Finding Text
FINDING 2022-002: EDUCATION STABILIZATION FUND DISCRETIONARY GRANTS? EQUIPMENT AND REAL PROPERTY MANAGEMENT (50000 & 30000) CFDA Number and Title: 84.425 and 84.425C - Education Stabilization Fund Discretionary Grants: Governor's Emergency Education Relief (GEER) Fund and Elementary, Secondary School Emergency Relief (ESSER) Fund Federal Grantor Name: U.S. Department of Education; Passed through California Department of Education Criteria: Consistent with 2 CFR section 200.311 (real property), section 200.313 (equipment), and section 200.439 (equipment and other capital expenditures) Education Stabilization Funds (ESF) may be used to purchase equipment. Capital expenditures for general and special purpose equipment purchases are subject to prior approval by Education Department (ED) or the pass-through entity. In addition, with prior approval by the ED or the pass-through entity, recipients and subrecipients may use ESF funds to purchase real property and perform construction for improvements to land, buildings, or equipment that meet the overall purpose of the ESF program, which is ?to prevent, prepare for, and respond to? the COVID-19 pandemic. Condition: The Charter used funding from the Elementary and Secondary School Emergency Relief II (ESSER II) Fund program for one capital expenditure. The funding terms and conditions require the Charter to obtain approval from the funding agency prior to incurring the expenditure. The Charter was unable to provide documentation that the required approval was obtained. Cause: The error is a result of the Charter not understanding the terms and conditions of the requirements of the grant agreement. Effect: The effect of not obtaining the required approval resulted in a total of $90,000 in allowable ESF expenditures. Additionally, this error could result in potential loss of funding under this grant. Context: Due to new COVID-19 Emergency Acts Funding this fiscal year, the Charter was unaware this was a requirement for ESSER and GEER. Questioned Costs: The questioned cost is $90,000. Repeat Finding: This is not a repeat finding. Recommendation: We recommend the Charter develop and implement policies and procedures whereby staff obtain an understanding of the funding terms and conditions of all grants in order to prevent future violations of compliance requirements. We recommend the Charter develop and implement policies and procedures whereby staff obtain an understanding of the funding terms and conditions of all grants in order to prevent future violations of compliance requirements. Management should obtain proper training through the appropriate regulatory and granting agencies.