FAC Explorer

Audit 290780

FY End
2023-09-30
Total Expended
$31.05M
Findings
14
Programs
3
Organization: Wisconsin Early Childhood Association, Inc. (WI)
Year: 2023 Accepted: 2024-02-16
Auditor: Wegner CPAS

Organization Exclusion Status:

Findings

ID Ref Severity Repeat Requirement
369505 2023-001 Significant Deficiency - B
369506 2023-001 Significant Deficiency - B
369507 2023-001 Significant Deficiency - B
369508 2023-001 Significant Deficiency - B
369509 2023-001 Significant Deficiency - B
369510 2023-001 Significant Deficiency - B
369511 2023-001 Significant Deficiency - B
945947 2023-001 Significant Deficiency - B
945948 2023-001 Significant Deficiency - B
945949 2023-001 Significant Deficiency - B
945950 2023-001 Significant Deficiency - B
945951 2023-001 Significant Deficiency - B
945952 2023-001 Significant Deficiency - B
945953 2023-001 Significant Deficiency - B

Programs

ALN Program Spent Major Findings
10.558 Child and Adult Care Food Program $3.57M - 0
21.027 Coronavirus State and Local Fiscal Recovery Funds $2.40M Yes 0
93.575 Child Care and Development Block Grant $235,321 Yes 1

Contacts

Name Title Type
HMKGWV66A7F6 Ruth Schmidt Auditee
6087291024 Mitch Davis Auditor
No contacts on file

Notes to SEFA

Accounting Policies: NOTE 1—BASIS OF PRESENTATION The accompanying schedule of expenditures of federal awards (the “Schedule”) includes the federal award activity of Wisconsin Early Childhood Association, Inc. under programs of the federal government for the year ended September 30, 2023. The information in this Schedule is presented in accordance with the requirements of Title 2 U.S. Code of Federal Regulations Part 200, Uniform Administrative Requirements, Cost Principles, and Audit Requirements for Federal Awards (Uniform Guidance) and the State Single Audit Guidelines. Because the Schedule presents only a selected portion of the operations of Wisconsin Early Childhood Association, Inc., it is not intended to and does not present the financial position, changes in net assets, or cash flows of Wisconsin Early Childhood Association, Inc. NOTE 2—SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES Expenditures reported on the Schedule are reported on the accrual basis of accounting. Such expenditures are recognized following the cost principles contained in the Uniform Guidance and the Wisconsin Department of Children and Families’ Allowable Cost Policy Manual, wherein certain types of expenditures are not allowable or are limited as to reimbursement. De Minimis Rate Used: N Rate Explanation: Wisconsin Early Childhood Association, Inc. has elected not to use the 10% de minimis indirect cost rate allowed under the Uniform Guidance.

