Finding Text
2022-002 50000 (Significant Deficiency and Noncompliance) Federal Program Affected Program Name: COVID-19: Elementary and Secondary Emergency Relief II (ESSER II) Fund Assistance Listing Number: 84.425D Federal Agency: U.S. Department of Education Pass-Through Entity: California Department of Education Compliance Requirement: Equipment and Real Property Management Type of Finding: Significant Deficiency and Noncompliance 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 $71,283 of ESSER II funds on capital expenditures that were not preapproved by the pass-through agency, as required. The District has submitted the request for a retroactive approval in March 2023; however, the District has not received a response. Questioned Costs As a result of the condition identified above, a total of $71,283 in questioned costs were identified. Context The condition was identified as a result of inquiry with the District's Business Services personnel and review of ESSER II expenditures and related invoices. Effect The District currently assumes all the risk of non-compliance with requirements stated under Title 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 the District's lack of awareness of requirements under Title 2, Code of Federal Regulations, Part 200, Subpart E, Section 200.439. Repeat Finding No. Recommendation The District should review the requirements stated in Title 2, Code of Federal Regulations, Part 200, Subpart E, Section 200.439 and implement a procedure to address the deficiency currently identified. Corrective Action Plan and Views of Responsible Officials The District?s Budget and Purchasing Technician will ensure that each department manager submits the requirements with the needs to the State prior to purchasing.