FAC Explorer

Audit 359320

FY End
2024-06-30
Total Expended
$13.42M
Findings
2
Programs
7
Organization: Central Valley Children's Services Network (CA)
Year: 2024 Accepted: 2025-06-20
Auditor: Moore Grider & Company LLP

Organization Exclusion Status:

Findings

ID Ref Severity Repeat Requirement
565523 2024-001 - - P
1141965 2024-001 - - P

Programs

ALN Program Spent Major Findings
10.558 Child and Adult Care Food Program $3.11M Yes 1
93.596 Child Care Mandatory and Matching Funds of the Child Care and Development Fund $1.74M - 0
21.027 Coronavirus State and Local Fiscal Recovery Funds $853,000 Yes 0
93.658 Foster Care Title IV-E $760,131 Yes 0
93.778 Medical Assistance Program $240,141 - 0
93.575 Child Care and Development Block Grant $179,990 - 0
84.419 Preschool Development Grants $501 - 0

Contacts

Name Title Type
DLMYJ9MBXC71 Marco A. Jimenez Auditee
5594561100 Denise S. Hurst, CPA Auditor
No contacts on file

Notes to SEFA

Title: NOTE 1: BASIS OF PRESENTATION Accounting Policies: SUMMARY OF SIGNIFICANT 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 Title 2 U.S. Code of Federal Regulations Part 200, Uniform Administrative Requirements, Cost Principles, and Audit Requirements for Federal Awards, wherein certain types of expenditures are not allowable or are limited as to reimbursement. De Minimis Rate Used: N Rate Explanation: Central Valley Children’s Services Network 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 and State Awards (the “Schedule”) includes the federal and state grant activity of Central Valley Children’s Services Network under programs of the federal and state governments for the year ended June 30, 2024. 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 Central Valley Children’s Services Network, it is not intended to and does not present the financial position, changes in net assets or cash flows of the Central Valley Children’s Services Network.
Title: NOTE 2: SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES Accounting Policies: SUMMARY OF SIGNIFICANT 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 Title 2 U.S. Code of Federal Regulations Part 200, Uniform Administrative Requirements, Cost Principles, and Audit Requirements for Federal Awards, wherein certain types of expenditures are not allowable or are limited as to reimbursement. De Minimis Rate Used: N Rate Explanation: Central Valley Children’s Services Network 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 Title 2 U.S. Code of Federal Regulations Part 200, Uniform Administrative Requirements, Cost Principles, and Audit Requirements for Federal Awards, wherein certain types of expenditures are not allowable or are limited as to reimbursement. Central Valley Children’s Services Network has not elected to use the 10 percent de minimis indirect cost rate as allowed under the Uniform Guidance.
Title: NOTE 3: PROPERTY Accounting Policies: SUMMARY OF SIGNIFICANT 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 Title 2 U.S. Code of Federal Regulations Part 200, Uniform Administrative Requirements, Cost Principles, and Audit Requirements for Federal Awards, wherein certain types of expenditures are not allowable or are limited as to reimbursement. De Minimis Rate Used: N Rate Explanation: Central Valley Children’s Services Network has not elected to use the 10 percent de minimis indirect cost rate as allowed under the Uniform Guidance. Property purchased with CCD contract funds during the year ended June 30, 2024, has been separately accounted for in the property management system.
Title: NOTE 4: CLAIM PREPARATION Accounting Policies: SUMMARY OF SIGNIFICANT 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 Title 2 U.S. Code of Federal Regulations Part 200, Uniform Administrative Requirements, Cost Principles, and Audit Requirements for Federal Awards, wherein certain types of expenditures are not allowable or are limited as to reimbursement. De Minimis Rate Used: N Rate Explanation: Central Valley Children’s Services Network has not elected to use the 10 percent de minimis indirect cost rate as allowed under the Uniform Guidance. Child Care Centers monthly CACFP claims were prepared in accordance with the Fixed Percentage Claim method. Family Day Care Homes monthly CACFP claims were prepared in accordance with the Actual Count Claim method.
Title: NOTE 5: INDIRECT COST RATE Accounting Policies: SUMMARY OF SIGNIFICANT 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 Title 2 U.S. Code of Federal Regulations Part 200, Uniform Administrative Requirements, Cost Principles, and Audit Requirements for Federal Awards, wherein certain types of expenditures are not allowable or are limited as to reimbursement. De Minimis Rate Used: N Rate Explanation: Central Valley Children’s Services Network has not elected to use the 10 percent de minimis indirect cost rate as allowed under the Uniform Guidance. Central Valley Children’s Services Network has not elected to use the 10 percent de minimis indirect cost rate as allowed under the Uniform Guidance.
Title: NOTE 6: CLUSTERS Accounting Policies: SUMMARY OF SIGNIFICANT 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 Title 2 U.S. Code of Federal Regulations Part 200, Uniform Administrative Requirements, Cost Principles, and Audit Requirements for Federal Awards, wherein certain types of expenditures are not allowable or are limited as to reimbursement. De Minimis Rate Used: N Rate Explanation: Central Valley Children’s Services Network has not elected to use the 10 percent de minimis indirect cost rate as allowed under the Uniform Guidance. The CCDF Cluster includes the following Assistance Listing Numbers: 93.575, 93.596. Federal and state expenditures for the CCDF Cluster totaled $16,661,011. The Medicaid Cluster includes the following Assistance Listing Number: 93.778. Federal expenditures for the Medicaid Cluster totaled $240,141.

