selected for major program testing. Repeat Finding No. Recommendation The District should implement controls to ensure that all expenditures charged to federal programs are allowable.

Federal Agencies: U.S. Department of Education, U.S. Department of Justice Pass-Through Entity: California Department of Education, except for Indian Education and School Violence Prevention, which are direct awards Program Name: Various, see Condition below Federal Financial Assistance Listing: Various, see Condition below Compliance Requirements: A/B – Activities Allowed or Unallowed & Allowable Costs/Cost Principles Type of Finding: Material Weakness and Noncompliance Criteria or Specific Requirements Title 2 Code of Federal Regulations 200.403(e) requires costs to be determined in accordance with generally accepted accounting principles (GAAP), which requires expenditures to be accrued in the period in which they are incurred. Condition The District accrued balances on open purchase orders at year-end, resulting in over-accrual of expenditures which did not have related services rendered or goods received by June 30, 2024 for various federal programs which were not identified as major programs. Additionally, this resulted in unallowable indirect costs charged to various federal programs which were not identified as major programs. Detailed information for unallowable direct and indirect costs charged related to this issue is as follows: SEE TABLE IN THE FINDING Cause The cause appears to be due to lack of sufficient internal controls over year-end financial statement preparation. Effect The District is not in compliance with Activities Allowed or Unallowed and Allowable Costs/Cost Principles for various federal programs not identified as major programs Questioned Costs The condition identified above resulted in known questioned costs of $537,362 in direct costs and $14,784 in related indirect costs charged, resulting in total questioned costs of $552,146. Context/Sampling: Unallowable costs were identified through a review of accounts payable for the District as a whole and not through the sample selected for major program testing. Repeat Finding No. Recommendation The District should implement controls to ensure that all expenditures charged to federal programs are allowable.

Federal Agencies: U.S. Department of Education, U.S. Department of Justice Pass-Through Entity: California Department of Education, except for Indian Education and School Violence Prevention, which are direct awards Program Name: Various, see Condition below Federal Financial Assistance Listing: Various, see Condition below Compliance Requirements: A/B – Activities Allowed or Unallowed & Allowable Costs/Cost Principles Type of Finding: Material Weakness and Noncompliance Criteria or Specific Requirements Title 2 Code of Federal Regulations 200.403(e) requires costs to be determined in accordance with generally accepted accounting principles (GAAP), which requires expenditures to be accrued in the period in which they are incurred. Condition The District accrued balances on open purchase orders at year-end, resulting in over-accrual of expenditures which did not have related services rendered or goods received by June 30, 2024 for various federal programs which were not identified as major programs. Additionally, this resulted in unallowable indirect costs charged to various federal programs which were not identified as major programs. Detailed information for unallowable direct and indirect costs charged related to this issue is as follows: SEE TABLE IN THE FINDING Cause The cause appears to be due to lack of sufficient internal controls over year-end financial statement preparation. Effect The District is not in compliance with Activities Allowed or Unallowed and Allowable Costs/Cost Principles for various federal programs not identified as major programs Questioned Costs The condition identified above resulted in known questioned costs of $537,362 in direct costs and $14,784 in related indirect costs charged, resulting in total questioned costs of $552,146. Context/Sampling: Unallowable costs were identified through a review of accounts payable for the District as a whole and not through the sample selected for major program testing. Repeat Finding No. Recommendation The District should implement controls to ensure that all expenditures charged to federal programs are allowable.

Federal Agencies: U.S. Department of Education, U.S. Department of Justice Pass-Through Entity: California Department of Education, except for Indian Education and School Violence Prevention, which are direct awards Program Name: Various, see Condition below Federal Financial Assistance Listing: Various, see Condition below Compliance Requirements: A/B – Activities Allowed or Unallowed & Allowable Costs/Cost Principles Type of Finding: Material Weakness and Noncompliance Criteria or Specific Requirements Title 2 Code of Federal Regulations 200.403(e) requires costs to be determined in accordance with generally accepted accounting principles (GAAP), which requires expenditures to be accrued in the period in which they are incurred. Condition The District accrued balances on open purchase orders at year-end, resulting in over-accrual of expenditures which did not have related services rendered or goods received by June 30, 2024 for various federal programs which were not identified as major programs. Additionally, this resulted in unallowable indirect costs charged to various federal programs which were not identified as major programs. Detailed information for unallowable direct and indirect costs charged related to this issue is as follows: SEE TABLE IN THE FINDING Cause The cause appears to be due to lack of sufficient internal controls over year-end financial statement preparation. Effect The District is not in compliance with Activities Allowed or Unallowed and Allowable Costs/Cost Principles for various federal programs not identified as major programs Questioned Costs The condition identified above resulted in known questioned costs of $537,362 in direct costs and $14,784 in related indirect costs charged, resulting in total questioned costs of $552,146. Context/Sampling: Unallowable costs were identified through a review of accounts payable for the District as a whole and not through the sample selected for major program testing. Repeat Finding No. Recommendation The District should implement controls to ensure that all expenditures charged to federal programs are allowable.

