FAC Explorer

Audit 5632

FY End
2023-06-30
Total Expended
$8.09M
Findings
2
Programs
9
Organization: Little Lake City School District (CA)
Year: 2023 Accepted: 2023-12-06
Auditor: Eide Bailly LLP

Organization Exclusion Status:

Findings

ID Ref Severity Repeat Requirement
3629 2023-002 Significant Deficiency - AB
580071 2023-002 Significant Deficiency - AB

Programs

ALN Program Spent Major Findings
84.027 Special Education_grants to States $1.05M Yes 0
84.010 Title I Grants to Local Educational Agencies $922,747 Yes 0
10.553 School Breakfast Program $476,119 - 0
10.555 National School Lunch Program $157,728 - 0
84.367 Improving Teacher Quality State Grants $110,857 - 0
84.424 Student Support and Academic Enrichment Program $50,244 - 0
84.196 Education for Homeless Children and Youth $50,147 - 0
84.425 Education Stabilization Fund $6,844 Yes 0
84.365 English Language Acquisition State Grants $4,480 - 0

Contacts

Name Title Type
CRA4YMW98R75 Michael Montano Auditee
5628688241 Shilo Gorospe Auditor
No contacts on file

Notes to SEFA

Title: Purpose of Schedules - Schedule of Expenditures of Federal Awards Accounting Policies: The accompanying Schedule of Expenditures of Federal Awards (the schedule) includes the federal award activity of the Little Lake City School District (the District) under programs of the federal government for the year ended June 30, 2023. The information is presented in accordance with the requirements of Title 2 U.S. Code of Federal Regulations Part 200, Uniform Administrative Requirements, Cost Principles, and Audit Requirements for Federal Awards (Uniform Guidance). Because the schedule presents only a selected portion of the operations of the District, it is not intended to and does not present the financial position or changes in net position and fund balance of the District. Expenditures reported in the schedule are reported on the modified accrual basis of accounting. When applicable, such expenditures are recognized following the cost principles contained in the Uniform Guidance, wherein certain types of expenditures are not allowable or are limited as to reimbursement. No federal financial assistance has been provided to a subrecipient. De Minimis Rate Used: N Rate Explanation: The auditee has not elected to use the ten percent de minimis cost rate The accompanying Schedule of Expenditures of Federal Awards (the schedule) includes the federal award activity of the Little Lake City School District (the District) under programs of the federal government for the year ended June 30, 2023. The information is presented in accordance with the requirements of Title 2 U.S. Code of Federal Regulations Part 200, Uniform Administrative Requirements, Cost Principles, and Audit Requirements for Federal Awards (Uniform Guidance). Because the schedule presents only a selected portion of the operations of the District, it is not intended to and does not present the financial position or changes in net position and fund balance of the District. Expenditures reported in the schedule are reported on the modified accrual basis of accounting. When applicable, such expenditures are recognized following the cost principles contained in the Uniform Guidance, wherein certain types of expenditures are not allowable or are limited as to reimbursement. No federal financial assistance has been provided to a subrecipient.

Finding Details

Finding 2023-002
The United States Department of Education has approved a delegation agreement with the California Department of Education (CDE) that authorizes the CDE to establish indirect cost rates for California local education agencies (LEAs). The CDE has been delegated authority to calculate and approve indirect cost rates annually for LEAs. For the Education Stabilization Fund (ESF) Program in fiscal year 2022‐2023, Education Code Section 38101(c) limits school district indirect costs to the lesser of the District’s individual CDE approved indirect cost rate, or the statewide average indirect rate. For ESSER III (Resource 3214), indirect costs are not allowable. The District charged unallowable indirect costs totaling $25,053 to the ESSER III portion of the ESF Program. The condition identified above resulted in $25,053 of questioned costs for unallowable indirect costs charged to the grant funds. The condition was identified through recalculation of all indirect costs charged to the ESF programs. The condition identified appears to be due to the Districts lack of familiarity with the indirect cost requirement for ESSER III. It is recommended that the District implement a review process for indirect costs which would include a review of the relevant grant agreements and guidance.
Finding 2023-002
The United States Department of Education has approved a delegation agreement with the California Department of Education (CDE) that authorizes the CDE to establish indirect cost rates for California local education agencies (LEAs). The CDE has been delegated authority to calculate and approve indirect cost rates annually for LEAs. For the Education Stabilization Fund (ESF) Program in fiscal year 2022‐2023, Education Code Section 38101(c) limits school district indirect costs to the lesser of the District’s individual CDE approved indirect cost rate, or the statewide average indirect rate. For ESSER III (Resource 3214), indirect costs are not allowable. The District charged unallowable indirect costs totaling $25,053 to the ESSER III portion of the ESF Program. The condition identified above resulted in $25,053 of questioned costs for unallowable indirect costs charged to the grant funds. The condition was identified through recalculation of all indirect costs charged to the ESF programs. The condition identified appears to be due to the Districts lack of familiarity with the indirect cost requirement for ESSER III. It is recommended that the District implement a review process for indirect costs which would include a review of the relevant grant agreements and guidance.