FAC Explorer

Audit 328217

FY End
2022-12-31
Total Expended
$1.18M
Findings
2
Programs
4
Organization: Sunflower Child Care Center, INC (IA)
Year: 2022 Accepted: 2024-11-13
Auditor: Hacker Nelson & CO CPAS

Organization Exclusion Status:

Findings

ID Ref Severity Repeat Requirement
505517 2022-001 Significant Deficiency - A
1081959 2022-001 Significant Deficiency - A

Programs

ALN Program Spent Major Findings
93.575 Child Care and Development Block Grant $750,000 Yes 1
21.027 Coronavirus State and Local Fiscal Recovery Funds $418,704 - 0
10.555 National School Lunch Program $10,287 - 0
10.553 School Breakfast Program $3,560 - 0

Contacts

Name Title Type
E38YWYDT5TP5 Holly Benda Auditee
5633825717 Amanda Webb Auditor
No contacts on file

Notes to SEFA

Title: Basis of Presentation Accounting Policies: Basis of Presentation:  The accompanying schedule of expenditures of federal awards (the schedule) includes the federal award activity of Sunflower Childcare Center, 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 operations of Sunflower Childcare Center, Inc., it is not intended to and does not present the financial position, changes in net assets, or cash flows of Sunflower Childcare Center, Inc. Summary of Significant 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.  Pass-through entity identifying numbers is presented where available. Subrecipients:  There were no awards passed through to subrecipients. De Minimis Rate Used: N Rate Explanation: Ø  Sunflower Childcare Center, Inc. has elected not to use the 10% de minimis indirect cost rate as allowed under the Uniform Guidance. The accompanying schedule of expenditures of federal awards (the schedule) includes the federal award activity of Sunflower Childcare Center, Inc. under programs of the federal government for the year ended December 31, 2022. 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 operations of Sunflower Childcare Center, Inc., it is not intended to and does not present the financial position, changes in net assets, or cash flows of Sunflower Childcare Center, Inc.
Title: Summary of Significant Accounting Policies Accounting Policies: Basis of Presentation:  The accompanying schedule of expenditures of federal awards (the schedule) includes the federal award activity of Sunflower Childcare Center, 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 operations of Sunflower Childcare Center, Inc., it is not intended to and does not present the financial position, changes in net assets, or cash flows of Sunflower Childcare Center, Inc. Summary of Significant 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.  Pass-through entity identifying numbers is presented where available. Subrecipients:  There were no awards passed through to subrecipients. De Minimis Rate Used: N Rate Explanation: Ø  Sunflower Childcare Center, Inc. has elected not to use the 10% de minimis indirect cost rate as 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. Pass-through entity identifying numbers is presented where available.
Title: Indirect Cost Rate Accounting Policies: Basis of Presentation:  The accompanying schedule of expenditures of federal awards (the schedule) includes the federal award activity of Sunflower Childcare Center, 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 operations of Sunflower Childcare Center, Inc., it is not intended to and does not present the financial position, changes in net assets, or cash flows of Sunflower Childcare Center, Inc. Summary of Significant 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.  Pass-through entity identifying numbers is presented where available. Subrecipients:  There were no awards passed through to subrecipients. De Minimis Rate Used: N Rate Explanation: Ø  Sunflower Childcare Center, Inc. has elected not to use the 10% de minimis indirect cost rate as allowed under the Uniform Guidance. Sunflower Childcare Center, Inc. has elected not to use the 10% de minimis indirect cost rate as allowed under the Uniform Guidance.
Title: Subrecipients Accounting Policies: Basis of Presentation:  The accompanying schedule of expenditures of federal awards (the schedule) includes the federal award activity of Sunflower Childcare Center, 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 operations of Sunflower Childcare Center, Inc., it is not intended to and does not present the financial position, changes in net assets, or cash flows of Sunflower Childcare Center, Inc. Summary of Significant 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.  Pass-through entity identifying numbers is presented where available. Subrecipients:  There were no awards passed through to subrecipients. De Minimis Rate Used: N Rate Explanation: Ø  Sunflower Childcare Center, Inc. has elected not to use the 10% de minimis indirect cost rate as allowed under the Uniform Guidance. There were no awards passed through to subrecipients.

Finding Details

Finding 2022-001
Finding 2022-001 Overlapping Duties Condition:The organization’s offices are not large enough to permit an adequate segregation of duties for effective internal controls. Management has not separated incompatible activities of personnel, thereby creating risks related to the safeguarding of cash and the accuracy of the financial statements. Criteria: Management is responsible for establishing and maintaining internal control. A good system of internal control provides for adequate segregation of duties so no one individual handles a transaction from its inception to completion. In order to maintain proper internal control, duties should be segregated so the authorization, custody and recording of transactions are not under the control of the same employee. This segregation of duties helps prevent losses from employee error or dishonesty and maximizes the accuracy of the organization’s financial statements. Cause: The concentration of closely related duties and responsibilities such as the recording and processing of cash receipts, preparing grant expenditure reports, preparing financial information for posting and analyzing financial information by a small staff makes it impossible to establish an adequate system of automatic internal checks on the accuracy and reliability of the accounting records. Effect: This deficiency results in a reasonable possibility that the organization would not be able to detect misstatements that would be material in relation to the financial statements and/or federal award programs in a timely period by employees in the normal course of performing their assigned functions. Recommendation: While we do recognize that the organization is not large enough to permit a segregation of duties for effective internal controls, we believe it is important the organization be aware that this condition does exist. Repeat Finding:Yes. Views of Responsible Officials and Planned Corrective Actions: Management is cognizant of this limitation and will implement additional procedures where possible.
Finding 2022-001
Finding 2022-001 Overlapping Duties Condition:The organization’s offices are not large enough to permit an adequate segregation of duties for effective internal controls. Management has not separated incompatible activities of personnel, thereby creating risks related to the safeguarding of cash and the accuracy of the financial statements. Criteria: Management is responsible for establishing and maintaining internal control. A good system of internal control provides for adequate segregation of duties so no one individual handles a transaction from its inception to completion. In order to maintain proper internal control, duties should be segregated so the authorization, custody and recording of transactions are not under the control of the same employee. This segregation of duties helps prevent losses from employee error or dishonesty and maximizes the accuracy of the organization’s financial statements. Cause: The concentration of closely related duties and responsibilities such as the recording and processing of cash receipts, preparing grant expenditure reports, preparing financial information for posting and analyzing financial information by a small staff makes it impossible to establish an adequate system of automatic internal checks on the accuracy and reliability of the accounting records. Effect: This deficiency results in a reasonable possibility that the organization would not be able to detect misstatements that would be material in relation to the financial statements and/or federal award programs in a timely period by employees in the normal course of performing their assigned functions. Recommendation: While we do recognize that the organization is not large enough to permit a segregation of duties for effective internal controls, we believe it is important the organization be aware that this condition does exist. Repeat Finding:Yes. Views of Responsible Officials and Planned Corrective Actions: Management is cognizant of this limitation and will implement additional procedures where possible.