FAC Explorer

Audit 299674

FY End
2023-06-30
Total Expended
$4.97M
Findings
4
Programs
3
Organization: National Centers for Learning Excellence, Inc. (WI)
Year: 2023 Accepted: 2024-03-28
Auditor: Cliftonlarsonallen LLP

Organization Exclusion Status:

Findings

ID Ref Severity Repeat Requirement
387556 2023-001 Significant Deficiency - AB
387557 2023-001 Significant Deficiency - AB
963998 2023-001 Significant Deficiency - AB
963999 2023-001 Significant Deficiency - AB

Programs

ALN Program Spent Major Findings
93.600 Head Start Cluster $4.42M Yes 1
93.600 Coronavirus Aid, Relief, and Economic Security Act $379,998 Yes 1
10.588 Child and Adult Care Food Program $168,798 - 0

Contacts

Name Title Type
YNJ9VDGK9NH4 Timothy Nolan Auditee
2625210315 Becky Meyer Auditor
No contacts on file

Notes to SEFA

Title: MATCHING REQUIREMENTS Accounting Policies: Basis of Accounting: Expenditures reported on the Schedule are presented in accordance with the requirements of Uniform Guidance and the State Single Audit Guidelines, wherein certain types of expenditures are not allowable or are limited as to reimbursement. Therefore, some amounts presented in this schedule may differ from amounts presented in, or used in the preparation of the basic financial statements. Property and Equipment: In accordance with grant award budgets, property, and equipment purchased with grant award funds are charged to expense in the period of purchase instead of being depreciated over their useful lives. As a result, property and equipment purchased during the period are included as expenses while depreciation is excluded as an expense in the schedule of expenditures of federal and state awards. Volunteer Services: Services provided by volunteers meet the definition for in-kind expenses for grant purposes but are not considered expenses for financial statements reporting purposes. De Minimis Rate Used: N Rate Explanation: The auditee did not use the de minimis cost rate. National Centers for Learning Excellence, Inc. is normally required to match 20% of federal Head Start awards. However, in the current grant cycle ending June 30, 2023, the match was reduced to $904,822. The Corporation has met its match as follows for that grant period:
Title: INDIRECT COST RATE Accounting Policies: Basis of Accounting: Expenditures reported on the Schedule are presented in accordance with the requirements of Uniform Guidance and the State Single Audit Guidelines, wherein certain types of expenditures are not allowable or are limited as to reimbursement. Therefore, some amounts presented in this schedule may differ from amounts presented in, or used in the preparation of the basic financial statements. Property and Equipment: In accordance with grant award budgets, property, and equipment purchased with grant award funds are charged to expense in the period of purchase instead of being depreciated over their useful lives. As a result, property and equipment purchased during the period are included as expenses while depreciation is excluded as an expense in the schedule of expenditures of federal and state awards. Volunteer Services: Services provided by volunteers meet the definition for in-kind expenses for grant purposes but are not considered expenses for financial statements reporting purposes. De Minimis Rate Used: N Rate Explanation: The auditee did not use the de minimis cost rate. National Centers for Learning Excellence, Inc. has elected not to use the 10 percent de minimis indirect cost rate as allowed under the Uniform Guidance.
Title: SUBRECIPIENT PAYMENTS Accounting Policies: Basis of Accounting: Expenditures reported on the Schedule are presented in accordance with the requirements of Uniform Guidance and the State Single Audit Guidelines, wherein certain types of expenditures are not allowable or are limited as to reimbursement. Therefore, some amounts presented in this schedule may differ from amounts presented in, or used in the preparation of the basic financial statements. Property and Equipment: In accordance with grant award budgets, property, and equipment purchased with grant award funds are charged to expense in the period of purchase instead of being depreciated over their useful lives. As a result, property and equipment purchased during the period are included as expenses while depreciation is excluded as an expense in the schedule of expenditures of federal and state awards. Volunteer Services: Services provided by volunteers meet the definition for in-kind expenses for grant purposes but are not considered expenses for financial statements reporting purposes. De Minimis Rate Used: N Rate Explanation: The auditee did not use the de minimis cost rate. National Centers for Learning Excellence, Inc. has not identified any payments to sub-recipients of federal and state awards for the year ended June 30, 2023.
Title: OVERSIGHT AGENCIES Accounting Policies: Basis of Accounting: Expenditures reported on the Schedule are presented in accordance with the requirements of Uniform Guidance and the State Single Audit Guidelines, wherein certain types of expenditures are not allowable or are limited as to reimbursement. Therefore, some amounts presented in this schedule may differ from amounts presented in, or used in the preparation of the basic financial statements. Property and Equipment: In accordance with grant award budgets, property, and equipment purchased with grant award funds are charged to expense in the period of purchase instead of being depreciated over their useful lives. As a result, property and equipment purchased during the period are included as expenses while depreciation is excluded as an expense in the schedule of expenditures of federal and state awards. Volunteer Services: Services provided by volunteers meet the definition for in-kind expenses for grant purposes but are not considered expenses for financial statements reporting purposes. De Minimis Rate Used: N Rate Explanation: The auditee did not use the de minimis cost rate. The federal and state oversight agencies for National Centers for Learning Excellence, Inc. are the U.S. Department of Health and Human Services and the Wisconsin Department of Public Instruction, respectively.
Title: Basis of Presentation Accounting Policies: Basis of Accounting: Expenditures reported on the Schedule are presented in accordance with the requirements of Uniform Guidance and the State Single Audit Guidelines, wherein certain types of expenditures are not allowable or are limited as to reimbursement. Therefore, some amounts presented in this schedule may differ from amounts presented in, or used in the preparation of the basic financial statements. Property and Equipment: In accordance with grant award budgets, property, and equipment purchased with grant award funds are charged to expense in the period of purchase instead of being depreciated over their useful lives. As a result, property and equipment purchased during the period are included as expenses while depreciation is excluded as an expense in the schedule of expenditures of federal and state awards. Volunteer Services: Services provided by volunteers meet the definition for in-kind expenses for grant purposes but are not considered expenses for financial statements reporting purposes. De Minimis Rate Used: N Rate Explanation: The auditee did not use the de minimis cost rate. The accompanying schedule of expenditures of federal and state awards (the Schedule) includes the federal and state award activity of National Centers for Learning Excellence, Inc. under programs of the federal and state government for the year ended June 30, 2023. The information in this Schedule is presented in accordance with the requirements of 2 CFR 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 the Corporation, it is not intended to and does not present the financial position, changes in net assets, or cash flows of National Centers for Learning Excellence, Inc.

