FAC Explorer

Audit 297458

FY End
2023-06-30
Total Expended
$2.65M
Findings
2
Programs
4
Organization: Chatham County Partnership for Children (NC)
Year: 2023 Accepted: 2024-03-25
Auditor: Cohnreznick LLP

Organization Exclusion Status:

Findings

ID Ref Severity Repeat Requirement
384341 2023-001 Significant Deficiency - C
960783 2023-001 Significant Deficiency - C

Programs

ALN Program Spent Major Findings
93.558 Temporary Assistance for Needy Families $389,332 - 0
10.558 Child and Adult Care Food Program $59,844 Yes 0
93.434 Every Student Succeeds Act/preschool Development Grants $808 - 0
93.575 Child Care and Development Block Grant $578 - 0

Contacts

Name Title Type
XCAQL5Q8V1J9 Heather St. Claire Auditee
9195427449 Melissa W. Boone Auditor
No contacts on file

Notes to SEFA

Title: Basis of Presentation 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, wherein certain types of expenditures are not allowable or are limited as to reimbursement. Negative amounts shown on the Schedule represent adjustments or credits made in the normal course of business to amounts reported as expenditures in prior years. De Minimis Rate Used: N Rate Explanation: Chatham County Partnership for Children has elected to not use the 10-percent de minimis indirect cost rate allowed under the Uniform Guidance. The accompanying Schedule of Expenditures of Federal Awards (the Schedule) presents the expenditures of all federal award programs of Chatham County Partnership for Children for the year ended June 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). Because the Schedule presents only a selected portion of the operations of Chatham County Partnership for Children, it is not intended to and does not present the financial position, changes in net assets, or cash flows of Chatham County Partnership for Children.

Finding Details

Finding 2023-001
Cash Management, U.S. Department of Agriculture, NC Department of Health and Human Services: Award 9422, Child and Adult Care Food Program (CACFP): Federal Assistance Listing Number 10.558. Criteria CACFP guidance requires that the sponsoring organization disburses payments to Centers and Homes within 5 working days of receiving it from the NC Department of Health and Human Services. Condition The Chatham County Partnership for Children failed to disburse payment within 5 working days of revenue received from the NC Department of Health and Human Services for two Centers. Cause Sponsoring organizations are instructed to disburse payments within 5 working days as part of their contract. The Chatham County Partnership for Children did not have controls in place to ensure payments were made in accordance with the requirements. Effect or Potential Effect The effect is noncompliance with the United States Department of Agriculture regulations, which could result in a loss of funding. Questioned Costs: None. Context During our testing of the cash management compliance requirement, it was noted that the Chatham County Partnership for Children failed to disburse payment within 5 working days to two out of the 40 Centers and Homes sampled from all CACFP providers. Identification of Repeat Finding: No. Recommendation Management should implement controls over reimbursement procedures to ensure payments are sent within 5 working days. Reporting Views of Responsible Officials As soon as the oversight was detected by the Food Program Manager, the payment was initiated and transferred within 7 days of receipt, 2 days longer than it should have been. A communication process was initiated so that the 3 staff involved in the payment process (the Executive Director, Finance Assistant, and the Food Program Manager), coordinate their time off so that one is designated to be on the lookout for bank notifications. Also, there is better communication with the new Finance Assistant about illness and time off so that alternate coverage for bank notification and payment processing can be put in place.
Finding 2023-001
Cash Management, U.S. Department of Agriculture, NC Department of Health and Human Services: Award 9422, Child and Adult Care Food Program (CACFP): Federal Assistance Listing Number 10.558. Criteria CACFP guidance requires that the sponsoring organization disburses payments to Centers and Homes within 5 working days of receiving it from the NC Department of Health and Human Services. Condition The Chatham County Partnership for Children failed to disburse payment within 5 working days of revenue received from the NC Department of Health and Human Services for two Centers. Cause Sponsoring organizations are instructed to disburse payments within 5 working days as part of their contract. The Chatham County Partnership for Children did not have controls in place to ensure payments were made in accordance with the requirements. Effect or Potential Effect The effect is noncompliance with the United States Department of Agriculture regulations, which could result in a loss of funding. Questioned Costs: None. Context During our testing of the cash management compliance requirement, it was noted that the Chatham County Partnership for Children failed to disburse payment within 5 working days to two out of the 40 Centers and Homes sampled from all CACFP providers. Identification of Repeat Finding: No. Recommendation Management should implement controls over reimbursement procedures to ensure payments are sent within 5 working days. Reporting Views of Responsible Officials As soon as the oversight was detected by the Food Program Manager, the payment was initiated and transferred within 7 days of receipt, 2 days longer than it should have been. A communication process was initiated so that the 3 staff involved in the payment process (the Executive Director, Finance Assistant, and the Food Program Manager), coordinate their time off so that one is designated to be on the lookout for bank notifications. Also, there is better communication with the new Finance Assistant about illness and time off so that alternate coverage for bank notification and payment processing can be put in place.