Finding Text
FINDING #2023-003: EDUCATION STABILIZATION FUNDS (ESF) – EQUIPMENT AND OTHER CAPITAL EXPENDITURES (50000)
Program Name: Elementary and Secondary School Emergency Relief II (ESSER II) Fund
Assistance Listing Number: 84.425
Pass-Through Agency: California Department of Education (CDE)
Federal Agency: U.S. Department of Education (ED)
Criteria: Consistent with 2 CFR section 200.311 (real property), section 200.313 (equipment), and section 200.439 (equipment and other capital expenditures) ESF funds may be used to purchase equipment. Capital expenditures for general and special purpose equipment purchases are subject to prior approval by ED or the pass-through entity.
Condition: Through testing a representative sample of ESF expenditures, we noted that the network switch purchases did not appear to be pre-approved by the California Department of Education (CDE). Each purchase order provided for the purchase and installation of network switches with a per unit cost in excess of $5,000 (including installation and other ancillary costs).
Context: The condition was identified through the testing of ESF expenditures.
Cause: District oversight.
Effect: The funds spent on these purchases may be subject to review by or return to the awarding agency.
Questioned Costs: $208,801.
Repeat Finding: This is not a repeat finding.
Recommendation: We recommend that the District obtain prior approval from CDE for all capital purchases from the Education Stabilization Fund in excess of $5,000.
Views of Responsible Officials: See Corrective Action Plan on following page.