FAC Explorer

Audit 303434

FY End
2022-11-30
Total Expended
$5.93M
Findings
4
Programs
2
Organization: Mid-Columbia Children's Council, INC (OR)
Year: 2022 Accepted: 2024-04-12
Auditor: Kern Thompson LLC

Organization Exclusion Status:

Findings

ID Ref Severity Repeat Requirement
393153 2022-002 Significant Deficiency Yes B
393154 2022-003 Significant Deficiency - L
969595 2022-002 Significant Deficiency Yes B
969596 2022-003 Significant Deficiency - L

Programs

ALN Program Spent Major Findings
93.600 Head Start $5.73M Yes 2
10.558 Child and Adult Care Food Program $95,015 - 0

Contacts

Name Title Type
NU9ZXTCLWWM4 Collice Martens Auditee
5413862010 Katie Sheffield Auditor
No contacts on file

Notes to SEFA

Accounting Policies: NOTE 1 – BASIS OF PRESENTATION The accompanying Schedule of Expenditures of Federal Awards includes the federal grant activity of Mid-Columbia Children’s Council and is presented on the accrual basis of accounting, consistent with generally accepted accounting principles. The information in this schedule is presented in accordance with requirements of the Title 2 CFR Part 200, Uniform Administrative Requirements, Cost Principles, and Audit Requirements for Federal Awards (Uniform Guidance). Therefore, some amounts presented in this schedule may differ from amounts presented in, or used in the preparation of, the basic financial statements. NOTE 2 – MATCHING REQUIREMENT The Organization accounts for the non-federal share requirements by the Department of Health and Human Services through inclusion of in-kind contributions and cash donations received. While some of these contributions are not considered to be in accordance with generally accepted accounting principles (GAAP), management asserts they have been allowable by the granting agency. NOTE 3 – MAJOR AND NONMAJOR FEDERAL FINANCIAL ASSISTANCE PROGRAMS Federal financial assistance programs with identical assistance (AL) numbers are combined in determining whether the programs are major or nonmajor. Type A federal assistance programs are those with combined expenditures of $750,000 or more during a fiscal year. Type B federal financial assistance programs are those with combined expenditures of less than $750,000 during a fiscal year. De Minimis Rate Used: N Rate Explanation: The Organization has not used the 10% de minimis indirect cost rate under the Uniform Guidance

Finding Details

Finding 2022-002
Finding 2022-002 Federal Agency: U.S. Department of Human Services Federal Program: Head Start Cluster CFDA Number: 93.600 Type of Finding: Noncompliance and Significant Deficiency in Internal Control over Compliance - Allowable Costs. Criteria: Costs attributable to common or joint use of facilities or services by Head Start programs and other programs must be fairly allocated among the various programs that utilize such services (42 USC 9839(c)). Condition: Expenditures were not properly charged to programs or allocated in accordance with the cost allocation plan. We identified 8 of the 43 expenditures tested in our statistically valid sample did not agree with the cost allocation plan. Repeat of finding 2021-001. Context: Expenditures should be charged to the proper programs and allocated in accordance with the cost allocation plan. Known Questioned Costs: $6,357 – resulted in likely questioned costs greater than $25,000. Cause: Turnover of accounting personnel and lack of documentation and understanding of the allocation process with the Organization resulted in costs being incorrectly allocated between programs. Effect: Grant expenses were charged to the incorrect programs. Recommendation: We recommend management implement procedures to ensure that costs charged to the grant follow the approved cost allocation plan. Views of responsible official: Management concurs with the audit findings.
Finding 2022-003
Finding 2022-003 Type of Finding: Noncompliance and Significant Deficiency in Internal Control over Compliance - Reporting. Criteria: The Organization is required to complete financial and other reports on specified dates according to the grant agreement with the funder. Condition: The Organization did not file the required reports timely. Additionally, one of the reports in several instances did not agree to supporting documentation from the accounting system. Context and Cause: The Organization experienced turnover in key personnel responsible for preparing and filing federal reports. The reports were eventually filed late, but supporting documentation from the accounting system was not maintained in a fixed format in a centralized location, and could not be recreated after the fact. Questioned Costs: None. Effect: Reporting compliance requirements were not performed adequately. Recommendation: We recommend management implement procedures to ensure the Uniform Grant Guidance and the Compliance Supplement requirements for Reporting are performed on a timely basis, and fixed format backup documentation maintained in a centralized location. Views of responsible official: Management concurs with the audit findings.
Finding 2022-002
Finding 2022-002 Federal Agency: U.S. Department of Human Services Federal Program: Head Start Cluster CFDA Number: 93.600 Type of Finding: Noncompliance and Significant Deficiency in Internal Control over Compliance - Allowable Costs. Criteria: Costs attributable to common or joint use of facilities or services by Head Start programs and other programs must be fairly allocated among the various programs that utilize such services (42 USC 9839(c)). Condition: Expenditures were not properly charged to programs or allocated in accordance with the cost allocation plan. We identified 8 of the 43 expenditures tested in our statistically valid sample did not agree with the cost allocation plan. Repeat of finding 2021-001. Context: Expenditures should be charged to the proper programs and allocated in accordance with the cost allocation plan. Known Questioned Costs: $6,357 – resulted in likely questioned costs greater than $25,000. Cause: Turnover of accounting personnel and lack of documentation and understanding of the allocation process with the Organization resulted in costs being incorrectly allocated between programs. Effect: Grant expenses were charged to the incorrect programs. Recommendation: We recommend management implement procedures to ensure that costs charged to the grant follow the approved cost allocation plan. Views of responsible official: Management concurs with the audit findings.
Finding 2022-003
Finding 2022-003 Type of Finding: Noncompliance and Significant Deficiency in Internal Control over Compliance - Reporting. Criteria: The Organization is required to complete financial and other reports on specified dates according to the grant agreement with the funder. Condition: The Organization did not file the required reports timely. Additionally, one of the reports in several instances did not agree to supporting documentation from the accounting system. Context and Cause: The Organization experienced turnover in key personnel responsible for preparing and filing federal reports. The reports were eventually filed late, but supporting documentation from the accounting system was not maintained in a fixed format in a centralized location, and could not be recreated after the fact. Questioned Costs: None. Effect: Reporting compliance requirements were not performed adequately. Recommendation: We recommend management implement procedures to ensure the Uniform Grant Guidance and the Compliance Supplement requirements for Reporting are performed on a timely basis, and fixed format backup documentation maintained in a centralized location. Views of responsible official: Management concurs with the audit findings.