Indiana Afterschool Network, Inc.

FINDING 2022-001 DOCUMENT RETENTION SIGNIFICANT DEFICIENCY Federal Program: Child Care Development Block Grant Assistance Listing Number: 93.575 Criteria Per 7 CFR 200.334, ?Financial records, supporting documents, statistical records, and all other non- Federal entity records pertinent to a Federal award must be retained for a period of three years from the date of submission of the final expenditure report or, for Federal awards that are renewed quarterly or annually, from the date of the submission of the quarterly or annual financial report, respectively, as reported to the Federal awarding agency or pass-through entity in the case of a subrecipient.? Condition Salary expenses were included in the administrative costs applied to the program. Employees were to be applied to the program based on percentages set in the grant budget. IAN did not maintain documentation to support the amounts for each employee applied to the program during the year. Total payroll costs were provided for these employees. It was determined that total salary expenses applied to the grant were within the budget allotment, and no questioned costs were identified. Cause IAN did not maintain documentation to show amounts applied to the program by individual employees. Effect We were unable to see how much of each employee?s salary was specifically applied to the grant. Recommendation We recommend IAN develop internal controls requiring the maintenance of documentation to support employee allocations to federal programs. Views of Responsible Officials The School?s Corrective Action Plan is included on page 25.

FINDING 2021-002 ALLOWABLE COSTS SIGNIFICANT DEFICIENCY Federal Program: Child Care Development Block Grant Assistance Listing Number: 93.575 Condition Indiana Afterschool Network, Inc. (?IAN?) contracted with a company to process payments of approved scholarships. IAN provided the contractor with an initial deposit of $1,000,000 to use to pay scholarship amounts. IAN identified incorrect payments were being made by the contractor and attempted to reconcile the issue and obtain a refund from the contractor of funds not yet paid out. The contractor paid $601,878 in approved claims and refunded $366,909 to IAN, resulting in an unreconciled difference of $31,213 due to funds paid by the contractor in error. Criteria 2 CFR ?200.405(a) states: A cost is allocable to a particular Federal award or other cost objective if the goods or services involved are chargeable or assignable to that Federal award or cost objective in accordance with relative benefits received. This standard is met if the cost: 1) Is incurred specifically for the Federal award; 2) Benefits both the Federal award and other work of the non-Federal entity and can be distributed in proportions that may be approximated using reasonable methods; and 3) Is necessary to the overall operation of the non-Federal entity and is assignable in part to the Federal award in accordance with the principles in this subpart. Cause IAN did not have adequate oversight of the contractor to ensure proper use and disbursement of funds. Effect IAN was unable to account for $31,213 of federal expenditures. Questioned Costs: $31,213 Recommendation We recommend Indiana Afterschool Network, Inc. develop internal controls to ensure adequate oversight of contractors to ensure further questioned costs do not occur. Views of Responsible Officials and Planned Corrective Actions Indiana Afterschool Network, Inc.?s Corrective Action Plan is included on pages 24 - 26.