Finding Text
50000 – COVID-19 - Elementary and Secondary School Emergency Relief III (ESSER III) Fund: Learning Loss (Significant Deficiency)
Federal Program Affected
Federal Agency: U.S. Department of Education
Pass-Through Entity: California Department of Education
Program Name: COVID-19 - Elementary and Secondary School Emergency Relief III (ESSER III)
Fund: Learning Loss
Assistance Listing Number: 84.425U
Compliance Requirements: B (Allowable Costs/Cost Principles)
Criteria or Specific Requirements
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 (LEAs). The CDE has been delegated authority to calculate
and approve indirect cost rates annually for LEAs. For the Education Stabilization Fund (ESF)
Program in fiscal year 2022-2023, Education Code Section 38101(c) limits County Office of
Education indirect costs to the County’s individual CDE approved indirect cost rat; however,
COVID-19 - Elementary and Secondary School Emergency Relief III (ESSER III) Fund: Learning
Loss, indirect costs are not allowable.
Condition
The County charged unallowable indirect costs totaling $15,184 to the COVID-19 - Elementary
and Secondary School Emergency Relief III (ESSER III) Fund: Learning Loss portion of the ESF
Program.
Questioned Costs
There were no direct questioned costs associated with the condition identified.
Context
The condition was identified through recalculation of the indirect costs charged to the federal
programs.
Effect
The County has charged unallowable expenditures to the federal programs.
Cause
The condition identified appears to be due to the County not being familiar with the indirect
cost requirements for each of the federal programs.
Repeat Finding
No.
Recommendation
It is recommended that the County implements a review process for indirect costs, which should
include review of relevant grant agreements and relevant federal guidance.