Federal Agencies: U.S. Department of Education, U.S. Department of Justice Pass-Through Entity: California Department of Education, except for Indian Education and School Violence Prevention, which are direct awards Program Name: Various, see Condition below Federal Financial Assistance Listing: Various, see Condition below Compliance Requirements: A/B – Activities Allowed or Unallowed & Allowable Costs/Cost Principles Type of Finding: Material Weakness and Noncompliance Criteria or Specific Requirements Title 2 Code of Federal Regulations 200.403(e) requires costs to be determined in accordance with generally accepted accounting principles (GAAP), which requires expenditures to be accrued in the period in which they are incurred. Condition The District accrued balances on open purchase orders at year-end, resulting in over-accrual of expenditures which did not have related services rendered or goods received by June 30, 2024 for various federal programs which were not identified as major programs. Additionally, this resulted in unallowable indirect costs charged to various federal programs which were not identified as major programs. Detailed information for unallowable direct and indirect costs charged related to this issue is as follows: SEE TABLE IN THE FINDING Cause The cause appears to be due to lack of sufficient internal controls over year-end financial statement preparation. Effect The District is not in compliance with Activities Allowed or Unallowed and Allowable Costs/Cost Principles for various federal programs not identified as major programs Questioned Costs The condition identified above resulted in known questioned costs of $537,362 in direct costs and $14,784 in related indirect costs charged, resulting in total questioned costs of $552,146. Context/Sampling: Unallowable costs were identified through a review of accounts payable for the District as a whole and not through the sample selected for major program testing. Repeat Finding No. Recommendation The District should implement controls to ensure that all expenditures charged to federal programs are allowable.

Federal Agencies: U.S. Department of Education, U.S. Department of Justice Pass-Through Entity: California Department of Education, except for Indian Education and School Violence Prevention, which are direct awards Program Name: Various, see Condition below Federal Financial Assistance Listing: Various, see Condition below Compliance Requirements: A/B – Activities Allowed or Unallowed & Allowable Costs/Cost Principles Type of Finding: Material Weakness and Noncompliance Criteria or Specific Requirements Title 2 Code of Federal Regulations 200.403(e) requires costs to be determined in accordance with generally accepted accounting principles (GAAP), which requires expenditures to be accrued in the period in which they are incurred. Condition The District accrued balances on open purchase orders at year-end, resulting in over-accrual of expenditures which did not have related services rendered or goods received by June 30, 2024 for various federal programs which were not identified as major programs. Additionally, this resulted in unallowable indirect costs charged to various federal programs which were not identified as major programs. Detailed information for unallowable direct and indirect costs charged related to this issue is as follows: SEE TABLE IN THE FINDING Cause The cause appears to be due to lack of sufficient internal controls over year-end financial statement preparation. Effect The District is not in compliance with Activities Allowed or Unallowed and Allowable Costs/Cost Principles for various federal programs not identified as major programs Questioned Costs The condition identified above resulted in known questioned costs of $537,362 in direct costs and $14,784 in related indirect costs charged, resulting in total questioned costs of $552,146. Context/Sampling: Unallowable costs were identified through a review of accounts payable for the District as a whole and not through the sample selected for major program testing. Repeat Finding No. Recommendation The District should implement controls to ensure that all expenditures charged to federal programs are allowable.

Federal Agencies: U.S. Department of Education, U.S. Department of Justice Pass-Through Entity: California Department of Education, except for Indian Education and School Violence Prevention, which are direct awards Program Name: Various, see Condition below Federal Financial Assistance Listing: Various, see Condition below Compliance Requirements: A/B – Activities Allowed or Unallowed & Allowable Costs/Cost Principles Type of Finding: Material Weakness and Noncompliance Criteria or Specific Requirements Title 2 Code of Federal Regulations 200.403(e) requires costs to be determined in accordance with generally accepted accounting principles (GAAP), which requires expenditures to be accrued in the period in which they are incurred. Condition The District accrued balances on open purchase orders at year-end, resulting in over-accrual of expenditures which did not have related services rendered or goods received by June 30, 2024 for various federal programs which were not identified as major programs. Additionally, this resulted in unallowable indirect costs charged to various federal programs which were not identified as major programs. Detailed information for unallowable direct and indirect costs charged related to this issue is as follows: SEE TABLE IN THE FINDING Cause The cause appears to be due to lack of sufficient internal controls over year-end financial statement preparation. Effect The District is not in compliance with Activities Allowed or Unallowed and Allowable Costs/Cost Principles for various federal programs not identified as major programs Questioned Costs The condition identified above resulted in known questioned costs of $537,362 in direct costs and $14,784 in related indirect costs charged, resulting in total questioned costs of $552,146. Context/Sampling: Unallowable costs were identified through a review of accounts payable for the District as a whole and not through the sample selected for major program testing. Repeat Finding No. Recommendation The District should implement controls to ensure that all expenditures charged to federal programs are allowable.