Finding Details

Finding 2023-001
2023-001 Payroll Finding – Terminated Employees Federal Agency: U.S. Department of Health and Human Services Federal Program Name: Head Start Cluster Assistance Listing Number: 93.600 Federal Award Identification Number and Year: 05CH011111-04 for 2022/2023 Pass-Through Agency: Not Applicable Pass-Through Number(s): Not Applicable Award Period: July 1, 2022 – June 30, 2023 Compliance Requirement: Allowable Activities, Allowable Costs Type of Finding: Significant Deficiency in Internal Control over Compliance, Other Matter Criteria or Specific Requirement: Uniform Guidance requires that charges to federal awards for salaries and wages be based on records that accurately reflect time worked. Condition: As part of our payroll testing, we noted 1 out of 22 employees did not have time / effort reporting for the pay period tested. Questioned Costs: $5,050 Context: As part of our payroll testing, we noted 1 out of 22 employees did not have time / effort reporting as the employee had been terminated a few weeks prior. The Corporation noted this was an issue specific to salaried terminated employees so we reviewed all terminated employees timesheets (time / effort documentation) for the last pay period worked compared to the amount paid in the payroll records. We noted one additional employee with the similar issue - a total of two errors out of 20 terminated employees. Cause: Salaried employees who are terminated may receive additional pay for earned leave after they are no longer working. In order to pay this additional time, the Corporation did not "terminate" the employee in the system. The employee was then not "terminated" in the payroll system prior to the next pay period which allowed the salaried employee to be paid. Effect: Costs were charged to the grant without proper time / effort reporting. Employees were paid when they no longer worked for the Corporation. Repeat Finding: No Recommendation: We recommend the Corporation reviews their current processes in place over terminated employees to ensure they are "terminated" within their payroll system immediately following their last pay period worked. We also recommend the Corporation increase their review over payroll prior to issuing checks to ensure that all employees who are being paid are continuing employees. Views of Responsible Officials: There is no disagreement with the audit finding. Refer to the Corporation’s Corrective Action Plan for more information.
Finding 2023-001
2023-001 Payroll Finding – Terminated Employees Federal Agency: U.S. Department of Health and Human Services Federal Program Name: Head Start Cluster Assistance Listing Number: 93.600 Federal Award Identification Number and Year: 05CH011111-04 for 2022/2023 Pass-Through Agency: Not Applicable Pass-Through Number(s): Not Applicable Award Period: July 1, 2022 – June 30, 2023 Compliance Requirement: Allowable Activities, Allowable Costs Type of Finding: Significant Deficiency in Internal Control over Compliance, Other Matter Criteria or Specific Requirement: Uniform Guidance requires that charges to federal awards for salaries and wages be based on records that accurately reflect time worked. Condition: As part of our payroll testing, we noted 1 out of 22 employees did not have time / effort reporting for the pay period tested. Questioned Costs: $5,050 Context: As part of our payroll testing, we noted 1 out of 22 employees did not have time / effort reporting as the employee had been terminated a few weeks prior. The Corporation noted this was an issue specific to salaried terminated employees so we reviewed all terminated employees timesheets (time / effort documentation) for the last pay period worked compared to the amount paid in the payroll records. We noted one additional employee with the similar issue - a total of two errors out of 20 terminated employees. Cause: Salaried employees who are terminated may receive additional pay for earned leave after they are no longer working. In order to pay this additional time, the Corporation did not "terminate" the employee in the system. The employee was then not "terminated" in the payroll system prior to the next pay period which allowed the salaried employee to be paid. Effect: Costs were charged to the grant without proper time / effort reporting. Employees were paid when they no longer worked for the Corporation. Repeat Finding: No Recommendation: We recommend the Corporation reviews their current processes in place over terminated employees to ensure they are "terminated" within their payroll system immediately following their last pay period worked. We also recommend the Corporation increase their review over payroll prior to issuing checks to ensure that all employees who are being paid are continuing employees. Views of Responsible Officials: There is no disagreement with the audit finding. Refer to the Corporation’s Corrective Action Plan for more information.