Finding Details

Finding 2024-001
Program Information: Child Care Food Program-Homes – CFDA No. 10.558; Grant No. 04593-CACFP-10-NP-DCH; Grant period – Year ended June 30, 2024 Criteria: Program regulations regarding provider disbursements require the organization to reimburse providers within five working days of receipt of all federal meal payments from CDSS. Statement of Condition: During our review of revenue, we noted two of the federal meal payments received from CDSS were distributed to the providers approximately one month late. Cause: Policies and procedures are in place for accounting staff to verify that the federal meal payments received from CDSS are distributed to providers within five working days of receipt. The Organization was inconsistent in following these policies and procedures. Possible Asserted Effect: Provider reimbursements for meals were not all distributed timely. Questioned Costs: $0 Perspective Information: Per review of files throughout tests of compliance, incident appears to have a low level of occurrence. Identification of Repeat Findings: Finding is not a repeat of a finding in the immediate prior audit. Recommendation: We recommend that accounting staff verify that the federal meal payments received from CDSS are distributed to providers within five working days of receipt. Views of Responsible Officials and Planned Corrective Actions: Management agrees with the result of the finding above. Going forward, policies and procedures in place will be followed by Organization staff. The Organization has updated their policies and procedures to ensure timely disbursement of CACFP provider reimbursements. A backup person in the CACFP department will be emailed a copy of the date stamped checks notifying them that a reimbursement check has arrived from CDSS. Having two people in the department receive the notification will ensure that an email is not overlooked and the provider reimbursement is processed within the required timeframe.
Finding 2024-001
Program Information: Child Care Food Program-Homes – CFDA No. 10.558; Grant No. 04593-CACFP-10-NP-DCH; Grant period – Year ended June 30, 2024 Criteria: Program regulations regarding provider disbursements require the organization to reimburse providers within five working days of receipt of all federal meal payments from CDSS. Statement of Condition: During our review of revenue, we noted two of the federal meal payments received from CDSS were distributed to the providers approximately one month late. Cause: Policies and procedures are in place for accounting staff to verify that the federal meal payments received from CDSS are distributed to providers within five working days of receipt. The Organization was inconsistent in following these policies and procedures. Possible Asserted Effect: Provider reimbursements for meals were not all distributed timely. Questioned Costs: $0 Perspective Information: Per review of files throughout tests of compliance, incident appears to have a low level of occurrence. Identification of Repeat Findings: Finding is not a repeat of a finding in the immediate prior audit. Recommendation: We recommend that accounting staff verify that the federal meal payments received from CDSS are distributed to providers within five working days of receipt. Views of Responsible Officials and Planned Corrective Actions: Management agrees with the result of the finding above. Going forward, policies and procedures in place will be followed by Organization staff. The Organization has updated their policies and procedures to ensure timely disbursement of CACFP provider reimbursements. A backup person in the CACFP department will be emailed a copy of the date stamped checks notifying them that a reimbursement check has arrived from CDSS. Having two people in the department receive the notification will ensure that an email is not overlooked and the provider reimbursement is processed within the required timeframe.