Federal Agencies: U.S. Department of Education, U.S. Department of Justice Pass-Through Entity: California Department of Education, except for Indian Education and School Violence Prevention, which are direct awards Program Name: Various, see Condition below Federal Financial Assistance Listing: Various, see Condition below Compliance Requirements: A/B – Activities Allowed or Unallowed & Allowable Costs/Cost Principles Type of Finding: Material Weakness and Noncompliance Criteria or Specific Requirements Title 2 Code of Federal Regulations 200.403(e) requires costs to be determined in accordance with generally accepted accounting principles (GAAP), which requires expenditures to be accrued in the period in which they are incurred. Condition The District accrued balances on open purchase orders at year-end, resulting in over-accrual of expenditures which did not have related services rendered or goods received by June 30, 2024 for various federal programs which were not identified as major programs. Additionally, this resulted in unallowable indirect costs charged to various federal programs which were not identified as major programs. Detailed information for unallowable direct and indirect costs charged related to this issue is as follows: SEE TABLE IN THE FINDING Cause The cause appears to be due to lack of sufficient internal controls over year-end financial statement preparation. Effect The District is not in compliance with Activities Allowed or Unallowed and Allowable Costs/Cost Principles for various federal programs not identified as major programs Questioned Costs The condition identified above resulted in known questioned costs of $537,362 in direct costs and $14,784 in related indirect costs charged, resulting in total questioned costs of $552,146. Context/Sampling: Unallowable costs were identified through a review of accounts payable for the District as a whole and not through the sample selected for major program testing. Repeat Finding No. Recommendation The District should implement controls to ensure that all expenditures charged to federal programs are allowable.

Federal Agencies: U.S. Department of Education, U.S. Department of Justice Pass-Through Entity: California Department of Education, except for Indian Education and School Violence Prevention, which are direct awards Program Name: Various, see Condition below Federal Financial Assistance Listing: Various, see Condition below Compliance Requirements: A/B – Activities Allowed or Unallowed & Allowable Costs/Cost Principles Type of Finding: Material Weakness and Noncompliance Criteria or Specific Requirements Title 2 Code of Federal Regulations 200.403(e) requires costs to be determined in accordance with generally accepted accounting principles (GAAP), which requires expenditures to be accrued in the period in which they are incurred. Condition The District accrued balances on open purchase orders at year-end, resulting in over-accrual of expenditures which did not have related services rendered or goods received by June 30, 2024 for various federal programs which were not identified as major programs. Additionally, this resulted in unallowable indirect costs charged to various federal programs which were not identified as major programs. Detailed information for unallowable direct and indirect costs charged related to this issue is as follows: SEE TABLE IN THE FINDING Cause The cause appears to be due to lack of sufficient internal controls over year-end financial statement preparation. Effect The District is not in compliance with Activities Allowed or Unallowed and Allowable Costs/Cost Principles for various federal programs not identified as major programs Questioned Costs The condition identified above resulted in known questioned costs of $537,362 in direct costs and $14,784 in related indirect costs charged, resulting in total questioned costs of $552,146. Context/Sampling: Unallowable costs were identified through a review of accounts payable for the District as a whole and not through the sample selected for major program testing. Repeat Finding No. Recommendation The District should implement controls to ensure that all expenditures charged to federal programs are allowable.

Federal Agencies: U.S. Department of Education, U.S. Department of Justice Pass-Through Entity: California Department of Education, except for Indian Education and School Violence Prevention, which are direct awards Program Name: Various, see Condition below Federal Financial Assistance Listing: Various, see Condition below Compliance Requirements: A/B – Activities Allowed or Unallowed & Allowable Costs/Cost Principles Type of Finding: Material Weakness and Noncompliance Criteria or Specific Requirements Title 2 Code of Federal Regulations 200.403(e) requires costs to be determined in accordance with generally accepted accounting principles (GAAP), which requires expenditures to be accrued in the period in which they are incurred. Condition The District accrued balances on open purchase orders at year-end, resulting in over-accrual of expenditures which did not have related services rendered or goods received by June 30, 2024 for various federal programs which were not identified as major programs. Additionally, this resulted in unallowable indirect costs charged to various federal programs which were not identified as major programs. Detailed information for unallowable direct and indirect costs charged related to this issue is as follows: SEE TABLE IN THE FINDING Cause The cause appears to be due to lack of sufficient internal controls over year-end financial statement preparation. Effect The District is not in compliance with Activities Allowed or Unallowed and Allowable Costs/Cost Principles for various federal programs not identified as major programs Questioned Costs The condition identified above resulted in known questioned costs of $537,362 in direct costs and $14,784 in related indirect costs charged, resulting in total questioned costs of $552,146. Context/Sampling: Unallowable costs were identified through a review of accounts payable for the District as a whole and not through the sample selected for major program testing. Repeat Finding No. Recommendation The District should implement controls to ensure that all expenditures charged to federal programs are allowable.

