FAC Explorer

Audit 333055

FY End
2023-12-31
Total Expended
$22.93M
Findings
2
Programs
12
Organization: Kidspeace Corporation (PA)
Year: 2023 Accepted: 2024-12-17
Auditor: Maher Duessel CPAS

Organization Exclusion Status:

Findings

ID Ref Severity Repeat Requirement
514653 2023-001 Material Weakness - C
1091095 2023-001 Material Weakness - C

Programs

ALN Program Spent Major Findings
93.676 Unaccompanied Children Program $12.64M Yes 1
97.036 Disaster Grants - Public Assistance (presidentially Declared Disasters) $1.71M Yes 0
21.027 Covid-19 Coronavirus State and Local Fiscal Recovery Funds (workforce Recovery Initiative) $1.40M Yes 0
84.010 Title I Grants to Local Educational Agencies $308,907 - 0
10.553 School Breakfast Program $146,161 - 0
21.027 Covid-19 Coronavirus State and Local Fiscal Recovery Funds (arpa_ny State Health Care and Mental Hygiene Work Bonus) $83,357 Yes 0
93.658 Foster Care Title IV-E $69,724 - 0
93.575 Covid-19 Child Care and Development Block Grant $38,536 - 0
84.425 Covid19 Education Stabilization Fund $35,482 - 0
21.027 Covid-19 Coronavirus State and Local Fiscal Recovery Funds (cash Assistance to Foster Children) $13,300 Yes 0
84.425 Covid-19 Education Stabilization Fund $2,758 - 0
10.555 National School Lunch Program $2,415 - 0

Contacts

Name Title Type
K656PGNEBNQ8 Michael Callan Auditee
8002573223 Lisa A. Ritter Auditor
No contacts on file

Notes to SEFA

Title: Title IV-E Foster Care Funds Accounting Policies: The accompanying schedule of expenditures of federal awards (schedule) includes the federal award activity of KidsPeace Corporation and Subsidiaries (KidsPeace) under programs of the federal government for year ended December 31, 2023 and is presented on the accrual basis of accounting. 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). Therefore, some amounts presented in this schedule may differ from amounts presented in, or used in the preparation of, the consolidated financial statements. This schedule presents only a selected portion of the operations of KidsPeace and accordingly, is not intended to and does not present the financial position, changes in net assets or cash flows of KidsPeace. De Minimis Rate Used: N Rate Explanation: KidsPeace has elected not to use the 10 percent de minimum indirect cost rate under Uniform Guidance, and instead used an approved provisional rate of 24 percent for January 2023 through December 2023 of salaries and wages including all fringe benefits for the Unaccompanied Alien Child Program. During the year ended December 31, 2023, funds totaling $5,428,334 were received from various Pennsylvania Counties. While the grant agreements indicates that the source of the funds includes both federal (ALN #93.658) and state awards, the Counties have not provided KidsPeace with the amount of federal funds included. Because the federal portion of the expenditures are unknown, the full amount is included in the accompanying schedule of expenditures of federal awards.

Finding Details

Finding 2023-001
Finding 2023-001: Cash Management Requirements U.S Department of Health and Human Services – Unaccompanied Alien Children ALN 93.676 Cash Management Statement of Condition: During the audit of KidsPeace it was observed that the organization did not minimize the time elapsing between the transfer of funds from the Federal agency to the disbursement of these funds. Funds were drawndown in advance of actual disbursement needs resulting in excess cash balances. No questioned costs. Criteria: According to 2CFR 200.305(b), non- Federal entities must minimize the time elapsing between the transfer of funds from the federal agency and the disbursement of funds by the non- Federal entity. Advance payments must be limited to the minimum amounts needed and timed in accordance with the actual immediate cash requirements of the entity in carrying out the purpose of the program. Cause: The organization lacked adequate procedures to ensure that funds were drawn down only as needed for immediate disbursement. Additionally, there was insufficient oversight of cash management practices. Effect of the Condition: The cash on hand by year end was approximately $3.4 million which is in excess of the immediate needs of the program. Recommendation: We recommend that the Organization implements further procedures to ensure the draw down amounts reflect actual expenditures incurred. Repeat Finding: This is not a repeat funding. Views of Responsible Officials: Management agrees with the findings. As expenditure amounts fluctuate, management was approving estimated amounts rather than actual expenditures for the month. Management will put a process in place to only approve and draw down amounts that are equal to expenditures incurred each month.
Finding 2023-001
Finding 2023-001: Cash Management Requirements U.S Department of Health and Human Services – Unaccompanied Alien Children ALN 93.676 Cash Management Statement of Condition: During the audit of KidsPeace it was observed that the organization did not minimize the time elapsing between the transfer of funds from the Federal agency to the disbursement of these funds. Funds were drawndown in advance of actual disbursement needs resulting in excess cash balances. No questioned costs. Criteria: According to 2CFR 200.305(b), non- Federal entities must minimize the time elapsing between the transfer of funds from the federal agency and the disbursement of funds by the non- Federal entity. Advance payments must be limited to the minimum amounts needed and timed in accordance with the actual immediate cash requirements of the entity in carrying out the purpose of the program. Cause: The organization lacked adequate procedures to ensure that funds were drawn down only as needed for immediate disbursement. Additionally, there was insufficient oversight of cash management practices. Effect of the Condition: The cash on hand by year end was approximately $3.4 million which is in excess of the immediate needs of the program. Recommendation: We recommend that the Organization implements further procedures to ensure the draw down amounts reflect actual expenditures incurred. Repeat Finding: This is not a repeat funding. Views of Responsible Officials: Management agrees with the findings. As expenditure amounts fluctuate, management was approving estimated amounts rather than actual expenditures for the month. Management will put a process in place to only approve and draw down amounts that are equal to expenditures incurred each month.