Audit 48315

FY End
2022-06-30
Total Expended
$3.20M
Findings
12
Programs
6
Organization: Palmdale Aerospace Academy (CA)
Year: 2022 Accepted: 2023-03-30
Auditor: Eide Bailly LLP

Organization Exclusion Status:

Checking exclusion status...

Findings

ID Ref Severity Repeat Requirement
50003 2022-002 Significant Deficiency - AB
50004 2022-002 Significant Deficiency - AB
50005 2022-003 Significant Deficiency - L
50006 2022-003 Significant Deficiency - L
50007 2022-004 Significant Deficiency Yes G
50008 2022-005 Significant Deficiency - Activities Allowed/Unallowed
626445 2022-002 Significant Deficiency - AB
626446 2022-002 Significant Deficiency - AB
626447 2022-003 Significant Deficiency - L
626448 2022-003 Significant Deficiency - L
626449 2022-004 Significant Deficiency Yes G
626450 2022-005 Significant Deficiency - Activities Allowed/Unallowed

Programs

ALN Program Spent Major Findings
84.010 Title I Grants to Local Educational Agencies $797,053 Yes 2
10.555 National School Lunch Program $787,932 - 0
84.027 Special Education_grants to States $336,443 - 0
10.553 School Breakfast Program $193,098 - 0
84.367 Improving Teacher Quality State Grants $108,307 - 0
84.425 Education Stabilization Fund $743 Yes 1

Contacts

Name Title Type
DR3TF4ZMLPF9 Charisse Wilson Auditee
6612733680 Bobby Patel Auditor
No contacts on file

Notes to SEFA

Accounting Policies: Basis of Presentation: The accompanying Schedule of Expenditures of Federal Awards (the schedule) includes the federal award activity of the Organization under programs of the federal government for the year ended June 30, 2022. The information is presented in accordance with the requirements of Title 2 U.S. Code of Federal Regulations Part 200, Uniform Administrative Requirements, Cost Principles, and Audit Requirements for Federal Awards (Uniform Guidance). Because the schedule presents only a selected portion of the operations of the Organization, it is not intended to and does not present the financial position, changes in net assets, or cash flows of the Organization.Summary of Significant Accounting Policies: Expenditures reported in the schedule are reported on the accrual basis of accounting. When applicable, such expenditures are recognized following the cost principles contained in the Uniform Guidance, wherein certain types of expenditures are not allowable or are limited as to reimbursement. No federal financial assistance has been provided to a subrecipient. De Minimis Rate Used: N Rate Explanation: The auditee did not use the de minimis cost rate.