Federal Agency: U.S. Department of Education Pass-Through Entity: California Department of Education Program Name: COVID-19 – Education Stabilization Fund Federal Financial Assistance Listing: 84.425D, 84.425U, 84.425W Compliance Requirements: A/B – Activities Allowed or Unallowed & Allowable Costs/Cost Principles Type of Finding: Material Weakness and Noncompliance Criteria or Specific Requirements Title 2 Code of Federal Regulations 200.403(e) requires costs to be determined in accordance with generally accepted accounting principles (GAAP), which requires expenditures to be accrued in the period in which they are incurred. Condition The District accrued balances on open purchase orders at year-end, resulting in over-accrual of expenditures of $1,172,500 which did not have related services rendered or goods received by June 30, 2024. Additionally, this resulted in $176 of unallowable indirect costs charged to the program. Cause The cause appears to be due to lack of sufficient internal controls over year-end financial statement preparation. Effect The District is not in compliance with Activities Allowed or Unallowed and Allowable Costs/Cost Principles related to the Education Stabilization Fund program. Questioned Costs The condition identified above resulted in known questioned costs of $1,172,500 in direct costs and $176 in related indirect costs charged, resulting in total questioned costs of $1,172,676. Context/Sampling: Unallowable costs were identified through a review of accounts payable for the District as a whole and not through the sample selected for major program testing. Repeat Finding No. Recommendation The District should implement controls to ensure that all expenditures charged to federal programs are allowable.

Federal Agency: U.S. Department of Education Pass-Through Entity: California Department of Education Program Name: COVID-19 – Education Stabilization Fund Federal Financial Assistance Listing: 84.425D, 84.425U, 84.425W Compliance Requirements: A/B – Activities Allowed or Unallowed & Allowable Costs/Cost Principles Type of Finding: Material Weakness and Noncompliance Criteria or Specific Requirements Title 2 Code of Federal Regulations 200.403(e) requires costs to be determined in accordance with generally accepted accounting principles (GAAP), which requires expenditures to be accrued in the period in which they are incurred. Condition The District accrued balances on open purchase orders at year-end, resulting in over-accrual of expenditures of $1,172,500 which did not have related services rendered or goods received by June 30, 2024. Additionally, this resulted in $176 of unallowable indirect costs charged to the program. Cause The cause appears to be due to lack of sufficient internal controls over year-end financial statement preparation. Effect The District is not in compliance with Activities Allowed or Unallowed and Allowable Costs/Cost Principles related to the Education Stabilization Fund program. Questioned Costs The condition identified above resulted in known questioned costs of $1,172,500 in direct costs and $176 in related indirect costs charged, resulting in total questioned costs of $1,172,676. Context/Sampling: Unallowable costs were identified through a review of accounts payable for the District as a whole and not through the sample selected for major program testing. Repeat Finding No. Recommendation The District should implement controls to ensure that all expenditures charged to federal programs are allowable.

Federal Agency: U.S. Department of Education Pass-Through Entity: California Department of Education Program Name: COVID-19 – Education Stabilization Fund Federal Financial Assistance Listing: 84.425D, 84.425U, 84.425W Compliance Requirements: A/B – Activities Allowed or Unallowed & Allowable Costs/Cost Principles Type of Finding: Material Weakness and Noncompliance Criteria or Specific Requirements Title 2 Code of Federal Regulations 200.403(e) requires costs to be determined in accordance with generally accepted accounting principles (GAAP), which requires expenditures to be accrued in the period in which they are incurred. Condition The District accrued balances on open purchase orders at year-end, resulting in over-accrual of expenditures of $1,172,500 which did not have related services rendered or goods received by June 30, 2024. Additionally, this resulted in $176 of unallowable indirect costs charged to the program. Cause The cause appears to be due to lack of sufficient internal controls over year-end financial statement preparation. Effect The District is not in compliance with Activities Allowed or Unallowed and Allowable Costs/Cost Principles related to the Education Stabilization Fund program. Questioned Costs The condition identified above resulted in known questioned costs of $1,172,500 in direct costs and $176 in related indirect costs charged, resulting in total questioned costs of $1,172,676. Context/Sampling: Unallowable costs were identified through a review of accounts payable for the District as a whole and not through the sample selected for major program testing. Repeat Finding No. Recommendation The District should implement controls to ensure that all expenditures charged to federal programs are allowable.

