Finding 1132107 (2024-003)

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: 84.425U, 84.425W Compliance Requirement: L - Reporting Type of Finding: Material weakness in internal control over compliance 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 two of seven quarterly reports that were tested. 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 seven of 14 quarterly reports to the State and one of one annual report submitted to the State were selected for testing. Repeat Finding Yes, see prior year finding 2023-005. 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.