Finding 959338 (2023-003)

Significant Deficiency
Requirement
AB
Questioned Costs
$1
Year
2023
Accepted
2024-03-21
Audit: 296464
Auditor: Eide Bailly LLP

AI Summary

  • Core Issue: The District charged $60,501 in unallowable indirect costs to the Child Nutrition Cluster.
  • Impacted Requirements: Compliance with California Education Code Section 38101(c), which limits indirect costs for school districts.
  • Recommended Follow-Up: Establish a review process for indirect costs, ensuring alignment with grant agreements and federal guidance.

Finding Text

Federal Program Affected Federal Agency: U.S. Department of Agriculture Pass-Through Entity: California Department of Education (CDE) Program Name: Child Nutrition Cluster Assistance Listing Number: 10.553, 10.555 Compliance Requirement: A/B (Activities Allowed or Unallowed and Allowable Costs/Cost Principles) 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 Child Nutrition Cluster in fiscal year 2022-2023, California 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. Condition The District charged unallowable indirect costs totaling $60,501 to the Child Nutrition Cluster. Questioned Costs The condition identified above resulted in $60,501 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.

Categories

Questioned Costs Allowable Costs / Cost Principles

Other Findings in this Audit

  • 382890 2023-002
    Significant Deficiency
  • 382891 2023-002
    Significant Deficiency
  • 382892 2023-002
    Significant Deficiency
  • 382893 2023-002
    Significant Deficiency
  • 382894 2023-002
    Significant Deficiency
  • 382895 2023-002
    Significant Deficiency
  • 382896 2023-003
    Significant Deficiency
  • 382897 2023-003
    Significant Deficiency
  • 382898 2023-003
    Significant Deficiency
  • 382899 2023-003
    Significant Deficiency
  • 382900 2023-003
    Significant Deficiency
  • 382901 2023-003
    Significant Deficiency
  • 959332 2023-002
    Significant Deficiency
  • 959333 2023-002
    Significant Deficiency
  • 959334 2023-002
    Significant Deficiency
  • 959335 2023-002
    Significant Deficiency
  • 959336 2023-002
    Significant Deficiency
  • 959337 2023-002
    Significant Deficiency
  • 959339 2023-003
    Significant Deficiency
  • 959340 2023-003
    Significant Deficiency
  • 959341 2023-003
    Significant Deficiency
  • 959342 2023-003
    Significant Deficiency
  • 959343 2023-003
    Significant Deficiency

Programs in Audit

ALN Program Name Expenditures
84.367 Improving Teacher Quality State Grants $1.97M
10.553 School Breakfast Program $1.64M
10.555 National School Lunch Program $1.19M
84.365 English Language Acquisition State Grants $886,585
84.424 Student Support and Academic Enrichment Program $513,967
84.048 Career and Technical Education -- Basic Grants to States $356,367
84.126 Rehabilitation Services_vocational Rehabilitation Grants to States $348,113
84.002 Adult Education - Basic Grants to States $265,005
84.010 Title I Grants to Local Educational Agencies $207,804
84.181 Special Education-Grants for Infants and Families $91,510
16.839 Stop School Violence $52,377
84.425 Education Stabilization Fund $35,489
10.558 Child and Adult Care Food Program $30,150
10.665 Schools and Roads - Grants to States $19,185
84.027 Special Education_grants to States $14,922
84.173 Special Education_preschool Grants $2,881