Audit 15089

FY End
2023-06-30
Total Expended
$1.35M
Findings
4
Programs
3
Organization: Scottdale Early Learning, Inc. (GA)
Year: 2023 Accepted: 2024-02-01
Auditor: Smith+howard

Organization Exclusion Status:

Checking exclusion status...

Findings

ID Ref Severity Repeat Requirement
11279 2023-002 Significant Deficiency - A
11280 2023-002 Significant Deficiency - A
587721 2023-002 Significant Deficiency - A
587722 2023-002 Significant Deficiency - A

Programs

ALN Program Spent Major Findings
93.600 Head Start $620,240 Yes 1
14.218 Community Development Block Grants/entitlement Grants $216,921 - 0
10.558 Child and Adult Care Food Program $166,612 - 0

Contacts

Name Title Type
DNAZKBFTCQJ3 Tyra Massey Auditee
4042948362 Kimberly Bland Auditor
No contacts on file

Notes to SEFA

Title: NOTE 1 BASIS OF PRESENTATION Accounting Policies: NOTE 1 BASIS OF PRESENTATION: The accompanying schedule of expenditures of federal awards summarizes the expenditures of the Organization under programs of the federal government for the year ended June 30, 2023 and is presented on the accrual basis of accounting. The information in this schedule is presented in accordance with the provisions of Title 2 U.S. Code of Federal Regulations (CFR) Part 200, Uniform Administrative Requirements, Cost Principles, and Audit Requirements for Federal Awards (the Uniform Guidance). Therefore, some amounts presented in this schedule may differ from amounts presented in, or used in the preparation of, the financial statements. NOTE 2 ACCOUNTING PRINCIPLES: Expenditures for direct costs are recognized as incurred using the accrual method of accounting and the cost accounting principles contained in the Uniform Guidance. Under these cost principles, certain types of expenditures are not allowable or are limited as to reimbursement. NOTE 3 INDIRECT COST RATE: The Organization elected not to use the 10% de minimis cost rate under Title 2 U.S. CFR Part 200, Subpart E, Cost Principles. NOTE 4 CONTINGENCIES: The Organizations federal programs are subject to financial and compliance audits by grantor agencies which, if instances of material noncompliance are found, may result in disallowed expenditures and affect the Organizations continued participation in specific programs. The amount, if any, of expenditures which may be disallowed by the grantor agencies cannot be determined at this time, although the Organization expects such amounts, if any, to be insignificant. De Minimis Rate Used: N Rate Explanation: The auditee did not use the de minimis cost rate. The accompanying schedule of expenditures of federal awards summarizes the expenditures of the Organization under programs of the federal government for the year ended June 30, 2023 and is presented on the accrual basis of accounting. The information in this schedule is presented in accordance with the provisions of Title 2 U.S. Code of Federal Regulations (CFR) Part 200, Uniform Administrative Requirements, Cost Principles, and Audit Requirements for Federal Awards (the Uniform Guidance). Therefore, some amounts presented in this schedule may differ from amounts presented in, or used in the preparation of, the financial statements.
Title: NOTE 2 ACCOUNTING PRINCIPLES Accounting Policies: NOTE 1 BASIS OF PRESENTATION: The accompanying schedule of expenditures of federal awards summarizes the expenditures of the Organization under programs of the federal government for the year ended June 30, 2023 and is presented on the accrual basis of accounting. The information in this schedule is presented in accordance with the provisions of Title 2 U.S. Code of Federal Regulations (CFR) Part 200, Uniform Administrative Requirements, Cost Principles, and Audit Requirements for Federal Awards (the Uniform Guidance). Therefore, some amounts presented in this schedule may differ from amounts presented in, or used in the preparation of, the financial statements. NOTE 2 ACCOUNTING PRINCIPLES: Expenditures for direct costs are recognized as incurred using the accrual method of accounting and the cost accounting principles contained in the Uniform Guidance. Under these cost principles, certain types of expenditures are not allowable or are limited as to reimbursement. NOTE 3 INDIRECT COST RATE: The Organization elected not to use the 10% de minimis cost rate under Title 2 U.S. CFR Part 200, Subpart E, Cost Principles. NOTE 4 CONTINGENCIES: The Organizations federal programs are subject to financial and compliance audits by grantor agencies which, if instances of material noncompliance are found, may result in disallowed expenditures and affect the Organizations continued participation in specific programs. The amount, if any, of expenditures which may be disallowed by the grantor agencies cannot be determined at this time, although the Organization expects such amounts, if any, to be insignificant. De Minimis Rate Used: N Rate Explanation: The auditee did not use the de minimis cost rate. Expenditures for direct costs are recognized as incurred using the accrual method of accounting and the cost accounting principles contained in the Uniform Guidance. Under these cost principles, certain types of expenditures are not allowable or are limited as to reimbursement.
