Finding Text
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 $15,807 to the ELO Grant portion of the ESF Program. Questioned Costs The condition identified above resulted in $15,807 of questioned costs for unallowable indirect costs charged to the grant funds. Context/Sampling The condition was identified through recalculation of all 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 implement a review process for indirect costs, which should include review of relevant grant agreements and relevant federal guidance.