Finding Details

Finding 2023-001
Assistance Listing Number(s): 93.575 Name of Federal Program or Cluster: CCDF Cluster Name of Federal Agency: Department of Health and Human Services Federal Award Identification Number: 2140WICDC6 Federal Award Year: 2021 Name of Pass-through Entity: Wisconsin Department of Children and Families Pass-through Entity Identifying Number: 437002-G24-0002225-000-01, 437002-G23-0002038-000-01, 437002-G22-0001888-000-01, 437002-S22-0002131-000-01, 437002-G23-0002068-000-01, 437002- S22-0001842-000-01 Award Period: October 1, 2022-September 30, 2023 Criteria or Specific Requirement: 2 CFR 200.434(a) states costs of contributions and donations, including cash, property, and services, from the non-Federal entity to other entities, are unallowable. Condition and Context: 1 out of a sample of 40 expenses tested for allowable costs was identified as a donation to another organization. A contribution was made to another organization to support its efforts to conduct a survey. The survey is available to members of the organization in which Wisconsin Early Childhood Association, Inc. is a member. The sample identified $15,000 of the payment out of a total $646,941 sampled. Cause: The support for the transaction noting a contribution was not compared to Uniform Guidance General Provisions for Selected Items of Cost section when determining allowability. Effect or Potential Effect: Costs may be determined to be unallowable and payable to the grantor agency. Questioned Costs: $20,000 the total amount of the payment charged to the federal program. Repeat Finding: No. Recommendation: We recommend contributions are not recorded to federal awards within the general ledger and subsequently charged. We recommend the Uniform Guidance General Provisions for Selected Items of Cost section to be referenced when infrequent or unusual transactions are to be incurred to determine allowability. Views of Responsible Officials: Wisconsin Early Childhood Association, Inc. agrees with the finding and the recommended procedures are being implemented.
Finding 2023-001
Assistance Listing Number(s): 93.575 Name of Federal Program or Cluster: CCDF Cluster Name of Federal Agency: Department of Health and Human Services Federal Award Identification Number: 2140WICDC6 Federal Award Year: 2021 Name of Pass-through Entity: Wisconsin Department of Children and Families Pass-through Entity Identifying Number: 437002-G24-0002225-000-01, 437002-G23-0002038-000-01, 437002-G22-0001888-000-01, 437002-S22-0002131-000-01, 437002-G23-0002068-000-01, 437002- S22-0001842-000-01 Award Period: October 1, 2022-September 30, 2023 Criteria or Specific Requirement: 2 CFR 200.434(a) states costs of contributions and donations, including cash, property, and services, from the non-Federal entity to other entities, are unallowable. Condition and Context: 1 out of a sample of 40 expenses tested for allowable costs was identified as a donation to another organization. A contribution was made to another organization to support its efforts to conduct a survey. The survey is available to members of the organization in which Wisconsin Early Childhood Association, Inc. is a member. The sample identified $15,000 of the payment out of a total $646,941 sampled. Cause: The support for the transaction noting a contribution was not compared to Uniform Guidance General Provisions for Selected Items of Cost section when determining allowability. Effect or Potential Effect: Costs may be determined to be unallowable and payable to the grantor agency. Questioned Costs: $20,000 the total amount of the payment charged to the federal program. Repeat Finding: No. Recommendation: We recommend contributions are not recorded to federal awards within the general ledger and subsequently charged. We recommend the Uniform Guidance General Provisions for Selected Items of Cost section to be referenced when infrequent or unusual transactions are to be incurred to determine allowability. Views of Responsible Officials: Wisconsin Early Childhood Association, Inc. agrees with the finding and the recommended procedures are being implemented.
Finding 2023-001
