Audit 365817

2022-003 Allowable Costs – Payroll, Fringe, and General Disbursements Federal Agency: U.S. Department of Health and Human Services Federal Program Title: Child Care and Development Block Grant Assistance Listing Number: 93.575 Award Period: July 1, 2021 to June 30, 2022 Type of Finding: Material Weakness in Internal Control over Compliance and Material Non-Compliance Criteria: Recipients of federal funds are required to establish and maintain effective internal controls over federal funds received, per 2 CFR section 200.303. Allowable costs must be approved by the awarding agency (2 CFR section 200.407) and necessary and reasonable for the performance of the federal award and allocable under the principles of 2 CFR, Subpart E. Additionally, costs must be adequately documented. Condition: Direct costs incurred were allocated through journal entries to the grant without support of an allocation methodology. Management was unable to provide an understanding of how to trace the allocated amounts to a consistent methodology or to original source documentation. Additionally, credit card costs did not have proper evidence of approval maintained. Lastly, time and effort was not supported for one transaction for the amount charged to the grant. Context: Of the general disbursement population, $121,199 of general disbursements were booked via unsupported journal entry (allocated). Of the payroll and fringe benefit disbursement population, $120,483 were booked via unsupported journal entry (allocated). Lastly, one of the forty payroll transactions tested did not agree to the amount charged to the grant. Questioned Costs: $241,682 Cause: Internal controls surrounding allocations were not properly designed and implemented and an audit trail for allocation journal entries/source documentation was not maintained. Effect: The lack of evidence for audit trail and lack of effective internal controls over allocations provides an opportunity for noncompliance and errors. Repeat Finding: Yes Recommendation: We recommend that the Organization design, implement and monitor internal controls over allocations as well as maintain source documentation to support amounts charged to the grant. Views of Responsible Officials of the Auditee: There is no disagreement with the audit finding.

2022-003 Allowable Costs – Payroll, Fringe, and General Disbursements Federal Agency: U.S. Department of Health and Human Services Federal Program Title: Child Care and Development Block Grant Assistance Listing Number: 93.575 Award Period: July 1, 2021 to June 30, 2022 Type of Finding: Material Weakness in Internal Control over Compliance and Material Non-Compliance Criteria: Recipients of federal funds are required to establish and maintain effective internal controls over federal funds received, per 2 CFR section 200.303. Allowable costs must be approved by the awarding agency (2 CFR section 200.407) and necessary and reasonable for the performance of the federal award and allocable under the principles of 2 CFR, Subpart E. Additionally, costs must be adequately documented. Condition: Direct costs incurred were allocated through journal entries to the grant without support of an allocation methodology. Management was unable to provide an understanding of how to trace the allocated amounts to a consistent methodology or to original source documentation. Additionally, credit card costs did not have proper evidence of approval maintained. Lastly, time and effort was not supported for one transaction for the amount charged to the grant. Context: Of the general disbursement population, $121,199 of general disbursements were booked via unsupported journal entry (allocated). Of the payroll and fringe benefit disbursement population, $120,483 were booked via unsupported journal entry (allocated). Lastly, one of the forty payroll transactions tested did not agree to the amount charged to the grant. Questioned Costs: $241,682 Cause: Internal controls surrounding allocations were not properly designed and implemented and an audit trail for allocation journal entries/source documentation was not maintained. Effect: The lack of evidence for audit trail and lack of effective internal controls over allocations provides an opportunity for noncompliance and errors. Repeat Finding: Yes Recommendation: We recommend that the Organization design, implement and monitor internal controls over allocations as well as maintain source documentation to support amounts charged to the grant. Views of Responsible Officials of the Auditee: There is no disagreement with the audit finding.

