Finding Text
2022-002 50000 ? Education Stabilization Fund ? Indirect Costs (Significant Deficiency, Noncompliance)Federal Program Affected: Program Name: Expanded Learning Opportunities (ELO) Grant ESSER II State Reserve Assistance Listing Number: 84.425D Pass-Through Agency: California Department of Education (CDE) Federal Agency: U.S. Department of Education Program Name: Expanded Learning Opportunities (ELO) Grant GEER II Assistance Listing Number: 84.425C Pass-Through Agency: California Department of Education (CDE) Federal Agency: U.S. Department of Education Program Name: Expanded Learning Opportunities (ELO) Grant: ESSER III State Reserve, Emergency Needs Assistance Listing Number: 84.425U Pass-Through Agency: California Department of Education (CDE) Federal Agency: U.S. Department of Education Program Name: Expanded Learning Opportunities (ELO) Grant: ESSER III State Reserve Learning Loss Assistance Listing Number: 84.425U Pass-Through Agency: California Department of Education (CDE) Federal Agency: U.S. Department of Education Criteria or Specific Requirements: The United States Department of Education has approved a delegation agreement with the California Department of Education (CDE) that authorizes the CDE to establish indirect cost rates for California local education agencies (LEAs). The CDE has been delegated authority to calculate and approve indirect cost rates annually for LEAs. For the Education Stabilization Fund (ESF) Program in fiscal year 2021-2022, Education Code Section 38101(c) limits school district indirect costs to the lesser of the District?s individual CDE approved indirect cost rate or the statewide average indirect rate. For ESF programs included under the Expanded Learning Opportunities (ELO) Grant, indirect costs are not allowable. Condition: The District charged unallowable indirect costs totaling $59,734 to the ELO Grant portion of the ESF Program. Questioned Costs: The condition identified above resulted in $59,734 of questioned costs for unallowable indirect costs charged to the grant funds. Context: The condition was identified through recalculation of the indirect costs charged to the federal programs. Effect: The District has charged unallowable expenditures to the federal programs. Cause: The condition identified appears to be due to the District not being familiar with the indirect cost requirements for each of the federal programs. Repeat Finding: No. Recommendation: It is recommended that the District implements a review process for indirect costs, which should include review of relevant grant agreements and relevant federal guidance. Corrective Action Plan and Views of Responsible Officials The District will review and verify with District auditors all funding programs to verify allowable indirect costs.