Finding Number 2022-001 ? Federal Grantor ? U.S. Department of Agriculture ? Pass-Through Grantor ? State of Connecticut Department of Education ? Federal Program Name ? Child and Adult Food Care Program ? CFDA Number ? 10.558 ? Finding Type ? Material Weakness in Internal Control over Financial Reporting ? Criteria ? The financial statements should include all activity of the organization. ? Condition ? Not all of the revenue and expenses associated with the program were being recorded on the general ledger by the client and amounts were not readily determinable. ? Cause ? The organization is not devoting sufficient time and resources to accounting for the program. ? Effect ? Significant adjusting journal entries were required during the audit process to record the program activity on the statement of financial position and statement of activities at year-end in order for the financial statements and the schedule of federal awards to be fairly presented. ? Questioned Costs ? Not Applicable ? Repeat Finding ? No ? Recommendation ? Management needs to strengthen internal bookkeeping procedures and reconciliation processes related to the federal program. ? Views of Responsible Officials ? Management agrees with the finding. Actual revenue and expenses will be recorded each month in the general ledger and reconciled to the bank account.
Finding Number 2022-002 ? Federal Grantor ? U.S. Department of Agriculture ? Pass-Through Grantor ? State of Connecticut Department of Education ? Federal Program Name ? Child and Adult Food Care Program ? CFDA Number ? 10.558 ? Finding Type ? Material Weakness in Internal Control over Major Programs ? Compliance Requirement ? Activities Allowed or Unallowed and Allowable Costs/Cost Principles ? Criteria ? Title 2 of the Code of Federal Regulations (CFR) Part 200 establishes cost principles for determining costs applicable to federal awards. These principles include the requirement that cost allocation methodologies be reasonable and documented and that all expenses charged to federal awards are appropriately supported. ? Condition ? The organization does not have a documented cost allocation plan and there is a lack of a documented approval process for expenses. ? Cause ? Not enough emphasis is placed on the importance of controls and documentation. ? Effect ? Costs that were allocated to the federal award were made based on unsupported allocation methodologies that were also not consistently applied. In addition, there was insufficient support for costs charged to federal award programs. As a result, costs may have been incorrectly charged to the federal award. ? Questioned Costs ? Unknown ? Repeat Finding ? No ? Recommendation ? Management needs to develop a written cost allocation plan and allocations being used must be demonstrated to be reasonable. There should also be a formal review and documented approval process for expenses charged to federal awards, including those that are allocated. ? Views of Responsible Officials ? Management agrees with the finding. A cost allocation plan will be developed and documented. The approval of invoices will be documented.
Finding Number 2022-003 ? Federal Grantor ? U.S. Department of Agriculture ? Pass-Through Grantor ? State of Connecticut Department of Education ? Federal Program Name ? Child and Adult Food Care Program ? CFDA Number ? 10.558 ? Finding Type ? Significant Deficiency in Internal Control over Major Programs ? Compliance Requirement ? Cash Management ? Criteria ? Per the OMB Compliance Supplement: "A sponsoring organization must disburse advance and meal reimbursement payments to centers and day care homes under its sponsorship within five working days of receiving them from its state agency (7 CFR sections 226.16(g) and (h))." ? Condition ? Program staff do not prepare a reconciliation of amounts received for a given month with what was actually disbursed on a monthly basis. ? Cause ? Not enough emphasis is placed on the importance of controls and documentation. ? Effect ? Some differences existed between what was received from the state and what was paid out during a given month. The reason for these differences was not able to be readily explained. ? Questioned Costs ? Unknown ? Repeat Finding ? No ? Recommendation ? Management needs to develop a process of formally documenting what was received for a day care center each month versus what was paid out to the day care center and if there is a difference, the reason and how it was resolved needs to be documented. In addition the activity needs to be reconciled to the bank statement and general ledger accounts monthly. ? Views of Responsible Officials ? Management agrees with the finding. A spreadsheet with the amount the provider requested and the actual amount paid will be maintained for each month. If there is a difference, it will be noted on the spreadsheet.
Finding Number 2022-004 ? Federal Grantor ? U.S. Department of Agriculture ? Pass-Through Grantor ? State of Connecticut Department of Education ? Federal Program Name ? Child and Adult Food Care Program ? CFDA Number ? 10.558 ? Finding Type ? Reportable Noncompliance under Uniform Guidance ? Criteria ? The Code of Federal Regulations require audited financial statements to be submitted to the Federal Audit Clearinghouse (FAC). ? Condition ? The audited financial statements for 8/31/2020 and 8/31/2021 have not been filed with the FAC. ? Cause ? The previous audit firm did not complete filing and management did not monitor or follow-up on this requirement. ? Effect ? Financial statements were not filed with the FAC as required. ? Questioned Costs ? Not Applicable ? Repeat Finding ? No ? Recommendation ? Management should work with the previous audit firm to get the 2020 and 2021 audits filed with the FAC. ? Views of Responsible Officials ? Management agrees with the finding. The previous auditor is in the process of filing the 2020 and 2021 financials with the FAC.
