Finding Text
Finding 2023-003: Allowable Costs (50000)
Assistance Listing No. 84.425 – Education Stabilization Funds (ESSER)
U.S. Department of Treasury
Passed through California Department of Education
Criteria: LEAs are required to maintain adequate written records to support how ESSER funds were received, disbursed, and spent, including all records necessary to perform an effective audit. Also, the LEA is required to use ESSER I and ESSER II funds for activities authorized by the Elementary and Secondary Education Act of 1965 (ESEA) as amended by the Every Student Succeeds Act of 2015 (ESSA), Individuals with Disabilities Education Act (IDEA), the Adult Education and Family Literacy Act, the Perkins Career and Technical Education (CTE) Act, or the McKinney-Vento Homeless Assistance Act Title VII Part B, and other permissible activities under CARES Act Section 18003 and CRRSA Act Section 313. (CARES Act Section 18003[d], CRRSA Act Section 313[d]). In addition, the LEA is required to use ESSER III funds for activities authorized by the Elementary and Secondary Education Act of 1965 (ESEA) as amended by the Every Student Succeeds Act of 2015 (ESSA), Individuals with Disabilities Education Act (IDEA), the Adult Education and Family Literacy Act, or the Perkins Career and Technical Education (CTE) Act, and other permissible activities under ARP Act Section 2001. (ARP Act, Section 2001[e]). Furthermore, the LEA is required to develop and make publicly available a plan for the LEA’s use of ESSER III funds. The LEA must engage in meaningful consultation with stakeholders and give the public an opportunity to provide input in the development of this plan. (86 Federal Register 21195) and the LEA is required to develop and make publicly available on the LEA’s website, not later than 30 days after receiving the allocation of ESSER III funds, a plan for the safe return to in-person instruction and continuity of services and must seek public comment on the plan and take such comments into account in the development of the plan. The plan must be updated periodically, but no less frequently than every six months. (ARP Act Section 2001[i], 86 Federal Register 21195) and the LEA is required to reserve not less than 20 percent of ESSER III funds to address learning loss through the implementation of evidence-based interventions ensure that such interventions respond to students’ academic, social, and emotional needs and address the disproportionate impact of the coronavirus on low-income students, children with disabilities, English learners, racial and ethnic minorities, the students experiencing homelessness, and children and youth in foster care (ARP Act Section 2001[e][1]).
Condition: The LEA failed to provide CDE all of the requested documentation to support a sample of $117,700.00 in expenditures charged to the ESSER II and ESSER III funds.
Cause: The LEA has experienced significant employee turnover, which has caused a lack of oversight of certain compliance requirements.
Effect: As a result, the LEA is unable to support how $57,700.00 in expenditures charged to ESSER III (Resource 3213), and $60,000.00 in expenditures charged to ESSER II (Resource 3216) are allowable.
Questioned Costs: $117,700
Context: The finding was the result of Federal Program Monitoring (FPM) procedures performed by the CDE.
Recommendation: The County has already cleared this finding with CDE. No further action is needed.
Views of Responsible Officials: The County has already cleared this finding with CDE. In addition, we have updated the purchasing and procurement policy and offered training to agency-wide members.