Corrective Action Plans

RESPONSE TO AUDIT FINDING #2022-002: EDUCATION STABILIZATION FUND DISCRETIONARY GRANTS- SPECIAL TESTS AND PROVISIONS (50000) The charter has already submitted the capital expenditure request form to COE and is awaiting approval. The charter will review all required compliance requirements for all new federal funding before purchases are made. The charter anticipates receiving the approval by December 31, 2023.

Planned Corrective Action: The Expo is bound by their management agreement with Bell County. Corrective action can not be taken in response to this finding. Person Responsible for Corrective Action Plan: Tim Stephens, Executive Director Anticipated Date of Completion: Not applicable

Fiscal Year Audit Report: Corrective Action Plan Year ended June 30, 2022 Finding 2022-002: Education Stabilization Fund (5000) Federal Agency: U.S. Department of Education Pass through Entity: California Department of Education Program Names: Elementary and Secondary School Emergency Relief I, II, III (ESSER, ESSER II, ESSER III) (Assistance Listing 84.425D) Criteria: Consistent with 2 CFR Section 200.311 (real property), Section 200.313 (equipment), and Section 200.439 (equipment and other capital expenditures) Education Stabilization Funds may be used to purchase equipment. Capital expenditures for general and special-purpose equipment purchases are subject to prior approval by the Department of Education or the pass-through entity. Finding: The District purchased numerous equipment items above the capital threshold for federal purchases but did not obtain approval from the California Department of Education. Questioned Costs: Purchases totaling $329,699.90, were made for equipment above the capital threshold without CDE approval. Context: The finding is limited to purchases above the capital threshold requiring approval. Cause: The District was unaware of the requirement. Effect: The funds spent on this purchase may be subject to review or return to the awarding agency. Recommendation: We recommend the District submit requests for approval for the equipment or find another allowable funding source for the purchases. Action: Staff and Management will ensure that the District submits requests for approval for capital expenditures from the California Department of Education prior to purchases. Completion Date: Effective immediately Contact: Zach Klemish, Director of Fiscal Services, Adelanto Elementary School District, (760) 246-8691

Person responsible for corrective action: Clerk Staff, under County Clerk supervision Corrective action planned: Necessary columns required for equipment purchased/disposed of were added to the spreadsheet. County offices notification sent reminding ALL add/delete information must be completed for proper data entry into the inventory system Anticipated completion date: August 31, 2023

Re: Reference 2022-001 Davis-Bacon Act Contact: Opal Anderson, Superintendent The Lafayette County School District will comply with the Davis-Bacon Act provisions utilizing sound accounting policies and maintain internal controls that will initiate, authorize, record, process, and report transactions consistent with management?s assertions embodied in the financial statements and that will safeguard District assets. We will also review our Risk Assessment and Monitoring controls as they pertain to our operational processes. Periodic internal control reviews are conducted by the Superintendent and/or District Treasurer to ensure all procedures are properly implemented.

RESPONSE: The following is Food Service Director Deanna Gilbert?s response: Not going in and adding the addition meals until the end of the month to keep from the meals being added twice. The Management company director handed out the right completed meals but the paperwork did not back up the components in the meal. Double check all paperwork to make sure the meal components are all listed on the Production record. Deanna Gilbert, Child Nutrition Director June 1, 2023 Action started June 30, 2023 Action completed