EIN: 593688924
UEI: JTJWAGHNBKZ4
Audited by: MOSS, KRUSICK & ASSOCIATES, LLC
Cognizant agency: 93 [Department of Health and Human Services]
Data as of August 27, 2026
Management decision deadline — for entities that funded this organization
The FAC accepted this audit on March 12, 2020. 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 September 12, 2020 (2176 days ago).
What is a management decision? →Information on Federal Program(s) - Temporary Assistance for Needy Families, 93.558, U.S. Department of Health and Human Services and Child Care and Development Cluster, 93.575/93.596, U.S. Department of Health and Human Services, Grant Number EL169, Passed through Florida?s Office of Early Learning (Referred to by Florida?s Office of Early Learning (?OEL?) as the School Readiness Program (?SR Program?). Criteria or Specific Requirement ? The Department of Health and Human Services requires that at least 70% of the mandatory and combined federal and state share of matching funds be used to meet the child care needs of families. Per the EL169 Grant Agreement with the OEL, the Coalition is subject to six specified expenditure targets for the program as follows: No more than 5% of all state, federal, and local matching funds expended by the Coalition for the SR Program shall be expended for administrative activities, no more than 22% of all state, federal, and local matching funds expended by the Coalition for the SR Program shall be expended for any combination of administrative costs, quality activities or non-direct services (all other cost types besides direct services for children) No less than 4% of all state, federal, and local matching funds expended by the Coalition for the SR Program shall be expended on quality activities, no less than 78% of all state, federal, and local matching funds expended for the SR Program shall be expended to meet specified families? child care needs (direct services for children), the ELC shall expend no less than 78% of Child Care Executive Partnership Program (?CCEP?) expenditures on direct services, the ELC shall expend no more than 5% of CCEP Program expenditures on administrative activities Condition ? During our testing of the allocation of expenditures by cost type for the SR Program, we noted the following exceptions: Out of total SR Program funds expended, 76% was expended on direct services for children, out of total SR Program funds expended, 24% was expended on a combination of administrative costs, quality activities and non-direct services Cause ? A new statewide information system, EFS Mod, was introduced during the current year by OEL. The OEL experienced difficulties in the implementation and functionality of the new system which prevented the Coalition from enrolling more students, resulting in fewer expenditures required for childcare direct services. As a result, the Coalition was not able to meet the expenditure target for the direct services cost type of 78%. As the minimum threshold for the direct services cost type was not met, the corresponding maximum threshold for all remaining combined expenditures was also not met. Effect or Potential Effect ?The allocation of expenditures was not compliant with the expenditure target defined in the criteria above, therefore OEL has the potential to recover the unallowable expenditures at its discretion. Questioned Costs ? The Coalition met the required spending limits per the Department of Health and Human Services. However, the Coalition did not meet the requirement per OEL, and therefore may have questioned costs of approximately $633,034, which was calculated as the 2% of total SR Program funds that were not allocated to the 78% target for direct services and instead allocated to all other cost types. Context ? Of the six expenditure targets specified in the grant agreement, we found two exceptions as noted in the condition above. Recommendation - We recommend that management take proactive measures and seek alternative actions to increase expenditures on direct services for children to ensure that the Coalition will remain in compliance with statutory requirements. Views of Responsible Officials ? Management agrees with this finding, and has taken steps to increase its direct expenses. The Coalition increased its reimbursement rates as of October 1, 2019 and has increased its enrollment from the prior year. The two changes have increased its direct expenditures over the first six months of the year by 1.1 million and is targeted to finish the year above the 78% requirement. The Coalition does want to note that the Office of Early Learning has stated that the 2% expenses that caused the Coalition to be below 78% will not be questioned costs.
Show full finding ▾Hide full finding ▴Information on Federal Program(s) - Temporary Assistance for Needy Families, 93.558, U.S. Department of Health and Human Services and Child Care and Development Cluster, 93.575/93.596, U.S. Department of Health and Human Services, Grant Number EL169, Passed through Florida?s Office of Early Learning (Referred to by Florida?s Office of Early Learning (?OEL?) as the School Readiness Program (?SR Program?). Criteria or Specific Requirement ? The Department of Health and Human Services requires that at least 70% of the mandatory and combined federal and state share of matching funds be used to meet the child care needs of families. Per the EL169 Grant Agreement with the OEL, the Coalition is subject to six specified expenditure targets for the program as follows: No more than 5% of all state, federal, and local matching funds expended by the Coalition for the SR Program shall be expended for administrative activities, no more than 22% of all state, federal, and local matching funds expended by the Coalition for the SR Program shall be expended for any combination of administrative costs, quality activities or non-direct services (all other cost types besides direct services for children) No less than 4% of all state, federal, and local matching funds expended by the Coalition for the SR Program shall be expended on quality activities, no less than 78% of all state, federal, and local matching funds expended for the SR Program shall be expended to meet specified families? child care needs (direct services for children), the ELC shall expend no less than 78% of Child Care Executive Partnership Program (?CCEP?) expenditures on direct services, the ELC shall expend no more than 5% of CCEP Program expenditures on administrative activities Condition ? During our testing of the allocation of expenditures by cost type for the SR Program, we noted the following exceptions: Out of total SR Program funds expended, 76% was expended on direct services for children, out of total SR Program funds expended, 24% was expended on a combination of administrative costs, quality activities and non-direct services Cause ? A new statewide information system, EFS Mod, was introduced during the current year by OEL. The OEL experienced difficulties in the implementation and functionality of the new system which prevented the Coalition from enrolling more students, resulting in fewer expenditures required for childcare direct services. As a result, the Coalition was not able to meet the expenditure target for the direct services cost type of 78%. As the minimum threshold for the direct services cost type was not met, the corresponding maximum threshold for all remaining combined expenditures was also not met. Effect or Potential Effect ?The allocation of expenditures was not compliant with the expenditure target defined in the criteria above, therefore OEL has the potential to recover the unallowable expenditures at its discretion. Questioned Costs ? The Coalition met the required spending limits per the Department of Health and Human Services. However, the Coalition did not meet the requirement per OEL, and therefore may have questioned costs of approximately $633,034, which was calculated as the 2% of total SR Program funds that were not allocated to the 78% target for direct services and instead allocated to all other cost types. Context ? Of the six expenditure targets specified in the grant agreement, we found two exceptions as noted in the condition above. Recommendation - We recommend that management take proactive measures and seek alternative actions to increase expenditures on direct services for children to ensure that the Coalition will remain in compliance with statutory requirements. Views of Responsible Officials ? Management agrees with this finding, and has taken steps to increase its direct expenses. The Coalition increased its reimbursement rates as of October 1, 2019 and has increased its enrollment from the prior year. The two changes have increased its direct expenditures over the first six months of the year by 1.1 million and is targeted to finish the year above the 78% requirement. The Coalition does want to note that the Office of Early Learning has stated that the 2% expenses that caused the Coalition to be below 78% will not be questioned costs.
Auditee's Corrective Action Plan: The Coalition has made two changes in order to meet the 78% requirement for direct expenditure. 1) Increased the reimbursement rate as of October 1, 2019, 2) Increased the enrollment of children. Both of these tasks increased the Coalition's direct expenditures over the first six months by 1.1 million putting our expenditures on track to be above 78%. Contact Person: Angel Carro, Chief Operating Officer, Phone number 904-208-2040 ext. 222
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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