2022-003 Allowable Costs – Payroll, Fringe, and General Disbursements Federal Agency: U.S. Department of Health and Human Services Federal Program Title: Child Care and Development Block Grant Assistance Listing Number: 93.575 Award Period: July 1, 2021 to June 30, 2022 Type of Finding: Material Weakness in Internal Control over Compliance and Material Non-Compliance Criteria: Recipients of federal funds are required to establish and maintain effective internal controls over federal funds received, per 2 CFR section 200.303. Allowable costs must be approved by the awarding agency (2 CFR section 200.407) and necessary and reasonable for the performance of the federal award and allocable under the principles of 2 CFR, Subpart E. Additionally, costs must be adequately documented. Condition: Direct costs incurred were allocated through journal entries to the grant without support of an allocation methodology. Management was unable to provide an understanding of how to trace the allocated amounts to a consistent methodology or to original source documentation. Additionally, credit card costs did not have proper evidence of approval maintained. Lastly, time and effort was not supported for one transaction for the amount charged to the grant. Context: Of the general disbursement population, $121,199 of general disbursements were booked via unsupported journal entry (allocated). Of the payroll and fringe benefit disbursement population, $120,483 were booked via unsupported journal entry (allocated). Lastly, one of the forty payroll transactions tested did not agree to the amount charged to the grant. Questioned Costs: $241,682 Cause: Internal controls surrounding allocations were not properly designed and implemented and an audit trail for allocation journal entries/source documentation was not maintained. Effect: The lack of evidence for audit trail and lack of effective internal controls over allocations provides an opportunity for noncompliance and errors. Repeat Finding: Yes Recommendation: We recommend that the Organization design, implement and monitor internal controls over allocations as well as maintain source documentation to support amounts charged to the grant. Views of Responsible Officials of the Auditee: There is no disagreement with the audit finding.

2022-003 Allowable Costs – Payroll, Fringe, and General Disbursements Federal Agency: U.S. Department of Health and Human Services Federal Program Title: Child Care and Development Block Grant Assistance Listing Number: 93.575 Award Period: July 1, 2021 to June 30, 2022 Type of Finding: Material Weakness in Internal Control over Compliance and Material Non-Compliance Criteria: Recipients of federal funds are required to establish and maintain effective internal controls over federal funds received, per 2 CFR section 200.303. Allowable costs must be approved by the awarding agency (2 CFR section 200.407) and necessary and reasonable for the performance of the federal award and allocable under the principles of 2 CFR, Subpart E. Additionally, costs must be adequately documented. Condition: Direct costs incurred were allocated through journal entries to the grant without support of an allocation methodology. Management was unable to provide an understanding of how to trace the allocated amounts to a consistent methodology or to original source documentation. Additionally, credit card costs did not have proper evidence of approval maintained. Lastly, time and effort was not supported for one transaction for the amount charged to the grant. Context: Of the general disbursement population, $121,199 of general disbursements were booked via unsupported journal entry (allocated). Of the payroll and fringe benefit disbursement population, $120,483 were booked via unsupported journal entry (allocated). Lastly, one of the forty payroll transactions tested did not agree to the amount charged to the grant. Questioned Costs: $241,682 Cause: Internal controls surrounding allocations were not properly designed and implemented and an audit trail for allocation journal entries/source documentation was not maintained. Effect: The lack of evidence for audit trail and lack of effective internal controls over allocations provides an opportunity for noncompliance and errors. Repeat Finding: Yes Recommendation: We recommend that the Organization design, implement and monitor internal controls over allocations as well as maintain source documentation to support amounts charged to the grant. Views of Responsible Officials of the Auditee: There is no disagreement with the audit finding.

2022-003 Allowable Costs – Payroll, Fringe, and General Disbursements Federal Agency: U.S. Department of Health and Human Services Federal Program Title: Child Care and Development Block Grant Assistance Listing Number: 93.575 Award Period: July 1, 2021 to June 30, 2022 Type of Finding: Material Weakness in Internal Control over Compliance and Material Non-Compliance Criteria: Recipients of federal funds are required to establish and maintain effective internal controls over federal funds received, per 2 CFR section 200.303. Allowable costs must be approved by the awarding agency (2 CFR section 200.407) and necessary and reasonable for the performance of the federal award and allocable under the principles of 2 CFR, Subpart E. Additionally, costs must be adequately documented. Condition: Direct costs incurred were allocated through journal entries to the grant without support of an allocation methodology. Management was unable to provide an understanding of how to trace the allocated amounts to a consistent methodology or to original source documentation. Additionally, credit card costs did not have proper evidence of approval maintained. Lastly, time and effort was not supported for one transaction for the amount charged to the grant. Context: Of the general disbursement population, $121,199 of general disbursements were booked via unsupported journal entry (allocated). Of the payroll and fringe benefit disbursement population, $120,483 were booked via unsupported journal entry (allocated). Lastly, one of the forty payroll transactions tested did not agree to the amount charged to the grant. Questioned Costs: $241,682 Cause: Internal controls surrounding allocations were not properly designed and implemented and an audit trail for allocation journal entries/source documentation was not maintained. Effect: The lack of evidence for audit trail and lack of effective internal controls over allocations provides an opportunity for noncompliance and errors. Repeat Finding: Yes Recommendation: We recommend that the Organization design, implement and monitor internal controls over allocations as well as maintain source documentation to support amounts charged to the grant. Views of Responsible Officials of the Auditee: There is no disagreement with the audit finding.

