Audit 363429

FY End

2024-08-31

Total Expended

$1.65M

Findings

4

Programs

1

Organization: Saugatuck Child Care Services Inc. (CT)

Year: 2024 Accepted: 2025-07-31

Auditor: Apicella Testa & Company PC

Organization Exclusion Status:

Checking exclusion status...

ID	Ref	Severity	Repeat	Requirement
572355	2024-001	Material Weakness	Yes	AB
572356	2024-001	Material Weakness	Yes	AB
1148797	2024-001	Material Weakness	Yes	AB
1148798	2024-001	Material Weakness	Yes	AB

ALN	Program	Spent	Major	Findings
10.558	Child and Adult Care Food Program	$1.37M	Yes	1

Contacts

Name	Title	Type
GNWXKLT6A6Y4	Sandra Seres	Auditee
2032271940	James Traester	Auditor
No contacts on file

Notes to SEFA

Title: Note A - 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: Saugatuck Child Care Services, Inc. has elected not to use the 10-percent de minimis indirect cost rate as allowed under the Uniform Guidance. The accompanying schedule of expenditures of federal awards includes the federal award activity of Saugatuck Child Care Services, Inc. under programs of the federal government for the year ended August 31, 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 Saugatuck Child Care Services, Inc., it is not intended to and does not present the financial position, changes in net assets, or cash flows of Saugatuck Child Care Services, Inc.

Title: Note B - Summary of Significant Accounting Policies 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: Saugatuck Child Care Services, Inc. has elected not 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 the Uniform Guidance, wherein certain types of expenditures are not allowable or are limited as to reimbursement. Saugatuck Child Care Services, Inc. has elected not to use the 10-percent de minimis indirect cost rate as allowed under the Uniform Guidance.

Finding Details

Finding 2024-001

• 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 • Federal Assistance Listing 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 comprehensive cost allocation plan and what was documented was not always applied consistently throughout the year. • 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. As a result, costs may have been incorrectly charged to the federal award. • Questioned Costs – Unknown • Repeat Finding – Yes (first reported as Finding #2022-002) • Recommendation – Management needs to enhance its written cost allocation plan and allocations being used must be demonstrated to be reasonable and applied consistently. • Views of Responsible Officials – Management agrees with the finding. The cost allocation plan will be updated and documented.

Finding 2024-001

• 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 • Federal Assistance Listing 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 comprehensive cost allocation plan and what was documented was not always applied consistently throughout the year. • 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. As a result, costs may have been incorrectly charged to the federal award. • Questioned Costs – Unknown • Repeat Finding – Yes (first reported as Finding #2022-002) • Recommendation – Management needs to enhance its written cost allocation plan and allocations being used must be demonstrated to be reasonable and applied consistently. • Views of Responsible Officials – Management agrees with the finding. The cost allocation plan will be updated and documented.

Finding 2024-001

• 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 • Federal Assistance Listing 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 comprehensive cost allocation plan and what was documented was not always applied consistently throughout the year. • 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. As a result, costs may have been incorrectly charged to the federal award. • Questioned Costs – Unknown • Repeat Finding – Yes (first reported as Finding #2022-002) • Recommendation – Management needs to enhance its written cost allocation plan and allocations being used must be demonstrated to be reasonable and applied consistently. • Views of Responsible Officials – Management agrees with the finding. The cost allocation plan will be updated and documented.

Finding 2024-001

• 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 • Federal Assistance Listing 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 comprehensive cost allocation plan and what was documented was not always applied consistently throughout the year. • 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. As a result, costs may have been incorrectly charged to the federal award. • Questioned Costs – Unknown • Repeat Finding – Yes (first reported as Finding #2022-002) • Recommendation – Management needs to enhance its written cost allocation plan and allocations being used must be demonstrated to be reasonable and applied consistently. • Views of Responsible Officials – Management agrees with the finding. The cost allocation plan will be updated and documented.