Audit 362290

FY End

2024-12-31

Total Expended

$2.88M

Findings

2

Programs

3

Organization: Collaborative for Children (TX)

Year: 2024 Accepted: 2025-07-15

Auditor: Blazek & Vetterling

Organization Exclusion Status:

Checking exclusion status...

ID	Ref	Severity	Repeat	Requirement
571348	2024-002	Material Weakness	-	I
1147790	2024-002	Material Weakness	-	I

ALN	Program	Spent	Major	Findings
21.027	Coronavirus State and Local Fiscal Recovery Funds	$1.41M	Yes	1
93.575	Child Care and Development Block Grant	$1.04M	Yes	0
93.870	Maternal, Infant and Early Childhood Home Visiting Grant	$116,659	-	0

Contacts

Name	Title	Type
RYW5NNMWBVM8	Leslie Gruver	Auditee
7136001100	Erica Stafford	Auditor
No contacts on file

Notes to SEFA

Title: NOTE 1 – SIGNIFICANT ACCOUNTING POLICIES Accounting Policies: Basis of presentation – The schedule of expenditures of federal awards (the schedule) is prepared on the accrual basis of accounting. The information in the schedule is presented in accordance with the requirements of Title 2 U. S. Code of Federal Regulations (CFR) Part 200, Uniform Administrative Requirements, Cost Principles, and Audit Requirements for Federal Awards (Uniform Guidance). Federal expenditures include allowable costs funded by federal grants. Allowable costs are subject to the cost principles of the Uniform Guidance, and include costs that are recognized as expenses in CFC’s financial statements in conformity with generally accepted accounting principles. CFC has elected to use the 10% de minimus rate for indirect costs. CFC does not have any subrecipients. Because the schedule presents only a selected portion of the operations of CFC, it is not intended to and does not present the financial position, changes in net assets, or cash flows of CFC. De Minimis Rate Used: Y Rate Explanation: The Auditee has elected to use the 10% de minimus rate for indirect costs. Basis of presentation – The schedule of expenditures of federal awards (the schedule) is prepared on the accrual basis of accounting. The information in the schedule is presented in accordance with the requirements of Title 2 U. S. Code of Federal Regulations (CFR) Part 200, Uniform Administrative Requirements, Cost Principles, and Audit Requirements for Federal Awards (Uniform Guidance). Federal expenditures include allowable costs funded by federal grants. Allowable costs are subject to the cost principles of the Uniform Guidance, and include costs that are recognized as expenses in CFC’s financial statements in conformity with generally accepted accounting principles. CFC has elected to use the 10% de minimus rate for indirect costs. CFC does not have any subrecipients. Because the schedule presents only a selected portion of the operations of CFC, it is not intended to and does not present the financial position, changes in net assets, or cash flows of CFC.

Title: NOTE 2 – PRIOR YEAR EXPENDITURES Accounting Policies: Basis of presentation – The schedule of expenditures of federal awards (the schedule) is prepared on the accrual basis of accounting. The information in the schedule is presented in accordance with the requirements of Title 2 U. S. Code of Federal Regulations (CFR) Part 200, Uniform Administrative Requirements, Cost Principles, and Audit Requirements for Federal Awards (Uniform Guidance). Federal expenditures include allowable costs funded by federal grants. Allowable costs are subject to the cost principles of the Uniform Guidance, and include costs that are recognized as expenses in CFC’s financial statements in conformity with generally accepted accounting principles. CFC has elected to use the 10% de minimus rate for indirect costs. CFC does not have any subrecipients. Because the schedule presents only a selected portion of the operations of CFC, it is not intended to and does not present the financial position, changes in net assets, or cash flows of CFC. De Minimis Rate Used: Y Rate Explanation: The Auditee has elected to use the 10% de minimus rate for indirect costs. The following amounts reported in the schedule relate to expenditures incurred during the fiscal year ended December 31, 2023:-Assistance listing #21.027, COVID-19 – Coronavirus State and Local Fiscal Recovery Funds, Contract Number SLFRFP1966: $91,755.-Assistance listing #93.575, Child Care and Development Block Grant (CCDF Cluster), Child Care Business Training, Contract Number 2920CCQ002: $44,731. These amounts reflect prior year expenditures that are being reported in the current year schedule in accordance with guidance and approval of the grantor.

Finding Details

Finding 2024-002

Finding #2024-002 – Material Weakness and Other Noncompliance. Applicable federal program: U. S. Department of Treasury, Passed through Harris County, COVID-19 – Coronavirus State and Local Fiscal Recovery Funds, Assistance Listing #: 21.027, Contract Number: SLFRFP1966, Contract Year: 05/16/23 – 05/15/25. Criteria: Procurement – Uniform Administrative Requirements, Cost Principles, and Audit Requirements for Federal Awards, §200.318 states that agencies must maintain records sufficient to detail the history of each procurement transaction, including the rationale for the procurement method, contract type selection, contractor selection or rejection, and the basis for the contract price. Additionally, federal regulations require that agencies have controls in place to prevent contracting with parties that are suspended or debarred. Condition and context: During our testing of 4 of 12 vendors with contracts meeting the threshold for procurement, CFC was unable to provide evidence of procurement for 3 of the vendor contracts, summing to $132,300. Additionally, CFC’s procurement policy does not include procedures to verify that vendors are not suspended, debarred, or otherwise excluded. Cause: CFC staff failed to follow its written policy to obtain and retain the documentation of procurement procedures and the written policy does not include a procedure to verify vendors are not suspended or debarred. Effect: Failure to follow established procurement policies may result in CFC purchasing goods or services for more than would be necessary if required competitive procurement procedures had been followed. Questioned costs: None. Recommendation: Provide additional training to program and finance personnel on the required procurement processes using updated written procurement policies and procedures and emphasize adherence to these policies and procedures. Views of responsible officials and planned corrective actions: Management agrees with the finding. See Corrective Action Plan.

Finding 2024-002

Finding #2024-002 – Material Weakness and Other Noncompliance. Applicable federal program: U. S. Department of Treasury, Passed through Harris County, COVID-19 – Coronavirus State and Local Fiscal Recovery Funds, Assistance Listing #: 21.027, Contract Number: SLFRFP1966, Contract Year: 05/16/23 – 05/15/25. Criteria: Procurement – Uniform Administrative Requirements, Cost Principles, and Audit Requirements for Federal Awards, §200.318 states that agencies must maintain records sufficient to detail the history of each procurement transaction, including the rationale for the procurement method, contract type selection, contractor selection or rejection, and the basis for the contract price. Additionally, federal regulations require that agencies have controls in place to prevent contracting with parties that are suspended or debarred. Condition and context: During our testing of 4 of 12 vendors with contracts meeting the threshold for procurement, CFC was unable to provide evidence of procurement for 3 of the vendor contracts, summing to $132,300. Additionally, CFC’s procurement policy does not include procedures to verify that vendors are not suspended, debarred, or otherwise excluded. Cause: CFC staff failed to follow its written policy to obtain and retain the documentation of procurement procedures and the written policy does not include a procedure to verify vendors are not suspended or debarred. Effect: Failure to follow established procurement policies may result in CFC purchasing goods or services for more than would be necessary if required competitive procurement procedures had been followed. Questioned costs: None. Recommendation: Provide additional training to program and finance personnel on the required procurement processes using updated written procurement policies and procedures and emphasize adherence to these policies and procedures. Views of responsible officials and planned corrective actions: Management agrees with the finding. See Corrective Action Plan.