Audit 344111

FY End
2024-05-31
Total Expended
$3.89M
Findings
16
Programs
3
Year: 2024 Accepted: 2025-02-27

Organization Exclusion Status:

Checking exclusion status...

Findings

ID Ref Severity Repeat Requirement
524683 2024-001 Significant Deficiency - B
524684 2024-002 Significant Deficiency - B
524685 2024-001 Significant Deficiency - B
524686 2024-002 Significant Deficiency - B
524687 2024-001 Significant Deficiency - B
524688 2024-002 Significant Deficiency - B
524689 2024-001 Significant Deficiency - B
524690 2024-002 Significant Deficiency - B
1101125 2024-001 Significant Deficiency - B
1101126 2024-002 Significant Deficiency - B
1101127 2024-001 Significant Deficiency - B
1101128 2024-002 Significant Deficiency - B
1101129 2024-001 Significant Deficiency - B
1101130 2024-002 Significant Deficiency - B
1101131 2024-001 Significant Deficiency - B
1101132 2024-002 Significant Deficiency - B

Programs

ALN Program Spent Major Findings
84.371 Comprehensive Literacy Development $887,595 Yes 2
93.575 Child Care and Development Block Grant $662,283 Yes 2
21.027 Coronavirus State and Local Fiscal Recovery Funds $62,058 - 0

Contacts

Name Title Type
CZ8NMLDC4RJ9 Cody Summerville Auditee
5122158142 Deanna Frisby 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 not elected to use the 10 percent de minimis indirect cost rate as allowed under the Uniform Guidance. The accompanying schedule of expenditures of federal awards (Schedule) includes the federal grant activity of Texas Association for the Education of Young Children, Inc. (Organization) and is presented on the accrual basis of accounting. The information in this Schedule is presented in accordance with the audit 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). Because the Schedule only presents a selected portion of the operations of the Organization, it is not intended 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 not elected to use the 10 percent 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. The Organization has not elected to use the 10 percent de minimis indirect cost rate as allowed under the Uniform Guidance.

