Audit 328011

FY End
2023-06-30
Total Expended
$5.65M
Findings
16
Programs
1
Year: 2023 Accepted: 2024-11-12

Organization Exclusion Status:

Checking exclusion status...

Findings

ID Ref Severity Repeat Requirement
505353 2023-101 Material Weakness - A
505354 2023-102 Significant Deficiency Yes L
505355 2023-101 Material Weakness - A
505356 2023-102 Significant Deficiency Yes L
505357 2023-101 Material Weakness - A
505358 2023-102 Significant Deficiency Yes L
505359 2023-101 Material Weakness - A
505360 2023-102 Significant Deficiency Yes L
1081795 2023-101 Material Weakness - A
1081796 2023-102 Significant Deficiency Yes L
1081797 2023-101 Material Weakness - A
1081798 2023-102 Significant Deficiency Yes L
1081799 2023-101 Material Weakness - A
1081800 2023-102 Significant Deficiency Yes L
1081801 2023-101 Material Weakness - A
1081802 2023-102 Significant Deficiency Yes L

Programs

ALN Program Spent Major Findings
93.600 Head Start $171,352 Yes 2

Contacts

Name Title Type
WDZDJMU5W3K3 Josie Ayon Auditee
6022524743 Robert N Snyder Auditor
No contacts on file

Notes to SEFA

Title: NOTE 1 – Basis of Presentation Accounting Policies: Expenditures reported on the schedule are reported on the modified 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. Therefore, some amounts presented in this schedule may differ from amounts presented in, or used in the preparation of, the financial statements. De Minimis Rate Used: N Rate Explanation: The Organization did not elect to use the 10 percent de minimis indirect cost rate as covered in 2 CFR §200.414. The accompanying schedule of expenditures of federal awards includes the federal grant activity of Booker T. Washington Child Development Center, Inc. (“the Organization”). 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).
Title: NOTE – 2 Summary of Significant Accounting Policies Accounting Policies: Expenditures reported on the schedule are reported on the modified 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. Therefore, some amounts presented in this schedule may differ from amounts presented in, or used in the preparation of, the financial statements. De Minimis Rate Used: N Rate Explanation: The Organization did not elect to use the 10 percent de minimis indirect cost rate as covered in 2 CFR §200.414. Expenditures reported on the schedule are reported on the modified 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. Therefore, some amounts presented in this schedule may differ from amounts presented in, or used in the preparation of, the financial statements.
Title: NOTE 3 – Federal Assistance Listing Numbers Accounting Policies: Expenditures reported on the schedule are reported on the modified 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. Therefore, some amounts presented in this schedule may differ from amounts presented in, or used in the preparation of, the financial statements. De Minimis Rate Used: N Rate Explanation: The Organization did not elect to use the 10 percent de minimis indirect cost rate as covered in 2 CFR §200.414. The program titles and Assistance Listing numbers were obtained from the federal or pass-through grantor or the 2023 Federal Assistance Listings.
Title: Note 4 – Indirect Cost Rate Accounting Policies: Expenditures reported on the schedule are reported on the modified 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. Therefore, some amounts presented in this schedule may differ from amounts presented in, or used in the preparation of, the financial statements. De Minimis Rate Used: N Rate Explanation: The Organization did not elect to use the 10 percent de minimis indirect cost rate as covered in 2 CFR §200.414. The Organization did not elect to use the 10 percent de minimis indirect cost rate as covered in 2 CFR §200.414.

