WEDIKO CHILDREN'S SERVICES, INC.Non-Profit

(2) Federal Award Findings and Questioned Costs DEPARTMENT OF EDUCATION Item #2020-001 (Prior period Item #2019-001) - Twenty-First Century Community Learning Centers - CFDA No. 84.287; Grant period ? Period ended March 31, 2020. Criteria: The Office of Management and Budget (OMB) has issued Uniform Administrative Requirements, Cost Principles, and Audit Requirements for Federal Awards (commonly called "Uniform Guidance"), which requires institutions of higher education and nonprofit institutions that expend $750,000 or more in federal funds to annually conduct a detailed, organization-wide audit that complies with the established criteria. Condition: A detailed, organization-wide audit that complies with Uniform Guidance established criteria was not timely completed and submitted to OMB. Cause: There was a lack of sufficient internal controls in place to identify federal awards. Effect or Potential Effect: A detailed, organization-wide audit that complies with the established criteria was not timely completed resulting in the Agency not being in compliance with Uniform Guidance requirements. Questioned Costs: N/A Context: N/A Identification as a Repeat Finding: Yes Recommendation: The Agency should implement adequate internal controls to ensure federal awards are timely identified and closely review its obligations under any programs in which federal funds are received in order to ensure timely completion of a Uniform Guidance audit, as required. Views of Responsible Officials and Planned Corrective Actions: The Agency agrees with the finding. Effective April 1, 2020, Wediko Children?s Services, Inc. merged with The Home for Little Wanderers (HFLW), a Boston based non-profit organization. Management of HFLW believes it has adequate controls in place to ensure federal awards are timely identified to ensure timely completion of a Uniform Guidance audit, as required, going forward.

(2) Federal Award Findings and Questioned Costs - continued DEPARTMENT OF EDUCATION - continued Item #2020-002 (Prior period Item #2019-002) - Twenty-First Century Community Learning Centers - CFDA No. 84.287; Grant period ? Period ended March 31, 2020. Criteria: The Office of Management and Budget (OMB) has issued the Compliance Supplement, which requires organizations to have a system of internal controls in place which ensures that supporting documentation for costs allocated to federal programs is maintained. Condition: The ?Semi- Annual Certification Form Single Cost Objective? forms as required to support payroll costs allocated to the federal program was not maintained. Cause: A system of internal controls was not in place to ensure the ?Semi- Annual Certification Form Single Cost Objective? forms for payroll costs allocated to the federal program were maintained. Effect or Potential Effect: The payroll costs may be disallowed and subject to recovery by the cognizant agency. Questioned Costs: $22,674 Context: A sample of 25 individual payroll transactions, covering 10 separate employees, totaling $143,153 was selected for testing from a population of over 250 payroll transactions totaling $576,993. The Agency was not able to provide the signed ?Semi-Annual Certification Form Single Cost Objective? forms for one of the employees selected for testing and another did not match the form. Management indicated that they were not able to locate the supporting documentation. In addition, $3,935 of benefit costs were charged to the contract based on a percentage of the questioned payroll costs. Identification as a Repeat Finding: Yes Recommendation: The Agency should implement adequate controls to ensure proper supporting documentation for payroll costs allocated to federal programs is maintained. Views of Responsible Officials and Planned Corrective Actions: The Agency agrees with the finding. Effective April 1, 2020, Wediko Children?s Services, Inc. merged with The Home for Little Wanderers (HFLW), a Boston based non-profit organization. Management of HFLW believes it has adequate controls in place to ensure proper supporting documentation for payroll costs allocated to federal programs is maintained going forward.

(2) Federal Award Findings and Questioned Costs DEPARTMENT OF EDUCATION Item #2019-001 (Prior period Item #2018-001) - Twenty-First Century Community Learning Centers - CFDA No. 84.287; Grant period ? Year ended June 30, 2019. Criteria: The Office of Management and Budget (OMB) has issued Uniform Administrative Requirements, Cost Principles, and Audit Requirements for Federal Awards (commonly called "Uniform Guidance"), which requires institutions of higher education and nonprofit institutions that expend $750,000 or more in federal funds to annually conduct a detailed, organization-wide audit that complies with the established criteria. Condition: A detailed, organization-wide audit that complies with Uniform Guidance established criteria was not timely completed and submitted to OMB. Cause: There was a lack of sufficient internal controls in place to identify federal awards. Effect or Potential Effect: A detailed, organization-wide audit that complies with the established criteria was not timely completed resulting in the Agency not being in compliance with Uniform Guidance requirements. Questioned Costs: N/A Context: N/A Identification as a Repeat Finding: Yes Recommendation: The Agency should implement adequate internal controls to ensure federal awards are timely identified and closely review its obligations under any programs in which federal funds are received in order to ensure timely completion of a Uniform Guidance audit, as required. Views of Responsible Officials and Planned Corrective Actions: The Agency agrees with the finding. Effective April 1, 2020, Wediko Children?s Services, Inc. merged with The Home for Little Wanderers (HFLW), a Boston based non-profit organization. Management of HFLW believes it has adequate controls in place to ensure federal awards are timely identified to ensure timely completion of a Uniform Guidance audit, as required, going forward.

(2) Federal Award Findings and Questioned Costs - continued DEPARTMENT OF EDUCATION - continued Item #2019-002 (Prior period Item #2018-002) - Twenty-First Century Community Learning Centers - CFDA No. 84.287; Grant period ? Year ended June 30, 2019. Criteria: The Office of Management and Budget (OMB) has issued the Compliance Supplement, which requires organizations to have a system of internal controls in place which ensures that supporting documentation for costs allocated to federal programs is maintained. Condition: The ?Semi- Annual Certification Form Single Cost Objective? forms as required to support payroll costs allocated to the federal program was not maintained. Cause: A system of internal controls was not in place to ensure the ?Semi- Annual Certification Form Single Cost Objective? forms for payroll costs allocated to the federal program was maintained. Effect or Potential Effect: The payroll costs may be disallowed and subject to recovery by the cognizant agency. Questioned Costs: $856,034 Context: A sample of 25 individual payroll transactions, covering 10 separate employees, totaling $224,732 was selected for testing from a population of over 250 payroll transactions totaling $707,466. The Agency was not able to provide the signed ?Semi-Annual Certification Form Single Cost Objective? forms for any of the employees selected for testing. Management indicated that no 2019 forms could be provided as they were not maintained in employee files and management is unable to locate the supporting documentation. In addition, $148,568 of benefit costs were charged to the contract based on a percentage of the total payroll costs. Identification as a Repeat Finding: Yes Recommendation: The Agency should implement adequate controls to ensure proper supporting documentation for payroll costs allocated to federal programs is maintained. Views of Responsible Officials and Planned Corrective Actions: The Agency agrees with the finding. Effective April 1, 2020, Wediko Children?s Services, Inc. merged with The Home for Little Wanderers (HFLW), a Boston based non-profit organization. Management of HFLW believes it has adequate controls in place to ensure proper supporting documentation for payroll costs allocated to federal programs is maintained going forward.

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