OREGON CHILD DEVELOPMENT COALITIONNon-Profit

2024-001 Finding – Federal Award Type: Federal Financial Reporting –SF-425 –Significant Deficiency in Internal Control Over Compliance Identification of Federal Program: AL Number: 93.600 Head Start Cluster Criteria / Requirement: The 2 CFR section 200.303 requires that non-federal entities receiving federal awards establish and maintain internal control over the federal awards that provides reasonable assurance that the non-federal entity is managing the federal awards in compliance with federal statutes, regulations, and the terms and conditions of the federal awards. Condition / Context: During the audit, one out of two Federal Financial Reports (SF-425) tested did not have sufficient internal controls, as the report was created by one individual and did not have documented oversight from another individual. No non-compliance was noted, as the financial information report was supported with direct reports from the general ledger. Cause: Due to turnover in the accounting department, an individual who is not normally part of the established procedure performed oversight over federal financial reporting, however evidence of this review could not be produced as it was not documented. Effect: Failure to maintain sufficient internal controls over federal reporting may result in non‐compliance and or inaccurate reporting. Questioned Costs: None. Recommendation: The Organization should reevaluate the establish organizational controls regarding financial reporting to ensure that such policies and procedures are being followed. Management’s Response: Management concurs with the audit finding and will work to implement changes to ensure internal controls are in place over federal reporting requirements.

2023-001 Finding – Federal Award Type: Allowable Costs – Significant Deficiency in Internal Control Over Compliance. Identification of Federal Program: Head Start Cluster: AL Number: 93.600 Head Start Criteria / Requirement: Allowable costs per 2 CFR section 200.406(a) Applicable Credits, states that to the extent that credits are received related to allowable costs, they must be credited to the Federal award either as a cost reduction or a cash refund, as appropriate. The cost principles define credits as purchase discounts, rebates or allowances, recoveries on losses, insurance refunds, and adjustments of overpayments. Condition / Context: During the audit it was brought to our attention that Oregon Child Development Coalition, Inc. earns rewards on a credit card used in purchasing goods and services utilizing federal dollars. Although the credit card account is held in the Organization’s name, the individual card is issued utilizing the employee’s name. Per inquiry, it was noted that these rewards had not been credited as a reduction of costs charged to federal programs. The amount associated with the rebates has been determined to not be material for the year ended December 31, 2023. Cause: Oregon Child Development Coalition’s Credit Card Policy does not address rebates associated with earned rewards points on credit cards. Policies and procedures are not in place to ensure that the Organization is appropriately applying credits as a reduction of federal costs. Effect: Failure to maintain sufficient policies and procedures for credit cards rebates may result in non‐compliance with the provisions of applicable requirements of the federal award. Questioned Costs: none Recommendation: The Organization should establish more defined written policies and procedures regarding credit card rebates that are in line with Uniform Guidance requirements, as well as establish organizational controls to ensure that such policies and procedures are being followed. Management’s response: Management understands that a significant deficiency in internal controls over compliance has been identified. We concur with the finding and initiated a Corrective Action Plan to address it. We place the utmost importance on the summary of the auditor’s results and are working to improve the strength of our internal controls over compliance.