2022-003 Allowable Costs – Payroll, Fringe, and General Disbursements Federal Agency: U.S. Department of Health and Human Services Federal Program Title: Child Care and Development Block Grant Assistance Listing Number: 93.575 Award Period: July 1, 2021 to June 30, 2022 Type of Finding: Material Weakness in Internal Control over Compliance and Material Non-Compliance Criteria: Recipients of federal funds are required to establish and maintain effective internal controls over federal funds received, per 2 CFR section 200.303. Allowable costs must be approved by the awarding agency (2 CFR section 200.407) and necessary and reasonable for the performance of the federal award and allocable under the principles of 2 CFR, Subpart E. Additionally, costs must be adequately documented. Condition: Direct costs incurred were allocated through journal entries to the grant without support of an allocation methodology. Management was unable to provide an understanding of how to trace the allocated amounts to a consistent methodology or to original source documentation. Additionally, credit card costs did not have proper evidence of approval maintained. Lastly, time and effort was not supported for one transaction for the amount charged to the grant. Context: Of the general disbursement population, $121,199 of general disbursements were booked via unsupported journal entry (allocated). Of the payroll and fringe benefit disbursement population, $120,483 were booked via unsupported journal entry (allocated). Lastly, one of the forty payroll transactions tested did not agree to the amount charged to the grant. Questioned Costs: $241,682 Cause: Internal controls surrounding allocations were not properly designed and implemented and an audit trail for allocation journal entries/source documentation was not maintained. Effect: The lack of evidence for audit trail and lack of effective internal controls over allocations provides an opportunity for noncompliance and errors. Repeat Finding: Yes Recommendation: We recommend that the Organization design, implement and monitor internal controls over allocations as well as maintain source documentation to support amounts charged to the grant. Views of Responsible Officials of the Auditee: There is no disagreement with the audit finding.

2022-003 Allowable Costs – Payroll, Fringe, and General Disbursements Federal Agency: U.S. Department of Health and Human Services Federal Program Title: Child Care and Development Block Grant Assistance Listing Number: 93.575 Award Period: July 1, 2021 to June 30, 2022 Type of Finding: Material Weakness in Internal Control over Compliance and Material Non-Compliance Criteria: Recipients of federal funds are required to establish and maintain effective internal controls over federal funds received, per 2 CFR section 200.303. Allowable costs must be approved by the awarding agency (2 CFR section 200.407) and necessary and reasonable for the performance of the federal award and allocable under the principles of 2 CFR, Subpart E. Additionally, costs must be adequately documented. Condition: Direct costs incurred were allocated through journal entries to the grant without support of an allocation methodology. Management was unable to provide an understanding of how to trace the allocated amounts to a consistent methodology or to original source documentation. Additionally, credit card costs did not have proper evidence of approval maintained. Lastly, time and effort was not supported for one transaction for the amount charged to the grant. Context: Of the general disbursement population, $121,199 of general disbursements were booked via unsupported journal entry (allocated). Of the payroll and fringe benefit disbursement population, $120,483 were booked via unsupported journal entry (allocated). Lastly, one of the forty payroll transactions tested did not agree to the amount charged to the grant. Questioned Costs: $241,682 Cause: Internal controls surrounding allocations were not properly designed and implemented and an audit trail for allocation journal entries/source documentation was not maintained. Effect: The lack of evidence for audit trail and lack of effective internal controls over allocations provides an opportunity for noncompliance and errors. Repeat Finding: Yes Recommendation: We recommend that the Organization design, implement and monitor internal controls over allocations as well as maintain source documentation to support amounts charged to the grant. Views of Responsible Officials of the Auditee: There is no disagreement with the audit finding.

