Audit 350082

FY End

2024-08-31

Total Expended

$839,782

Findings

4

Programs

3

Organization: Kid Net Foundation Dba Jonathan's Place (TX)

Year: 2024 Accepted: 2025-03-28

Auditor: Sutton Frost Cary LLP

Organization Exclusion Status:

Checking exclusion status...

ID	Ref	Severity	Repeat	Requirement
539540	2024-001	Significant Deficiency	-	AB
539541	2024-002	Significant Deficiency	-	AB
1115982	2024-001	Significant Deficiency	-	AB
1115983	2024-002	Significant Deficiency	-	AB

ALN	Program	Spent	Major
16.575	Crime Victim Assistance	$164,585	Yes
93.658	Foster Care Title IV-E	$3,284	-
93.558	Temporary Assistance for Needy Families	$227	-

Contacts

Name	Title	Type
W8CUHNLJ8S36	Terri Chepregi	Auditee
9723035303	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% de minimis indirect cost rate, and continues to use the cost allocation plan negotiated individually with its grantors, as applicable. The accompanying schedule of expenditures of federal awards (Schedule) includes the federal grant activity of Kid Net Foundation dba Jonathan’s Place (Organization). 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). Because the Schedule presents only a selected portion of the operations of the Organization, it is not intended to and does not present the financial position, changes in net assets or cash flows of the Organization. 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% de minimis indirect cost rate, and continues to use the cost allocation plan negotiated individually with its grantors, as applicable.

Finding Details

Finding 2024-001

Finding 2024‐001: Allowable costs and activities‐Significant deficiency in internal controls over compliance and compliance finding. Crime Victim Assistance ALN 16.575 Criteria: The Organization’s internal control procedures over compliance specify that the Organization’s management approves and reviews any invoice prior to requesting reimbursement. Condition: During allowable cost and activities testing for the Crime Victim Assistance grant (RESET), for 1 out of 25 sampled, non‐payroll expenses, no invoice could be provided for a portion of the amount charged to the grant. Cause: Human error in data entry. Effect: The Organization overcharged expenses to the grant by a nominal amount. Questioned Costs: None Recommendation: Management should implement and enforce controls to ensure that all invoices relating to expenses requested for reimbursement are reconciled and retained. Management’s Response: See corrective action plan.

Finding 2024-002

Finding 2024‐002: Allowable costs and activities‐Significant deficiency in internal controls over compliance. Criteria: The Organization’s internal control procedures over compliance specify that that Organization’s management reviews and approves grant allocation workbooks prior to requesting reimbursement. Condition: During allowable cost and activities testing for the Crime Victim Assistance grant (RESET), for 1 out of 25 sampled, payroll expenses, the allocation charged to the grant was incorrect. Cause: Internal control was not effective at identifying spreadsheet errors. Effect: Ineffective internal control resulted in erroneous expense amount charged to the grant. In total, allowable payroll expenses incurred by the program were in excess of funds charged to the grant, so no compliance issue was found. Questioned Costs: None. Recommendation: Management should implement additional controls to ensure that allocation errors are identified in a timely manner. Management’s Response: See corrective action plan.

Finding 2024-001

Finding 2024‐001: Allowable costs and activities‐Significant deficiency in internal controls over compliance and compliance finding. Crime Victim Assistance ALN 16.575 Criteria: The Organization’s internal control procedures over compliance specify that the Organization’s management approves and reviews any invoice prior to requesting reimbursement. Condition: During allowable cost and activities testing for the Crime Victim Assistance grant (RESET), for 1 out of 25 sampled, non‐payroll expenses, no invoice could be provided for a portion of the amount charged to the grant. Cause: Human error in data entry. Effect: The Organization overcharged expenses to the grant by a nominal amount. Questioned Costs: None Recommendation: Management should implement and enforce controls to ensure that all invoices relating to expenses requested for reimbursement are reconciled and retained. Management’s Response: See corrective action plan.

Finding 2024-002

Finding 2024‐002: Allowable costs and activities‐Significant deficiency in internal controls over compliance. Criteria: The Organization’s internal control procedures over compliance specify that that Organization’s management reviews and approves grant allocation workbooks prior to requesting reimbursement. Condition: During allowable cost and activities testing for the Crime Victim Assistance grant (RESET), for 1 out of 25 sampled, payroll expenses, the allocation charged to the grant was incorrect. Cause: Internal control was not effective at identifying spreadsheet errors. Effect: Ineffective internal control resulted in erroneous expense amount charged to the grant. In total, allowable payroll expenses incurred by the program were in excess of funds charged to the grant, so no compliance issue was found. Questioned Costs: None. Recommendation: Management should implement additional controls to ensure that allocation errors are identified in a timely manner. Management’s Response: See corrective action plan.