Finding 1131993 (2024-002)

Material Weakness
Requirement
AB
Questioned Costs
$1
Year
2024
Accepted
2025-04-21

AI Summary

  • Core Issue: The District over-accrued expenditures by $1,172,500 for services not rendered by year-end, violating federal compliance requirements.
  • Impacted Requirements: Noncompliance with Title 2 CFR 200.403(e) regarding allowable costs and activities under the Education Stabilization Fund.
  • Recommended Follow-Up: Implement stronger internal controls to ensure all expenditures charged to federal programs are allowable.

Finding Text

Federal Agency: U.S. Department of Education Pass-Through Entity: California Department of Education Program Name: COVID-19 – Education Stabilization Fund Federal Financial Assistance Listing: 84.425D, 84.425U, 84.425W Compliance Requirements: A/B – Activities Allowed or Unallowed & Allowable Costs/Cost Principles Type of Finding: Material Weakness and Noncompliance Criteria or Specific Requirements Title 2 Code of Federal Regulations 200.403(e) requires costs to be determined in accordance with generally accepted accounting principles (GAAP), which requires expenditures to be accrued in the period in which they are incurred. Condition The District accrued balances on open purchase orders at year-end, resulting in over-accrual of expenditures of $1,172,500 which did not have related services rendered or goods received by June 30, 2024. Additionally, this resulted in $176 of unallowable indirect costs charged to the program. Cause The cause appears to be due to lack of sufficient internal controls over year-end financial statement preparation. Effect The District is not in compliance with Activities Allowed or Unallowed and Allowable Costs/Cost Principles related to the Education Stabilization Fund program. Questioned Costs The condition identified above resulted in known questioned costs of $1,172,500 in direct costs and $176 in related indirect costs charged, resulting in total questioned costs of $1,172,676. Context/Sampling: Unallowable costs were identified through a review of accounts payable for the District as a whole and not through the sample selected for major program testing. Repeat Finding No. Recommendation The District should implement controls to ensure that all expenditures charged to federal programs are allowable.

Categories

Questioned Costs Allowable Costs / Cost Principles

Other Findings in this Audit

  • 555534 2024-004
    Material Weakness
  • 555535 2024-004
    Material Weakness
  • 555536 2024-004
    Material Weakness
  • 555537 2024-004
    Material Weakness
  • 555538 2024-004
    Material Weakness
  • 555539 2024-004
    Material Weakness
  • 555540 2024-004
    Material Weakness
  • 555541 2024-004
    Material Weakness
  • 555542 2024-004
    Material Weakness
  • 555543 2024-004
    Material Weakness
  • 555544 2024-004
    Material Weakness
  • 555545 2024-002
    Material Weakness
  • 555546 2024-002
    Material Weakness
  • 555547 2024-002
    Material Weakness
  • 555548 2024-002
    Material Weakness
  • 555549 2024-002
    Material Weakness
  • 555550 2024-002
    Material Weakness
  • 555551 2024-002
    Material Weakness
  • 555552 2024-002
    Material Weakness
  • 555553 2024-002
    Material Weakness
  • 555554 2024-003
    Material Weakness
  • 555555 2024-003
    Material Weakness
  • 555556 2024-003
    Material Weakness
  • 555557 2024-003
    Material Weakness
  • 555558 2024-003
    Material Weakness
  • 555559 2024-003
    Material Weakness
  • 555560 2024-003
    Material Weakness
  • 555561 2024-003
    Material Weakness
  • 555562 2024-003
    Material Weakness
  • 555563 2024-004
    Material Weakness
  • 1131976 2024-004
    Material Weakness
  • 1131977 2024-004
    Material Weakness
  • 1131978 2024-004
    Material Weakness
  • 1131979 2024-004
    Material Weakness
  • 1131980 2024-004
    Material Weakness
  • 1131981 2024-004
    Material Weakness
  • 1131982 2024-004
    Material Weakness
  • 1131983 2024-004
    Material Weakness
  • 1131984 2024-004
    Material Weakness
  • 1131985 2024-004
    Material Weakness
  • 1131986 2024-004
    Material Weakness
  • 1131987 2024-002
    Material Weakness
  • 1131988 2024-002
    Material Weakness
  • 1131989 2024-002
    Material Weakness
  • 1131990 2024-002
    Material Weakness
  • 1131991 2024-002
    Material Weakness
  • 1131992 2024-002
    Material Weakness
  • 1131994 2024-002
    Material Weakness
  • 1131995 2024-002
    Material Weakness
  • 1131996 2024-003
    Material Weakness
  • 1131997 2024-003
    Material Weakness
  • 1131998 2024-003
    Material Weakness
  • 1131999 2024-003
    Material Weakness
  • 1132000 2024-003
    Material Weakness
  • 1132001 2024-003
    Material Weakness
  • 1132002 2024-003
    Material Weakness
  • 1132003 2024-003
    Material Weakness
  • 1132004 2024-003
    Material Weakness
  • 1132005 2024-004
    Material Weakness

Programs in Audit

ALN Program Name Expenditures
10.553 School Breakfast Program $6.18M
84.287 Twenty-First Century Community Learning Centers $2.27M
10.555 National School Lunch Program $1.96M
84.365 English Language Acquisition State Grants $1.73M
84.424 Student Support and Academic Enrichment Program $1.64M
93.575 Child Care and Development Block Grant $1.55M
84.367 Supporting Effective Instruction State Grants (formerly Improving Teacher Quality State Grants) $1.51M
84.010 Title I Grants to Local Educational Agencies $1.36M
84.425 Education Stabilization Fund $840,652
84.048 Career and Technical Education -- Basic Grants to States $680,358
10.558 Child and Adult Care Food Program $259,550
84.196 Education for Homeless Children and Youth $206,457
16.839 Stop School Violence $151,038
16.710 Public Safety Partnership and Community Policing Grants $139,147
93.596 Child Care Mandatory and Matching Funds of the Child Care and Development Fund $132,330
84.060 Indian Education Grants to Local Educational Agencies $63,466
84.181 Special Education-Grants for Infants and Families $59,697
84.126 Rehabilitation Services Vocational Rehabilitation Grants to States $55,014
12.000 Junior Reserve Office Training Corps $54,832
84.002 Adult Education - Basic Grants to States $44,402
16.835 Body Worn Camera Policy and Implementation $21,650
84.027 Special Education Grants to States $15,171
84.173 Special Education Preschool Grants $1,000