Federal Agency: U.S. Department of Education Pass-Through Entity: California Department of Education Program Name: COVID-19 – Education Stabilization Fund Federal Financial Assistance Listing: 84.425D, 84.425U, 84.425W Compliance Requirements: A/B – Activities Allowed or Unallowed & Allowable Costs/Cost Principles Type of Finding: Material Weakness and Noncompliance Criteria or Specific Requirements Title 2 Code of Federal Regulations 200.403(e) requires costs to be determined in accordance with generally accepted accounting principles (GAAP), which requires expenditures to be accrued in the period in which they are incurred. Condition The District accrued balances on open purchase orders at year-end, resulting in over-accrual of expenditures of $1,172,500 which did not have related services rendered or goods received by June 30, 2024. Additionally, this resulted in $176 of unallowable indirect costs charged to the program. Cause The cause appears to be due to lack of sufficient internal controls over year-end financial statement preparation. Effect The District is not in compliance with Activities Allowed or Unallowed and Allowable Costs/Cost Principles related to the Education Stabilization Fund program. Questioned Costs The condition identified above resulted in known questioned costs of $1,172,500 in direct costs and $176 in related indirect costs charged, resulting in total questioned costs of $1,172,676. Context/Sampling: Unallowable costs were identified through a review of accounts payable for the District as a whole and not through the sample selected for major program testing. Repeat Finding No. Recommendation The District should implement controls to ensure that all expenditures charged to federal programs are allowable.

Federal Agency: U.S. Department of Education Pass-Through Entity: California Department of Education Program Name: COVID-19 – Education Stabilization Fund Federal Financial Assistance Listing: 84.425D, 84.425U, 84.425W Compliance Requirements: A/B – Activities Allowed or Unallowed & Allowable Costs/Cost Principles Type of Finding: Material Weakness and Noncompliance Criteria or Specific Requirements Title 2 Code of Federal Regulations 200.403(e) requires costs to be determined in accordance with generally accepted accounting principles (GAAP), which requires expenditures to be accrued in the period in which they are incurred. Condition The District accrued balances on open purchase orders at year-end, resulting in over-accrual of expenditures of $1,172,500 which did not have related services rendered or goods received by June 30, 2024. Additionally, this resulted in $176 of unallowable indirect costs charged to the program. Cause The cause appears to be due to lack of sufficient internal controls over year-end financial statement preparation. Effect The District is not in compliance with Activities Allowed or Unallowed and Allowable Costs/Cost Principles related to the Education Stabilization Fund program. Questioned Costs The condition identified above resulted in known questioned costs of $1,172,500 in direct costs and $176 in related indirect costs charged, resulting in total questioned costs of $1,172,676. Context/Sampling: Unallowable costs were identified through a review of accounts payable for the District as a whole and not through the sample selected for major program testing. Repeat Finding No. Recommendation The District should implement controls to ensure that all expenditures charged to federal programs are allowable.

Federal Agency: U.S. Department of Education Pass-Through Entity: California Department of Education Program Name: COVID-19 – Education Stabilization Fund Federal Financial Assistance Listing: 84.425D, 84.425U, 84.425W Compliance Requirements: A/B – Activities Allowed or Unallowed & Allowable Costs/Cost Principles Type of Finding: Material Weakness and Noncompliance Criteria or Specific Requirements Title 2 Code of Federal Regulations 200.403(e) requires costs to be determined in accordance with generally accepted accounting principles (GAAP), which requires expenditures to be accrued in the period in which they are incurred. Condition The District accrued balances on open purchase orders at year-end, resulting in over-accrual of expenditures of $1,172,500 which did not have related services rendered or goods received by June 30, 2024. Additionally, this resulted in $176 of unallowable indirect costs charged to the program. Cause The cause appears to be due to lack of sufficient internal controls over year-end financial statement preparation. Effect The District is not in compliance with Activities Allowed or Unallowed and Allowable Costs/Cost Principles related to the Education Stabilization Fund program. Questioned Costs The condition identified above resulted in known questioned costs of $1,172,500 in direct costs and $176 in related indirect costs charged, resulting in total questioned costs of $1,172,676. Context/Sampling: Unallowable costs were identified through a review of accounts payable for the District as a whole and not through the sample selected for major program testing. Repeat Finding No. Recommendation The District should implement controls to ensure that all expenditures charged to federal programs are allowable.

Federal Agency: U.S. Department of Education Pass-Through Entity: California Department of Education Program Name: COVID-19 – Education Stabilization Fund Federal Financial Assistance Listing: 84.425D, 84.425U, 84.425W Compliance Requirements: A/B – Activities Allowed or Unallowed & Allowable Costs/Cost Principles Type of Finding: Material Weakness and Noncompliance Criteria or Specific Requirements Title 2 Code of Federal Regulations 200.403(e) requires costs to be determined in accordance with generally accepted accounting principles (GAAP), which requires expenditures to be accrued in the period in which they are incurred. Condition The District accrued balances on open purchase orders at year-end, resulting in over-accrual of expenditures of $1,172,500 which did not have related services rendered or goods received by June 30, 2024. Additionally, this resulted in $176 of unallowable indirect costs charged to the program. Cause The cause appears to be due to lack of sufficient internal controls over year-end financial statement preparation. Effect The District is not in compliance with Activities Allowed or Unallowed and Allowable Costs/Cost Principles related to the Education Stabilization Fund program. Questioned Costs The condition identified above resulted in known questioned costs of $1,172,500 in direct costs and $176 in related indirect costs charged, resulting in total questioned costs of $1,172,676. Context/Sampling: Unallowable costs were identified through a review of accounts payable for the District as a whole and not through the sample selected for major program testing. Repeat Finding No. Recommendation The District should implement controls to ensure that all expenditures charged to federal programs are allowable.

