Finding Text
FINDING #2024-002: EDUCATION STABILIZATION FUNDS – EQUIPMENT AND OTHER CAPITAL
EXPENDITURES (50000)
Program Name: Elementary and Secondary School Emergency Relief II (ESSER II) Fund
Assistance Listing Number: 84.425
Pass-Through Agency: California Department of Education (CDE)
Federal Agency: U.S. Department of Education
Criteria: Consistent with 2 CFR section 200.311 (real property), section 200.313 (equipment), and section 200.439
(equipment and other capital expenditures) ESF funds may be used to purchase equipment. Capital expenditures for
general and special purpose equipment purchases are subject to prior approval by ED or the pass-through entity.
Condition: Through testing of a representative sample of ESF expenditures, we noted that the equipment
expenditures with Data Impressions in the amount totaling $617,023, did not appear to be pre-approved by the
California Department of Education (CDE).
Context: The condition was identified through the testing of ESF expenditures.
Cause: District oversight.
Effect: The funds spent on these purchases may be subject to review by or return to the awarding agency.
Questioned Costs: $617,023.
Repeat Finding: This is not a repeat finding.
Recommendation: We recommend that the District obtain prior approval from CDE for all capital purchases from the
Education Stabilization Fund in excess of $5,000.
Views of Responsible Officials: See Corrective Action Plan on following page.