EIN: 751485951
UEI: UPATBDH33LD3
Audited by: Sutton Frost Cary LLP
Oversight agency: 84 [Department of Education]
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Data as of August 31, 2026
Management decision deadline — for entities that funded this organization
The FAC accepted this audit on March 30, 2026. 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 30, 2026 (28 days from today).
What is a management decision? →During allowable activities for the Twenty‐First Century Community Learning Centers Grant, for 4 out of 26 payroll samples tested, the payroll was approved verbally and no documentation supporting the approval was retained. Cause: Internal control documentation was not being appropriately retained. Effect: Key internal control documentation was not properly retained and readily available to support the testing of key controls over the payroll process. Questioned Costs: None. Recommendation: In order to comply with the Code of Federal Regulations, we recommend the Organization’s policies be updated to require document retention for at least three years for all key control documentation. Management’s Response: See corrective action plan.
Show full finding ▾Hide full finding ▴Finding 2025‐002: Allowable costs and activities‐significant deficiency in internal controls over compliance. Twenty‐First Century Community Learning Centers Grant ALN 84.287C Criteria: Clayton Child Care, Inc.’s (Organization) internal control procedures over compliance specify that the Director of Finance approves payroll prior to payment. Section 200 of the Code of Federal Regulations requires recipients to implement robust internal controls to reduce the risk of noncompliance with cost principles for all activities allocated to the grant and to retain supporting documentation of control completion for three years from the date of submission of the expenditure request. Condition: During allowable activities for the Twenty‐First Century Community Learning Centers Grant, for 4 out of 26 payroll samples tested, the payroll was approved verbally and no documentation supporting the approval was retained. Cause: Internal control documentation was not being appropriately retained. Effect: Key internal control documentation was not properly retained and readily available to support the testing of key controls over the payroll process. Questioned Costs: None. Recommendation: In order to comply with the Code of Federal Regulations, we recommend the Organization’s policies be updated to require document retention for at least three years for all key control documentation. Management’s Response: See corrective action plan.
Finding Number: 2025-002 Planned Corrective Action: During testing of payroll transactions, the auditor identified that one or more payroll submissions lacked documented email approval from the Director of Finance prior to submission, as required by internal control policy. Although approval was verbally or electronically obtained, documentation was not consistently retained in accordance with policy. The organization has strengthened documentation procedures moving forward. The lack of documented approval occurred due to: Inconsistent retention of email approvals, and/or Staff misunderstanding of documentation requirements, and/or o Accounting team faced significant turnover with personnel completing payroll tasks Payroll deadlines not being met, consistently, by organization’s management team The organization has implemented the following corrective actions: Re-trained payroll and finance staff on the requirement that all payroll submissions must receive documented email approval from the Director of Finance prior to processing. Implemented a standardized payroll submission checklist requiring confirmation of email approval before processing. Established a centralized electronic folder where all payroll approval emails must be saved and retained. Required organization’s management team to adhere to payroll deadlines set by Accounting Team or disciplinary actions will be taken. The Senior Accountant will perform quarterly internal spot checks of payroll files to verify documentation is complete. The Director of Finance will review and sign off monthly on a payroll approval log confirming compliance. Failure to obtain documented approval will result in payroll submission delay until documentation is secured. Anticipated Completion Date: 08/31/2026 Responsible Contact Person: Dr. Brittany Lee
FAC accepted this audit on February 11, 2025 — management decision was due August 11, 2025.
FAC accepted this audit on October 11, 2023 — management decision was due April 11, 2024.
FAC accepted this audit on November 7, 2022 — management decision was due May 7, 2023.
FAC accepted this audit on February 8, 2022 — management decision was due August 8, 2022.
FAC accepted this audit on November 8, 2020 — management decision was due May 8, 2021.
FAC accepted this audit on October 31, 2019 — management decision was due May 1, 2020.
FAC accepted this audit on September 30, 2018 — management decision was due March 30, 2019.
FAC accepted this audit on October 26, 2017 — management decision was due April 26, 2018.
FAC accepted this audit on November 8, 2016 — management decision was due May 8, 2017.
GSA_MIGRATION
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GSA_MIGRATION
GSA_MIGRATION
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GSA_MIGRATION
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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