Assistance Listing Number(s): 93.575 Name of Federal Program or Cluster: CCDF Cluster Name of Federal Agency: Department of Health and Human Services Federal Award Identification Number: 2140WICDC6 Federal Award Year: 2021 Name of Pass-through Entity: Wisconsin Department of Children and Families Pass-through Entity Identifying Number: 437002-G24-0002225-000-01, 437002-G23-0002038-000-01, 437002-G22-0001888-000-01, 437002-S22-0002131-000-01, 437002-G23-0002068-000-01, 437002- S22-0001842-000-01 Award Period: October 1, 2022-September 30, 2023 Criteria or Specific Requirement: 2 CFR 200.434(a) states costs of contributions and donations, including cash, property, and services, from the non-Federal entity to other entities, are unallowable. Condition and Context: 1 out of a sample of 40 expenses tested for allowable costs was identified as a donation to another organization. A contribution was made to another organization to support its efforts to conduct a survey. The survey is available to members of the organization in which Wisconsin Early Childhood Association, Inc. is a member. The sample identified $15,000 of the payment out of a total $646,941 sampled. Cause: The support for the transaction noting a contribution was not compared to Uniform Guidance General Provisions for Selected Items of Cost section when determining allowability. Effect or Potential Effect: Costs may be determined to be unallowable and payable to the grantor agency. Questioned Costs: $20,000 the total amount of the payment charged to the federal program. Repeat Finding: No. Recommendation: We recommend contributions are not recorded to federal awards within the general ledger and subsequently charged. We recommend the Uniform Guidance General Provisions for Selected Items of Cost section to be referenced when infrequent or unusual transactions are to be incurred to determine allowability. Views of Responsible Officials: Wisconsin Early Childhood Association, Inc. agrees with the finding and the recommended procedures are being implemented.
Finding 2023-001
Assistance Listing Number(s): 93.575 Name of Federal Program or Cluster: CCDF Cluster Name of Federal Agency: Department of Health and Human Services Federal Award Identification Number: 2140WICDC6 Federal Award Year: 2021 Name of Pass-through Entity: Wisconsin Department of Children and Families Pass-through Entity Identifying Number: 437002-G24-0002225-000-01, 437002-G23-0002038-000-01, 437002-G22-0001888-000-01, 437002-S22-0002131-000-01, 437002-G23-0002068-000-01, 437002- S22-0001842-000-01 Award Period: October 1, 2022-September 30, 2023 Criteria or Specific Requirement: 2 CFR 200.434(a) states costs of contributions and donations, including cash, property, and services, from the non-Federal entity to other entities, are unallowable. Condition and Context: 1 out of a sample of 40 expenses tested for allowable costs was identified as a donation to another organization. A contribution was made to another organization to support its efforts to conduct a survey. The survey is available to members of the organization in which Wisconsin Early Childhood Association, Inc. is a member. The sample identified $15,000 of the payment out of a total $646,941 sampled. Cause: The support for the transaction noting a contribution was not compared to Uniform Guidance General Provisions for Selected Items of Cost section when determining allowability. Effect or Potential Effect: Costs may be determined to be unallowable and payable to the grantor agency. Questioned Costs: $20,000 the total amount of the payment charged to the federal program. Repeat Finding: No. Recommendation: We recommend contributions are not recorded to federal awards within the general ledger and subsequently charged. We recommend the Uniform Guidance General Provisions for Selected Items of Cost section to be referenced when infrequent or unusual transactions are to be incurred to determine allowability. Views of Responsible Officials: Wisconsin Early Childhood Association, Inc. agrees with the finding and the recommended procedures are being implemented.
Finding 2023-001
Assistance Listing Number(s): 93.575 Name of Federal Program or Cluster: CCDF Cluster Name of Federal Agency: Department of Health and Human Services Federal Award Identification Number: 2140WICDC6 Federal Award Year: 2021 Name of Pass-through Entity: Wisconsin Department of Children and Families Pass-through Entity Identifying Number: 437002-G24-0002225-000-01, 437002-G23-0002038-000-01, 437002-G22-0001888-000-01, 437002-S22-0002131-000-01, 437002-G23-0002068-000-01, 437002- S22-0001842-000-01 Award Period: October 1, 2022-September 30, 2023 Criteria or Specific Requirement: 2 CFR 200.434(a) states costs of contributions and donations, including cash, property, and services, from the non-Federal entity to other entities, are unallowable. Condition and Context: 1 out of a sample of 40 expenses tested for allowable costs was identified as a donation to another organization. A contribution was made to another organization to support its efforts to conduct a survey. The survey is available to members of the organization in which Wisconsin Early Childhood Association, Inc. is a member. The sample identified $15,000 of the payment out of a total $646,941 sampled. Cause: The support for the transaction noting a contribution was not compared to Uniform Guidance General Provisions for Selected Items of Cost section when determining allowability. Effect or Potential Effect: Costs may be determined to be unallowable and payable to the grantor agency. Questioned Costs: $20,000 the total amount of the payment charged to the federal program. Repeat Finding: No. Recommendation: We recommend contributions are not recorded to federal awards within the general ledger and subsequently charged. We recommend the Uniform Guidance General Provisions for Selected Items of Cost section to be referenced when infrequent or unusual transactions are to be incurred to determine allowability. Views of Responsible Officials: Wisconsin Early Childhood Association, Inc. agrees with the finding and the recommended procedures are being implemented.
