Finding Text
Federal Agency: U.S. Department of Education Pass-Through Entity: California Department of Education (CDE) Program Name: Title I, Part A, Basic Grants Low-Income and Neglected Assistance Listing Number: 84.010 Compliance Requirement: G Criteria or Specific Requirements Title 34, Code of Federal Regulations, Part 299, Subpart D, Section 299.5 requires an Organization receiving funds for Title I, Part A, Basic Grants Low-Income and Neglected program may receive its full allocation of funds only if the SEA finds that either the combined fiscal effort per student or the aggregate expenditures of State and local funds with respect to the provision of free public education in the LEA for the preceding fiscal year was not less than 90% of the combined fiscal effort per student or the aggregate expenditures for the second preceding fiscal year. Condition While the Organization did meet the required maintenance of effort requirement as outlined in Title 34, Code of Federal Regulations, Part 299, Subpart D, Section 299.5, the calculation that was provided to the auditor did not reconcile back to the general ledger. Questioned Costs There were no direct questioned costs associated with the condition identified. Context The condition was identified as a result of inquiry with the Organization?s Business Services personnel and through review of the Every Student Succeeds Act Maintenance of Effort form. Effect The Organization?s controls and procedures related to the preparation of the calculation failed to detect the input errors on the calculation. Cause The condition identified appears to have materialized due to clerical oversight and lack of appropriate review. Repeat Finding Yes, see finding 2021-003. Recommendation The Organization should review the requirement stated in Title 34, Code of Federal Regulations, Part 299, Subpart D, Section 299.5 and implement a procedure to address the deficiency currently identified with the Organization?s documentation of procurement processes.