EIN: 580566253
UEI: ZP41TLCAD373
Data as of August 23, 2026
Management decision deadline — for entities that funded this organization
The FAC accepted this audit on January 4, 2024. Under 2 CFR 200.521(d), a pass-through entity that provided federal funds to this organization for this audit period must issue a management decision on these findings by July 4, 2024 (780 days ago).
What is a management decision? →During the course of the auditing procedures, we noted the Association charged the grant direct costs for certain administrative staff without having supporting records reflecting the distribution of these costs to the grant. Questioned costs: $738,000 Context: Of the payroll expenditure population for the grant, totaling approximately $1,645,000, certain administrative staff salaries of approximately $738,000 were allocated and charged to the grant. Effect: The costs do not meet the criteria for charging direct salaries and wages due to not having proper documentation supporting the allocations made. Cause: Due to an ineffective review process of the costs charged to ensure they are properly supported as required under the Uniform Guidance. Recommendation: Management should implement a process to ensure all costs charged to the grant follow Cost Principles and any direct charges to the grant for salaries and wages be properly supported with timesheets supporting the charges. Grantee Comment: Refer to Corrective Action Plan Summary
Show full finding ▾Hide full finding ▴2022-001 Allowable Costs/Activities Allowed Funding Agency: U.S. Department of Education Federal Program Name: Education Stabilization Fund Assistance Listing Number: 84.425 Criteria: Funds spent under the grant must be allowed under Title 2 U.S. Code of Federal Regulations Part 200 Subpart E, Cost Principles (“Cost Principles”). Condition: During the course of the auditing procedures, we noted the Association charged the grant direct costs for certain administrative staff without having supporting records reflecting the distribution of these costs to the grant. Questioned costs: $738,000 Context: Of the payroll expenditure population for the grant, totaling approximately $1,645,000, certain administrative staff salaries of approximately $738,000 were allocated and charged to the grant. Effect: The costs do not meet the criteria for charging direct salaries and wages due to not having proper documentation supporting the allocations made. Cause: Due to an ineffective review process of the costs charged to ensure they are properly supported as required under the Uniform Guidance. Recommendation: Management should implement a process to ensure all costs charged to the grant follow Cost Principles and any direct charges to the grant for salaries and wages be properly supported with timesheets supporting the charges. Grantee Comment: Refer to Corrective Action Plan Summary
The Organization is in the process of addressing the findings identified. The following actions have been taken or are in process: • We have retained a certified public accountng firm (CPA firm) to develop appropriate infrastructure related to federal awards. • We are providing regular and periodic training for staff in the actviies involved in our use of federal awards. • We are evaluating policy and procedures related to the administration of federal awards to achieve alignment with the federal regulations which we are subject to, including federal cost principles. • We are developing the proper procedures for documenting federal awards expenditures by the Organization. • We are evaluating and determining the impact and amount of possible disallowed costs subject to further inquiry together with any calculated disallowed costs which will be communicated with the funding agency and promptly returned. • We are collaborating with any funding agency on next steps to correct any potentual noncompliance. • We are documenting and recognizing reasonable allocaon of direct salaries & wages, and indirect costs, including administrative costs. • We are documenting the classification and application of direct salaries & wages, and indirect costs consistently among all applied grants and locations. • We have engaged a CPA firm to assist in determining the indirect cost rate that ultimately will be approved by our cognizant federal agency. • We are redesigning staffing structure to a) support proper grant administration, b) ensure required documentation is maintained, and c) practie diligent oversight of expenditures and reporting. • Finance and Accounting personnel, in addition to program administration staff, will review expenditures on federal awards, including supporting documentation, before expenses are submited to grantors.
FAC accepted this audit on September 22, 2022 — management decision was due March 22, 2023.
During the course of the auditing procedures, we noted the Association had charges to the grant which were already claimed under the Paycheck Protection Program and Employee Retention Tax Credit federal programs. Questioned costs: $361,000 Context: Of the payroll expenditure population for the grant, totaling approximately $2,191,000, certain charges were made for the same payroll periods for which Paycheck Protection Program and Employee Retention Tax Credit funds were received. Based on review of payroll periods charged to the Child Care Development Block Grant and payroll roll periods for the Paycheck Protection Program and Employee Retention Tax Credit, an estimated of approximately $361,000 was calculated to be charged to both the Child Care Development Block Grant and another federal source. Effect: The costs are deemed to be unallowable and potentially need to be refunded to the federal agency. Cause: Due to an ineffective review process of the costs charged to ensure they are not claimed under other federal programs. Recommendation: Management should implement a process to ensure all costs charged to the grant follow Cost Principles and that the same charges are not allocated to multiple federal programs.
Show full finding ▾Hide full finding ▴2021-003 Allowable Costs/Activities Allowed Funding Agency: U.S. Department of Health and Human Services Grant: Child Care Development Block Grant CFDA Number: 93.575 Criteria: Funds spent under the grant must be allowed under Title 2 U.S. Code of Federal Regulations Part 200 Subpart E, Cost Principles (?Cost Principles?). Condition: During the course of the auditing procedures, we noted the Association had charges to the grant which were already claimed under the Paycheck Protection Program and Employee Retention Tax Credit federal programs. Questioned costs: $361,000 Context: Of the payroll expenditure population for the grant, totaling approximately $2,191,000, certain charges were made for the same payroll periods for which Paycheck Protection Program and Employee Retention Tax Credit funds were received. Based on review of payroll periods charged to the Child Care Development Block Grant and payroll roll periods for the Paycheck Protection Program and Employee Retention Tax Credit, an estimated of approximately $361,000 was calculated to be charged to both the Child Care Development Block Grant and another federal source. Effect: The costs are deemed to be unallowable and potentially need to be refunded to the federal agency. Cause: Due to an ineffective review process of the costs charged to ensure they are not claimed under other federal programs. Recommendation: Management should implement a process to ensure all costs charged to the grant follow Cost Principles and that the same charges are not allocated to multiple federal programs.
The Organization is in the process of addressing material weakness and questioned costs by performing the following: ? Putting a review process in place to ensure all funding received is being used appropriately as directed by the fund. ? Consistently tracking all costs charged to ensure they are not claimed under other federal grants or programs. Responsible Official: Vice President of Finance, Director of Internal Audit Anticipated Completion Date: 12/01/2022
Data source: This information comes from the Federal Audit Clearinghouse, the official repository of Single Audit data. All data is public domain. Verify this organization's audit history at fac.gov.
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