Finding Text
50000 – Reporting (Significant Deficiency in Internal Controls, Noncompliance)
Federal Agency: U.S. Department of Education
Pass‐Through Entity: California Department of Education
Program Name: Education Stabilization Fund
Assistance Listing Numbers: 84.425D, 84.425U
Criteria or Specific Requirements
Per Title 2, Code of Federal Regulations, Part 200, Subpart D, Section 200.333, financial records and supporting documents pertinent to a Federal award must be retained for a period of three years from the date of submission of expenditure reports to the awarding agency or passthrough entity.
Condition
The Organization was unable to provide financial records or supporting documents that agreed to the expenditure information reported to the California Department of Education.
Questioned Costs
There were no questioned costs associated with the identified condition.
Context
The condition was identified through inquiry with Organization personnel and through the unsuccessful request to review available supporting documentation.
Effect
The Organization has not complied with the requirement identified in Title 2, Code of Federal Regulations, Part 200, Subpart D, Section 200.333.
Cause
The identified condition appears to have materialized due to insufficient procedures related to the retention of financial records.
Repeat Finding
Yes, see prior year finding 2022‐003.
Recommendation
The Organization should ensure that all federal expenditure reports are supported by financial reports. These records should be maintained for a period of three years from the date of submission of the expenditure reports to the awarding agency or pass‐through entity.