Federal Agency: U.S. Department of Education Pass-Through Entity: California Department of Education Program Name: COVID-19 – Education Stabilization Fund Federal Financial Assistance Listing: 84.425D, 84.425U, 84.425W Compliance Requirements: A/B – Activities Allowed or Unallowed & Allowable Costs/Cost Principles Type of Finding: Material Weakness and Noncompliance Criteria or Specific Requirements Title 2 Code of Federal Regulations 200.403(e) requires costs to be determined in accordance with generally accepted accounting principles (GAAP), which requires expenditures to be accrued in the period in which they are incurred. Condition The District accrued balances on open purchase orders at year-end, resulting in over-accrual of expenditures of $1,172,500 which did not have related services rendered or goods received by June 30, 2024. Additionally, this resulted in $176 of unallowable indirect costs charged to the program. Cause The cause appears to be due to lack of sufficient internal controls over year-end financial statement preparation. Effect The District is not in compliance with Activities Allowed or Unallowed and Allowable Costs/Cost Principles related to the Education Stabilization Fund program. Questioned Costs The condition identified above resulted in known questioned costs of $1,172,500 in direct costs and $176 in related indirect costs charged, resulting in total questioned costs of $1,172,676. Context/Sampling: Unallowable costs were identified through a review of accounts payable for the District as a whole and not through the sample selected for major program testing. Repeat Finding No. Recommendation The District should implement controls to ensure that all expenditures charged to federal programs are allowable.

Federal Agency: U.S. Department of Education Pass-Through Entity: California Department of Education Program Name: COVID-19 – Education Stabilization Fund Federal Financial Assistance Listing: 84.425D, 84.425U, 84.425W Compliance Requirements: A/B – Activities Allowed or Unallowed & Allowable Costs/Cost Principles Type of Finding: Material Weakness and Noncompliance Criteria or Specific Requirements Title 2 Code of Federal Regulations 200.403(e) requires costs to be determined in accordance with generally accepted accounting principles (GAAP), which requires expenditures to be accrued in the period in which they are incurred. Condition The District accrued balances on open purchase orders at year-end, resulting in over-accrual of expenditures of $1,172,500 which did not have related services rendered or goods received by June 30, 2024. Additionally, this resulted in $176 of unallowable indirect costs charged to the program. Cause The cause appears to be due to lack of sufficient internal controls over year-end financial statement preparation. Effect The District is not in compliance with Activities Allowed or Unallowed and Allowable Costs/Cost Principles related to the Education Stabilization Fund program. Questioned Costs The condition identified above resulted in known questioned costs of $1,172,500 in direct costs and $176 in related indirect costs charged, resulting in total questioned costs of $1,172,676. Context/Sampling: Unallowable costs were identified through a review of accounts payable for the District as a whole and not through the sample selected for major program testing. Repeat Finding No. Recommendation The District should implement controls to ensure that all expenditures charged to federal programs are allowable.

Federal Agency: U.S. Department of Education Pass-Through Entity: California Department of Education Program Name: COVID-19 – Education Stabilization Fund Federal Financial Assistance Listing: 84.425D, 84.425U, 84.425W Compliance Requirements: L – Reporting Type of Finding: Material Weakness and Noncompliance Criteria or Specific Requirements Title 2 Code of Federal Regulations 200.328 requires financial reports to be collected no less than annually. Reports should reflect financial information for the period reported on. Condition The District charged unallowable direct and indirect costs to the program totaling $1,172,676 which resulted in expenditure reports reflecting unallowable expenditures. Cause The cause appears to be due to lack of sufficient internal controls over compliance with reporting requirements. Effect The District is not in compliance with Reporting related to the Education Stabilization Fund program. Questioned Costs There are no questioned costs identified. Context/Sampling: Inaccurate reporting was identified through a review accounts payable for the District as a whole which identified unallowable costs charged to the program. Repeat Finding No. Recommendation The District should implement controls to ensure that all reports are prepared accurately.

