Finding Text
FINDING #2023‐002: 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: 84.425
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: 84.425
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: 84.425
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 $36,090.
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.FINDING #2023‐002: EDUCATION STABILIZATION FUNDS – INDIRECT COSTS (50000) (continued)
Questioned Costs: $36,090, 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.