2022-003 Allowable Costs – Payroll, Fringe, and General Disbursements Federal Agency: U.S. Department of Health and Human Services Federal Program Title: Child Care and Development Block Grant Assistance Listing Number: 93.575 Award Period: July 1, 2021 to June 30, 2022 Type of Finding: Material Weakness in Internal Control over Compliance and Material Non-Compliance Criteria: Recipients of federal funds are required to establish and maintain effective internal controls over federal funds received, per 2 CFR section 200.303. Allowable costs must be approved by the awarding agency (2 CFR section 200.407) and necessary and reasonable for the performance of the federal award and allocable under the principles of 2 CFR, Subpart E. Additionally, costs must be adequately documented. Condition: Direct costs incurred were allocated through journal entries to the grant without support of an allocation methodology. Management was unable to provide an understanding of how to trace the allocated amounts to a consistent methodology or to original source documentation. Additionally, credit card costs did not have proper evidence of approval maintained. Lastly, time and effort was not supported for one transaction for the amount charged to the grant. Context: Of the general disbursement population, $121,199 of general disbursements were booked via unsupported journal entry (allocated). Of the payroll and fringe benefit disbursement population, $120,483 were booked via unsupported journal entry (allocated). Lastly, one of the forty payroll transactions tested did not agree to the amount charged to the grant. Questioned Costs: $241,682 Cause: Internal controls surrounding allocations were not properly designed and implemented and an audit trail for allocation journal entries/source documentation was not maintained. Effect: The lack of evidence for audit trail and lack of effective internal controls over allocations provides an opportunity for noncompliance and errors. Repeat Finding: Yes Recommendation: We recommend that the Organization design, implement and monitor internal controls over allocations as well as maintain source documentation to support amounts charged to the grant. Views of Responsible Officials of the Auditee: There is no disagreement with the audit finding.

2022-003 Allowable Costs – Payroll, Fringe, and General Disbursements Federal Agency: U.S. Department of Health and Human Services Federal Program Title: Child Care and Development Block Grant Assistance Listing Number: 93.575 Award Period: July 1, 2021 to June 30, 2022 Type of Finding: Material Weakness in Internal Control over Compliance and Material Non-Compliance Criteria: Recipients of federal funds are required to establish and maintain effective internal controls over federal funds received, per 2 CFR section 200.303. Allowable costs must be approved by the awarding agency (2 CFR section 200.407) and necessary and reasonable for the performance of the federal award and allocable under the principles of 2 CFR, Subpart E. Additionally, costs must be adequately documented. Condition: Direct costs incurred were allocated through journal entries to the grant without support of an allocation methodology. Management was unable to provide an understanding of how to trace the allocated amounts to a consistent methodology or to original source documentation. Additionally, credit card costs did not have proper evidence of approval maintained. Lastly, time and effort was not supported for one transaction for the amount charged to the grant. Context: Of the general disbursement population, $121,199 of general disbursements were booked via unsupported journal entry (allocated). Of the payroll and fringe benefit disbursement population, $120,483 were booked via unsupported journal entry (allocated). Lastly, one of the forty payroll transactions tested did not agree to the amount charged to the grant. Questioned Costs: $241,682 Cause: Internal controls surrounding allocations were not properly designed and implemented and an audit trail for allocation journal entries/source documentation was not maintained. Effect: The lack of evidence for audit trail and lack of effective internal controls over allocations provides an opportunity for noncompliance and errors. Repeat Finding: Yes Recommendation: We recommend that the Organization design, implement and monitor internal controls over allocations as well as maintain source documentation to support amounts charged to the grant. Views of Responsible Officials of the Auditee: There is no disagreement with the audit finding.

2022-003 Allowable Costs – Payroll, Fringe, and General Disbursements Federal Agency: U.S. Department of Health and Human Services Federal Program Title: Child Care and Development Block Grant Assistance Listing Number: 93.575 Award Period: July 1, 2021 to June 30, 2022 Type of Finding: Material Weakness in Internal Control over Compliance and Material Non-Compliance Criteria: Recipients of federal funds are required to establish and maintain effective internal controls over federal funds received, per 2 CFR section 200.303. Allowable costs must be approved by the awarding agency (2 CFR section 200.407) and necessary and reasonable for the performance of the federal award and allocable under the principles of 2 CFR, Subpart E. Additionally, costs must be adequately documented. Condition: Direct costs incurred were allocated through journal entries to the grant without support of an allocation methodology. Management was unable to provide an understanding of how to trace the allocated amounts to a consistent methodology or to original source documentation. Additionally, credit card costs did not have proper evidence of approval maintained. Lastly, time and effort was not supported for one transaction for the amount charged to the grant. Context: Of the general disbursement population, $121,199 of general disbursements were booked via unsupported journal entry (allocated). Of the payroll and fringe benefit disbursement population, $120,483 were booked via unsupported journal entry (allocated). Lastly, one of the forty payroll transactions tested did not agree to the amount charged to the grant. Questioned Costs: $241,682 Cause: Internal controls surrounding allocations were not properly designed and implemented and an audit trail for allocation journal entries/source documentation was not maintained. Effect: The lack of evidence for audit trail and lack of effective internal controls over allocations provides an opportunity for noncompliance and errors. Repeat Finding: Yes Recommendation: We recommend that the Organization design, implement and monitor internal controls over allocations as well as maintain source documentation to support amounts charged to the grant. Views of Responsible Officials of the Auditee: There is no disagreement with the audit finding.