Finding Number 2022-001 ? Federal Grantor ? U.S. Department of Agriculture ? Pass-Through Grantor ? State of Connecticut Department of Education ? Federal Program Name ? Child and Adult Food Care Program ? CFDA Number ? 10.558 ? Finding Type ? Material Weakness in Internal Control over Financial Reporting ? Criteria ? The financial statements should include all activity of the organization. ? Condition ? Not all of the revenue and expenses associated with the program were being recorded on the general ledger by the client and amounts were not readily determinable. ? Cause ? The organization is not devoting sufficient time and resources to accounting for the program. ? Effect ? Significant adjusting journal entries were required during the audit process to record the program activity on the statement of financial position and statement of activities at year-end in order for the financial statements and the schedule of federal awards to be fairly presented. ? Questioned Costs ? Not Applicable ? Repeat Finding ? No ? Recommendation ? Management needs to strengthen internal bookkeeping procedures and reconciliation processes related to the federal program. ? Views of Responsible Officials ? Management agrees with the finding. Actual revenue and expenses will be recorded each month in the general ledger and reconciled to the bank account.
Finding Number 2022-002 ? Federal Grantor ? U.S. Department of Agriculture ? Pass-Through Grantor ? State of Connecticut Department of Education ? Federal Program Name ? Child and Adult Food Care Program ? CFDA Number ? 10.558 ? Finding Type ? Material Weakness in Internal Control over Major Programs ? Compliance Requirement ? Activities Allowed or Unallowed and Allowable Costs/Cost Principles ? Criteria ? Title 2 of the Code of Federal Regulations (CFR) Part 200 establishes cost principles for determining costs applicable to federal awards. These principles include the requirement that cost allocation methodologies be reasonable and documented and that all expenses charged to federal awards are appropriately supported. ? Condition ? The organization does not have a documented cost allocation plan and there is a lack of a documented approval process for expenses. ? Cause ? Not enough emphasis is placed on the importance of controls and documentation. ? Effect ? Costs that were allocated to the federal award were made based on unsupported allocation methodologies that were also not consistently applied. In addition, there was insufficient support for costs charged to federal award programs. As a result, costs may have been incorrectly charged to the federal award. ? Questioned Costs ? Unknown ? Repeat Finding ? No ? Recommendation ? Management needs to develop a written cost allocation plan and allocations being used must be demonstrated to be reasonable. There should also be a formal review and documented approval process for expenses charged to federal awards, including those that are allocated. ? Views of Responsible Officials ? Management agrees with the finding. A cost allocation plan will be developed and documented. The approval of invoices will be documented.
Finding Number 2022-003 ? Federal Grantor ? U.S. Department of Agriculture ? Pass-Through Grantor ? State of Connecticut Department of Education ? Federal Program Name ? Child and Adult Food Care Program ? CFDA Number ? 10.558 ? Finding Type ? Significant Deficiency in Internal Control over Major Programs ? Compliance Requirement ? Cash Management ? Criteria ? Per the OMB Compliance Supplement: "A sponsoring organization must disburse advance and meal reimbursement payments to centers and day care homes under its sponsorship within five working days of receiving them from its state agency (7 CFR sections 226.16(g) and (h))." ? Condition ? Program staff do not prepare a reconciliation of amounts received for a given month with what was actually disbursed on a monthly basis. ? Cause ? Not enough emphasis is placed on the importance of controls and documentation. ? Effect ? Some differences existed between what was received from the state and what was paid out during a given month. The reason for these differences was not able to be readily explained. ? Questioned Costs ? Unknown ? Repeat Finding ? No ? Recommendation ? Management needs to develop a process of formally documenting what was received for a day care center each month versus what was paid out to the day care center and if there is a difference, the reason and how it was resolved needs to be documented. In addition the activity needs to be reconciled to the bank statement and general ledger accounts monthly. ? Views of Responsible Officials ? Management agrees with the finding. A spreadsheet with the amount the provider requested and the actual amount paid will be maintained for each month. If there is a difference, it will be noted on the spreadsheet.
Finding Number 2022-004 ? Federal Grantor ? U.S. Department of Agriculture ? Pass-Through Grantor ? State of Connecticut Department of Education ? Federal Program Name ? Child and Adult Food Care Program ? CFDA Number ? 10.558 ? Finding Type ? Reportable Noncompliance under Uniform Guidance ? Criteria ? The Code of Federal Regulations require audited financial statements to be submitted to the Federal Audit Clearinghouse (FAC). ? Condition ? The audited financial statements for 8/31/2020 and 8/31/2021 have not been filed with the FAC. ? Cause ? The previous audit firm did not complete filing and management did not monitor or follow-up on this requirement. ? Effect ? Financial statements were not filed with the FAC as required. ? Questioned Costs ? Not Applicable ? Repeat Finding ? No ? Recommendation ? Management should work with the previous audit firm to get the 2020 and 2021 audits filed with the FAC. ? Views of Responsible Officials ? Management agrees with the finding. The previous auditor is in the process of filing the 2020 and 2021 financials with the FAC.