Finding Details

Federal program information: Funding agency: U.S. Department of Health and Human Services Title: Head Start CFDA number: 93.600 Award number and years: 152734, 152734-014; July 1, 2022 through June 30, 2023 Pass-through grantor: City of Phoenix Compliance Requirements: Allowable Costs/Cost Principles Questioned Costs: Unknown Criteria: The Pass-through Grantor, the City of Phoenix, requires that the Organization provide a 25% match (nonfederal share) of the federal funding. Condition: During fiscal year 2023, the total federal amounts reported for the Head Start program related to the non-COVID-19 related contracts was $4,843,064 which would require a $1,210,766 match based on 25%. Of the match that Booker T. Washington Child Development Center was initially able to document, $192,182 related to meals provided by a school district for free to the Booker T. Washington children. The value of these free meals in total as calculated by the Organization was $796,647, but only $192,182 was needed to cover the shortfall from other categories. These free meals were not contemplated as part of the Budgeted match when the contract with the City of Phoenix was established, nor were these free meals included as part of the Quarterly Admin reports provided to the City. Cause and Effect: During the year, the Organization determined that $808,793 of the required match was met through expenses of other funding sources. However, it only $598,268 of these other funding sources was spent on program related items during fiscal year 2023, causing $192,182 of this reported match to not be legitimate. Due to this $192,182 shortfall, the Organization rethought its sources of matching funds and determined that they believe that the Organization received $796,647 in free meals provided to kids that could be used to make up for this $192,182 shortfall in the required match. These free meals were not specified in the quarterly reports submitted to the City of Phoenix because these free meals were considered part of the required match only after the auditors determined that the reported match categories that could be supported was short of the requirement by $192,182, Auditors’ Recommendations: The Organization should establish policies where the required match is periodically summarized throughout the year and analyzed to ensure that the required match will be met by contract year end.
Federal program information: Funding agency: U.S. Department of Health and Human Services Title: Head Start CFDA number: 93.600 Award number and years: 152734, 152734-014; July 1, 2022 through June 30, 2023 Pass-through grantor: City of Phoenix Compliance Requirements: Reporting Questioned Costs: N/A Criteria: 200.512 of the Uniform Guidance requires that the Organization submit an annual single audit reporting package and submit the data collection form prior to nine months after the end of the audit period. Condition: The Organization did not submit its single audit reporting package or data collection form within the required deadline. Cause and Effect: The Organization had turnover in finance staff and had not established policies and procedures to ensure the annual single audit is completed timely. As a result, the Organization did not comply with federal requirements. Auditors’ Recommendations: Management should ensure that the annual single audit is completed within the required timeframe. This finding is similar to prior year finding 2022-102
Federal program information: Funding agency: U.S. Department of Health and Human Services Title: Head Start CFDA number: 93.600 Award number and years: 152734, 152734-014; July 1, 2022 through June 30, 2023 Pass-through grantor: City of Phoenix Compliance Requirements: Allowable Costs/Cost Principles Questioned Costs: Unknown Criteria: The Pass-through Grantor, the City of Phoenix, requires that the Organization provide a 25% match (nonfederal share) of the federal funding. Condition: During fiscal year 2023, the total federal amounts reported for the Head Start program related to the non-COVID-19 related contracts was $4,843,064 which would require a $1,210,766 match based on 25%. Of the match that Booker T. Washington Child Development Center was initially able to document, $192,182 related to meals provided by a school district for free to the Booker T. Washington children. The value of these free meals in total as calculated by the Organization was $796,647, but only $192,182 was needed to cover the shortfall from other categories. These free meals were not contemplated as part of the Budgeted match when the contract with the City of Phoenix was established, nor were these free meals included as part of the Quarterly Admin reports provided to the City. Cause and Effect: During the year, the Organization determined that $808,793 of the required match was met through expenses of other funding sources. However, it only $598,268 of these other funding sources was spent on program related items during fiscal year 2023, causing $192,182 of this reported match to not be legitimate. Due to this $192,182 shortfall, the Organization rethought its sources of matching funds and determined that they believe that the Organization received $796,647 in free meals provided to kids that could be used to make up for this $192,182 shortfall in the required match. These free meals were not specified in the quarterly reports submitted to the City of Phoenix because these free meals were considered part of the required match only after the auditors determined that the reported match categories that could be supported was short of the requirement by $192,182, Auditors’ Recommendations: The Organization should establish policies where the required match is periodically summarized throughout the year and analyzed to ensure that the required match will be met by contract year end.
