Finding Text
2023-002 – FEDERAL COMPLIANCE – MATERIAL WEAKNESS - COVID-19 EDUCATION
STABILIZATION FUND (50000)
FEDERAL PROGRAM: COVID-19 Education Stabilization Fund (ESF)
FEDERAL AGENCY: U.S. Department of Education
AWARD YEAR: 2022-2023
ASSISTANCE LISTING NUMBER: 84.425C, 84.425D, 84.425U
NAME OF PASS-THROUGH ENTITY: California Department of Education
Criteria: The Uniform Guidance Department of Education Cross Cutting Section under the compliance
requirements Allowable Costs/Cost Principles state that if an employee works on multiple activities or cost
objectives, the District must maintain records that support the portion of time and effort dedicated to the
federal program.
Condition: The District does not maintain records, such as Federal Time Certifications, that support the
portion of time and effort for employees whose payroll is expended to the COVID-19 Education Stabilization
Fund (ESF) federal program.
Cause: The District was unable to locate any supporting documentation to verify the time and effort charged
to the federal program was split and allocated appropriately or that it was reviewed by management.
Effect: Payroll expenditures charged to the program could be overstated or understated.
Fiscal Impact/Questioned Costs: The net questioned costs totaled $232,041.
Recommendation: We recommend the District keep records of the time and effort employees work on
federal programs and that management regularly review those records.
Views of Responsible Officials and Planned Corrective Actions: The district will ensure that all federally
paid employees have a supporting and accurate Federal Time Certification record.