Finding Number 2022-001 ? Federal Grantor ? U.S. Department of Agriculture ? Pass-Through Grantor ? State of Connecticut Department of Education ? Federal Program Name ? Child and Adult Food Care Program ? CFDA Number ? 10.558 ? Finding Type ? Material Weakness in Internal Control over Financial Reporting ? Criteria ? The financial statements should include all activity of the organization. ? Condition ? Not all of the revenue and expenses associated with the program were being recorded on the general ledger by the client and amounts were not readily determinable. ? Cause ? The organization is not devoting sufficient time and resources to accounting for the program. ? Effect ? Significant adjusting journal entries were required during the audit process to record the program activity on the statement of financial position and statement of activities at year-end in order for the financial statements and the schedule of federal awards to be fairly presented. ? Questioned Costs ? Not Applicable ? Repeat Finding ? No ? Recommendation ? Management needs to strengthen internal bookkeeping procedures and reconciliation processes related to the federal program. ? Views of Responsible Officials ? Management agrees with the finding. Actual revenue and expenses will be recorded each month in the general ledger and reconciled to the bank account.
Finding Number 2022-002 ? Federal Grantor ? U.S. Department of Agriculture ? Pass-Through Grantor ? State of Connecticut Department of Education ? Federal Program Name ? Child and Adult Food Care Program ? CFDA Number ? 10.558 ? Finding Type ? Material Weakness in Internal Control over Major Programs ? Compliance Requirement ? Activities Allowed or Unallowed and Allowable Costs/Cost Principles ? Criteria ? Title 2 of the Code of Federal Regulations (CFR) Part 200 establishes cost principles for determining costs applicable to federal awards. These principles include the requirement that cost allocation methodologies be reasonable and documented and that all expenses charged to federal awards are appropriately supported. ? Condition ? The organization does not have a documented cost allocation plan and there is a lack of a documented approval process for expenses. ? Cause ? Not enough emphasis is placed on the importance of controls and documentation. ? Effect ? Costs that were allocated to the federal award were made based on unsupported allocation methodologies that were also not consistently applied. In addition, there was insufficient support for costs charged to federal award programs. As a result, costs may have been incorrectly charged to the federal award. ? Questioned Costs ? Unknown ? Repeat Finding ? No ? Recommendation ? Management needs to develop a written cost allocation plan and allocations being used must be demonstrated to be reasonable. There should also be a formal review and documented approval process for expenses charged to federal awards, including those that are allocated. ? Views of Responsible Officials ? Management agrees with the finding. A cost allocation plan will be developed and documented. The approval of invoices will be documented.
Finding Number 2022-003 ? Federal Grantor ? U.S. Department of Agriculture ? Pass-Through Grantor ? State of Connecticut Department of Education ? Federal Program Name ? Child and Adult Food Care Program ? CFDA Number ? 10.558 ? Finding Type ? Significant Deficiency in Internal Control over Major Programs ? Compliance Requirement ? Cash Management ? Criteria ? Per the OMB Compliance Supplement: "A sponsoring organization must disburse advance and meal reimbursement payments to centers and day care homes under its sponsorship within five working days of receiving them from its state agency (7 CFR sections 226.16(g) and (h))." ? Condition ? Program staff do not prepare a reconciliation of amounts received for a given month with what was actually disbursed on a monthly basis. ? Cause ? Not enough emphasis is placed on the importance of controls and documentation. ? Effect ? Some differences existed between what was received from the state and what was paid out during a given month. The reason for these differences was not able to be readily explained. ? Questioned Costs ? Unknown ? Repeat Finding ? No ? Recommendation ? Management needs to develop a process of formally documenting what was received for a day care center each month versus what was paid out to the day care center and if there is a difference, the reason and how it was resolved needs to be documented. In addition the activity needs to be reconciled to the bank statement and general ledger accounts monthly. ? Views of Responsible Officials ? Management agrees with the finding. A spreadsheet with the amount the provider requested and the actual amount paid will be maintained for each month. If there is a difference, it will be noted on the spreadsheet.
Finding Number 2022-004 ? Federal Grantor ? U.S. Department of Agriculture ? Pass-Through Grantor ? State of Connecticut Department of Education ? Federal Program Name ? Child and Adult Food Care Program ? CFDA Number ? 10.558 ? Finding Type ? Reportable Noncompliance under Uniform Guidance ? Criteria ? The Code of Federal Regulations require audited financial statements to be submitted to the Federal Audit Clearinghouse (FAC). ? Condition ? The audited financial statements for 8/31/2020 and 8/31/2021 have not been filed with the FAC. ? Cause ? The previous audit firm did not complete filing and management did not monitor or follow-up on this requirement. ? Effect ? Financial statements were not filed with the FAC as required. ? Questioned Costs ? Not Applicable ? Repeat Finding ? No ? Recommendation ? Management should work with the previous audit firm to get the 2020 and 2021 audits filed with the FAC. ? Views of Responsible Officials ? Management agrees with the finding. The previous auditor is in the process of filing the 2020 and 2021 financials with the FAC.