Federal program information: Funding agency: U.S. Department of Health and Human Services Title: Head Start CFDA number: 93.600 Award number and years: 152734, 152734-014; July 1, 2022 through June 30, 2023 Pass-through grantor: City of Phoenix Compliance Requirements: Reporting Questioned Costs: N/A Criteria: 200.512 of the Uniform Guidance requires that the Organization submit an annual single audit reporting package and submit the data collection form prior to nine months after the end of the audit period. Condition: The Organization did not submit its single audit reporting package or data collection form within the required deadline. Cause and Effect: The Organization had turnover in finance staff and had not established policies and procedures to ensure the annual single audit is completed timely. As a result, the Organization did not comply with federal requirements. Auditors’ Recommendations: Management should ensure that the annual single audit is completed within the required timeframe. This finding is similar to prior year finding 2022-102
Federal program information: Funding agency: U.S. Department of Health and Human Services Title: Head Start CFDA number: 93.600 Award number and years: 152734, 152734-014; July 1, 2022 through June 30, 2023 Pass-through grantor: City of Phoenix Compliance Requirements: Allowable Costs/Cost Principles Questioned Costs: Unknown Criteria: The Pass-through Grantor, the City of Phoenix, requires that the Organization provide a 25% match (nonfederal share) of the federal funding. Condition: During fiscal year 2023, the total federal amounts reported for the Head Start program related to the non-COVID-19 related contracts was $4,843,064 which would require a $1,210,766 match based on 25%. Of the match that Booker T. Washington Child Development Center was initially able to document, $192,182 related to meals provided by a school district for free to the Booker T. Washington children. The value of these free meals in total as calculated by the Organization was $796,647, but only $192,182 was needed to cover the shortfall from other categories. These free meals were not contemplated as part of the Budgeted match when the contract with the City of Phoenix was established, nor were these free meals included as part of the Quarterly Admin reports provided to the City. Cause and Effect: During the year, the Organization determined that $808,793 of the required match was met through expenses of other funding sources. However, it only $598,268 of these other funding sources was spent on program related items during fiscal year 2023, causing $192,182 of this reported match to not be legitimate. Due to this $192,182 shortfall, the Organization rethought its sources of matching funds and determined that they believe that the Organization received $796,647 in free meals provided to kids that could be used to make up for this $192,182 shortfall in the required match. These free meals were not specified in the quarterly reports submitted to the City of Phoenix because these free meals were considered part of the required match only after the auditors determined that the reported match categories that could be supported was short of the requirement by $192,182, Auditors’ Recommendations: The Organization should establish policies where the required match is periodically summarized throughout the year and analyzed to ensure that the required match will be met by contract year end.
Federal program information: Funding agency: U.S. Department of Health and Human Services Title: Head Start CFDA number: 93.600 Award number and years: 152734, 152734-014; July 1, 2022 through June 30, 2023 Pass-through grantor: City of Phoenix Compliance Requirements: Reporting Questioned Costs: N/A Criteria: 200.512 of the Uniform Guidance requires that the Organization submit an annual single audit reporting package and submit the data collection form prior to nine months after the end of the audit period. Condition: The Organization did not submit its single audit reporting package or data collection form within the required deadline. Cause and Effect: The Organization had turnover in finance staff and had not established policies and procedures to ensure the annual single audit is completed timely. As a result, the Organization did not comply with federal requirements. Auditors’ Recommendations: Management should ensure that the annual single audit is completed within the required timeframe. This finding is similar to prior year finding 2022-102