2022-004 Period of Performance Federal Agency: U.S. Department of Health and Human Services Federal Program Title: Child Care and Development Block Grant Assistance Listing Number: 93.575 Award Period: July 1, 2021 to June 30, 2022Type of Finding: Significant Deficiency in Internal Control over Compliance Criteria: Costs charged to the grant must be incurred within the period of performance in accordance with 2 CFR section 200.1. Condition: Documentation was not properly maintained to support time and effort for payroll amounts charged to the grant. Additionally, documentation to support approval of general disbursements was not maintained. Context: Twenty-seven out of sixty-five transactions lacked appropriate documentation or approval to substantiate that the expenditures were incurred within the authorized period of performance for the grant. Ten out of twenty payroll disbursements tested for performance period beginning dates during audit period did not have proper evidence to support amounts that were not charged prior to the beginning of the performance period. Questioned Costs: None over $25,000 Cause: Internal controls surrounding allocations were not properly designed and implemented and an audit trail for allocation journal entries/source documentation was not maintained . Effect: The lack of evidence for audit trail and lack of effective internal controls over allocations provides an opportunity for noncompliance and errors. Repeat Finding: No Recommendation: We recommend that the Organization design, implement and monitor internal controls over allocations as well as maintain source documentation to support amounts charged to the grant. Views of Responsible Officials of the Auditee: There is no disagreement with the audit finding.

2022-004 Period of Performance Federal Agency: U.S. Department of Health and Human Services Federal Program Title: Child Care and Development Block Grant Assistance Listing Number: 93.575 Award Period: July 1, 2021 to June 30, 2022Type of Finding: Significant Deficiency in Internal Control over Compliance Criteria: Costs charged to the grant must be incurred within the period of performance in accordance with 2 CFR section 200.1. Condition: Documentation was not properly maintained to support time and effort for payroll amounts charged to the grant. Additionally, documentation to support approval of general disbursements was not maintained. Context: Twenty-seven out of sixty-five transactions lacked appropriate documentation or approval to substantiate that the expenditures were incurred within the authorized period of performance for the grant. Ten out of twenty payroll disbursements tested for performance period beginning dates during audit period did not have proper evidence to support amounts that were not charged prior to the beginning of the performance period. Questioned Costs: None over $25,000 Cause: Internal controls surrounding allocations were not properly designed and implemented and an audit trail for allocation journal entries/source documentation was not maintained . Effect: The lack of evidence for audit trail and lack of effective internal controls over allocations provides an opportunity for noncompliance and errors. Repeat Finding: No Recommendation: We recommend that the Organization design, implement and monitor internal controls over allocations as well as maintain source documentation to support amounts charged to the grant. Views of Responsible Officials of the Auditee: There is no disagreement with the audit finding.

2022-004 Period of Performance Federal Agency: U.S. Department of Health and Human Services Federal Program Title: Child Care and Development Block Grant Assistance Listing Number: 93.575 Award Period: July 1, 2021 to June 30, 2022Type of Finding: Significant Deficiency in Internal Control over Compliance Criteria: Costs charged to the grant must be incurred within the period of performance in accordance with 2 CFR section 200.1. Condition: Documentation was not properly maintained to support time and effort for payroll amounts charged to the grant. Additionally, documentation to support approval of general disbursements was not maintained. Context: Twenty-seven out of sixty-five transactions lacked appropriate documentation or approval to substantiate that the expenditures were incurred within the authorized period of performance for the grant. Ten out of twenty payroll disbursements tested for performance period beginning dates during audit period did not have proper evidence to support amounts that were not charged prior to the beginning of the performance period. Questioned Costs: None over $25,000 Cause: Internal controls surrounding allocations were not properly designed and implemented and an audit trail for allocation journal entries/source documentation was not maintained . Effect: The lack of evidence for audit trail and lack of effective internal controls over allocations provides an opportunity for noncompliance and errors. Repeat Finding: No Recommendation: We recommend that the Organization design, implement and monitor internal controls over allocations as well as maintain source documentation to support amounts charged to the grant. Views of Responsible Officials of the Auditee: There is no disagreement with the audit finding.