Finding Details

Federal Agency: U.S. Department of Education Pass-Through Entity: California Department of Education (CDE) Program Name: COVID-19: COVID-19: Elementary and Secondary School Emergency Relief (ESSER) Fund and COVID-19: Elementary and Secondary School Emergency Relief II (ESSER II) Fund Assistance Listing Number: 84.425D Compliance Requirement: A/B Criteria or Specific Requirements Per Title 2, Code of Federal Regulations, Part 200, Subpart E, Section 200.430(i)(1)(vii), Charges to Federal awards for salaries and wages must be based on records that accurately reflect the work performed. These records must support the distribution of the employee's salary or wages among specific activities or cost objectives if the employee works on more than one Federal award; a Federal award and non-Federal award; an indirect cost activity and a direct cost activity; two or more indirect activities which are allocated using different allocation bases; or an unallowable activity and a direct or indirect cost activity. Condition The Organization did not have sufficient controls in place to ensure that employees charged to the program maintain time accounting documentation in accordance with federal requirements. Questioned Costs There were no direct questioned costs associated with the condition identified. Context A significant amount of the federal expenditures related to these programs are derived from payroll costs. While the salaries appear to be reasonable and necessary for the program objectives, the Organization did not provide the required supporting documentation as outlined in the Title 2, Code of Federal Regulations, Part 200, Subpart E, Section 200.430 (i)(1)(vii) for two of 56 employees selected for testing. Effect The Organization has not complied with the requirements identified in Title 2, Code of Federal Regulations, Part 200, Subpart E, Section 200.430 (i)(1)(vii). Cause The condition identified appears to have materialized due to clerical oversight and lack of appropriate review. Repeat Finding No. Recommendation The Organization should review the requirements stated in Title 2, Code of Federal Regulations, Part 200, Subpart E, Section 200.430 (i)(1)(vii) and implement a procedure to address the control deficiency identified with the Organization?s time accounting documentation as it relates to employees working on multiple activities or cost objectives.
Federal Agency: U.S. Department of Education Pass-Through Entity: California Department of Education (CDE) Program Name: COVID-19: COVID-19: Elementary and Secondary School Emergency Relief (ESSER) Fund and COVID-19: Elementary and Secondary School Emergency Relief II (ESSER II) Fund Assistance Listing Number: 84.425D Compliance Requirement: A/B Criteria or Specific Requirements Per Title 2, Code of Federal Regulations, Part 200, Subpart E, Section 200.430(i)(1)(vii), Charges to Federal awards for salaries and wages must be based on records that accurately reflect the work performed. These records must support the distribution of the employee's salary or wages among specific activities or cost objectives if the employee works on more than one Federal award; a Federal award and non-Federal award; an indirect cost activity and a direct cost activity; two or more indirect activities which are allocated using different allocation bases; or an unallowable activity and a direct or indirect cost activity. Condition The Organization did not have sufficient controls in place to ensure that employees charged to the program maintain time accounting documentation in accordance with federal requirements. Questioned Costs There were no direct questioned costs associated with the condition identified. Context A significant amount of the federal expenditures related to these programs are derived from payroll costs. While the salaries appear to be reasonable and necessary for the program objectives, the Organization did not provide the required supporting documentation as outlined in the Title 2, Code of Federal Regulations, Part 200, Subpart E, Section 200.430 (i)(1)(vii) for two of 56 employees selected for testing. Effect The Organization has not complied with the requirements identified in Title 2, Code of Federal Regulations, Part 200, Subpart E, Section 200.430 (i)(1)(vii). Cause The condition identified appears to have materialized due to clerical oversight and lack of appropriate review. Repeat Finding No. Recommendation The Organization should review the requirements stated in Title 2, Code of Federal Regulations, Part 200, Subpart E, Section 200.430 (i)(1)(vii) and implement a procedure to address the control deficiency identified with the Organization?s time accounting documentation as it relates to employees working on multiple activities or cost objectives.
Federal Agency: U.S. Department of Education Pass-Through Entity: California Department of Education (CDE) Program Name: COVID-19: COVID-19: Elementary and Secondary School Emergency Relief II (ESSER II) Fund and COVID-19: Governor's Emergency Education Relief Fund Learning Loss Mitigation Assistance Listing Number: 84.425D, 84.425C Compliance Requirement: L Criteria or Specific Requirements Per Title 2, Code of Federal Regulations, Part 200, Subpart D, Section 200.333, financial records and supporting documents pertinent to a Federal award must be retained for a period of three years from the date of submission of expenditure reports to the awarding agency or passthrough entity. Condition The Organization was unable to provide financial records or supporting documents that agreed to the expenditure information reported to the California Department of Education. Questioned Costs There were no questioned costs associated with the identified condition. Context The condition was identified through inquiry with Organization personnel and through the unsuccessful request to review available supporting documentation. Effect The Organization has not complied with the requirement identified in Title 2, Code of Federal Regulations, Part 200, Subpart D, Section 200.333. Cause The identified condition appears to have materialized due to insufficient procedures related to the retention of financial records. Repeat Finding No. Recommendation The Organization should ensure that all federal expenditure reports are supported by financial reports. These records should be maintained for a period of three years from the date of submission of the expenditure reports to the awarding agency or pass-through entity.