Finding 2023-001
Assistance Listing Number(s): 93.575 Name of Federal Program or Cluster: CCDF Cluster Name of Federal Agency: Department of Health and Human Services Federal Award Identification Number: 2140WICDC6 Federal Award Year: 2021 Name of Pass-through Entity: Wisconsin Department of Children and Families Pass-through Entity Identifying Number: 437002-G24-0002225-000-01, 437002-G23-0002038-000-01, 437002-G22-0001888-000-01, 437002-S22-0002131-000-01, 437002-G23-0002068-000-01, 437002- S22-0001842-000-01 Award Period: October 1, 2022-September 30, 2023 Criteria or Specific Requirement: 2 CFR 200.434(a) states costs of contributions and donations, including cash, property, and services, from the non-Federal entity to other entities, are unallowable. Condition and Context: 1 out of a sample of 40 expenses tested for allowable costs was identified as a donation to another organization. A contribution was made to another organization to support its efforts to conduct a survey. The survey is available to members of the organization in which Wisconsin Early Childhood Association, Inc. is a member. The sample identified $15,000 of the payment out of a total $646,941 sampled. Cause: The support for the transaction noting a contribution was not compared to Uniform Guidance General Provisions for Selected Items of Cost section when determining allowability. Effect or Potential Effect: Costs may be determined to be unallowable and payable to the grantor agency. Questioned Costs: $20,000 the total amount of the payment charged to the federal program. Repeat Finding: No. Recommendation: We recommend contributions are not recorded to federal awards within the general ledger and subsequently charged. We recommend the Uniform Guidance General Provisions for Selected Items of Cost section to be referenced when infrequent or unusual transactions are to be incurred to determine allowability. Views of Responsible Officials: Wisconsin Early Childhood Association, Inc. agrees with the finding and the recommended procedures are being implemented.
Finding 2023-001
Assistance Listing Number(s): 93.575 Name of Federal Program or Cluster: CCDF Cluster Name of Federal Agency: Department of Health and Human Services Federal Award Identification Number: 2140WICDC6 Federal Award Year: 2021 Name of Pass-through Entity: Wisconsin Department of Children and Families Pass-through Entity Identifying Number: 437002-G24-0002225-000-01, 437002-G23-0002038-000-01, 437002-G22-0001888-000-01, 437002-S22-0002131-000-01, 437002-G23-0002068-000-01, 437002- S22-0001842-000-01 Award Period: October 1, 2022-September 30, 2023 Criteria or Specific Requirement: 2 CFR 200.434(a) states costs of contributions and donations, including cash, property, and services, from the non-Federal entity to other entities, are unallowable. Condition and Context: 1 out of a sample of 40 expenses tested for allowable costs was identified as a donation to another organization. A contribution was made to another organization to support its efforts to conduct a survey. The survey is available to members of the organization in which Wisconsin Early Childhood Association, Inc. is a member. The sample identified $15,000 of the payment out of a total $646,941 sampled. Cause: The support for the transaction noting a contribution was not compared to Uniform Guidance General Provisions for Selected Items of Cost section when determining allowability. Effect or Potential Effect: Costs may be determined to be unallowable and payable to the grantor agency. Questioned Costs: $20,000 the total amount of the payment charged to the federal program. Repeat Finding: No. Recommendation: We recommend contributions are not recorded to federal awards within the general ledger and subsequently charged. We recommend the Uniform Guidance General Provisions for Selected Items of Cost section to be referenced when infrequent or unusual transactions are to be incurred to determine allowability. Views of Responsible Officials: Wisconsin Early Childhood Association, Inc. agrees with the finding and the recommended procedures are being implemented.