Finding Number 2022-001 ? Federal Grantor ? U.S. Department of Agriculture ? Pass-Through Grantor ? State of Connecticut Department of Education ? Federal Program Name ? Child and Adult Food Care Program ? CFDA Number ? 10.558 ? Finding Type ? Material Weakness in Internal Control over Financial Reporting ? Criteria ? The financial statements should include all activity of the organization. ? Condition ? Not all of the revenue and expenses associated with the program were being recorded on the general ledger by the client and amounts were not readily determinable. ? Cause ? The organization is not devoting sufficient time and resources to accounting for the program. ? Effect ? Significant adjusting journal entries were required during the audit process to record the program activity on the statement of financial position and statement of activities at year-end in order for the financial statements and the schedule of federal awards to be fairly presented. ? Questioned Costs ? Not Applicable ? Repeat Finding ? No ? Recommendation ? Management needs to strengthen internal bookkeeping procedures and reconciliation processes related to the federal program. ? Views of Responsible Officials ? Management agrees with the finding. Actual revenue and expenses will be recorded each month in the general ledger and reconciled to the bank account.
Finding Number 2022-002 ? Federal Grantor ? U.S. Department of Agriculture ? Pass-Through Grantor ? State of Connecticut Department of Education ? Federal Program Name ? Child and Adult Food Care Program ? CFDA Number ? 10.558 ? Finding Type ? Material Weakness in Internal Control over Major Programs ? Compliance Requirement ? Activities Allowed or Unallowed and Allowable Costs/Cost Principles ? Criteria ? Title 2 of the Code of Federal Regulations (CFR) Part 200 establishes cost principles for determining costs applicable to federal awards. These principles include the requirement that cost allocation methodologies be reasonable and documented and that all expenses charged to federal awards are appropriately supported. ? Condition ? The organization does not have a documented cost allocation plan and there is a lack of a documented approval process for expenses. ? Cause ? Not enough emphasis is placed on the importance of controls and documentation. ? Effect ? Costs that were allocated to the federal award were made based on unsupported allocation methodologies that were also not consistently applied. In addition, there was insufficient support for costs charged to federal award programs. As a result, costs may have been incorrectly charged to the federal award. ? Questioned Costs ? Unknown ? Repeat Finding ? No ? Recommendation ? Management needs to develop a written cost allocation plan and allocations being used must be demonstrated to be reasonable. There should also be a formal review and documented approval process for expenses charged to federal awards, including those that are allocated. ? Views of Responsible Officials ? Management agrees with the finding. A cost allocation plan will be developed and documented. The approval of invoices will be documented.
Finding Number 2022-003 ? Federal Grantor ? U.S. Department of Agriculture ? Pass-Through Grantor ? State of Connecticut Department of Education ? Federal Program Name ? Child and Adult Food Care Program ? CFDA Number ? 10.558 ? Finding Type ? Significant Deficiency in Internal Control over Major Programs ? Compliance Requirement ? Cash Management ? Criteria ? Per the OMB Compliance Supplement: "A sponsoring organization must disburse advance and meal reimbursement payments to centers and day care homes under its sponsorship within five working days of receiving them from its state agency (7 CFR sections 226.16(g) and (h))." ? Condition ? Program staff do not prepare a reconciliation of amounts received for a given month with what was actually disbursed on a monthly basis. ? Cause ? Not enough emphasis is placed on the importance of controls and documentation. ? Effect ? Some differences existed between what was received from the state and what was paid out during a given month. The reason for these differences was not able to be readily explained. ? Questioned Costs ? Unknown ? Repeat Finding ? No ? Recommendation ? Management needs to develop a process of formally documenting what was received for a day care center each month versus what was paid out to the day care center and if there is a difference, the reason and how it was resolved needs to be documented. In addition the activity needs to be reconciled to the bank statement and general ledger accounts monthly. ? Views of Responsible Officials ? Management agrees with the finding. A spreadsheet with the amount the provider requested and the actual amount paid will be maintained for each month. If there is a difference, it will be noted on the spreadsheet.
Finding Number 2022-004 ? Federal Grantor ? U.S. Department of Agriculture ? Pass-Through Grantor ? State of Connecticut Department of Education ? Federal Program Name ? Child and Adult Food Care Program ? CFDA Number ? 10.558 ? Finding Type ? Reportable Noncompliance under Uniform Guidance ? Criteria ? The Code of Federal Regulations require audited financial statements to be submitted to the Federal Audit Clearinghouse (FAC). ? Condition ? The audited financial statements for 8/31/2020 and 8/31/2021 have not been filed with the FAC. ? Cause ? The previous audit firm did not complete filing and management did not monitor or follow-up on this requirement. ? Effect ? Financial statements were not filed with the FAC as required. ? Questioned Costs ? Not Applicable ? Repeat Finding ? No ? Recommendation ? Management should work with the previous audit firm to get the 2020 and 2021 audits filed with the FAC. ? Views of Responsible Officials ? Management agrees with the finding. The previous auditor is in the process of filing the 2020 and 2021 financials with the FAC.