Federal Agency: U.S. Department of Education Pass-Through Entity: California Department of Education Program Name: COVID-19 – Education Stabilization Fund Federal Financial Assistance Listing: 84.425D, 84.425U, 84.425W Compliance Requirements: L – Reporting Type of Finding: Material Weakness and Noncompliance Criteria or Specific Requirements Title 2 Code of Federal Regulations 200.328 requires financial reports to be collected no less than annually. Reports should reflect financial information for the period reported on. Condition The District charged unallowable direct and indirect costs to the program totaling $1,172,676 which resulted in expenditure reports reflecting unallowable expenditures. Cause The cause appears to be due to lack of sufficient internal controls over compliance with reporting requirements. Effect The District is not in compliance with Reporting related to the Education Stabilization Fund program. Questioned Costs There are no questioned costs identified. Context/Sampling: Inaccurate reporting was identified through a review accounts payable for the District as a whole which identified unallowable costs charged to the program. Repeat Finding No. Recommendation The District should implement controls to ensure that all reports are prepared accurately.

Federal Agency: U.S. Department of Education Pass-Through Entity: California Department of Education Program Name: COVID-19 – Education Stabilization Fund Federal Financial Assistance Listing: 84.425D, 84.425U, 84.425W Compliance Requirements: L – Reporting Type of Finding: Material Weakness and Noncompliance Criteria or Specific Requirements Title 2 Code of Federal Regulations 200.328 requires financial reports to be collected no less than annually. Reports should reflect financial information for the period reported on. Condition The District charged unallowable direct and indirect costs to the program totaling $1,172,676 which resulted in expenditure reports reflecting unallowable expenditures. Cause The cause appears to be due to lack of sufficient internal controls over compliance with reporting requirements. Effect The District is not in compliance with Reporting related to the Education Stabilization Fund program. Questioned Costs There are no questioned costs identified. Context/Sampling: Inaccurate reporting was identified through a review accounts payable for the District as a whole which identified unallowable costs charged to the program. Repeat Finding No. Recommendation The District should implement controls to ensure that all reports are prepared accurately.

Federal Agency: U.S. Department of Education Pass-Through Entity: California Department of Education Program Name: COVID-19 – Education Stabilization Fund Federal Financial Assistance Listing: 84.425D, 84.425U, 84.425W Compliance Requirements: L – Reporting Type of Finding: Material Weakness and Noncompliance Criteria or Specific Requirements Title 2 Code of Federal Regulations 200.328 requires financial reports to be collected no less than annually. Reports should reflect financial information for the period reported on. Condition The District charged unallowable direct and indirect costs to the program totaling $1,172,676 which resulted in expenditure reports reflecting unallowable expenditures. Cause The cause appears to be due to lack of sufficient internal controls over compliance with reporting requirements. Effect The District is not in compliance with Reporting related to the Education Stabilization Fund program. Questioned Costs There are no questioned costs identified. Context/Sampling: Inaccurate reporting was identified through a review accounts payable for the District as a whole which identified unallowable costs charged to the program. Repeat Finding No. Recommendation The District should implement controls to ensure that all reports are prepared accurately.

Federal Agency: U.S. Department of Education Pass-Through Entity: California Department of Education Program Name: COVID-19 – Education Stabilization Fund Federal Financial Assistance Listing: 84.425D, 84.425U, 84.425W Compliance Requirements: L – Reporting Type of Finding: Material Weakness and Noncompliance Criteria or Specific Requirements Title 2 Code of Federal Regulations 200.328 requires financial reports to be collected no less than annually. Reports should reflect financial information for the period reported on. Condition The District charged unallowable direct and indirect costs to the program totaling $1,172,676 which resulted in expenditure reports reflecting unallowable expenditures. Cause The cause appears to be due to lack of sufficient internal controls over compliance with reporting requirements. Effect The District is not in compliance with Reporting related to the Education Stabilization Fund program. Questioned Costs There are no questioned costs identified. Context/Sampling: Inaccurate reporting was identified through a review accounts payable for the District as a whole which identified unallowable costs charged to the program. Repeat Finding No. Recommendation The District should implement controls to ensure that all reports are prepared accurately.

Federal Agency: U.S. Department of Education Pass-Through Entity: California Department of Education Program Name: COVID-19 – Education Stabilization Fund Federal Financial Assistance Listing: 84.425D, 84.425U, 84.425W Compliance Requirements: L – Reporting Type of Finding: Material Weakness and Noncompliance Criteria or Specific Requirements Title 2 Code of Federal Regulations 200.328 requires financial reports to be collected no less than annually. Reports should reflect financial information for the period reported on. Condition The District charged unallowable direct and indirect costs to the program totaling $1,172,676 which resulted in expenditure reports reflecting unallowable expenditures. Cause The cause appears to be due to lack of sufficient internal controls over compliance with reporting requirements. Effect The District is not in compliance with Reporting related to the Education Stabilization Fund program. Questioned Costs There are no questioned costs identified. Context/Sampling: Inaccurate reporting was identified through a review accounts payable for the District as a whole which identified unallowable costs charged to the program. Repeat Finding No. Recommendation The District should implement controls to ensure that all reports are prepared accurately.