Finding 2023-001
Assistance Listing Number(s): 93.575 Name of Federal Program or Cluster: CCDF Cluster Name of Federal Agency: Department of Health and Human Services Federal Award Identification Number: 2140WICDC6 Federal Award Year: 2021 Name of Pass-through Entity: Wisconsin Department of Children and Families Pass-through Entity Identifying Number: 437002-G24-0002225-000-01, 437002-G23-0002038-000-01, 437002-G22-0001888-000-01, 437002-S22-0002131-000-01, 437002-G23-0002068-000-01, 437002- S22-0001842-000-01 Award Period: October 1, 2022-September 30, 2023 Criteria or Specific Requirement: 2 CFR 200.434(a) states costs of contributions and donations, including cash, property, and services, from the non-Federal entity to other entities, are unallowable. Condition and Context: 1 out of a sample of 40 expenses tested for allowable costs was identified as a donation to another organization. A contribution was made to another organization to support its efforts to conduct a survey. The survey is available to members of the organization in which Wisconsin Early Childhood Association, Inc. is a member. The sample identified $15,000 of the payment out of a total $646,941 sampled. Cause: The support for the transaction noting a contribution was not compared to Uniform Guidance General Provisions for Selected Items of Cost section when determining allowability. Effect or Potential Effect: Costs may be determined to be unallowable and payable to the grantor agency. Questioned Costs: $20,000 the total amount of the payment charged to the federal program. Repeat Finding: No. Recommendation: We recommend contributions are not recorded to federal awards within the general ledger and subsequently charged. We recommend the Uniform Guidance General Provisions for Selected Items of Cost section to be referenced when infrequent or unusual transactions are to be incurred to determine allowability. Views of Responsible Officials: Wisconsin Early Childhood Association, Inc. agrees with the finding and the recommended procedures are being implemented.
Finding 2023-001
Assistance Listing Number(s): 93.575 Name of Federal Program or Cluster: CCDF Cluster Name of Federal Agency: Department of Health and Human Services Federal Award Identification Number: 2140WICDC6 Federal Award Year: 2021 Name of Pass-through Entity: Wisconsin Department of Children and Families Pass-through Entity Identifying Number: 437002-G24-0002225-000-01, 437002-G23-0002038-000-01, 437002-G22-0001888-000-01, 437002-S22-0002131-000-01, 437002-G23-0002068-000-01, 437002- S22-0001842-000-01 Award Period: October 1, 2022-September 30, 2023 Criteria or Specific Requirement: 2 CFR 200.434(a) states costs of contributions and donations, including cash, property, and services, from the non-Federal entity to other entities, are unallowable. Condition and Context: 1 out of a sample of 40 expenses tested for allowable costs was identified as a donation to another organization. A contribution was made to another organization to support its efforts to conduct a survey. The survey is available to members of the organization in which Wisconsin Early Childhood Association, Inc. is a member. The sample identified $15,000 of the payment out of a total $646,941 sampled. Cause: The support for the transaction noting a contribution was not compared to Uniform Guidance General Provisions for Selected Items of Cost section when determining allowability. Effect or Potential Effect: Costs may be determined to be unallowable and payable to the grantor agency. Questioned Costs: $20,000 the total amount of the payment charged to the federal program. Repeat Finding: No. Recommendation: We recommend contributions are not recorded to federal awards within the general ledger and subsequently charged. We recommend the Uniform Guidance General Provisions for Selected Items of Cost section to be referenced when infrequent or unusual transactions are to be incurred to determine allowability. Views of Responsible Officials: Wisconsin Early Childhood Association, Inc. agrees with the finding and the recommended procedures are being implemented.
Finding 2023-001