Title: NOTE 3 INDIRECT COST RATE Accounting Policies: NOTE 1 BASIS OF PRESENTATION: The accompanying schedule of expenditures of federal awards summarizes the expenditures of the Organization under programs of the federal government for the year ended June 30, 2023 and is presented on the accrual basis of accounting. The information in this schedule is presented in accordance with the provisions of Title 2 U.S. Code of Federal Regulations (CFR) Part 200, Uniform Administrative Requirements, Cost Principles, and Audit Requirements for Federal Awards (the Uniform Guidance). Therefore, some amounts presented in this schedule may differ from amounts presented in, or used in the preparation of, the financial statements. NOTE 2 ACCOUNTING PRINCIPLES: Expenditures for direct costs are recognized as incurred using the accrual method of accounting and the cost accounting principles contained in the Uniform Guidance. Under these cost principles, certain types of expenditures are not allowable or are limited as to reimbursement. NOTE 3 INDIRECT COST RATE: The Organization elected not to use the 10% de minimis cost rate under Title 2 U.S. CFR Part 200, Subpart E, Cost Principles. NOTE 4 CONTINGENCIES: The Organizations federal programs are subject to financial and compliance audits by grantor agencies which, if instances of material noncompliance are found, may result in disallowed expenditures and affect the Organizations continued participation in specific programs. The amount, if any, of expenditures which may be disallowed by the grantor agencies cannot be determined at this time, although the Organization expects such amounts, if any, to be insignificant. De Minimis Rate Used: N Rate Explanation: The auditee did not use the de minimis cost rate. The Organization elected not to use the 10% de minimis cost rate under Title 2 U.S. CFR Part 200, Subpart E, Cost Principles.
Title: NOTE 4 CONTINGENCIES Accounting Policies: NOTE 1 BASIS OF PRESENTATION: The accompanying schedule of expenditures of federal awards summarizes the expenditures of the Organization under programs of the federal government for the year ended June 30, 2023 and is presented on the accrual basis of accounting. The information in this schedule is presented in accordance with the provisions of Title 2 U.S. Code of Federal Regulations (CFR) Part 200, Uniform Administrative Requirements, Cost Principles, and Audit Requirements for Federal Awards (the Uniform Guidance). Therefore, some amounts presented in this schedule may differ from amounts presented in, or used in the preparation of, the financial statements. NOTE 2 ACCOUNTING PRINCIPLES: Expenditures for direct costs are recognized as incurred using the accrual method of accounting and the cost accounting principles contained in the Uniform Guidance. Under these cost principles, certain types of expenditures are not allowable or are limited as to reimbursement. NOTE 3 INDIRECT COST RATE: The Organization elected not to use the 10% de minimis cost rate under Title 2 U.S. CFR Part 200, Subpart E, Cost Principles. NOTE 4 CONTINGENCIES: The Organizations federal programs are subject to financial and compliance audits by grantor agencies which, if instances of material noncompliance are found, may result in disallowed expenditures and affect the Organizations continued participation in specific programs. The amount, if any, of expenditures which may be disallowed by the grantor agencies cannot be determined at this time, although the Organization expects such amounts, if any, to be insignificant. De Minimis Rate Used: N Rate Explanation: The auditee did not use the de minimis cost rate. The Organizations federal programs are subject to financial and compliance audits by grantor agencies which, if instances of material noncompliance are found, may result in disallowed expenditures and affect the Organizations continued participation in specific programs. The amount, if any, of expenditures which may be disallowed by the grantor agencies cannot be determined at this time, although the Organization expects such amounts, if any, to be insignificant.

