Finding Text
The following finding represents a significant deficiency and instance of noncompliance that is required to be
reported by the Uniform Guidance. The finding has been coded as follows:
Five Digit Code AB 3627 Finding Type
50000 Federal Compliance
2023‐003 50000 – Reporting (Significant Deficiency, Noncompliance)
Federal Program Affected
Program Names: COVID‐19: Elementary and Secondary School Emergency Relief Funds
Assistance Listing Number: 84.425D & 84.425U
Pass‐Through Entity: California Department of Education (CDE)
Federal Agency: U.S. Department of Education
Criteria or Specific Requirements
Local education agencies must comply with all reporting requirements that the Department of
Education may reasonably require. Section 15011 of Division B of the Coronavirus Aid, Relief,
and Economic Security (CARES) Act requires that a grantee submit quarterly and annual reports.
ESSER Funds awarded under the American Rescue Plan (ARP) Act of 2021 are subject to the
same quarterly and annual reporting requirements.
Condition
The District reported budgeted expenditures for the COVID‐19: Elementary and Secondary
School Emergency Relief III (ESSER III) Fund program and the Elementary and Secondary School
Emergency Relief III (ESSER III) Fund: Learning Loss program instead of actual expenditures to
the California Department of Education for these programs. In addition, the District was unable
to provide supporting documents that agreed to the full‐time equivalent (FTE) positions
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 District personnel and through the review of
documentation used to prepare the reports.
Effect
The District has overreported expenditures for these programs and, as such, is not in compliance
with the reporting requirements for the program. In addition, the District is not in compliance
with maintaining supporting documents pertinent to a Federal award.
Cause
The identified condition appears to have materialized due to insufficient procedures related to
the review process and retention of financial records.
Repeat Finding
No.
Recommendation
The District should ensure that all federal expenditures are reported on their quarterly or annual
reports based on actual general ledger expenditures for the time period being reported on. In
addition, the District should ensure that all federal reports are supported by supporting
documentation. These records should be maintained for a period of three years from the date of
submission of the reports to the awarding agency or pass‐through entity.