Assistance Listing Number(s): 93.575 Name of Federal Program or Cluster: CCDF Cluster Name of Federal Agency: Department of Health and Human Services Federal Award Identification Number: 2140WICDC6 Federal Award Year: 2021 Name of Pass-through Entity: Wisconsin Department of Children and Families Pass-through Entity Identifying Number: 437002-G24-0002225-000-01, 437002-G23-0002038-000-01, 437002-G22-0001888-000-01, 437002-S22-0002131-000-01, 437002-G23-0002068-000-01, 437002- S22-0001842-000-01 Award Period: October 1, 2022-September 30, 2023 Criteria or Specific Requirement: 2 CFR 200.434(a) states costs of contributions and donations, including cash, property, and services, from the non-Federal entity to other entities, are unallowable. Condition and Context: 1 out of a sample of 40 expenses tested for allowable costs was identified as a donation to another organization. A contribution was made to another organization to support its efforts to conduct a survey. The survey is available to members of the organization in which Wisconsin Early Childhood Association, Inc. is a member. The sample identified $15,000 of the payment out of a total $646,941 sampled. Cause: The support for the transaction noting a contribution was not compared to Uniform Guidance General Provisions for Selected Items of Cost section when determining allowability. Effect or Potential Effect: Costs may be determined to be unallowable and payable to the grantor agency. Questioned Costs: $20,000 the total amount of the payment charged to the federal program. Repeat Finding: No. Recommendation: We recommend contributions are not recorded to federal awards within the general ledger and subsequently charged. We recommend the Uniform Guidance General Provisions for Selected Items of Cost section to be referenced when infrequent or unusual transactions are to be incurred to determine allowability. Views of Responsible Officials: Wisconsin Early Childhood Association, Inc. agrees with the finding and the recommended procedures are being implemented.
Finding 2023-001
Assistance Listing Number(s): 93.575 Name of Federal Program or Cluster: CCDF Cluster Name of Federal Agency: Department of Health and Human Services Federal Award Identification Number: 2140WICDC6 Federal Award Year: 2021 Name of Pass-through Entity: Wisconsin Department of Children and Families Pass-through Entity Identifying Number: 437002-G24-0002225-000-01, 437002-G23-0002038-000-01, 437002-G22-0001888-000-01, 437002-S22-0002131-000-01, 437002-G23-0002068-000-01, 437002- S22-0001842-000-01 Award Period: October 1, 2022-September 30, 2023 Criteria or Specific Requirement: 2 CFR 200.434(a) states costs of contributions and donations, including cash, property, and services, from the non-Federal entity to other entities, are unallowable. Condition and Context: 1 out of a sample of 40 expenses tested for allowable costs was identified as a donation to another organization. A contribution was made to another organization to support its efforts to conduct a survey. The survey is available to members of the organization in which Wisconsin Early Childhood Association, Inc. is a member. The sample identified $15,000 of the payment out of a total $646,941 sampled. Cause: The support for the transaction noting a contribution was not compared to Uniform Guidance General Provisions for Selected Items of Cost section when determining allowability. Effect or Potential Effect: Costs may be determined to be unallowable and payable to the grantor agency. Questioned Costs: $20,000 the total amount of the payment charged to the federal program. Repeat Finding: No. Recommendation: We recommend contributions are not recorded to federal awards within the general ledger and subsequently charged. We recommend the Uniform Guidance General Provisions for Selected Items of Cost section to be referenced when infrequent or unusual transactions are to be incurred to determine allowability. Views of Responsible Officials: Wisconsin Early Childhood Association, Inc. agrees with the finding and the recommended procedures are being implemented.
Finding 2023-001
Assistance Listing Number(s): 93.575 Name of Federal Program or Cluster: CCDF Cluster Name of Federal Agency: Department of Health and Human Services Federal Award Identification Number: 2140WICDC6 Federal Award Year: 2021 Name of Pass-through Entity: Wisconsin Department of Children and Families Pass-through Entity Identifying Number: 437002-G24-0002225-000-01, 437002-G23-0002038-000-01, 437002-G22-0001888-000-01, 437002-S22-0002131-000-01, 437002-G23-0002068-000-01, 437002- S22-0001842-000-01 Award Period: October 1, 2022-September 30, 2023 Criteria or Specific Requirement: 2 CFR 200.434(a) states costs of contributions and donations, including cash, property, and services, from the non-Federal entity to other entities, are unallowable. Condition and Context: 1 out of a sample of 40 expenses tested for allowable costs was identified as a donation to another organization. A contribution was made to another organization to support its efforts to conduct a survey. The survey is available to members of the organization in which Wisconsin Early Childhood Association, Inc. is a member. The sample identified $15,000 of the payment out of a total $646,941 sampled. Cause: The support for the transaction noting a contribution was not compared to Uniform Guidance General Provisions for Selected Items of Cost section when determining allowability. Effect or Potential Effect: Costs may be determined to be unallowable and payable to the grantor agency. Questioned Costs: $20,000 the total amount of the payment charged to the federal program. Repeat Finding: No. Recommendation: We recommend contributions are not recorded to federal awards within the general ledger and subsequently charged. We recommend the Uniform Guidance General Provisions for Selected Items of Cost section to be referenced when infrequent or unusual transactions are to be incurred to determine allowability. Views of Responsible Officials: Wisconsin Early Childhood Association, Inc. agrees with the finding and the recommended procedures are being implemented.
