Report 2012-044 Recommendation 5 Responses
Report 2012-044: California Department of Education: Despite Some Improvements, Oversight of the Migrant Education Program Remains Inadequate (Release Date: February 2013)
Recommendation #5 To: Education, Department of
As part of the reviews based on quarterly reports, Education should verify that regions are using the appropriate accounting codes to classify their expenditures.
Annual Follow-Up Agency Response From November 2016
Fully implemented. To verify that subgrantees are correctly classifying expenditures according to accounting codes, Education redesigned the quarterly expenditure reports to align with the more detailed grant application budget formats, including object and resource codes. In addition, the Migrant Education
Program (MEP) Fiscal Handbook (Appendix A: Object Classification Codes) requires subgrantees to follow definitions, instructions and procedures in the California School Accounting Manual (CSAM), as well as to select the appropriate object classification codes and check for updates to the handbook.
- Completion Date: June 2015
California State Auditor's Assessment of Annual Follow-Up Status: Fully Implemented
Education approves regional budgets that establish the accounting codes that regions use to charge expenditures. Education conducts quarterly reviews to determine whether regions have remained on budget under each account code. Education has directed its staff to review any cases where a region's expenditures exceed the budgeted amount in any accounting code by greater than $3,500. Performing these reviews helps Education identify any expenditures that were charged to an incorrect accounting code.
Annual Follow-Up Agency Response From October 2015
Education considers this recommendation fully implemented. As reported in Education's one-year response dated March 24, 2014, the quarterly expenditure reports have been redesigned to reflect the more detailed RA and DSA budget formats. The expenditure reports provide detailed region expenditures by object and resource codes that align with the approved budget expenditures in the RA. The increased level of detail is utilized by Education to verify that regions are using the appropriate accounting codes to classify expenditures.
- Completion Date: March 2014
California State Auditor's Assessment of Annual Follow-Up Status: Pending
As indicated under recommendation number three, Education has not yet developed expenditure reports that would allow it to identify individual expenditures. As such, we do not agree that its expenditure forms would allow it to ensure that regions are using the appropriate accounting codes to classify expenditures.
- Auditee did not substantiate its claim of full implementation
- Auditee did not address all aspects of the recommendation
Annual Follow-Up Agency Response From October 2014
Education considers this recommendation fully implemented. As reported in Education's one-year response dated March 24, 2014, The quarterly expenditure reports have been redesigned to reflect the new, more detailed, RA and DSA budget formats. The expenditure reports provide detailed region expenditures by object and resource codes to align with the approved budget expenditures in the RA. The increased level of detail will be utilized by Education to verify that regions are using the appropriate accounting codes to classify expenditures.
- Completion Date: March 2014
California State Auditor's Assessment of Annual Follow-Up Status: Pending
As noted in recommendation three, the expenditure reports that Education asks regions to complete do not include an expenditure level of detail. Without this level of detail, Education cannot determine if a region is appropriately using certain accounting codes with certain types of expenditures.
- Auditee did not address all aspects of the recommendation
1-Year Agency Response
The quarterly expenditure reports have been redesigned to reflect the new, more detailed, RA and DSA budget formats. The expenditure reports provide detailed region expenditures by object and resource codes to align with the approved budget expenditures in the RA. The increased level of detail will be utilized by Education to verify that regions are using the appropriate accounting codes to classify expenditures.
- Completion Date: March 2014
- Response Date: March 2014
California State Auditor's Assessment of 1-Year Status: Pending
As noted in recommendation three, the expenditure reports that Education asks regions to complete do not include an expenditure level of detail. Without this level of detail, Education cannot determine if a region is appropriately using certain accounting codes with certain types of expenditures.
- Auditee did not substantiate its claim of full implementation
- Auditee did not address all aspects of the recommendation
6-Month Agency Response
Education will ensure that reviews of quarterly reports include verification that regions are using the appropriate accounting codes by revising the current regional expenditure report format and implementing the activities outlined in status update to Recommendations No. 3 and 4.
- Estimated Completion Date: 2013-14
- Response Date: August 2013
California State Auditor's Assessment of 6-Month Status: Pending
60-Day Agency Response
Education is revising the current budget expenditure report to align with the changes that the U.S Department of Education made to the RA for 2013-14. In addition, Education is developing a MEP expenditure review process in which regions will be selected on a rotating basis to ensure that applicable federal and state criteria are being met. As part of these reviews, Education will provide ongoing technical assistance in addition to other specific technical assistance meetings.
- Response Date: May 2013
California State Auditor's Assessment of 60-Day Status: Pending
All Recommendations in 2012-044
Agency responses received after June 2013 are posted verbatim.