Federal Agency: U.S. Department of Education Pass-Through Entity: California Department of Education Program Name: COVID-19 – Education Stabilization Fund Federal Financial Assistance Listing: 84.425D, 84.425U, 84.425W Compliance Requirements: L – Reporting Type of Finding: Material Weakness and Noncompliance Criteria or Specific Requirements Title 2 Code of Federal Regulations 200.328 requires financial reports to be collected no less than annually. Reports should reflect financial information for the period reported on. Condition The District charged unallowable direct and indirect costs to the program totaling $1,172,676 which resulted in expenditure reports reflecting unallowable expenditures. Cause The cause appears to be due to lack of sufficient internal controls over compliance with reporting requirements. Effect The District is not in compliance with Reporting related to the Education Stabilization Fund program. Questioned Costs There are no questioned costs identified. Context/Sampling: Inaccurate reporting was identified through a review accounts payable for the District as a whole which identified unallowable costs charged to the program. Repeat Finding No. Recommendation The District should implement controls to ensure that all reports are prepared accurately.

Federal Agency: U.S. Department of Education Pass-Through Entity: California Department of Education Program Name: COVID-19 – Education Stabilization Fund Federal Financial Assistance Listing: 84.425D, 84.425U, 84.425W Compliance Requirements: L – Reporting Type of Finding: Material Weakness and Noncompliance Criteria or Specific Requirements Title 2 Code of Federal Regulations 200.328 requires financial reports to be collected no less than annually. Reports should reflect financial information for the period reported on. Condition The District charged unallowable direct and indirect costs to the program totaling $1,172,676 which resulted in expenditure reports reflecting unallowable expenditures. Cause The cause appears to be due to lack of sufficient internal controls over compliance with reporting requirements. Effect The District is not in compliance with Reporting related to the Education Stabilization Fund program. Questioned Costs There are no questioned costs identified. Context/Sampling: Inaccurate reporting was identified through a review accounts payable for the District as a whole which identified unallowable costs charged to the program. Repeat Finding No. Recommendation The District should implement controls to ensure that all reports are prepared accurately.

Federal Agency: U.S. Department of Education Pass-Through Entity: California Department of Education Program Name: COVID-19 – Education Stabilization Fund Federal Financial Assistance Listing: 84.425D, 84.425U, 84.425W Compliance Requirements: L – Reporting Type of Finding: Material Weakness and Noncompliance Criteria or Specific Requirements Title 2 Code of Federal Regulations 200.328 requires financial reports to be collected no less than annually. Reports should reflect financial information for the period reported on. Condition The District charged unallowable direct and indirect costs to the program totaling $1,172,676 which resulted in expenditure reports reflecting unallowable expenditures. Cause The cause appears to be due to lack of sufficient internal controls over compliance with reporting requirements. Effect The District is not in compliance with Reporting related to the Education Stabilization Fund program. Questioned Costs There are no questioned costs identified. Context/Sampling: Inaccurate reporting was identified through a review accounts payable for the District as a whole which identified unallowable costs charged to the program. Repeat Finding No. Recommendation The District should implement controls to ensure that all reports are prepared accurately.

Federal Agencies: U.S. Department of Education, U.S. Department of Justice Pass-Through Entity: California Department of Education, except for Indian Education and School Violence Prevention, which are direct awards Program Name: Various, see Condition below Federal Financial Assistance Listing: Various, see Condition below Compliance Requirements: A/B – Activities Allowed or Unallowed & Allowable Costs/Cost Principles Type of Finding: Material Weakness and Noncompliance Criteria or Specific Requirements Title 2 Code of Federal Regulations 200.403(e) requires costs to be determined in accordance with generally accepted accounting principles (GAAP), which requires expenditures to be accrued in the period in which they are incurred. Condition The District accrued balances on open purchase orders at year-end, resulting in over-accrual of expenditures which did not have related services rendered or goods received by June 30, 2024 for various federal programs which were not identified as major programs. Additionally, this resulted in unallowable indirect costs charged to various federal programs which were not identified as major programs. Detailed information for unallowable direct and indirect costs charged related to this issue is as follows: SEE TABLE IN THE FINDING Cause The cause appears to be due to lack of sufficient internal controls over year-end financial statement preparation. Effect The District is not in compliance with Activities Allowed or Unallowed and Allowable Costs/Cost Principles for various federal programs not identified as major programs Questioned Costs The condition identified above resulted in known questioned costs of $537,362 in direct costs and $14,784 in related indirect costs charged, resulting in total questioned costs of $552,146. Context/Sampling: Unallowable costs were identified through a review of accounts payable for the District as a whole and not through the sample selected for major program testing. Repeat Finding No. Recommendation The District should implement controls to ensure that all expenditures charged to federal programs are allowable.