Finding Number 2022-001 ? Federal Grantor ? U.S. Department of Agriculture ? Pass-Through Grantor ? State of Connecticut Department of Education ? Federal Program Name ? Child and Adult Food Care Program ? CFDA Number ? 10.558 ? Finding Type ? Material Weakness in Internal Control over Financial Reporting ? Criteria ? The financial statements should include all activity of the organization. ? Condition ? Not all of the revenue and expenses associated with the program were being recorded on the general ledger by the client and amounts were not readily determinable. ? Cause ? The organization is not devoting sufficient time and resources to accounting for the program. ? Effect ? Significant adjusting journal entries were required during the audit process to record the program activity on the statement of financial position and statement of activities at year-end in order for the financial statements and the schedule of federal awards to be fairly presented. ? Questioned Costs ? Not Applicable ? Repeat Finding ? No ? Recommendation ? Management needs to strengthen internal bookkeeping procedures and reconciliation processes related to the federal program. ? Views of Responsible Officials ? Management agrees with the finding. Actual revenue and expenses will be recorded each month in the general ledger and reconciled to the bank account.
Finding Number 2022-002 ? Federal Grantor ? U.S. Department of Agriculture ? Pass-Through Grantor ? State of Connecticut Department of Education ? Federal Program Name ? Child and Adult Food Care Program ? CFDA Number ? 10.558 ? Finding Type ? Material Weakness in Internal Control over Major Programs ? Compliance Requirement ? Activities Allowed or Unallowed and Allowable Costs/Cost Principles ? Criteria ? Title 2 of the Code of Federal Regulations (CFR) Part 200 establishes cost principles for determining costs applicable to federal awards. These principles include the requirement that cost allocation methodologies be reasonable and documented and that all expenses charged to federal awards are appropriately supported. ? Condition ? The organization does not have a documented cost allocation plan and there is a lack of a documented approval process for expenses. ? Cause ? Not enough emphasis is placed on the importance of controls and documentation. ? Effect ? Costs that were allocated to the federal award were made based on unsupported allocation methodologies that were also not consistently applied. In addition, there was insufficient support for costs charged to federal award programs. As a result, costs may have been incorrectly charged to the federal award. ? Questioned Costs ? Unknown ? Repeat Finding ? No ? Recommendation ? Management needs to develop a written cost allocation plan and allocations being used must be demonstrated to be reasonable. There should also be a formal review and documented approval process for expenses charged to federal awards, including those that are allocated. ? Views of Responsible Officials ? Management agrees with the finding. A cost allocation plan will be developed and documented. The approval of invoices will be documented.
Finding Number 2022-003 ? Federal Grantor ? U.S. Department of Agriculture ? Pass-Through Grantor ? State of Connecticut Department of Education ? Federal Program Name ? Child and Adult Food Care Program ? CFDA Number ? 10.558 ? Finding Type ? Significant Deficiency in Internal Control over Major Programs ? Compliance Requirement ? Cash Management ? Criteria ? Per the OMB Compliance Supplement: "A sponsoring organization must disburse advance and meal reimbursement payments to centers and day care homes under its sponsorship within five working days of receiving them from its state agency (7 CFR sections 226.16(g) and (h))." ? Condition ? Program staff do not prepare a reconciliation of amounts received for a given month with what was actually disbursed on a monthly basis. ? Cause ? Not enough emphasis is placed on the importance of controls and documentation. ? Effect ? Some differences existed between what was received from the state and what was paid out during a given month. The reason for these differences was not able to be readily explained. ? Questioned Costs ? Unknown ? Repeat Finding ? No ? Recommendation ? Management needs to develop a process of formally documenting what was received for a day care center each month versus what was paid out to the day care center and if there is a difference, the reason and how it was resolved needs to be documented. In addition the activity needs to be reconciled to the bank statement and general ledger accounts monthly. ? Views of Responsible Officials ? Management agrees with the finding. A spreadsheet with the amount the provider requested and the actual amount paid will be maintained for each month. If there is a difference, it will be noted on the spreadsheet.
Finding Number 2022-004 ? Federal Grantor ? U.S. Department of Agriculture ? Pass-Through Grantor ? State of Connecticut Department of Education ? Federal Program Name ? Child and Adult Food Care Program ? CFDA Number ? 10.558 ? Finding Type ? Reportable Noncompliance under Uniform Guidance ? Criteria ? The Code of Federal Regulations require audited financial statements to be submitted to the Federal Audit Clearinghouse (FAC). ? Condition ? The audited financial statements for 8/31/2020 and 8/31/2021 have not been filed with the FAC. ? Cause ? The previous audit firm did not complete filing and management did not monitor or follow-up on this requirement. ? Effect ? Financial statements were not filed with the FAC as required. ? Questioned Costs ? Not Applicable ? Repeat Finding ? No ? Recommendation ? Management should work with the previous audit firm to get the 2020 and 2021 audits filed with the FAC. ? Views of Responsible Officials ? Management agrees with the finding. The previous auditor is in the process of filing the 2020 and 2021 financials with the FAC.