Finding Details

Criteria: The Organization’s internal control procedures over compliance stipulates that all time sheets be approved by the appropriate level of management. Condition: During allowable cost testing for federal grants, 3 out of the 70 payroll transactions tested did not have adequate time sheet approvals. These time sheets were self approved. Cause: The Organization had not implemented a segregation of duties surrounding time sheet approvals. Effect: The Organization’s reporting of time and effort was not fully documented, in accordance with internal control over compliance procedures. Questioned costs: None Recommendation: The Organization should segregate duties for time sheet approvals so that no time sheets are self approved. Management’s response: See corrective action plan.
Criteria: Section 200 of the Code of Federal Regulations requires recipients to implement robust internal controls to ensure compliance with cost principles for all transactions charged to the grant. Condition: During allowable cost testing for federal grants, for 43 out of 77 transactions tested, the amount charged to the grant did not agree to the cost allocation plan. Cause: Funding percentages in the accounting system did not match the cost allocation plan. Effect: The cumulative effect of the exceptions noted during testing resulted in the grants being undercharged by the Organization. Questioned Costs: None Recommendation: Management should ensure amount charged to the grants agree to the approved percentage per the cost allocation plan.
Criteria: The Organization’s internal control procedures over compliance stipulates that all time sheets be approved by the appropriate level of management. Condition: During allowable cost testing for federal grants, 3 out of the 70 payroll transactions tested did not have adequate time sheet approvals. These time sheets were self approved. Cause: The Organization had not implemented a segregation of duties surrounding time sheet approvals. Effect: The Organization’s reporting of time and effort was not fully documented, in accordance with internal control over compliance procedures. Questioned costs: None Recommendation: The Organization should segregate duties for time sheet approvals so that no time sheets are self approved. Management’s response: See corrective action plan.
Criteria: Section 200 of the Code of Federal Regulations requires recipients to implement robust internal controls to ensure compliance with cost principles for all transactions charged to the grant. Condition: During allowable cost testing for federal grants, for 43 out of 77 transactions tested, the amount charged to the grant did not agree to the cost allocation plan. Cause: Funding percentages in the accounting system did not match the cost allocation plan. Effect: The cumulative effect of the exceptions noted during testing resulted in the grants being undercharged by the Organization. Questioned Costs: None Recommendation: Management should ensure amount charged to the grants agree to the approved percentage per the cost allocation plan.
Criteria: The Organization’s internal control procedures over compliance stipulates that all time sheets be approved by the appropriate level of management. Condition: During allowable cost testing for federal grants, 3 out of the 70 payroll transactions tested did not have adequate time sheet approvals. These time sheets were self approved. Cause: The Organization had not implemented a segregation of duties surrounding time sheet approvals. Effect: The Organization’s reporting of time and effort was not fully documented, in accordance with internal control over compliance procedures. Questioned costs: None Recommendation: The Organization should segregate duties for time sheet approvals so that no time sheets are self approved. Management’s response: See corrective action plan.
Criteria: Section 200 of the Code of Federal Regulations requires recipients to implement robust internal controls to ensure compliance with cost principles for all transactions charged to the grant. Condition: During allowable cost testing for federal grants, for 43 out of 77 transactions tested, the amount charged to the grant did not agree to the cost allocation plan. Cause: Funding percentages in the accounting system did not match the cost allocation plan. Effect: The cumulative effect of the exceptions noted during testing resulted in the grants being undercharged by the Organization. Questioned Costs: None Recommendation: Management should ensure amount charged to the grants agree to the approved percentage per the cost allocation plan.
Criteria: The Organization’s internal control procedures over compliance stipulates that all time sheets be approved by the appropriate level of management. Condition: During allowable cost testing for federal grants, 3 out of the 70 payroll transactions tested did not have adequate time sheet approvals. These time sheets were self approved. Cause: The Organization had not implemented a segregation of duties surrounding time sheet approvals. Effect: The Organization’s reporting of time and effort was not fully documented, in accordance with internal control over compliance procedures. Questioned costs: None Recommendation: The Organization should segregate duties for time sheet approvals so that no time sheets are self approved. Management’s response: See corrective action plan.
Criteria: Section 200 of the Code of Federal Regulations requires recipients to implement robust internal controls to ensure compliance with cost principles for all transactions charged to the grant. Condition: During allowable cost testing for federal grants, for 43 out of 77 transactions tested, the amount charged to the grant did not agree to the cost allocation plan. Cause: Funding percentages in the accounting system did not match the cost allocation plan. Effect: The cumulative effect of the exceptions noted during testing resulted in the grants being undercharged by the Organization. Questioned Costs: None Recommendation: Management should ensure amount charged to the grants agree to the approved percentage per the cost allocation plan.
Criteria: The Organization’s internal control procedures over compliance stipulates that all time sheets be approved by the appropriate level of management. Condition: During allowable cost testing for federal grants, 3 out of the 70 payroll transactions tested did not have adequate time sheet approvals. These time sheets were self approved. Cause: The Organization had not implemented a segregation of duties surrounding time sheet approvals. Effect: The Organization’s reporting of time and effort was not fully documented, in accordance with internal control over compliance procedures. Questioned costs: None Recommendation: The Organization should segregate duties for time sheet approvals so that no time sheets are self approved. Management’s response: See corrective action plan.
Criteria: Section 200 of the Code of Federal Regulations requires recipients to implement robust internal controls to ensure compliance with cost principles for all transactions charged to the grant. Condition: During allowable cost testing for federal grants, for 43 out of 77 transactions tested, the amount charged to the grant did not agree to the cost allocation plan. Cause: Funding percentages in the accounting system did not match the cost allocation plan. Effect: The cumulative effect of the exceptions noted during testing resulted in the grants being undercharged by the Organization. Questioned Costs: None Recommendation: Management should ensure amount charged to the grants agree to the approved percentage per the cost allocation plan.
Criteria: The Organization’s internal control procedures over compliance stipulates that all time sheets be approved by the appropriate level of management. Condition: During allowable cost testing for federal grants, 3 out of the 70 payroll transactions tested did not have adequate time sheet approvals. These time sheets were self approved. Cause: The Organization had not implemented a segregation of duties surrounding time sheet approvals. Effect: The Organization’s reporting of time and effort was not fully documented, in accordance with internal control over compliance procedures. Questioned costs: None Recommendation: The Organization should segregate duties for time sheet approvals so that no time sheets are self approved. Management’s response: See corrective action plan.
Criteria: Section 200 of the Code of Federal Regulations requires recipients to implement robust internal controls to ensure compliance with cost principles for all transactions charged to the grant. Condition: During allowable cost testing for federal grants, for 43 out of 77 transactions tested, the amount charged to the grant did not agree to the cost allocation plan. Cause: Funding percentages in the accounting system did not match the cost allocation plan. Effect: The cumulative effect of the exceptions noted during testing resulted in the grants being undercharged by the Organization. Questioned Costs: None Recommendation: Management should ensure amount charged to the grants agree to the approved percentage per the cost allocation plan.
Criteria: The Organization’s internal control procedures over compliance stipulates that all time sheets be approved by the appropriate level of management. Condition: During allowable cost testing for federal grants, 3 out of the 70 payroll transactions tested did not have adequate time sheet approvals. These time sheets were self approved. Cause: The Organization had not implemented a segregation of duties surrounding time sheet approvals. Effect: The Organization’s reporting of time and effort was not fully documented, in accordance with internal control over compliance procedures. Questioned costs: None Recommendation: The Organization should segregate duties for time sheet approvals so that no time sheets are self approved. Management’s response: See corrective action plan.
Criteria: Section 200 of the Code of Federal Regulations requires recipients to implement robust internal controls to ensure compliance with cost principles for all transactions charged to the grant. Condition: During allowable cost testing for federal grants, for 43 out of 77 transactions tested, the amount charged to the grant did not agree to the cost allocation plan. Cause: Funding percentages in the accounting system did not match the cost allocation plan. Effect: The cumulative effect of the exceptions noted during testing resulted in the grants being undercharged by the Organization. Questioned Costs: None Recommendation: Management should ensure amount charged to the grants agree to the approved percentage per the cost allocation plan.
Criteria: The Organization’s internal control procedures over compliance stipulates that all time sheets be approved by the appropriate level of management. Condition: During allowable cost testing for federal grants, 3 out of the 70 payroll transactions tested did not have adequate time sheet approvals. These time sheets were self approved. Cause: The Organization had not implemented a segregation of duties surrounding time sheet approvals. Effect: The Organization’s reporting of time and effort was not fully documented, in accordance with internal control over compliance procedures. Questioned costs: None Recommendation: The Organization should segregate duties for time sheet approvals so that no time sheets are self approved. Management’s response: See corrective action plan.
Criteria: Section 200 of the Code of Federal Regulations requires recipients to implement robust internal controls to ensure compliance with cost principles for all transactions charged to the grant. Condition: During allowable cost testing for federal grants, for 43 out of 77 transactions tested, the amount charged to the grant did not agree to the cost allocation plan. Cause: Funding percentages in the accounting system did not match the cost allocation plan. Effect: The cumulative effect of the exceptions noted during testing resulted in the grants being undercharged by the Organization. Questioned Costs: None Recommendation: Management should ensure amount charged to the grants agree to the approved percentage per the cost allocation plan.