FAC Explorer

Audit 315200

FY End
2023-12-31
Total Expended
$2.52M
Findings
2
Programs
3
Organization: Collaborative for Children (TX)
Year: 2023 Accepted: 2024-07-16
Auditor: Blazek & Vetterling

Organization Exclusion Status:

Findings

ID Ref Severity Repeat Requirement
478570 2023-002 Material Weakness - B
1055012 2023-002 Material Weakness - B

Programs

ALN Program Spent Major Findings
21.027 Coronavirus State and Local Fiscal Recovery Funds $543,133 - 0
93.575 Child Care and Development Block Grant $473,162 Yes 0
93.870 Maternal, Infant and Early Childhood Home Visiting Grant $159,794 - 0

Contacts

Name Title Type
RYW5NNMWBVM8 Alisa Ealy Auditee
7136001140 Erica Stafford Auditor
No contacts on file

Notes to SEFA

Title: NOTE 1 – SIGNIFICANT ACCOUNTING POLICIES Accounting Policies: Basis of presentation – The schedule of expenditures of federal awards (the schedule) is prepared on the accrual basis of accounting. The information in the schedule is presented in accordance with the requirements of Title 2 U. S. Code of Federal Regulations (CFR) Part 200, Uniform Administrative Requirements, Cost Principles, and Audit Requirements for Federal Awards (Uniform Guidance). Federal expenditures include allowable costs funded by federal grants. Allowable costs are subject to the cost principles of the Uniform Guidance, and include costs that are recognized as expenses in CFC’s financial statements in conformity with generally accepted accounting principles. Indirect costs are reported utilizing CFC’s indirect cost rate as approved by the Houston-Galveston Area Council. CFC has elected not to use the 10% de minimus rate. CFC does not have any subrecipients. Because the schedule presents only a selected portion of the operations of CFC, it is not intended to and does not present the financial position, changes in net assets, or cash flows of CFC. De Minimis Rate Used: N Rate Explanation: The Auditee has elected not to use an indirect cost rate. Basis of presentation – The schedule of expenditures of federal awards (the schedule) is prepared on the accrual basis of accounting. The information in the schedule is presented in accordance with the requirements of Title 2 U. S. Code of Federal Regulations (CFR) Part 200, Uniform Administrative Requirements, Cost Principles, and Audit Requirements for Federal Awards (Uniform Guidance). Federal expenditures include allowable costs funded by federal grants. Allowable costs are subject to the cost principles of the Uniform Guidance, and include costs that are recognized as expenses in CFC’s financial statements in conformity with generally accepted accounting principles. Indirect costs are reported utilizing CFC’s indirect cost rate as approved by the Houston-Galveston Area Council. CFC has elected not to use the 10% de minimus rate. CFC does not have any subrecipients. Because the schedule presents only a selected portion of the operations of CFC, it is not intended to and does not present the financial position, changes in net assets, or cash flows of CFC.

Finding Details

Finding 2023-002
Finding #2023-002 – Material Weakness and Material Noncompliance. Applicable federal program: U. S. Department of Health and Human Services, Passed through the Texas Workforce Commission, Child Care and Development Block Grant, Child Care Business Training, Assistance Listing #: 93.575, Contract Number: 2920CCQ002, Contract Year: 12/01/19 – 06/30/24. Criteria: Allowable costs – Uniform Administrative Requirements, Cost Principles, and Audit Requirements for Federal Awards, §200.406 requires that allowable costs should be net of all applicable credits, including adjustments of overpayments and erroneous charges. To the extent that any credits accruing to or received by the non-Federal entity relate to allowable costs, they must be credited to the Federal award either as a cost reduction or cash refund, as appropriate. Condition and context: Five vendor invoices totaling $137,893 representing professional services provided in 2022 were disputed by CFC due to lack of performance on the part of the vendor. These invoices were billed to Texas Workforce Commission (TWC) in 2022 under the Child Care Business Training contract, but had not yet been paid to the vendor by CFC. The invoices were subsequently credited by the vendor, but not credited back to TWC by CFC, resulting in an amount owed to TWC by CFC of $137,893 at December 31, 2023. Cause: The finding occurred as a result of an error made in reversing unpaid invoices from the accounting records without crediting the TWC contract for the amounts reversed. Effect: Amounts reimbursed by TWC to CFC under the Child Care Business Training contract are overstated by $137,893. Questioned costs: $137,893. Recommendation: CFC should implement policies and procedures to ensure that any applicable credits be credited to the Federal award either as a cost reduction or cash refund, as appropriate. Views of responsible officials and planned corrective actions: Management agrees with the finding. See Corrective Action Plan.
Finding 2023-002
Finding #2023-002 – Material Weakness and Material Noncompliance. Applicable federal program: U. S. Department of Health and Human Services, Passed through the Texas Workforce Commission, Child Care and Development Block Grant, Child Care Business Training, Assistance Listing #: 93.575, Contract Number: 2920CCQ002, Contract Year: 12/01/19 – 06/30/24. Criteria: Allowable costs – Uniform Administrative Requirements, Cost Principles, and Audit Requirements for Federal Awards, §200.406 requires that allowable costs should be net of all applicable credits, including adjustments of overpayments and erroneous charges. To the extent that any credits accruing to or received by the non-Federal entity relate to allowable costs, they must be credited to the Federal award either as a cost reduction or cash refund, as appropriate. Condition and context: Five vendor invoices totaling $137,893 representing professional services provided in 2022 were disputed by CFC due to lack of performance on the part of the vendor. These invoices were billed to Texas Workforce Commission (TWC) in 2022 under the Child Care Business Training contract, but had not yet been paid to the vendor by CFC. The invoices were subsequently credited by the vendor, but not credited back to TWC by CFC, resulting in an amount owed to TWC by CFC of $137,893 at December 31, 2023. Cause: The finding occurred as a result of an error made in reversing unpaid invoices from the accounting records without crediting the TWC contract for the amounts reversed. Effect: Amounts reimbursed by TWC to CFC under the Child Care Business Training contract are overstated by $137,893. Questioned costs: $137,893. Recommendation: CFC should implement policies and procedures to ensure that any applicable credits be credited to the Federal award either as a cost reduction or cash refund, as appropriate. Views of responsible officials and planned corrective actions: Management agrees with the finding. See Corrective Action Plan.