Finding Text
FINDING #2023‐001: EDUCATION STABILIZATION FUNDS – INDIRECT COSTS (50000)
Federal Programs Affected:
Program Name: Elementary and Secondary School Emergency Relief III (ESSER III) Fund: Learning Loss
Assistance Listing Number: 84.425U
Pass-Through Agency: California Department of Education (CDE)
Federal Agency: U.S. Department of Education
Program Name: Expanded Learning Opportunities (ELO) Grant: ESSER II State Reserve
Assistance Listing Number: 84.425D
Pass-Through Agency: California Department of Education (CDE)
Federal Agency: U.S. Department of Education
Program Name: Expanded Learning Opportunities (ELO) Grant: ESSER III State Reserve Emergency Needs
Assistance Listing Number: 84.425U
Pass-Through Agency: California Department of Education (CDE)
Federal Agency: U.S. Department of Education
Program Name: Expanded Learning Opportunities (ELO) Grant: ESSER III State Reserve Learning Loss
Assistance Listing Number: 84.425U
Pass-Through Agency: California Department of Education (CDE)
Federal Agency: U.S. Department of Education
Criteria: The United States Department of Education has approved a delegation agreement with the California Department of Education (CDE) that authorizes the CDE to establish indirect cost rates for California local education agencies (LEA). The CDE has been delegated authority to calculate and approve indirect cost rates annually for LEAs. For the Education Stabilization Fund (ESF) Program, Education Code Section 38101(c) limits school district indirect costs to the lesser of the District’s individual CDE approval indirect cost rate or the statewide average indirect cost rate. For ESF programs included under the Expanded Learning Opportunities (ELO) Grant, indirect costs are not allowable.
Condition: During our compliance procedures related to activities allowed or unallowed, we noted that the District charged unallowable indirect costs totaling $35,509.
Context: The condition was identified through recalculation of the indirect costs charged to the federal programs.
Cause: The condition identified appears to be due to the District not being familiar with the indirect costs requirements for each of the affected federal programs.
Effect: The District charged unallowable expenditures to the programs. Questioned Costs: $35,509, the total indirect costs charged to these programs.
Repeat Finding: This is not a repeat finding.
Recommendation: It is recommended that the District implements a review process for indirect costs, which should include review of relevant grant agreements and relevant federal guidance.
Views of Responsible Officials: See Corrective Action Plan on following page.