Federal program information: Funding agency: U.S. Department of Health and Human Services Title: Head Start CFDA number: 93.600 Award number and years: 152734, 152734-014; July 1, 2022 through June 30, 2023 Pass-through grantor: City of Phoenix Compliance Requirements: Allowable Costs/Cost Principles Questioned Costs: Unknown Criteria: The Pass-through Grantor, the City of Phoenix, requires that the Organization provide a 25% match (nonfederal share) of the federal funding. Condition: During fiscal year 2023, the total federal amounts reported for the Head Start program related to the non-COVID-19 related contracts was $4,843,064 which would require a $1,210,766 match based on 25%. Of the match that Booker T. Washington Child Development Center was initially able to document, $192,182 related to meals provided by a school district for free to the Booker T. Washington children. The value of these free meals in total as calculated by the Organization was $796,647, but only $192,182 was needed to cover the shortfall from other categories. These free meals were not contemplated as part of the Budgeted match when the contract with the City of Phoenix was established, nor were these free meals included as part of the Quarterly Admin reports provided to the City. Cause and Effect: During the year, the Organization determined that $808,793 of the required match was met through expenses of other funding sources. However, it only $598,268 of these other funding sources was spent on program related items during fiscal year 2023, causing $192,182 of this reported match to not be legitimate. Due to this $192,182 shortfall, the Organization rethought its sources of matching funds and determined that they believe that the Organization received $796,647 in free meals provided to kids that could be used to make up for this $192,182 shortfall in the required match. These free meals were not specified in the quarterly reports submitted to the City of Phoenix because these free meals were considered part of the required match only after the auditors determined that the reported match categories that could be supported was short of the requirement by $192,182, Auditors’ Recommendations: The Organization should establish policies where the required match is periodically summarized throughout the year and analyzed to ensure that the required match will be met by contract year end.
Federal program information: Funding agency: U.S. Department of Health and Human Services Title: Head Start CFDA number: 93.600 Award number and years: 152734, 152734-014; July 1, 2022 through June 30, 2023 Pass-through grantor: City of Phoenix Compliance Requirements: Reporting Questioned Costs: N/A Criteria: 200.512 of the Uniform Guidance requires that the Organization submit an annual single audit reporting package and submit the data collection form prior to nine months after the end of the audit period. Condition: The Organization did not submit its single audit reporting package or data collection form within the required deadline. Cause and Effect: The Organization had turnover in finance staff and had not established policies and procedures to ensure the annual single audit is completed timely. As a result, the Organization did not comply with federal requirements. Auditors’ Recommendations: Management should ensure that the annual single audit is completed within the required timeframe. This finding is similar to prior year finding 2022-102
Federal program information: Funding agency: U.S. Department of Health and Human Services Title: Head Start CFDA number: 93.600 Award number and years: 152734, 152734-014; July 1, 2022 through June 30, 2023 Pass-through grantor: City of Phoenix Compliance Requirements: Allowable Costs/Cost Principles Questioned Costs: Unknown Criteria: The Pass-through Grantor, the City of Phoenix, requires that the Organization provide a 25% match (nonfederal share) of the federal funding. Condition: During fiscal year 2023, the total federal amounts reported for the Head Start program related to the non-COVID-19 related contracts was $4,843,064 which would require a $1,210,766 match based on 25%. Of the match that Booker T. Washington Child Development Center was initially able to document, $192,182 related to meals provided by a school district for free to the Booker T. Washington children. The value of these free meals in total as calculated by the Organization was $796,647, but only $192,182 was needed to cover the shortfall from other categories. These free meals were not contemplated as part of the Budgeted match when the contract with the City of Phoenix was established, nor were these free meals included as part of the Quarterly Admin reports provided to the City. Cause and Effect: During the year, the Organization determined that $808,793 of the required match was met through expenses of other funding sources. However, it only $598,268 of these other funding sources was spent on program related items during fiscal year 2023, causing $192,182 of this reported match to not be legitimate. Due to this $192,182 shortfall, the Organization rethought its sources of matching funds and determined that they believe that the Organization received $796,647 in free meals provided to kids that could be used to make up for this $192,182 shortfall in the required match. These free meals were not specified in the quarterly reports submitted to the City of Phoenix because these free meals were considered part of the required match only after the auditors determined that the reported match categories that could be supported was short of the requirement by $192,182, Auditors’ Recommendations: The Organization should establish policies where the required match is periodically summarized throughout the year and analyzed to ensure that the required match will be met by contract year end.
