Finding Text
50000 – Reporting (Material Weakness in Internal Control Over Compliance, Material
Noncompliance)
Federal Agency: U.S. Department of Education
Pass-Through Agency: California Department of Education
Program Name: Education Stabilization Fund
Federal Financial Assistance Listing: 84.425C, 84.425D, 84.425U, 84.425W
Compliance Requirement: L - Reporting
Type of Finding: Material weakness and material noncompliance
Criteria or Specific Requirements
Per Title 2, Code of Federal Regulations, Part 200, Subpart D, Section 200.333, financial records and supporting documents pertinent to a Federal award must be retained for a period of three years from the date of submission of expenditure reports to the awarding agency or passthrough entity.
Condition
The District was unable to provide financial records or supporting documents that agreed to the expenditure information and full-time equivalent positions reported on the ESSER annual report. In addition, the District was unable to provide financial records or supporting documents that agreed to the expenditure information reported on the quarterly reports for the seven of eight quarterly reports that were tested. Lastly, two of seven reports tested were not reviewed by an individual independent of the report preparation process.
Cause
The identified condition appears to have materialized due to insufficient procedures related to the retention of financial records.
Effect
The District has not complied with the requirements identified in Title 2, Code of Federal Regulations, Part 200.333.
Questioned Costs
There were no questioned costs associated with the identified condition.
Context/Sampling
A nonstatistical sample of eight of out of 14 quarterly reports to the State and one of one annual reports submitted to the State were selected for testing.
Repeat Finding
No.
Recommendation
The District should ensure that all federal expenditures and full-time equivalent positions are reported accurately on the ESSER annual and quarterly reports, and that supporting documentation is maintained to support the amounts reported.