Finding Number 2022-001 ? Federal Grantor ? U.S. Department of Agriculture ? Pass-Through Grantor ? State of Connecticut Department of Education ? Federal Program Name ? Child and Adult Food Care Program ? CFDA Number ? 10.558 ? Finding Type ? Material Weakness in Internal Control over Financial Reporting ? Criteria ? The financial statements should include all activity of the organization. ? Condition ? Not all of the revenue and expenses associated with the program were being recorded on the general ledger by the client and amounts were not readily determinable. ? Cause ? The organization is not devoting sufficient time and resources to accounting for the program. ? Effect ? Significant adjusting journal entries were required during the audit process to record the program activity on the statement of financial position and statement of activities at year-end in order for the financial statements and the schedule of federal awards to be fairly presented. ? Questioned Costs ? Not Applicable ? Repeat Finding ? No ? Recommendation ? Management needs to strengthen internal bookkeeping procedures and reconciliation processes related to the federal program. ? Views of Responsible Officials ? Management agrees with the finding. Actual revenue and expenses will be recorded each month in the general ledger and reconciled to the bank account.
Finding Number 2022-002 ? Federal Grantor ? U.S. Department of Agriculture ? Pass-Through Grantor ? State of Connecticut Department of Education ? Federal Program Name ? Child and Adult Food Care Program ? CFDA Number ? 10.558 ? Finding Type ? Material Weakness in Internal Control over Major Programs ? Compliance Requirement ? Activities Allowed or Unallowed and Allowable Costs/Cost Principles ? Criteria ? Title 2 of the Code of Federal Regulations (CFR) Part 200 establishes cost principles for determining costs applicable to federal awards. These principles include the requirement that cost allocation methodologies be reasonable and documented and that all expenses charged to federal awards are appropriately supported. ? Condition ? The organization does not have a documented cost allocation plan and there is a lack of a documented approval process for expenses. ? Cause ? Not enough emphasis is placed on the importance of controls and documentation. ? Effect ? Costs that were allocated to the federal award were made based on unsupported allocation methodologies that were also not consistently applied. In addition, there was insufficient support for costs charged to federal award programs. As a result, costs may have been incorrectly charged to the federal award. ? Questioned Costs ? Unknown ? Repeat Finding ? No ? Recommendation ? Management needs to develop a written cost allocation plan and allocations being used must be demonstrated to be reasonable. There should also be a formal review and documented approval process for expenses charged to federal awards, including those that are allocated. ? Views of Responsible Officials ? Management agrees with the finding. A cost allocation plan will be developed and documented. The approval of invoices will be documented.
Finding Number 2022-003 ? Federal Grantor ? U.S. Department of Agriculture ? Pass-Through Grantor ? State of Connecticut Department of Education ? Federal Program Name ? Child and Adult Food Care Program ? CFDA Number ? 10.558 ? Finding Type ? Significant Deficiency in Internal Control over Major Programs ? Compliance Requirement ? Cash Management ? Criteria ? Per the OMB Compliance Supplement: "A sponsoring organization must disburse advance and meal reimbursement payments to centers and day care homes under its sponsorship within five working days of receiving them from its state agency (7 CFR sections 226.16(g) and (h))." ? Condition ? Program staff do not prepare a reconciliation of amounts received for a given month with what was actually disbursed on a monthly basis. ? Cause ? Not enough emphasis is placed on the importance of controls and documentation. ? Effect ? Some differences existed between what was received from the state and what was paid out during a given month. The reason for these differences was not able to be readily explained. ? Questioned Costs ? Unknown ? Repeat Finding ? No ? Recommendation ? Management needs to develop a process of formally documenting what was received for a day care center each month versus what was paid out to the day care center and if there is a difference, the reason and how it was resolved needs to be documented. In addition the activity needs to be reconciled to the bank statement and general ledger accounts monthly. ? Views of Responsible Officials ? Management agrees with the finding. A spreadsheet with the amount the provider requested and the actual amount paid will be maintained for each month. If there is a difference, it will be noted on the spreadsheet.
Finding Number 2022-004 ? Federal Grantor ? U.S. Department of Agriculture ? Pass-Through Grantor ? State of Connecticut Department of Education ? Federal Program Name ? Child and Adult Food Care Program ? CFDA Number ? 10.558 ? Finding Type ? Reportable Noncompliance under Uniform Guidance ? Criteria ? The Code of Federal Regulations require audited financial statements to be submitted to the Federal Audit Clearinghouse (FAC). ? Condition ? The audited financial statements for 8/31/2020 and 8/31/2021 have not been filed with the FAC. ? Cause ? The previous audit firm did not complete filing and management did not monitor or follow-up on this requirement. ? Effect ? Financial statements were not filed with the FAC as required. ? Questioned Costs ? Not Applicable ? Repeat Finding ? No ? Recommendation ? Management should work with the previous audit firm to get the 2020 and 2021 audits filed with the FAC. ? Views of Responsible Officials ? Management agrees with the finding. The previous auditor is in the process of filing the 2020 and 2021 financials with the FAC.