Federal Agency: U.S. Department of Education Pass-Through Entity: California Department of Education (CDE) Program Name: COVID-19: COVID-19: Elementary and Secondary School Emergency Relief II (ESSER II) Fund and COVID-19: Governor's Emergency Education Relief Fund Learning Loss Mitigation Assistance Listing Number: 84.425D, 84.425C Compliance Requirement: L Criteria or Specific Requirements Per Title 2, Code of Federal Regulations, Part 200, Subpart D, Section 200.333, financial records and supporting documents pertinent to a Federal award must be retained for a period of three years from the date of submission of expenditure reports to the awarding agency or passthrough entity. Condition The Organization was unable to provide financial records or supporting documents that agreed to the expenditure information reported to the California Department of Education. Questioned Costs There were no questioned costs associated with the identified condition. Context The condition was identified through inquiry with Organization personnel and through the unsuccessful request to review available supporting documentation. Effect The Organization has not complied with the requirement identified in Title 2, Code of Federal Regulations, Part 200, Subpart D, Section 200.333. Cause The identified condition appears to have materialized due to insufficient procedures related to the retention of financial records. Repeat Finding No. Recommendation The Organization should ensure that all federal expenditure reports are supported by financial reports. These records should be maintained for a period of three years from the date of submission of the expenditure reports to the awarding agency or pass-through entity.
Federal Agency: U.S. Department of Education Pass-Through Entity: California Department of Education (CDE) Program Name: Title I, Part A, Basic Grants Low-Income and Neglected Assistance Listing Number: 84.010 Compliance Requirement: G Criteria or Specific Requirements Title 34, Code of Federal Regulations, Part 299, Subpart D, Section 299.5 requires an Organization receiving funds for Title I, Part A, Basic Grants Low-Income and Neglected program may receive its full allocation of funds only if the SEA finds that either the combined fiscal effort per student or the aggregate expenditures of State and local funds with respect to the provision of free public education in the LEA for the preceding fiscal year was not less than 90% of the combined fiscal effort per student or the aggregate expenditures for the second preceding fiscal year. Condition While the Organization did meet the required maintenance of effort requirement as outlined in Title 34, Code of Federal Regulations, Part 299, Subpart D, Section 299.5, the calculation that was provided to the auditor did not reconcile back to the general ledger. Questioned Costs There were no direct questioned costs associated with the condition identified. Context The condition was identified as a result of inquiry with the Organization?s Business Services personnel and through review of the Every Student Succeeds Act Maintenance of Effort form. Effect The Organization?s controls and procedures related to the preparation of the calculation failed to detect the input errors on the calculation. Cause The condition identified appears to have materialized due to clerical oversight and lack of appropriate review. Repeat Finding Yes, see finding 2021-003. Recommendation The Organization should review the requirement stated in Title 34, Code of Federal Regulations, Part 299, Subpart D, Section 299.5 and implement a procedure to address the deficiency currently identified with the Organization?s documentation of procurement processes.
Federal Agency: U.S. Department of Education Pass-Through Entity: California Department of Education (CDE) Program Name: Title I, Part A, Basic Grants Low-Income and Neglected Assistance Listing Number: 84.010 Compliance Requirement: L Criteria or Specific Requirements Each year, a State Education Agency (SEA) must submit its average state per pupil expenditure (SPPE) data to the National Center for Education Statistics. These SPPE data are used by the Department of Education to make allocations under several Elementary and Secondary Education Act (ESEA) programs, include Title I, Part A. The Organization is required to submit SPPE data to the SEA for the SEA?s report. Condition The Organization does not have procedures in place to ensure that SPPE data is calculated and reported accurately. Questioned Costs There were no direct questioned costs associated with the condition identified. Context The condition was identified as a result of inquiry with the Organization's Business Services personnel and through review of supporting documents. Effect Due to a clerical error when the Organization calculated the annual SPPE data, the Organization?s SPPE data was inaccurately calculated and reported. Cause The condition identified appears to have materialized due to an undetected clerical error when performing the SPPE data calculation. Repeat Finding No. Recommendation The Organization should implement controls to ensure that the SPPE data calculation is properly calculated and reviewed prior to reporting.
