FAC Explorer

Audit 319183

FY End
2023-12-31
Total Expended
$3.59M
Findings
2
Programs
4
Organization: Early Childhood Alliance, Inc. (IN)
Year: 2023 Accepted: 2024-09-10
Auditor: Dulin Ward & Dewald INC

Organization Exclusion Status:

Findings

ID Ref Severity Repeat Requirement
496295 2023-001 Material Weakness - P
1072737 2023-001 Material Weakness - P

Programs

ALN Program Spent Major Findings
10.558 Child and Adult Care Food Program $2.40M - 1
84.425 Education Stabilization Fund $1.13M Yes 0
21.027 Coronavirus State and Local Fiscal Recovery Funds $56,130 - 0
93.575 Child Care and Development Block Grant $762 - 0

Contacts

Name Title Type
X6C8DB81ZK37 Rhonda Stienecker Auditee
2607452501 Carrie Minnich Auditor
No contacts on file

Notes to SEFA

Title: Basis of Presentation Accounting Policies: 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. De Minimis Rate Used: N Rate Explanation: The Organization has elected not to use the 10% de minimis indirect cost rate allowed under the Uniform Guidance. The accompanying Schedule of Expenditures of Federal Awards includes the federal award activity of Early Childhood Alliance, Inc. under programs of the federal government for the year ended December 31, 2023. The information in this 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). Because the Schedule presents only a selected portion of the Organization, it is not intended to and does not present the financial position, changes in net assets or cash flows of the Organization.
Title: Summary of Significant Accounting Policies Accounting Policies: 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. De Minimis Rate Used: N Rate Explanation: The Organization has elected not to use the 10% de minimis indirect cost rate allowed under the Uniform Guidance. 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.
Title: Indirect Cost Rate Accounting Policies: 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. De Minimis Rate Used: N Rate Explanation: The Organization has elected not to use the 10% de minimis indirect cost rate allowed under the Uniform Guidance. The Organization has elected not to use the 10% de minimis indirect cost rate allowed under the Uniform Guidance.

Finding Details

Finding 2023-001
2023-001 Material Adjustment - Criteria: Management is responsible for preparing financial statements in accordance with Generally Accepted Accounting Principles. Condition: Insufficient controls over financial reporting. A material audit adjustment was required to prevent the financial statements from being materially misstated. Cause: Claims receivable from the prior year that were paid in the current year were included in the current year income. Effect: Could result in undetected errors and irregularities and misstated interim financial reports. The risk with this condition is that necessary adjustments to the financial statements to record material misstatements may be missed and there is no control in place to detect and correct this condition. Questioned Costs: None noted. Recommendation: Improve internal controls to prevent these types of adjustments. Ensure process in place to include activity in the correct period. Views of Responsible Officials and Planned Corrective Actions:Management will incorporate financial reporting internal controls to detect material adjustments, prevent materially misstated financial statements and increase the accuracy of the internal financial reports used by management. The Senior Accountant records the CCDF revenue as it comes in bi-weekly. The CFO calculates the monthly accrual. The Senior Accountant and CFO worked together to create a reconciling process to ensure correct reporting of CCDF revenue.
Finding 2023-001
2023-001 Material Adjustment - Criteria: Management is responsible for preparing financial statements in accordance with Generally Accepted Accounting Principles. Condition: Insufficient controls over financial reporting. A material audit adjustment was required to prevent the financial statements from being materially misstated. Cause: Claims receivable from the prior year that were paid in the current year were included in the current year income. Effect: Could result in undetected errors and irregularities and misstated interim financial reports. The risk with this condition is that necessary adjustments to the financial statements to record material misstatements may be missed and there is no control in place to detect and correct this condition. Questioned Costs: None noted. Recommendation: Improve internal controls to prevent these types of adjustments. Ensure process in place to include activity in the correct period. Views of Responsible Officials and Planned Corrective Actions:Management will incorporate financial reporting internal controls to detect material adjustments, prevent materially misstated financial statements and increase the accuracy of the internal financial reports used by management. The Senior Accountant records the CCDF revenue as it comes in bi-weekly. The CFO calculates the monthly accrual. The Senior Accountant and CFO worked together to create a reconciling process to ensure correct reporting of CCDF revenue.