Finding Number 2022-001 ? Federal Grantor ? U.S. Department of Agriculture ? Pass-Through Grantor ? State of Connecticut Department of Education ? Federal Program Name ? Child and Adult Food Care Program ? CFDA Number ? 10.558 ? Finding Type ? Material Weakness in Internal Control over Financial Reporting ? Criteria ? The financial statements should include all activity of the organization. ? Condition ? Not all of the revenue and expenses associated with the program were being recorded on the general ledger by the client and amounts were not readily determinable. ? Cause ? The organization is not devoting sufficient time and resources to accounting for the program. ? Effect ? Significant adjusting journal entries were required during the audit process to record the program activity on the statement of financial position and statement of activities at year-end in order for the financial statements and the schedule of federal awards to be fairly presented. ? Questioned Costs ? Not Applicable ? Repeat Finding ? No ? Recommendation ? Management needs to strengthen internal bookkeeping procedures and reconciliation processes related to the federal program. ? Views of Responsible Officials ? Management agrees with the finding. Actual revenue and expenses will be recorded each month in the general ledger and reconciled to the bank account.
Finding Number 2022-002 ? Federal Grantor ? U.S. Department of Agriculture ? Pass-Through Grantor ? State of Connecticut Department of Education ? Federal Program Name ? Child and Adult Food Care Program ? CFDA Number ? 10.558 ? Finding Type ? Material Weakness in Internal Control over Major Programs ? Compliance Requirement ? Activities Allowed or Unallowed and Allowable Costs/Cost Principles ? Criteria ? Title 2 of the Code of Federal Regulations (CFR) Part 200 establishes cost principles for determining costs applicable to federal awards. These principles include the requirement that cost allocation methodologies be reasonable and documented and that all expenses charged to federal awards are appropriately supported. ? Condition ? The organization does not have a documented cost allocation plan and there is a lack of a documented approval process for expenses. ? Cause ? Not enough emphasis is placed on the importance of controls and documentation. ? Effect ? Costs that were allocated to the federal award were made based on unsupported allocation methodologies that were also not consistently applied. In addition, there was insufficient support for costs charged to federal award programs. As a result, costs may have been incorrectly charged to the federal award. ? Questioned Costs ? Unknown ? Repeat Finding ? No ? Recommendation ? Management needs to develop a written cost allocation plan and allocations being used must be demonstrated to be reasonable. There should also be a formal review and documented approval process for expenses charged to federal awards, including those that are allocated. ? Views of Responsible Officials ? Management agrees with the finding. A cost allocation plan will be developed and documented. The approval of invoices will be documented.
Finding Number 2022-003 ? Federal Grantor ? U.S. Department of Agriculture ? Pass-Through Grantor ? State of Connecticut Department of Education ? Federal Program Name ? Child and Adult Food Care Program ? CFDA Number ? 10.558 ? Finding Type ? Significant Deficiency in Internal Control over Major Programs ? Compliance Requirement ? Cash Management ? Criteria ? Per the OMB Compliance Supplement: "A sponsoring organization must disburse advance and meal reimbursement payments to centers and day care homes under its sponsorship within five working days of receiving them from its state agency (7 CFR sections 226.16(g) and (h))." ? Condition ? Program staff do not prepare a reconciliation of amounts received for a given month with what was actually disbursed on a monthly basis. ? Cause ? Not enough emphasis is placed on the importance of controls and documentation. ? Effect ? Some differences existed between what was received from the state and what was paid out during a given month. The reason for these differences was not able to be readily explained. ? Questioned Costs ? Unknown ? Repeat Finding ? No ? Recommendation ? Management needs to develop a process of formally documenting what was received for a day care center each month versus what was paid out to the day care center and if there is a difference, the reason and how it was resolved needs to be documented. In addition the activity needs to be reconciled to the bank statement and general ledger accounts monthly. ? Views of Responsible Officials ? Management agrees with the finding. A spreadsheet with the amount the provider requested and the actual amount paid will be maintained for each month. If there is a difference, it will be noted on the spreadsheet.
Finding Number 2022-004 ? Federal Grantor ? U.S. Department of Agriculture ? Pass-Through Grantor ? State of Connecticut Department of Education ? Federal Program Name ? Child and Adult Food Care Program ? CFDA Number ? 10.558 ? Finding Type ? Reportable Noncompliance under Uniform Guidance ? Criteria ? The Code of Federal Regulations require audited financial statements to be submitted to the Federal Audit Clearinghouse (FAC). ? Condition ? The audited financial statements for 8/31/2020 and 8/31/2021 have not been filed with the FAC. ? Cause ? The previous audit firm did not complete filing and management did not monitor or follow-up on this requirement. ? Effect ? Financial statements were not filed with the FAC as required. ? Questioned Costs ? Not Applicable ? Repeat Finding ? No ? Recommendation ? Management should work with the previous audit firm to get the 2020 and 2021 audits filed with the FAC. ? Views of Responsible Officials ? Management agrees with the finding. The previous auditor is in the process of filing the 2020 and 2021 financials with the FAC.