Finding Details

2023-002 Allowable Costs/Activities Allowed Funding Agency: U.S. Department of Health and Human Services Pass Through Grantor: Georgia Department of Early Care and Learning, Bright from the Start Grant: Early Head Start CFDA Number: 93.600 Grant Number: 469-G23-SEL-EHSCCP-017 and 469-G23-SEL-EHSCCP-018 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 that the Organization had one charge to the grant which did not follow Cost Principles. The cost was entered in the general ledger system used to apply for reimbursement at an amount greater than could be supported. Questioned costs: $4,607Context: Of forty expenditure samples, totaling $28,103, selected from a population of $171,344, we noted one which did not follow Cost Principles. Effect: The costs could be deemed to be unallowable and have to be returned to the grantor. Cause: Due to an ineffective review process of the charged costs compared to what is allowed under Cost Principles. Recommendation: Management should ensure all costs charged to the grant follow Cost Principles. Grantee Comment: Refer to Corrective Action Plan
2023-002 Allowable Costs/Activities Allowed Funding Agency: U.S. Department of Health and Human Services Pass Through Grantor: Georgia Department of Early Care and Learning, Bright from the Start Grant: Early Head Start CFDA Number: 93.600 Grant Number: 469-G23-SEL-EHSCCP-017 and 469-G23-SEL-EHSCCP-018 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 that the Organization had one charge to the grant which did not follow Cost Principles. The cost was entered in the general ledger system used to apply for reimbursement at an amount greater than could be supported. Questioned costs: $4,607Context: Of forty expenditure samples, totaling $28,103, selected from a population of $171,344, we noted one which did not follow Cost Principles. Effect: The costs could be deemed to be unallowable and have to be returned to the grantor. Cause: Due to an ineffective review process of the charged costs compared to what is allowed under Cost Principles. Recommendation: Management should ensure all costs charged to the grant follow Cost Principles. Grantee Comment: Refer to Corrective Action Plan
2023-002 Allowable Costs/Activities Allowed Funding Agency: U.S. Department of Health and Human Services Pass Through Grantor: Georgia Department of Early Care and Learning, Bright from the Start Grant: Early Head Start CFDA Number: 93.600 Grant Number: 469-G23-SEL-EHSCCP-017 and 469-G23-SEL-EHSCCP-018 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 that the Organization had one charge to the grant which did not follow Cost Principles. The cost was entered in the general ledger system used to apply for reimbursement at an amount greater than could be supported. Questioned costs: $4,607Context: Of forty expenditure samples, totaling $28,103, selected from a population of $171,344, we noted one which did not follow Cost Principles. Effect: The costs could be deemed to be unallowable and have to be returned to the grantor. Cause: Due to an ineffective review process of the charged costs compared to what is allowed under Cost Principles. Recommendation: Management should ensure all costs charged to the grant follow Cost Principles. Grantee Comment: Refer to Corrective Action Plan
2023-002 Allowable Costs/Activities Allowed Funding Agency: U.S. Department of Health and Human Services Pass Through Grantor: Georgia Department of Early Care and Learning, Bright from the Start Grant: Early Head Start CFDA Number: 93.600 Grant Number: 469-G23-SEL-EHSCCP-017 and 469-G23-SEL-EHSCCP-018 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 that the Organization had one charge to the grant which did not follow Cost Principles. The cost was entered in the general ledger system used to apply for reimbursement at an amount greater than could be supported. Questioned costs: $4,607Context: Of forty expenditure samples, totaling $28,103, selected from a population of $171,344, we noted one which did not follow Cost Principles. Effect: The costs could be deemed to be unallowable and have to be returned to the grantor. Cause: Due to an ineffective review process of the charged costs compared to what is allowed under Cost Principles. Recommendation: Management should ensure all costs charged to the grant follow Cost Principles. Grantee Comment: Refer to Corrective Action Plan