Finding 2023-001
Assistance Listing Number(s): 93.575 Name of Federal Program or Cluster: CCDF Cluster Name of Federal Agency: Department of Health and Human Services Federal Award Identification Number: 2140WICDC6 Federal Award Year: 2021 Name of Pass-through Entity: Wisconsin Department of Children and Families Pass-through Entity Identifying Number: 437002-G24-0002225-000-01, 437002-G23-0002038-000-01, 437002-G22-0001888-000-01, 437002-S22-0002131-000-01, 437002-G23-0002068-000-01, 437002- S22-0001842-000-01 Award Period: October 1, 2022-September 30, 2023 Criteria or Specific Requirement: 2 CFR 200.434(a) states costs of contributions and donations, including cash, property, and services, from the non-Federal entity to other entities, are unallowable. Condition and Context: 1 out of a sample of 40 expenses tested for allowable costs was identified as a donation to another organization. A contribution was made to another organization to support its efforts to conduct a survey. The survey is available to members of the organization in which Wisconsin Early Childhood Association, Inc. is a member. The sample identified $15,000 of the payment out of a total $646,941 sampled. Cause: The support for the transaction noting a contribution was not compared to Uniform Guidance General Provisions for Selected Items of Cost section when determining allowability. Effect or Potential Effect: Costs may be determined to be unallowable and payable to the grantor agency. Questioned Costs: $20,000 the total amount of the payment charged to the federal program. Repeat Finding: No. Recommendation: We recommend contributions are not recorded to federal awards within the general ledger and subsequently charged. We recommend the Uniform Guidance General Provisions for Selected Items of Cost section to be referenced when infrequent or unusual transactions are to be incurred to determine allowability. Views of Responsible Officials: Wisconsin Early Childhood Association, Inc. agrees with the finding and the recommended procedures are being implemented.
Finding 2023-001
Assistance Listing Number(s): 93.575 Name of Federal Program or Cluster: CCDF Cluster Name of Federal Agency: Department of Health and Human Services Federal Award Identification Number: 2140WICDC6 Federal Award Year: 2021 Name of Pass-through Entity: Wisconsin Department of Children and Families Pass-through Entity Identifying Number: 437002-G24-0002225-000-01, 437002-G23-0002038-000-01, 437002-G22-0001888-000-01, 437002-S22-0002131-000-01, 437002-G23-0002068-000-01, 437002- S22-0001842-000-01 Award Period: October 1, 2022-September 30, 2023 Criteria or Specific Requirement: 2 CFR 200.434(a) states costs of contributions and donations, including cash, property, and services, from the non-Federal entity to other entities, are unallowable. Condition and Context: 1 out of a sample of 40 expenses tested for allowable costs was identified as a donation to another organization. A contribution was made to another organization to support its efforts to conduct a survey. The survey is available to members of the organization in which Wisconsin Early Childhood Association, Inc. is a member. The sample identified $15,000 of the payment out of a total $646,941 sampled. Cause: The support for the transaction noting a contribution was not compared to Uniform Guidance General Provisions for Selected Items of Cost section when determining allowability. Effect or Potential Effect: Costs may be determined to be unallowable and payable to the grantor agency. Questioned Costs: $20,000 the total amount of the payment charged to the federal program. Repeat Finding: No. Recommendation: We recommend contributions are not recorded to federal awards within the general ledger and subsequently charged. We recommend the Uniform Guidance General Provisions for Selected Items of Cost section to be referenced when infrequent or unusual transactions are to be incurred to determine allowability. Views of Responsible Officials: Wisconsin Early Childhood Association, Inc. agrees with the finding and the recommended procedures are being implemented.