FAC Explorer

Audit 300388

FY End
2023-06-30
Total Expended
$900,813
Findings
2
Programs
2
Organization: National Children's Center (MD)
Year: 2023 Accepted: 2024-03-29
Auditor: Sb & Company LLC

Organization Exclusion Status:

Findings

ID Ref Severity Repeat Requirement
389448 2023-001 Significant Deficiency - AB
965890 2023-001 Significant Deficiency - AB

Programs

ALN Program Spent Major Findings
93.434 Every Student Succeeds Act/preschool Development Grants $746,237 Yes 1
10.558 Child and Adult Care Food Program $154,576 - 0

Contacts

Name Title Type
H8N9N2E6V2L5 Berhane Ayichew Auditee
2027222300 Tiana Wynn Auditor
No contacts on file

Notes to SEFA

Title: BASIS OF PRESENTATION Accounting Policies: All Federal grant operations of National Children's Center, Inc. (the Organization) are included in the scope of Title 2 U.S. Code of Federal Regulations Part 200, Uniform Administrative Requirements, Cost Principles, and Audit Requirements for Federal Awards (the Single Audit). The Single Audit was performed in accordance with the provisions of the Office of Management and Budget (OMB) Compliance Supplement (the Compliance Supplement). Compliance testing of all requirements, as described in the Compliance Supplement, was performed for the major grant program noted below. The programs on the schedule of expenditures of Federal awards (the Schedule) represents all Federal award programs with fiscal year 2023, cash or non-cash expenditure activities. For Single Audit testing, we tested to ensure coverage of at least 40% of Federally granted funds. Actual coverage was 83%. The major program tested is listed below. Expenditures reported on the Schedule are reported in accordance with the cost principles contained in the Single Audit, wherein certain types of expenditures are not allowable or are limited as to reimbursement. De Minimis Rate Used: N Rate Explanation: The Organization has elected not to use the 10-percent de minimis indirect cost rate as allowed under the Uniform Guidance. The accompanying Schedule includes the Federal award activity of the Organization and is presented on the accrual basis of accounting, in accordance with accounting principles generally accepted in the United States of America.

Finding Details

Finding 2023-001
Condition: The costs charged to the Federal award were not adequately documented. As a result, there was a delay in completing the Uniform Grant Guidance audit. Additional time and analysis was required to accumulate the direct costs that were charged to the major Federal program. Although the Organization was able to provide sufficient support for the personnel cost charged to the program, it was not documented or maintained prior to the start of the audit. Criteria: In accordance with 2 CFR §200.303: The non-Federal entity must: (a) Establish and maintain effective internal control over the Federal award that provides reasonable assurance that the non-Federal entity is managing the Federal award in compliance with Federal statutes, regulations, and the terms and conditions of the Federal award. In accordance with 2 CFR 200.430: (i) Standards for Documentation of Personnel Expenses (1) Charges to Federal awards for salaries and wages must be based on records that accurately reflect the work performed. These records must: (i) Be supported by a system of internal control which provides reasonable assurance that the charges are accurate, allowable, and properly allocated; (ii) Be incorporated into the official records of the non-Federal entity; (iii) Reasonably reflect the total activity for which the employee is compensated by the non-Federal entity, not exceeding 100% of compensated activities; (iv) Encompass both federally assisted and all other activities compensated by the non-Federal entity on an integrated basis, but may include the use of subsidiary records as defined in the non-Federal entity’s written policy; (v) Comply with the established accounting policies and practices of the non-Federal entity; and (vi) Support the distribution of the employee’s salary or wages among specific activities or cost objectives if the employee works on more than one Federal award; a Federal award and non-Federal award; an indirect cost activity and a direct cost activity; two or more indirect activities which are allocated using different allocation bases; or an unallowable activity and a direct or indirect cost activity. Cause: The Organization did not have a system of internal control, to track the costs allocated to the Federal, which provides reasonable assurance that the charges are accurate, allowable, and properly allocated during the period the costs were incurred. Effect: Expenditures reported to the Federal government could be unallowable/disallowed and subject to return. Questioned Costs: Unknown. Recommendation: We recommend the Organization establish and implement controls to maintain compliance with reporting requirements in accordance with Uniform Grant Guidance and ensure personnel receive appropriate training for handling programs that are Federally funded. Auditee Response and Corrective Action Plan: Refer to the schedule of corrective action plans. Auditor’s Conclusion: Finding remains as stated.
Finding 2023-001
Condition: The costs charged to the Federal award were not adequately documented. As a result, there was a delay in completing the Uniform Grant Guidance audit. Additional time and analysis was required to accumulate the direct costs that were charged to the major Federal program. Although the Organization was able to provide sufficient support for the personnel cost charged to the program, it was not documented or maintained prior to the start of the audit. Criteria: In accordance with 2 CFR §200.303: The non-Federal entity must: (a) Establish and maintain effective internal control over the Federal award that provides reasonable assurance that the non-Federal entity is managing the Federal award in compliance with Federal statutes, regulations, and the terms and conditions of the Federal award. In accordance with 2 CFR 200.430: (i) Standards for Documentation of Personnel Expenses (1) Charges to Federal awards for salaries and wages must be based on records that accurately reflect the work performed. These records must: (i) Be supported by a system of internal control which provides reasonable assurance that the charges are accurate, allowable, and properly allocated; (ii) Be incorporated into the official records of the non-Federal entity; (iii) Reasonably reflect the total activity for which the employee is compensated by the non-Federal entity, not exceeding 100% of compensated activities; (iv) Encompass both federally assisted and all other activities compensated by the non-Federal entity on an integrated basis, but may include the use of subsidiary records as defined in the non-Federal entity’s written policy; (v) Comply with the established accounting policies and practices of the non-Federal entity; and (vi) Support the distribution of the employee’s salary or wages among specific activities or cost objectives if the employee works on more than one Federal award; a Federal award and non-Federal award; an indirect cost activity and a direct cost activity; two or more indirect activities which are allocated using different allocation bases; or an unallowable activity and a direct or indirect cost activity. Cause: The Organization did not have a system of internal control, to track the costs allocated to the Federal, which provides reasonable assurance that the charges are accurate, allowable, and properly allocated during the period the costs were incurred. Effect: Expenditures reported to the Federal government could be unallowable/disallowed and subject to return. Questioned Costs: Unknown. Recommendation: We recommend the Organization establish and implement controls to maintain compliance with reporting requirements in accordance with Uniform Grant Guidance and ensure personnel receive appropriate training for handling programs that are Federally funded. Auditee Response and Corrective Action Plan: Refer to the schedule of corrective action plans. Auditor’s Conclusion: Finding remains as stated.