FAC Explorer

Audit 31304

FY End
2022-06-30
Total Expended
$1.33M
Findings
4
Programs
3
Organization: Stepping Stone School for Exceptional Children, Inc. (AR)
Year: 2022 Accepted: 2023-05-17
Auditor: Landmark Plc Certified Public Accountants

Organization Exclusion Status:

Findings

ID Ref Severity Repeat Requirement
33859 2022-003 Material Weakness - P
33860 2022-004 Material Weakness - P
610301 2022-003 Material Weakness - P
610302 2022-004 Material Weakness - P

Programs

ALN Program Spent Major Findings
93.498 Provider Relief Fund $787,756 Yes 2
10.558 Child and Adult Care Food Program $35,940 - 0
93.575 Child Care and Development Block Grant $10,000 - 0

Contacts

Name Title Type
HU6VXR5C5DZ1 Toni Wilson Auditee
4796323813 Deana Infield Auditor
No contacts on file

Notes to SEFA

Title: MEDICAID Accounting Policies: The accompanying Combined Schedule of Expenditures of Federal and State Awards (the Schedule) includes the federal and state award activity of the Organization under programs of the federal/state government for the year ended June 30, 2022. 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 the Organization, it is not intended to be and does not present the financial position, changes in net assets, or cash flows of the Organization. De Minimis Rate Used: Y Rate Explanation: 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. The Organization has elected to use the 10 percent de minimis indirect cost rate allowed under the Uniform Guidance. Medical Assistance Program (Medicaid) revenue amounted to $7,467,081 during the year ended June 30, 2022.
Title: PROVIDER RELIEF FUNDS Accounting Policies: The accompanying Combined Schedule of Expenditures of Federal and State Awards (the Schedule) includes the federal and state award activity of the Organization under programs of the federal/state government for the year ended June 30, 2022. 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 the Organization, it is not intended to be and does not present the financial position, changes in net assets, or cash flows of the Organization. De Minimis Rate Used: Y Rate Explanation: 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. The Organization has elected to use the 10 percent de minimis indirect cost rate allowed under the Uniform Guidance. During the year ended June 30, 2021, the Organization received $787,756 in Provider Relief Funds (PRF, ALN #93.498) directly from the United States Department of Health and Human Services. The PRF monies are not reported on the Combined Statements of Activities because these funds were included for the year ended June 30, 2021 and are subject to the reporting requirements contained in the Uniform Guidance for the year ended June 30, 2022. During the year ended June 30, 2022, the Organization received $60,539 in Provider Relief Funds (PRF, ALN #93.498) directly from the United States Department of Health and Human Services. The PRF monies are not reported on the schedule because these funds are not subject to the reporting requirements contained in the Uniform Guidance for the year ended June 30, 2022.

Finding Details

Finding 2022-003
2022-003: Segregation of Duties Condition: A good system of internal accounting control requires a proper segregation of duties to prevent one person from being in a position to authorize, execute and record the same transaction. Criteria and Cause: Due to having a limited number of employees to handle all accounting functions, some duties and functions performed are contrary to ideal control procedures. Effect: We understand that the Organizations have segregated duties to the degree possible, including implementing monthly review procedures and additional oversight by the Executive Director and Board of Directors, and that management feels further segregation of duties is not practical with the limited number of people employed by management. Recommendation: We recommend that the review procedures implemented by the Executive Director and Board of Directors continue and that segregation of duties continue to be closely monitored. It is our understanding that efforts have been made to segregate duties to the degree possible and that further segregation of duties is not possible with the limited number of people utilized in the accounting function of the Organization.
Finding 2022-004
2022-004: Late Audit Filing Condition: The Organization did not submit the audit report to the Federal Audit Clearinghouse (FAC) within 9 months after the end of the fiscal year in accordance with the Uniform Guidance. Criteria and Cause: The June 30, 2022 audit was required to be submitted to the FAC within 9 months after the end of the fiscal year in accordance with the Uniform Guidance. However, due to needing additional time to complete the Uniform Guidance audit because of the Federal provider relief funds received during the pandemic and the delay by Federal accounting bodies in clarifying the rules for reporting and auditing these funds, this deadline was not met. Effect: The potential effect of not submitting the financial statements in a timely manner could subject the Organization to disciplinary measures by Federal grant agencies. Recommendation: We recommend that the Organization submit the current audit to the FAC as soon as available, and the Organization work diligently to meet all future audit filing deadlines.
Finding 2022-003
2022-003: Segregation of Duties Condition: A good system of internal accounting control requires a proper segregation of duties to prevent one person from being in a position to authorize, execute and record the same transaction. Criteria and Cause: Due to having a limited number of employees to handle all accounting functions, some duties and functions performed are contrary to ideal control procedures. Effect: We understand that the Organizations have segregated duties to the degree possible, including implementing monthly review procedures and additional oversight by the Executive Director and Board of Directors, and that management feels further segregation of duties is not practical with the limited number of people employed by management. Recommendation: We recommend that the review procedures implemented by the Executive Director and Board of Directors continue and that segregation of duties continue to be closely monitored. It is our understanding that efforts have been made to segregate duties to the degree possible and that further segregation of duties is not possible with the limited number of people utilized in the accounting function of the Organization.
Finding 2022-004
2022-004: Late Audit Filing Condition: The Organization did not submit the audit report to the Federal Audit Clearinghouse (FAC) within 9 months after the end of the fiscal year in accordance with the Uniform Guidance. Criteria and Cause: The June 30, 2022 audit was required to be submitted to the FAC within 9 months after the end of the fiscal year in accordance with the Uniform Guidance. However, due to needing additional time to complete the Uniform Guidance audit because of the Federal provider relief funds received during the pandemic and the delay by Federal accounting bodies in clarifying the rules for reporting and auditing these funds, this deadline was not met. Effect: The potential effect of not submitting the financial statements in a timely manner could subject the Organization to disciplinary measures by Federal grant agencies. Recommendation: We recommend that the Organization submit the current audit to the FAC as soon as available, and the Organization work diligently to meet all future audit filing deadlines.