Finding Text
50000 – Activities Allowed or Unallowed and Allowable Costs/Cost Principles (Significant Deficiency in Internal Control Over Compliance, Noncompliance)
Federal Agency: U.S. Department of Education
Pass-Through Agency: California Department of Education
Program Name: Title III, English Learner Student Program
Federal Financial Assistance Listing: 84.365
Compliance Requirement: A/B - Allowed or Unallowed & Allowable Costs/Cost Principles
Type of Finding: Significant deficiency and 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 for one of seven expenditures sampled.
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
The condition identified above resulted in $221 of questioned costs.
Context/Sampling
A nonstatistical sample of seven transactions out of 33 total transactions were selected for testing, which accounted for $314,170 of $856,804 of federal program expenditures.
Repeat Finding
No.
Recommendation
The District should ensure that all federal expenditures are supported by financial reports. These records should be maintained for a period of three years from the date the expenditure is incurred.