Finding 2023-001
2023-001 Payroll Finding – Terminated Employees Federal Agency: U.S. Department of Health and Human Services Federal Program Name: Head Start Cluster Assistance Listing Number: 93.600 Federal Award Identification Number and Year: 05CH011111-04 for 2022/2023 Pass-Through Agency: Not Applicable Pass-Through Number(s): Not Applicable Award Period: July 1, 2022 – June 30, 2023 Compliance Requirement: Allowable Activities, Allowable Costs Type of Finding: Significant Deficiency in Internal Control over Compliance, Other Matter Criteria or Specific Requirement: Uniform Guidance requires that charges to federal awards for salaries and wages be based on records that accurately reflect time worked. Condition: As part of our payroll testing, we noted 1 out of 22 employees did not have time / effort reporting for the pay period tested. Questioned Costs: $5,050 Context: As part of our payroll testing, we noted 1 out of 22 employees did not have time / effort reporting as the employee had been terminated a few weeks prior. The Corporation noted this was an issue specific to salaried terminated employees so we reviewed all terminated employees timesheets (time / effort documentation) for the last pay period worked compared to the amount paid in the payroll records. We noted one additional employee with the similar issue - a total of two errors out of 20 terminated employees. Cause: Salaried employees who are terminated may receive additional pay for earned leave after they are no longer working. In order to pay this additional time, the Corporation did not "terminate" the employee in the system. The employee was then not "terminated" in the payroll system prior to the next pay period which allowed the salaried employee to be paid. Effect: Costs were charged to the grant without proper time / effort reporting. Employees were paid when they no longer worked for the Corporation. Repeat Finding: No Recommendation: We recommend the Corporation reviews their current processes in place over terminated employees to ensure they are "terminated" within their payroll system immediately following their last pay period worked. We also recommend the Corporation increase their review over payroll prior to issuing checks to ensure that all employees who are being paid are continuing employees. Views of Responsible Officials: There is no disagreement with the audit finding. Refer to the Corporation’s Corrective Action Plan for more information.
Finding 2023-001
2023-001 Payroll Finding – Terminated Employees Federal Agency: U.S. Department of Health and Human Services Federal Program Name: Head Start Cluster Assistance Listing Number: 93.600 Federal Award Identification Number and Year: 05CH011111-04 for 2022/2023 Pass-Through Agency: Not Applicable Pass-Through Number(s): Not Applicable Award Period: July 1, 2022 – June 30, 2023 Compliance Requirement: Allowable Activities, Allowable Costs Type of Finding: Significant Deficiency in Internal Control over Compliance, Other Matter Criteria or Specific Requirement: Uniform Guidance requires that charges to federal awards for salaries and wages be based on records that accurately reflect time worked. Condition: As part of our payroll testing, we noted 1 out of 22 employees did not have time / effort reporting for the pay period tested. Questioned Costs: $5,050 Context: As part of our payroll testing, we noted 1 out of 22 employees did not have time / effort reporting as the employee had been terminated a few weeks prior. The Corporation noted this was an issue specific to salaried terminated employees so we reviewed all terminated employees timesheets (time / effort documentation) for the last pay period worked compared to the amount paid in the payroll records. We noted one additional employee with the similar issue - a total of two errors out of 20 terminated employees. Cause: Salaried employees who are terminated may receive additional pay for earned leave after they are no longer working. In order to pay this additional time, the Corporation did not "terminate" the employee in the system. The employee was then not "terminated" in the payroll system prior to the next pay period which allowed the salaried employee to be paid. Effect: Costs were charged to the grant without proper time / effort reporting. Employees were paid when they no longer worked for the Corporation. Repeat Finding: No Recommendation: We recommend the Corporation reviews their current processes in place over terminated employees to ensure they are "terminated" within their payroll system immediately following their last pay period worked. We also recommend the Corporation increase their review over payroll prior to issuing checks to ensure that all employees who are being paid are continuing employees. Views of Responsible Officials: There is no disagreement with the audit finding. Refer to the Corporation’s Corrective Action Plan for more information.