Federal Agency: U.S. Department of Education Pass-Through Entity: California Department of Education (CDE) Program Name: COVID-19: COVID-19: Elementary and Secondary School Emergency Relief (ESSER) Fund and COVID-19: Elementary and Secondary School Emergency Relief II (ESSER II) Fund Assistance Listing Number: 84.425D Compliance Requirement: A/B Criteria or Specific Requirements Per Title 2, Code of Federal Regulations, Part 200, Subpart E, Section 200.430(i)(1)(vii), Charges to Federal awards for salaries and wages must be based on records that accurately reflect the work performed. These records must support the distribution of the employee's salary or wages among specific activities or cost objectives if the employee works on more than one Federal award; a Federal award and non-Federal award; an indirect cost activity and a direct cost activity; two or more indirect activities which are allocated using different allocation bases; or an unallowable activity and a direct or indirect cost activity. Condition The Organization did not have sufficient controls in place to ensure that employees charged to the program maintain time accounting documentation in accordance with federal requirements. Questioned Costs There were no direct questioned costs associated with the condition identified. Context A significant amount of the federal expenditures related to these programs are derived from payroll costs. While the salaries appear to be reasonable and necessary for the program objectives, the Organization did not provide the required supporting documentation as outlined in the Title 2, Code of Federal Regulations, Part 200, Subpart E, Section 200.430 (i)(1)(vii) for two of 56 employees selected for testing. Effect The Organization has not complied with the requirements identified in Title 2, Code of Federal Regulations, Part 200, Subpart E, Section 200.430 (i)(1)(vii). Cause The condition identified appears to have materialized due to clerical oversight and lack of appropriate review. Repeat Finding No. Recommendation The Organization should review the requirements stated in Title 2, Code of Federal Regulations, Part 200, Subpart E, Section 200.430 (i)(1)(vii) and implement a procedure to address the control deficiency identified with the Organization?s time accounting documentation as it relates to employees working on multiple activities or cost objectives.
Federal Agency: U.S. Department of Education Pass-Through Entity: California Department of Education (CDE) Program Name: COVID-19: COVID-19: Elementary and Secondary School Emergency Relief (ESSER) Fund and COVID-19: Elementary and Secondary School Emergency Relief II (ESSER II) Fund Assistance Listing Number: 84.425D Compliance Requirement: A/B Criteria or Specific Requirements Per Title 2, Code of Federal Regulations, Part 200, Subpart E, Section 200.430(i)(1)(vii), Charges to Federal awards for salaries and wages must be based on records that accurately reflect the work performed. These records must support the distribution of the employee's salary or wages among specific activities or cost objectives if the employee works on more than one Federal award; a Federal award and non-Federal award; an indirect cost activity and a direct cost activity; two or more indirect activities which are allocated using different allocation bases; or an unallowable activity and a direct or indirect cost activity. Condition The Organization did not have sufficient controls in place to ensure that employees charged to the program maintain time accounting documentation in accordance with federal requirements. Questioned Costs There were no direct questioned costs associated with the condition identified. Context A significant amount of the federal expenditures related to these programs are derived from payroll costs. While the salaries appear to be reasonable and necessary for the program objectives, the Organization did not provide the required supporting documentation as outlined in the Title 2, Code of Federal Regulations, Part 200, Subpart E, Section 200.430 (i)(1)(vii) for two of 56 employees selected for testing. Effect The Organization has not complied with the requirements identified in Title 2, Code of Federal Regulations, Part 200, Subpart E, Section 200.430 (i)(1)(vii). Cause The condition identified appears to have materialized due to clerical oversight and lack of appropriate review. Repeat Finding No. Recommendation The Organization should review the requirements stated in Title 2, Code of Federal Regulations, Part 200, Subpart E, Section 200.430 (i)(1)(vii) and implement a procedure to address the control deficiency identified with the Organization?s time accounting documentation as it relates to employees working on multiple activities or cost objectives.
Federal Agency: U.S. Department of Education Pass-Through Entity: California Department of Education (CDE) Program Name: COVID-19: COVID-19: Elementary and Secondary School Emergency Relief II (ESSER II) Fund and COVID-19: Governor's Emergency Education Relief Fund Learning Loss Mitigation Assistance Listing Number: 84.425D, 84.425C Compliance Requirement: L Criteria or Specific Requirements Per Title 2, Code of Federal Regulations, Part 200, Subpart D, Section 200.333, financial records and supporting documents pertinent to a Federal award must be retained for a period of three years from the date of submission of expenditure reports to the awarding agency or passthrough entity. Condition The Organization was unable to provide financial records or supporting documents that agreed to the expenditure information reported to the California Department of Education. Questioned Costs There were no questioned costs associated with the identified condition. Context The condition was identified through inquiry with Organization personnel and through the unsuccessful request to review available supporting documentation. Effect The Organization has not complied with the requirement identified in Title 2, Code of Federal Regulations, Part 200, Subpart D, Section 200.333. Cause The identified condition appears to have materialized due to insufficient procedures related to the retention of financial records. Repeat Finding No. Recommendation The Organization should ensure that all federal expenditure reports are supported by financial reports. These records should be maintained for a period of three years from the date of submission of the expenditure reports to the awarding agency or pass-through entity.
