Finding Text
Federal Program Affected
Federal Agency: U.S. Department of Education
Pass‐Through Entity: California Department of Education (CDE)
Program Name: COVID‐19: Elementary and Secondary School Emergency Relief II (ESSER II)
Assistance Listing Number: 84.425D
Criteria or Specific Requirements
Title 2, Code of Federal Regulations, Part 200, Subpart E, Section 200.439 requires the District to obtain written approval from the California Department of Education (CDE) prior to purchasing equipment for which the per unit costs exceeds $5,000.
Condition
The District expended $91,781 of ESSER II funds on capital expenditures that were not preapproved by the pass‐through agency, as required.
Questioned Costs
As a result of the condition identified above, a total of $91,781 in questioned costs were identified.
Context
The conditioned was identified as a result of inquiry with the District’s personnel and review of ESSER II expenditures and related invoices.
Effect
The District currently assumes all the risk of non‐compliance with requirements stated underTitle 2, Code of Federal Regulations, Part 200, Subpart E, Section 200.439 due to the lack of preapproval from the pass‐through agency, as required.
Cause
The condition identified appears to have materialized due to oversight related to the requirement under Title 2, Code of Federal Regulations, Part 200, Subpart E, Section 200.439.
Repeat Finding
No.
Recommendation
The District should ensure all equipment purchases are subject to the pre‐approval process as stated in Title 2, Code of Federal Regulations, Part 200, Subpart E, Section 200.439, and
implement procedures to address the deficiency currently identified.
District Response and Corrective Action
Fiscal Services is in the process of obtaining approval of the capital expense. Moving forward, all ESSER requisitions that require CDE approval will not be approved until written documentation
has been received and is submitted as part of the back‐up documentation.