CREATIVE CHURCHNon-Profit

CFDA# 10.558 Child and Adult Care Food Program and CFDA# 10.559 Summer Food Service Program Grant Numbers ED-02409-04E and ED-02372-04E Minnesota Department of Education Finding 2021-001 Allowable Costs/Cost Principles Material Weakness Criteria: OMB?s Uniform Guidance requires nonfederal entities to establish and maintain effective internal control over federal awards that provides reasonable assurance that the awards are being managed in compliance with federal statutes, regulations, and the terms and conditions of the federal award. Condition and Context: The Organization did not document its system of internal control over compliance in a manner that would comply with the requirements of OMB Uniform Guidance. Cause: The Organization?s staff did not receive training on OMB Uniform Guidance guidelines specific to internal control over compliance. Effect: There is a risk that transactions could have occurred that were not in compliance. Questioned Costs: None Repeat Finding: No Recommendation: The Organization?s staff should obtain additional training on Uniform Guidance and federal grant management and create a system of internal control over compliance prior to expending any additional federal awards. Views of Responsible Officials: Explanation of Disagreement with Audit Finding: Creative Church is in agreement with the audit finding. Actions Planned in Response to the Finding: Organization staff will be trained on OMB Uniform Guidance requirements to enable the staff to create and maintain a system of internal control over compliance, prior to the expenditure of additional federal grants. Official Responsible for Ensuring the CAP: Chief Financial Officer Planned Completion Date for the CAP: April 30, 2023

CFDA#10-558 Child and Adult Care Food Program and CFDA #10-559 Summer Food Service Program Grant Numbers ED-02409-04E and ED-02372-04E Minnesota Department of Education Finding 2021-002 Allowable Costs/Cost Principles Significant Deficiency Criteria: OMB?s Uniform Guidance requires that charges to federal awards for personnel expenses must be based on records that accurately reflect the work performed, which must be supported by a system of internal control that provides reasonable assurance that the charges are accurate, allowable, and properly allocated and reasonably reflect the total activity for which the employee is compensated by the Organization. Condition and Context: The Organization?s system of internal control over payroll (time and effort reporting) is not comprehensive enough to meet the requirements of OMB Uniform Guidance. Cause: The Organization?s staff did not receive training specific to the Standards for Documentation of Personnel Expenses contained within OMB Uniform Guidance that would have enabled them to comply with this requirement. Effect: Time reporting did not distinguish between federally assisted activities and other activities for both hourly and salaried employees. Also, time reporting did not contain sufficient documentation of supervisory approvals. Questioned Costs: None Repeat Finding: No Recommendation: The Organization?s staff should obtain additional training on Uniform Guidance and federal grant management and create a system of time and effort reporting that will meet the Standards for Documentation of Personnel Expenses included in OMB Uniform Guidance. Views of Responsible Officials: Explanation of Disagreement with Audit Finding: Creative Church is in agreement with the audit finding. Actions Planned in Response to the Finding: Organization staff will be trained on OMB Uniform Guidance requirements and related aspects of federal grant management prior to the expenditure of any additional federal awards, to enable the staff to create and maintain a time and effort reporting system that effectively addresses the requirements in OMB Uniform Guidance. Official Responsible for Ensuring the CAP: Chief Financial Officer Planned Completion Date for the CAP: April 30, 2023

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