Federal Agency: U.S. Department of Education Pass-Through Entity: California Department of Education (CDE) Program Name: COVID-19: COVID-19: Elementary and Secondary School Emergency Relief II (ESSER II) Fund and COVID-19: Governor's Emergency Education Relief Fund Learning Loss Mitigation Assistance Listing Number: 84.425D, 84.425C Compliance Requirement: L Criteria or Specific Requirements Per Title 2, Code of Federal Regulations, Part 200, Subpart D, Section 200.333, financial records and supporting documents pertinent to a Federal award must be retained for a period of three years from the date of submission of expenditure reports to the awarding agency or passthrough entity. Condition The Organization was unable to provide financial records or supporting documents that agreed to the expenditure information reported to the California Department of Education. Questioned Costs There were no questioned costs associated with the identified condition. Context The condition was identified through inquiry with Organization personnel and through the unsuccessful request to review available supporting documentation. Effect The Organization has not complied with the requirement identified in Title 2, Code of Federal Regulations, Part 200, Subpart D, Section 200.333. Cause The identified condition appears to have materialized due to insufficient procedures related to the retention of financial records. Repeat Finding No. Recommendation The Organization should ensure that all federal expenditure reports are supported by financial reports. These records should be maintained for a period of three years from the date of submission of the expenditure reports to the awarding agency or pass-through entity.
Federal Agency: U.S. Department of Education Pass-Through Entity: California Department of Education (CDE) Program Name: Title I, Part A, Basic Grants Low-Income and Neglected Assistance Listing Number: 84.010 Compliance Requirement: G Criteria or Specific Requirements Title 34, Code of Federal Regulations, Part 299, Subpart D, Section 299.5 requires an Organization receiving funds for Title I, Part A, Basic Grants Low-Income and Neglected program may receive its full allocation of funds only if the SEA finds that either the combined fiscal effort per student or the aggregate expenditures of State and local funds with respect to the provision of free public education in the LEA for the preceding fiscal year was not less than 90% of the combined fiscal effort per student or the aggregate expenditures for the second preceding fiscal year. Condition While the Organization did meet the required maintenance of effort requirement as outlined in Title 34, Code of Federal Regulations, Part 299, Subpart D, Section 299.5, the calculation that was provided to the auditor did not reconcile back to the general ledger. Questioned Costs There were no direct questioned costs associated with the condition identified. Context The condition was identified as a result of inquiry with the Organization?s Business Services personnel and through review of the Every Student Succeeds Act Maintenance of Effort form. Effect The Organization?s controls and procedures related to the preparation of the calculation failed to detect the input errors on the calculation. Cause The condition identified appears to have materialized due to clerical oversight and lack of appropriate review. Repeat Finding Yes, see finding 2021-003. Recommendation The Organization should review the requirement stated in Title 34, Code of Federal Regulations, Part 299, Subpart D, Section 299.5 and implement a procedure to address the deficiency currently identified with the Organization?s documentation of procurement processes.
Federal Agency: U.S. Department of Education Pass-Through Entity: California Department of Education (CDE) Program Name: Title I, Part A, Basic Grants Low-Income and Neglected Assistance Listing Number: 84.010 Compliance Requirement: L Criteria or Specific Requirements Each year, a State Education Agency (SEA) must submit its average state per pupil expenditure (SPPE) data to the National Center for Education Statistics. These SPPE data are used by the Department of Education to make allocations under several Elementary and Secondary Education Act (ESEA) programs, include Title I, Part A. The Organization is required to submit SPPE data to the SEA for the SEA?s report. Condition The Organization does not have procedures in place to ensure that SPPE data is calculated and reported accurately. Questioned Costs There were no direct questioned costs associated with the condition identified. Context The condition was identified as a result of inquiry with the Organization's Business Services personnel and through review of supporting documents. Effect Due to a clerical error when the Organization calculated the annual SPPE data, the Organization?s SPPE data was inaccurately calculated and reported. Cause The condition identified appears to have materialized due to an undetected clerical error when performing the SPPE data calculation. Repeat Finding No. Recommendation The Organization should implement controls to ensure that the SPPE data calculation is properly calculated and reviewed prior to reporting.