Ouachita Children, Youth and Family Services, Inc.

See table on page 30

To address this material weakness, Ouachita Children, Youth, and Family Services (OCYFS) will implement an enhanced financial reporting system that integrates improved technology for data collection, processing, and submission. This upgrade will make it easier and more efficient to submit information and uploads to auditors. Staff training on this new technology will ensure that all team members are proficient in using the system.

Condition: The management of Ouachita Children's Center did not identify the fact that federal awards in excess of $750,000 were received requiring audit under Uniform Guidance Requirements. Effect: Ouachita Children's Center is not in compliance with a significant requirement of federal awards under Uniform Guidance. Cause: Ouachita Children's Center has not been subject to a single audit under Uniform Guidance guidelines in a number of years. Federal grant funding was significantly higher this year than in recent years and management did not realize the increase put the Center above the single audit threshold. Questioned Costs: None Recommendations: We recommend that procedures be put into place that tracks federal funding from all sources so that management will be aware if the threshold is met requiring a single audit of the Center under the guidelines of the Uniform Guidance for that year. Management Response: Management did not anticipate that the Center would reach the threshold for single audit of federal funds this year. One contract ended an a new program was added and it was presumed that funding would be comparable to the prior year. Planed Corrective Action: Going forward, management will maintain a schedule of awards detailing revenue received from each funding source broken down between federal and state funds. This will allow us to identify whether or not a single audit will be required at the end of the fiscal year.

Finding: 2020-001 Name of Contact Person: Sheryl Staggs, Finance Director. Anticipated Completion Date: 10/01/2020. Center's Response: Agree with the finding. The Center will develop procedures to identify federal awards as they are received and maintain records adequate to prepare a Schedule of Expenditures of Federal Awards.