Finding Text
50000 – Activities Allowed or Unallowed and Allowable Costs/Cost Principles Federal Agency: Department of Education Pass-Through Entity: California Department of Education Program Name: Title I, Part A, Basic Grants Low Income and Neglected Federal Financial Assistance Listing: 84.010 Award Identification Number: 14329 Award Year: 2025 Compliance Requirement: A/B (Activities Allowed or Unallowed and Allowable Costs/Cost Principles) Type of Finding: Significant Deficiency in Internal Control over Compliance Criteria Per Title 2, Code of Federal Regulations, Part 200, Subpart E, Section 200.505(a)(1), A cost is allocable to a Federal award or other cost objective if the cost is assignable to that federal award or other cost objective in accordance with the relative benefits received. This standard is met if the cost satisfies any of the following criteria: Is incurred specifically for the Federal award. Condition Through review of wages charged to the federal program, it was noted that one employee’s extra duty was not incurred specifically for the federal award. Cause The identified condition appears to have materialized due to ineffective monitoring. Effect As a result of the condition identified, the District was not in compliance with the Title 2, Code of Federal Regulations, Part 200, Subpart E, Section 200.505(a)(1). The District charged unallowable extra duty salaries of one employee to the federal award. Questioned Costs There were no questioned costs associated with the identified condition. Context A nonstatistical sample of 40 out of 1,279 was initially tested. This resulted in one instance of immaterial noncompliance. In response to this immaterial noncompliance, 20 additional samples were tested with no additional noncompliance noted. Repeat Finding No. Recommendation The District should establish more effective internal controls and monitoring over how federal funds are spent to ensure compliance.