FAC Explorer

Audit 346415

FY End
2024-06-30
Total Expended
$1.27M
Findings
2
Programs
2
Organization: Martin Luther King, Jr. Child Care Center Association, Inc. (KS)
Year: 2024 Accepted: 2025-03-17
Auditor: Ssc CPAS P A

Organization Exclusion Status:

Findings

ID Ref Severity Repeat Requirement
528360 2024-003 Material Weakness - P
1104802 2024-003 Material Weakness - P

Programs

ALN Program Spent Major Findings
10.558 Child and Adult Care Food Program $1.27M Yes 1
10.575 Farm to School Grant Program $816 - 0

Contacts

Name Title Type
XK9LGMJF69B4 Shalonda Smith Auditee
7858255808 Timothy D. Bannwarth Auditor
No contacts on file

Notes to SEFA

Title: BASIS OF PRESENTATION Accounting Policies: The Association maintains its accounting records in accordance with the modified cash basis of accounting, which is a basis of accounting other than accounting principles generally accepted in the United States of America. 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: In accordance with Section 2 U.S. Code of Federal Regulations Part 200.412 the Association is allowed to elect to use the ten percent de minimis indirect cost rate. The Association did not elect to use the 10% de minimis cost rate. The accompanying schedule of expenditures of federal awards includes the federal grant activity of Martin Luther King, Jr. Child Care Center Association, Inc. (the Association) and is presented on the modified cash basis of accounting. The information in this Schedule is presented in accordance with 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 presents only a selected portion of the operations of the Association, it is not intended to and does not present the financial position, or changes in net assets of the Association.

Finding Details

Finding 2024-003
2024-003 Ineffective Internal Controls over Authorization of ACH Payments of Federal Expenditures (Material Weakness) Federal Agency: U.S. Department of Education Pass through entity: Kansas Department of Education Program Name: Child and Adult Care Food Program Assistance Listing Number: 10.558 Award Period: June 30, 2024 Criteria: Management is responsible for implementing effective internal controls to ensure proper segregation of duties exist over ACH payment authorization of federal expenditure. Condition: During the course of our audit, we noted that ACH payments of federal expenditures did not have proper approval from the board. Cause: The Organization’s policies and procedures lack processes that provide segregation of duties and proper authorization and review of ACH payments of federal expenditures. Effect: The executive director inputs the ACH transactions of federal expenditures into the general ledger, approves transactions and reconcile the bank statements with little to no external monitoring. This increases the likelihood of noncompliance and/or misappropriation of federal funds. Recommendation: We recommend that the board approve the ACH payments of federal expenditures with evidence of approval. Views of Responsible Officials and Planned Corrective Actions: Management agrees with the finding and plans to develop proper policies and procedures for proper review and approval of ACH payments of federal expenditures.
Finding 2024-003
2024-003 Ineffective Internal Controls over Authorization of ACH Payments of Federal Expenditures (Material Weakness) Federal Agency: U.S. Department of Education Pass through entity: Kansas Department of Education Program Name: Child and Adult Care Food Program Assistance Listing Number: 10.558 Award Period: June 30, 2024 Criteria: Management is responsible for implementing effective internal controls to ensure proper segregation of duties exist over ACH payment authorization of federal expenditure. Condition: During the course of our audit, we noted that ACH payments of federal expenditures did not have proper approval from the board. Cause: The Organization’s policies and procedures lack processes that provide segregation of duties and proper authorization and review of ACH payments of federal expenditures. Effect: The executive director inputs the ACH transactions of federal expenditures into the general ledger, approves transactions and reconcile the bank statements with little to no external monitoring. This increases the likelihood of noncompliance and/or misappropriation of federal funds. Recommendation: We recommend that the board approve the ACH payments of federal expenditures with evidence of approval. Views of Responsible Officials and Planned Corrective Actions: Management agrees with the finding and plans to develop proper policies and procedures for proper review and approval of ACH payments of federal expenditures.