Finding Number 2022-001 ? Federal Grantor ? U.S. Department of Agriculture ? Pass-Through Grantor ? State of Connecticut Department of Education ? Federal Program Name ? Child and Adult Food Care Program ? CFDA Number ? 10.558 ? Finding Type ? Material Weakness in Internal Control over Financial Reporting ? Criteria ? The financial statements should include all activity of the organization. ? Condition ? Not all of the revenue and expenses associated with the program were being recorded on the general ledger by the client and amounts were not readily determinable. ? Cause ? The organization is not devoting sufficient time and resources to accounting for the program. ? Effect ? Significant adjusting journal entries were required during the audit process to record the program activity on the statement of financial position and statement of activities at year-end in order for the financial statements and the schedule of federal awards to be fairly presented. ? Questioned Costs ? Not Applicable ? Repeat Finding ? No ? Recommendation ? Management needs to strengthen internal bookkeeping procedures and reconciliation processes related to the federal program. ? Views of Responsible Officials ? Management agrees with the finding. Actual revenue and expenses will be recorded each month in the general ledger and reconciled to the bank account.
Finding Number 2022-002 ? Federal Grantor ? U.S. Department of Agriculture ? Pass-Through Grantor ? State of Connecticut Department of Education ? Federal Program Name ? Child and Adult Food Care Program ? CFDA Number ? 10.558 ? Finding Type ? Material Weakness in Internal Control over Major Programs ? Compliance Requirement ? Activities Allowed or Unallowed and Allowable Costs/Cost Principles ? Criteria ? Title 2 of the Code of Federal Regulations (CFR) Part 200 establishes cost principles for determining costs applicable to federal awards. These principles include the requirement that cost allocation methodologies be reasonable and documented and that all expenses charged to federal awards are appropriately supported. ? Condition ? The organization does not have a documented cost allocation plan and there is a lack of a documented approval process for expenses. ? Cause ? Not enough emphasis is placed on the importance of controls and documentation. ? Effect ? Costs that were allocated to the federal award were made based on unsupported allocation methodologies that were also not consistently applied. In addition, there was insufficient support for costs charged to federal award programs. As a result, costs may have been incorrectly charged to the federal award. ? Questioned Costs ? Unknown ? Repeat Finding ? No ? Recommendation ? Management needs to develop a written cost allocation plan and allocations being used must be demonstrated to be reasonable. There should also be a formal review and documented approval process for expenses charged to federal awards, including those that are allocated. ? Views of Responsible Officials ? Management agrees with the finding. A cost allocation plan will be developed and documented. The approval of invoices will be documented.
Finding Number 2022-003 ? Federal Grantor ? U.S. Department of Agriculture ? Pass-Through Grantor ? State of Connecticut Department of Education ? Federal Program Name ? Child and Adult Food Care Program ? CFDA Number ? 10.558 ? Finding Type ? Significant Deficiency in Internal Control over Major Programs ? Compliance Requirement ? Cash Management ? Criteria ? Per the OMB Compliance Supplement: "A sponsoring organization must disburse advance and meal reimbursement payments to centers and day care homes under its sponsorship within five working days of receiving them from its state agency (7 CFR sections 226.16(g) and (h))." ? Condition ? Program staff do not prepare a reconciliation of amounts received for a given month with what was actually disbursed on a monthly basis. ? Cause ? Not enough emphasis is placed on the importance of controls and documentation. ? Effect ? Some differences existed between what was received from the state and what was paid out during a given month. The reason for these differences was not able to be readily explained. ? Questioned Costs ? Unknown ? Repeat Finding ? No ? Recommendation ? Management needs to develop a process of formally documenting what was received for a day care center each month versus what was paid out to the day care center and if there is a difference, the reason and how it was resolved needs to be documented. In addition the activity needs to be reconciled to the bank statement and general ledger accounts monthly. ? Views of Responsible Officials ? Management agrees with the finding. A spreadsheet with the amount the provider requested and the actual amount paid will be maintained for each month. If there is a difference, it will be noted on the spreadsheet.
Finding Number 2022-004 ? Federal Grantor ? U.S. Department of Agriculture ? Pass-Through Grantor ? State of Connecticut Department of Education ? Federal Program Name ? Child and Adult Food Care Program ? CFDA Number ? 10.558 ? Finding Type ? Reportable Noncompliance under Uniform Guidance ? Criteria ? The Code of Federal Regulations require audited financial statements to be submitted to the Federal Audit Clearinghouse (FAC). ? Condition ? The audited financial statements for 8/31/2020 and 8/31/2021 have not been filed with the FAC. ? Cause ? The previous audit firm did not complete filing and management did not monitor or follow-up on this requirement. ? Effect ? Financial statements were not filed with the FAC as required. ? Questioned Costs ? Not Applicable ? Repeat Finding ? No ? Recommendation ? Management should work with the previous audit firm to get the 2020 and 2021 audits filed with the FAC. ? Views of Responsible Officials ? Management agrees with the finding. The previous auditor is in the process of filing the 2020 and 2021 financials with the FAC.