Federal program information: Funding agency: U.S. Department of Health and Human Services Title: Head Start CFDA number: 93.600 Award number and years: 152734, 152734-014; July 1, 2022 through June 30, 2023 Pass-through grantor: City of Phoenix Compliance Requirements: Reporting Questioned Costs: N/A Criteria: 200.512 of the Uniform Guidance requires that the Organization submit an annual single audit reporting package and submit the data collection form prior to nine months after the end of the audit period. Condition: The Organization did not submit its single audit reporting package or data collection form within the required deadline. Cause and Effect: The Organization had turnover in finance staff and had not established policies and procedures to ensure the annual single audit is completed timely. As a result, the Organization did not comply with federal requirements. Auditors’ Recommendations: Management should ensure that the annual single audit is completed within the required timeframe. This finding is similar to prior year finding 2022-102
Federal program information: Funding agency: U.S. Department of Health and Human Services Title: Head Start CFDA number: 93.600 Award number and years: 152734, 152734-014; July 1, 2022 through June 30, 2023 Pass-through grantor: City of Phoenix Compliance Requirements: Allowable Costs/Cost Principles Questioned Costs: Unknown Criteria: The Pass-through Grantor, the City of Phoenix, requires that the Organization provide a 25% match (nonfederal share) of the federal funding. Condition: During fiscal year 2023, the total federal amounts reported for the Head Start program related to the non-COVID-19 related contracts was $4,843,064 which would require a $1,210,766 match based on 25%. Of the match that Booker T. Washington Child Development Center was initially able to document, $192,182 related to meals provided by a school district for free to the Booker T. Washington children. The value of these free meals in total as calculated by the Organization was $796,647, but only $192,182 was needed to cover the shortfall from other categories. These free meals were not contemplated as part of the Budgeted match when the contract with the City of Phoenix was established, nor were these free meals included as part of the Quarterly Admin reports provided to the City. Cause and Effect: During the year, the Organization determined that $808,793 of the required match was met through expenses of other funding sources. However, it only $598,268 of these other funding sources was spent on program related items during fiscal year 2023, causing $192,182 of this reported match to not be legitimate. Due to this $192,182 shortfall, the Organization rethought its sources of matching funds and determined that they believe that the Organization received $796,647 in free meals provided to kids that could be used to make up for this $192,182 shortfall in the required match. These free meals were not specified in the quarterly reports submitted to the City of Phoenix because these free meals were considered part of the required match only after the auditors determined that the reported match categories that could be supported was short of the requirement by $192,182, Auditors’ Recommendations: The Organization should establish policies where the required match is periodically summarized throughout the year and analyzed to ensure that the required match will be met by contract year end.
Federal program information: Funding agency: U.S. Department of Health and Human Services Title: Head Start CFDA number: 93.600 Award number and years: 152734, 152734-014; July 1, 2022 through June 30, 2023 Pass-through grantor: City of Phoenix Compliance Requirements: Reporting Questioned Costs: N/A Criteria: 200.512 of the Uniform Guidance requires that the Organization submit an annual single audit reporting package and submit the data collection form prior to nine months after the end of the audit period. Condition: The Organization did not submit its single audit reporting package or data collection form within the required deadline. Cause and Effect: The Organization had turnover in finance staff and had not established policies and procedures to ensure the annual single audit is completed timely. As a result, the Organization did not comply with federal requirements. Auditors’ Recommendations: Management should ensure that the annual single audit is completed within the required timeframe. This finding is similar to prior year finding 2022-102
Federal program information: Funding agency: U.S. Department of Health and Human Services Title: Head Start CFDA number: 93.600 Award number and years: 152734, 152734-014; July 1, 2022 through June 30, 2023 Pass-through grantor: City of Phoenix Compliance Requirements: Allowable Costs/Cost Principles Questioned Costs: Unknown Criteria: The Pass-through Grantor, the City of Phoenix, requires that the Organization provide a 25% match (nonfederal share) of the federal funding. Condition: During fiscal year 2023, the total federal amounts reported for the Head Start program related to the non-COVID-19 related contracts was $4,843,064 which would require a $1,210,766 match based on 25%. Of the match that Booker T. Washington Child Development Center was initially able to document, $192,182 related to meals provided by a school district for free to the Booker T. Washington children. The value of these free meals in total as calculated by the Organization was $796,647, but only $192,182 was needed to cover the shortfall from other categories. These free meals were not contemplated as part of the Budgeted match when the contract with the City of Phoenix was established, nor were these free meals included as part of the Quarterly Admin reports provided to the City. Cause and Effect: During the year, the Organization determined that $808,793 of the required match was met