Finding 1100433 (2023-005)

Material Weakness
Requirement
L
Questioned Costs
-
Year
2023
Accepted
2025-02-20
Audit: 343203
Organization: Magnolia School District (CA)
Auditor: Eide Bailly LLP

AI Summary

  • Core Issue: The District failed to provide necessary financial records and documents for compliance with federal reporting requirements.
  • Impacted Requirements: Noncompliance with Title 2, CFR Part 200.333 regarding retention of financial records for three years.
  • Recommended Follow-Up: Implement procedures to ensure accurate reporting of federal expenditures and maintain supporting documentation for all reports.

Finding Text

50000 – Reporting (Material Weakness in Internal Control Over Compliance, Material Noncompliance) Federal Agency: U.S. Department of Education Pass-Through Agency: California Department of Education Program Name: Education Stabilization Fund Federal Financial Assistance Listing: 84.425C, 84.425D, 84.425U, 84.425W Compliance Requirement: L - Reporting Type of Finding: Material weakness and material noncompliance 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 District was unable to provide financial records or supporting documents that agreed to the expenditure information and full-time equivalent positions reported on the ESSER annual report. In addition, the District was unable to provide financial records or supporting documents that agreed to the expenditure information reported on the quarterly reports for the seven of eight quarterly reports that were tested. Lastly, two of seven reports tested were not reviewed by an individual independent of the report preparation process. Cause The identified condition appears to have materialized due to insufficient procedures related to the retention of financial records. Effect The District has not complied with the requirements identified in Title 2, Code of Federal Regulations, Part 200.333. Questioned Costs There were no questioned costs associated with the identified condition. Context/Sampling A nonstatistical sample of eight of out of 14 quarterly reports to the State and one of one annual reports submitted to the State were selected for testing. Repeat Finding No. Recommendation The District should ensure that all federal expenditures and full-time equivalent positions are reported accurately on the ESSER annual and quarterly reports, and that supporting documentation is maintained to support the amounts reported.

Categories

Material Weakness Reporting Internal Control / Segregation of Duties

Other Findings in this Audit

  • 523980 2023-004
    Material Weakness
  • 523981 2023-004
    Material Weakness
  • 523982 2023-004
    Material Weakness
  • 523983 2023-004
    Material Weakness
  • 523984 2023-004
    Material Weakness
  • 523985 2023-004
    Material Weakness
  • 523986 2023-004
    Material Weakness
  • 523987 2023-004
    Material Weakness
  • 523988 2023-005
    Material Weakness
  • 523989 2023-005
    Material Weakness
  • 523990 2023-005
    Material Weakness
  • 523991 2023-005
    Material Weakness
  • 523992 2023-005
    Material Weakness
  • 523993 2023-005
    Material Weakness
  • 523994 2023-005
    Material Weakness
  • 523995 2023-005
    Material Weakness
  • 523996 2023-006
    Material Weakness
  • 523997 2023-006
    Material Weakness
  • 523998 2023-006
    Material Weakness
  • 523999 2023-006
    Material Weakness
  • 524000 2023-006
    Material Weakness
  • 524001 2023-006
    Material Weakness
  • 524002 2023-006
    Material Weakness
  • 524003 2023-006
    Material Weakness
  • 524004 2023-007
    Significant Deficiency
  • 524005 2023-007
    Significant Deficiency
  • 524006 2023-007
    Significant Deficiency
  • 524007 2023-007
    Significant Deficiency
  • 524008 2023-007
    Significant Deficiency
  • 524009 2023-008
    Significant Deficiency
  • 1100422 2023-004
    Material Weakness
  • 1100423 2023-004
    Material Weakness
  • 1100424 2023-004
    Material Weakness
  • 1100425 2023-004
    Material Weakness
  • 1100426 2023-004
    Material Weakness
  • 1100427 2023-004
    Material Weakness
  • 1100428 2023-004
    Material Weakness
  • 1100429 2023-004
    Material Weakness
  • 1100430 2023-005
    Material Weakness
  • 1100431 2023-005
    Material Weakness
  • 1100432 2023-005
    Material Weakness
  • 1100434 2023-005
    Material Weakness
  • 1100435 2023-005
    Material Weakness
  • 1100436 2023-005
    Material Weakness
  • 1100437 2023-005
    Material Weakness
  • 1100438 2023-006
    Material Weakness
  • 1100439 2023-006
    Material Weakness
  • 1100440 2023-006
    Material Weakness
  • 1100441 2023-006
    Material Weakness
  • 1100442 2023-006
    Material Weakness
  • 1100443 2023-006
    Material Weakness
  • 1100444 2023-006
    Material Weakness
  • 1100445 2023-006
    Material Weakness
  • 1100446 2023-007
    Significant Deficiency
  • 1100447 2023-007
    Significant Deficiency
  • 1100448 2023-007
    Significant Deficiency
  • 1100449 2023-007
    Significant Deficiency
  • 1100450 2023-007
    Significant Deficiency
  • 1100451 2023-008
    Significant Deficiency

Programs in Audit

ALN Program Name Expenditures
84.010 Title I Grants to Local Educational Agencies $1.72M
84.365 English Language Acquisition State Grants $856,804
10.553 School Breakfast Program $666,297
84.424 Student Support and Academic Enrichment Program $236,203
84.367 Supporting Effective Instruction State Grants (formerly Improving Teacher Quality State Grants) $208,038
10.579 Child Nutrition Discretionary Grants Limited Availability $119,901
84.196 Education for Homeless Children and Youth $100,953
10.555 National School Lunch Program $90,898
84.173 Special Education Preschool Grants $77,118
84.027 Special Education Grants to States $60,661
84.425 Education Stabilization Fund $58,626
10.558 Child and Adult Care Food Program $54,882