Finding 205948 (2022-004)

-
Requirement
B
Questioned Costs
$1
Year
2022
Accepted
2023-01-24

AI Summary

  • Core Issue: The District improperly recorded $22,342 in expenses for multi-year software licenses under the ESSER I program, which exceeded the allowable period ending September 30, 2022.
  • Impacted Requirements: Expenditures must align with the funding period specified for the ESSER I program, which was not adhered to in this case.
  • Recommended Follow-Up: The District should review and adjust its ESSER expenditures to ensure compliance and reclassify the questioned costs to an appropriate program.

Finding Text

ORANGE CENTER SCHOOL DISTRICT SCHEDULE OF AUDIT FINDINGS AND QUESTIONED COSTS FOR THE YEAR ENDED JUNE 30, 2022 Federal Award Findings and Questioned Costs Finding Identification 2022 ? 004 Federal ? Elementary & Secondary School Emergency Relief (ESSER) Fund #50000 Federal Program Information U.S. Department of Education Award Year: 2021-22 Catalog/Federal Assistance Listing Number: 84.425 Passed Through: California Department of Education Criteria or Specific Requirement The ESSER I award funds are available for obligation by LEAs through September 30, 2022. Condition During our testing of expenditures in the ESSER I program, we found expenditures totaling $22,342 relating to multi-year software licenses for periods which are for services beyond September 30, 2022, and therefore do not fall within the period available under the ESSER I program. Effect The District recorded expenses in the ESSER I program that went beyond the period of availability and therefore should not have been recorded as expenditures under that program. Cause The District overlooked the duration period of the multi-year licenses that were charged to the ESSER I program. Questioned Costs Expenditures totaling $22,342 should not have been recorded to the ESSER I program. Sampling Method The sampling method used was not a statistically valid sample. Identification of Repeat Finding The audit finding is not a repeat of a finding in the immediately prior audit. Recommendation The District should monitor their ESSER expenditures to ensure they fall within the period of availability of funds. The District should also reclassify these expenditures to another allowable program. Views of responsible officials and planned corrective actions The District agrees with this finding. Please refer to the corrective action within the Findings and Recommendations Section.

Corrective Action Plan

Federal Award Findings and Questioned Costs Finding Identification: 2021 ? 004 Federal ? Elementary & Secondary School Emergency Relief (ESSER) Fund #50000 Name of contact person: Michele Smith, CBO Corrective Action: District will complete a transfer for ?Prepaid Expenses? in ESSER I to be transferred into Title I Resource. The CBO will track all future prepaid expenses and adjust the expenditures as per the guidance given in the CSAM in the future. Proposed Completion Date: The transfer will be presented to the Orange Center Board for approval at the regularly scheduled meet on January 11, 2023. FCSS will receive the approved transfer request on January 12, 2022 and the transfer should be completed within 2-4 days by FCSS.

Categories

Questioned Costs

Other Findings in this Audit

Programs in Audit

ALN Program Name Expenditures
84.010 Essa: Title I, Part A, Basic Grants Low-Income and Neglected $210,190
10.555 National School Lunch Program $174,460
84.425 Covid-19 - Elementary & Secondary School Emergency Relief (esser) Fund $165,056
84.425 Covid-19 - Elementary & Secondary School Emergency Relief (esser Iii) Fund Learning Loss $133,354
84.027 Special Ed: Idea Basic Local Assistance Entitlement, Part B, Sec 611 $69,140
84.287 Essa: Title Iv, Part B, 21st Century Community Learning Centers Program $66,784
10.553 School Breakfast Program $33,986
84.011 Essa: Title I, Part C, Migrant Ed (regular and Summer Program) $14,221
84.365 Essa: Title Iii, English Learner Student Program $13,405
10.555 Child Nutrition: Snp Covid-19 Emergency Operational Costs Reimbursement (ecr) $5,521
84.425 Covid-19 - Elementary & Secondary School Emergency Relief (esser Iii) Fund $5,424
84.424 Essa: Title Iv, Part B, Student Support and Academic Enrichment Grants $3,433
10.558 Child & Adult Care Program $3,260
84.367 Essa: Title Ii, Part A, Supporting Effective Instruction $3,156
84.425 Covid-19 - Elementary & Secondary School Emergency Relief (esser Ii) Fund $2,623
84.425 Covid-19 - Expanded Learning Opportunities (elo) Grant: Esser III State Reserve Learning Loss $1,106
10.558 Child Nutrition: Ccfp Cash in Lieu of Commodities $168