FAC Explorer

Audit 34223

FY End
2022-06-30
Total Expended
$1.78M
Findings
2
Programs
1
Organization: Center for Inclusive Child Care (MN)
Year: 2022 Accepted: 2023-01-11
Auditor: Mahoney Ulbrich Christiansen & Russ PA

Organization Exclusion Status:

Findings

ID Ref Severity Repeat Requirement
32952 2022-001 Material Weakness - P
609394 2022-001 Material Weakness - P

Programs

ALN Program Spent Major Findings
93.575 Child Care and Development Block Grant $1.78M Yes 1

Contacts

Name Title Type
XX2XGT476YC8 Priscilla Weigel Auditee
6516036230 Marc Kotsonas Auditor
No contacts on file

Notes to SEFA

Title: Basis of Presentation Accounting Policies: (1) Expenditures reported on the Schedule are reported on the accrual basis of accounting. Suchexpenditures are recognized following the cost principles contained in OMB Circular A-122, CostPrinciples for Non-profit Organizations, or the Uniform Guidance wherein certain types ofexpenditures are not allowable or are limited as to reimbursement.(2) Pass-through entity identifying numbers are presented where available. De Minimis Rate Used: N Rate Explanation: CICC has elected not to use the 10-percent de minimis indirect cost rate allowed under the UniformGuidance. The accompanying schedule of expenditures of federal awards (the Schedule) includes the federalgrant activity of Center for Inclusive Child Care (CICC) under programs of the federal governmentfor the year ended June 30, 2022. The information in this Schedule is presented in accordance withthe requirements of Title 2 U.S. Code of Federal Regulations Part 200, Uniform AdministrativeRequirements, Cost Principles, and Audit Requirements for Federal Awards (the Uniform Guidance).Because the Schedule presents only a selected portion of the operations of CICC it is not intendedto and does not present the financial position, changes in net assets, or cash flows of CICC.

Finding Details

Finding 2022-001
SECTION II ? FINDINGS ? FINANCIAL STATEMENTS AUDIT 2022-001 ? Audit Adjustments Material weakness Criteria - Effective internal controls are designed to provide reasonable assurance regarding, amongst other things, the reliability of financial reporting. This means they should help CICC avoid material restatements of the financial statements. Condition - The financial statements for the year ended June 30, 2021, were restated during the current year to record two invoices for services provided in 2021 but not recorded until 2022. Both invoices were fully reimbursable by a government grant. Cause - The invoices were not received in a timely fashion by CICC and, once received, were recorded in the year in which they were paid. Effect - The invoices were not properly recorded in 2021, therefore a material prior period adjustment was made to correct in 2022. In addition, the related revenue and receivable for a government grant were not recorded. Recommendation - CICC should develop a process to track expenses incurred. Before the accounting records are closed for the year, a review should be performed to ensure expenses incurred prior to year-end are captured in the accounting records. Any expenses noted that required accrual should be reviewed for reimbursement eligibility and, if applicable, the related revenue should be accrued. Auditee?s comments and response - Management will review invoices in detail to ensure that they are recorded in the correct period. Responsible party for corrective action: Amy Petersen, Finance Manager
Finding 2022-001
SECTION II ? FINDINGS ? FINANCIAL STATEMENTS AUDIT 2022-001 ? Audit Adjustments Material weakness Criteria - Effective internal controls are designed to provide reasonable assurance regarding, amongst other things, the reliability of financial reporting. This means they should help CICC avoid material restatements of the financial statements. Condition - The financial statements for the year ended June 30, 2021, were restated during the current year to record two invoices for services provided in 2021 but not recorded until 2022. Both invoices were fully reimbursable by a government grant. Cause - The invoices were not received in a timely fashion by CICC and, once received, were recorded in the year in which they were paid. Effect - The invoices were not properly recorded in 2021, therefore a material prior period adjustment was made to correct in 2022. In addition, the related revenue and receivable for a government grant were not recorded. Recommendation - CICC should develop a process to track expenses incurred. Before the accounting records are closed for the year, a review should be performed to ensure expenses incurred prior to year-end are captured in the accounting records. Any expenses noted that required accrual should be reviewed for reimbursement eligibility and, if applicable, the related revenue should be accrued. Auditee?s comments and response - Management will review invoices in detail to ensure that they are recorded in the correct period. Responsible party for corrective action: Amy Petersen, Finance Manager