Recurring Findings

Education: Recurring Material Internal Control Deficiencies
Federal Program Issue First Year Reported
Department's Assertion Page Number
Career and Technical Education--Basic Grants to States Education does not monitor the Board of Governors of the California Community Colleges (CCC) use of pass-through federal awards. Education considers CCC a vendor, but the interagency defines a subrecipient relationship, thus requiring Education to monitor the federal awards. 2009-10
Partially corrected. For the fiscal year 2011-12, Education has added a monitoring clause to interagency contracts with the CCC. Education is currently exploring the development of formal procedures for monitoring the CCC. 124
Child Care Development Fund Cluster: ARRA - Child Care and Development Block Grant Education is not identifying to each of its subrecipients the federal award number at the time of subaward. In addition, at the time of disbursement, Education is not informing subrecipients of the federal award number, Catalog of Federal Domestic Assistance (CFDA) number, and amount of Recovery Act funds. 2009-10
Remains Uncorrected. Education will identify the appropriate CFDA numbers on all future grant awards. Education identifies and treats Recovery Act funds uniquely from non-Recovery Act funds. As required under Recovery Act, the Recovery Act grant awards include grant conditions informing grantees that the Recovery Act funds must be tracked separately from non-Recovery Act funds. In order for local educational agencies (LEAs) to track the funds separately, each Recovery Act grant award has a unique: (1) grant award name, (2) Program Cost Account (PCA), and (3) Standardized Account Code Structure (SACS) resource code. Furthermore, LEAs are required to report Recovery Act 1512 data using the unique Recovery Act PCA and SACS resource codes. 137
National School Lunch Program Nine out of 12 subrecipientcontracts with food services management companies lacked documentation within Education's Child Nutrition Information and Payment System (CNIPS) that such contracts had been approved. In addition, Education did not implement appropriate internal controlsto ensure the approval of a contract is documented within CNIPS. Furthermore, adequate monitoring procedures were not performed to ensure the documentation existed prior to reimbursements to subrecipients. 2009-10
Partially corrected. The Nutrition Services Division (NSD) is developing a Food Service Management Company (FSMC) registry with prototype contracts and bid documents. Once the FSMC registry is fully developed and implemented, school nutrition program sponsors will only be allowed to contract with the registered and approved FSMCs. In addition, Education is exploring the feasibility of creating a new unit devoted solely to FSMC bid/contract administration, technical assistance, and training. 107
School Breakfast Program Nine out of 12 subrecipientcontracts with food services management companies lacked documentation within Education's Child Nutrition Information and Payment System (CNIPS) that such contracts had been approved. In addition, Education did not implement appropriate internal controlsto ensure the approval of a contract is documented within CNIPS. Furthermore, adequate monitoring procedures were not performed to ensure the documentation existed prior to reimbursements to subrecipients. 2009-10
Partially corrected. The Nutrition Services Division (NSD) is developing a Food Service Management Company (FSMC) registry with prototype contracts and bid documents. Once the FSMC registry is fully developed and implemented, school nutrition program sponsors will only be allowed to contract with the registered and approved FSMCs. In addition, Education is exploring the feasibility of creating a new unit devoted solely to FSMC bid/contract administration, technical assistance, and training. 107
Special Education Cluster: Special Education--Grants to States--Recovery Act Education is not identifying and documenting the federal award number to each of its subrecipients at the time of subaward. In addition, at the time of disbursement of Recovery Act funds, Education is not informing subrecipients of the federal award number, Catalog of Federal Domestic Assistance (CFDA) number, and amount of Recovery Act funds. 2009-10
Fully corrected. Education will identify the appropriate CFDA numbers on all future grant awards. Education identifies and treats Recovery Act funds uniquely from non-Recovery Act funds. As required under the Recovery Act, the Recovery Act grant awards include grant conditions informing grantees that the Recovery Actfunds must be tracked separately from non-Recovery Act funds. In order for local educational agencies to track the funds separately, each Recovery Act grant award has a unique: (1) grant award name, (2) Program Cost Account (PCA), and (3) Standardized Account Code Structure (SACS) resource code. Furthermore, LEAs are required to report Recovery Act 1512 data using the unique Recovery Act PCA and SACS resource codes. 129
Special Education Cluster: Special Education--Preschool Grants--Recovery Act Education is not identifying and documenting the federal award number to each of its subrecipients at the time of subaward. In addition, at the time of disbursement of Recovery Act funds, Education is not informing subrecipients of the federal award number, Catalog of Federal Domestic Assistance (CFDA) number, and amount of Recovery Act funds. 2009-10
Fully corrected. Education will identify the appropriate CFDA numbers on all future grant awards. Education identifies and treats Recovery Act funds uniquely from non-Recovery Act funds. As required under the Recovery Act, the Recovery Act grant awards include grant conditions informing grantees that the Recovery Actfunds must be tracked separately from non-Recovery Act funds. In order for local educational agencies to track the funds separately, each Recovery Act grant award has a unique: (1) grant award name, (2) Program Cost Account (PCA), and (3) Standardized Account Code Structure (SACS) resource code. Furthermore, LEAs are required to report Recovery Act 1512 data using the unique Recovery Act PCA and SACS resource codes. 129
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