Finding 961381 (2023-003)

Significant Deficiency
Requirement
L
Questioned Costs
-
Year
2023
Accepted
2024-03-26
Audit: 297979
Organization: Palmdale Aerospace Academy (CA)
Auditor: Eide Bailly LLP

AI Summary

  • Core Issue: The Organization failed to keep necessary financial records for federal awards, violating retention requirements.
  • Impacted Requirements: Noncompliance with Title 2, CFR, Section 200.333, which mandates retaining records for three years.
  • Recommended Follow-Up: Implement procedures to ensure all federal expenditure reports are backed by proper financial documentation and retained as required.

Finding Text

50000 – Reporting (Significant Deficiency in Internal Controls, Noncompliance) Federal Agency: U.S. Department of Education Pass‐Through Entity: California Department of Education Program Name: Education Stabilization Fund Assistance Listing Numbers: 84.425D, 84.425U Criteria or Specific Requirements Per Title 2, Code of Federal Regulations, Part 200, Subpart D, Section 200.333, financial records and supporting documents pertinent to a Federal award must be retained for a period of three years from the date of submission of expenditure reports to the awarding agency or passthrough entity. Condition The Organization was unable to provide financial records or supporting documents that agreed to the expenditure information reported to the California Department of Education. Questioned Costs There were no questioned costs associated with the identified condition. Context The condition was identified through inquiry with Organization personnel and through the unsuccessful request to review available supporting documentation. Effect The Organization has not complied with the requirement identified in Title 2, Code of Federal Regulations, Part 200, Subpart D, Section 200.333. Cause The identified condition appears to have materialized due to insufficient procedures related to the retention of financial records. Repeat Finding Yes, see prior year finding 2022‐003. Recommendation The Organization should ensure that all federal expenditure reports are supported by financial reports. These records should be maintained for a period of three years from the date of submission of the expenditure reports to the awarding agency or pass‐through entity.

Categories

Reporting Significant Deficiency Internal Control / Segregation of Duties

Other Findings in this Audit

  • 384934 2023-002
    Significant Deficiency Repeat
  • 384935 2023-002
    Significant Deficiency Repeat
  • 384936 2023-002
    Significant Deficiency Repeat
  • 384937 2023-003
    Significant Deficiency
  • 384938 2023-003
    Significant Deficiency
  • 384939 2023-003
    Significant Deficiency
  • 961376 2023-002
    Significant Deficiency Repeat
  • 961377 2023-002
    Significant Deficiency Repeat
  • 961378 2023-002
    Significant Deficiency Repeat
  • 961379 2023-003
    Significant Deficiency
  • 961380 2023-003
    Significant Deficiency

Programs in Audit

ALN Program Name Expenditures
84.010 Title I Grants to Local Educational Agencies $829,005
10.555 National School Lunch Program $371,066
84.027 Special Education_grants to States $338,982
84.425 Education Stabilization Fund $171,673
10.553 School Breakfast Program $127,613
84.367 Improving Teacher Quality State Grants $108,788