Finding Text
Federal Agency: U.S. Department of Education
Pass-Through Entity: California Department of Education
Program Name: COVID-19 – Education Stabilization Fund
Federal Financial Assistance Listing: 84.425D, 84.425U, 84.425W
Compliance Requirements: L – Reporting
Type of Finding: Material Weakness and Noncompliance
Criteria or Specific Requirements
Title 2 Code of Federal Regulations 200.328 requires financial reports to be collected no less than annually. Reports should reflect financial information for the period reported on.
Condition
The District charged unallowable direct and indirect costs to the program totaling $1,172,676 which resulted in expenditure reports reflecting unallowable expenditures.
Cause
The cause appears to be due to lack of sufficient internal controls over compliance with reporting requirements.
Effect
The District is not in compliance with Reporting related to the Education Stabilization Fund program.
Questioned Costs
There are no questioned costs identified.
Context/Sampling:
Inaccurate reporting was identified through a review accounts payable for the District as a whole which identified unallowable costs charged to the program.
Repeat Finding
No.
Recommendation
The District should implement controls to ensure that all reports are prepared accurately.