through expenses of other funding sources. However, it only $598,268 of these other funding sources was spent on program related items during fiscal year 2023, causing $192,182 of this reported match to not be legitimate. Due to this $192,182 shortfall, the Organization rethought its sources of matching funds and determined that they believe that the Organization received $796,647 in free meals provided to kids that could be used to make up for this $192,182 shortfall in the required match. These free meals were not specified in the quarterly reports submitted to the City of Phoenix because these free meals were considered part of the required match only after the auditors determined that the reported match categories that could be supported was short of the requirement by $192,182, Auditors’ Recommendations: The Organization should establish policies where the required match is periodically summarized throughout the year and analyzed to ensure that the required match will be met by contract year end.
Federal program information: Funding agency: U.S. Department of Health and Human Services Title: Head Start CFDA number: 93.600 Award number and years: 152734, 152734-014; July 1, 2022 through June 30, 2023 Pass-through grantor: City of Phoenix Compliance Requirements: Reporting Questioned Costs: N/A Criteria: 200.512 of the Uniform Guidance requires that the Organization submit an annual single audit reporting package and submit the data collection form prior to nine months after the end of the audit period. Condition: The Organization did not submit its single audit reporting package or data collection form within the required deadline. Cause and Effect: The Organization had turnover in finance staff and had not established policies and procedures to ensure the annual single audit is completed timely. As a result, the Organization did not comply with federal requirements. Auditors’ Recommendations: Management should ensure that the annual single audit is completed within the required timeframe. This finding is similar to prior year finding 2022-102
Federal program information: Funding agency: U.S. Department of Health and Human Services Title: Head Start CFDA number: 93.600 Award number and years: 152734, 152734-014; July 1, 2022 through June 30, 2023 Pass-through grantor: City of Phoenix Compliance Requirements: Allowable Costs/Cost Principles Questioned Costs: Unknown Criteria: The Pass-through Grantor, the City of Phoenix, requires that the Organization provide a 25% match (nonfederal share) of the federal funding. Condition: During fiscal year 2023, the total federal amounts reported for the Head Start program related to the non-COVID-19 related contracts was $4,843,064 which would require a $1,210,766 match based on 25%. Of the match that Booker T. Washington Child Development Center was initially able to document, $192,182 related to meals provided by a school district for free to the Booker T. Washington children. The value of these free meals in total as calculated by the Organization was $796,647, but only $192,182 was needed to cover the shortfall from other categories. These free meals were not contemplated as part of the Budgeted match when the contract with the City of Phoenix was established, nor were these free meals included as part of the Quarterly Admin reports provided to the City. Cause and Effect: During the year, the Organization determined that $808,793 of the required match was met through expenses of other funding sources. However, it only $598,268 of these other funding sources was spent on program related items during fiscal year 2023, causing $192,182 of this reported match to not be legitimate. Due to this $192,182 shortfall, the Organization rethought its sources of matching funds and determined that they believe that the Organization received $796,647 in free meals provided to kids that could be used to make up for this $192,182 shortfall in the required match. These free meals were not specified in the quarterly reports submitted to the City of Phoenix because these free meals were considered part of the required match only after the auditors determined that the reported match categories that could be supported was short of the requirement by $192,182, Auditors’ Recommendations: The Organization should establish policies where the required match is periodically summarized throughout the year and analyzed to ensure that the required match will be met by contract year end.
Federal program information: Funding agency: U.S. Department of Health and Human Services Title: Head Start CFDA number: 93.600 Award number and years: 152734, 152734-014; July 1, 2022 through June 30, 2023 Pass-through grantor: City of Phoenix Compliance Requirements: Reporting Questioned Costs: N/A Criteria: 200.512 of the Uniform Guidance requires that the Organization submit an annual single audit reporting package and submit the data collection form prior to nine months after the end of the audit period. Condition: The Organization did not submit its single audit reporting package or data collection form within the required deadline. Cause and Effect: The Organization had turnover in finance staff and had not established policies and procedures to ensure the annual single audit is completed timely. As a result, the Organization did not comply with federal requirements. Auditors’ Recommendations: Management should ensure that the annual single audit is completed within the required timeframe. This finding is similar to prior year finding 2022-102