2022-004 Period of Performance Federal Agency: U.S. Department of Health and Human Services Federal Program Title: Child Care and Development Block Grant Assistance Listing Number: 93.575 Award Period: July 1, 2021 to June 30, 2022Type of Finding: Significant Deficiency in Internal Control over Compliance Criteria: Costs charged to the grant must be incurred within the period of performance in accordance with 2 CFR section 200.1. Condition: Documentation was not properly maintained to support time and effort for payroll amounts charged to the grant. Additionally, documentation to support approval of general disbursements was not maintained. Context: Twenty-seven out of sixty-five transactions lacked appropriate documentation or approval to substantiate that the expenditures were incurred within the authorized period of performance for the grant. Ten out of twenty payroll disbursements tested for performance period beginning dates during audit period did not have proper evidence to support amounts that were not charged prior to the beginning of the performance period. Questioned Costs: None over $25,000 Cause: Internal controls surrounding allocations were not properly designed and implemented and an audit trail for allocation journal entries/source documentation was not maintained . Effect: The lack of evidence for audit trail and lack of effective internal controls over allocations provides an opportunity for noncompliance and errors. Repeat Finding: No Recommendation: We recommend that the Organization design, implement and monitor internal controls over allocations as well as maintain source documentation to support amounts charged to the grant. Views of Responsible Officials of the Auditee: There is no disagreement with the audit finding.

2022-004 Period of Performance Federal Agency: U.S. Department of Health and Human Services Federal Program Title: Child Care and Development Block Grant Assistance Listing Number: 93.575 Award Period: July 1, 2021 to June 30, 2022Type of Finding: Significant Deficiency in Internal Control over Compliance Criteria: Costs charged to the grant must be incurred within the period of performance in accordance with 2 CFR section 200.1. Condition: Documentation was not properly maintained to support time and effort for payroll amounts charged to the grant. Additionally, documentation to support approval of general disbursements was not maintained. Context: Twenty-seven out of sixty-five transactions lacked appropriate documentation or approval to substantiate that the expenditures were incurred within the authorized period of performance for the grant. Ten out of twenty payroll disbursements tested for performance period beginning dates during audit period did not have proper evidence to support amounts that were not charged prior to the beginning of the performance period. Questioned Costs: None over $25,000 Cause: Internal controls surrounding allocations were not properly designed and implemented and an audit trail for allocation journal entries/source documentation was not maintained . Effect: The lack of evidence for audit trail and lack of effective internal controls over allocations provides an opportunity for noncompliance and errors. Repeat Finding: No Recommendation: We recommend that the Organization design, implement and monitor internal controls over allocations as well as maintain source documentation to support amounts charged to the grant. Views of Responsible Officials of the Auditee: There is no disagreement with the audit finding.

2022-004 Period of Performance Federal Agency: U.S. Department of Health and Human Services Federal Program Title: Child Care and Development Block Grant Assistance Listing Number: 93.575 Award Period: July 1, 2021 to June 30, 2022Type of Finding: Significant Deficiency in Internal Control over Compliance Criteria: Costs charged to the grant must be incurred within the period of performance in accordance with 2 CFR section 200.1. Condition: Documentation was not properly maintained to support time and effort for payroll amounts charged to the grant. Additionally, documentation to support approval of general disbursements was not maintained. Context: Twenty-seven out of sixty-five transactions lacked appropriate documentation or approval to substantiate that the expenditures were incurred within the authorized period of performance for the grant. Ten out of twenty payroll disbursements tested for performance period beginning dates during audit period did not have proper evidence to support amounts that were not charged prior to the beginning of the performance period. Questioned Costs: None over $25,000 Cause: Internal controls surrounding allocations were not properly designed and implemented and an audit trail for allocation journal entries/source documentation was not maintained . Effect: The lack of evidence for audit trail and lack of effective internal controls over allocations provides an opportunity for noncompliance and errors. Repeat Finding: No Recommendation: We recommend that the Organization design, implement and monitor internal controls over allocations as well as maintain source documentation to support amounts charged to the grant. Views of Responsible Officials of the Auditee: There is no disagreement with the audit finding.

2022-004 Period of Performance Federal Agency: U.S. Department of Health and Human Services Federal Program Title: Child Care and Development Block Grant Assistance Listing Number: 93.575 Award Period: July 1, 2021 to June 30, 2022Type of Finding: Significant Deficiency in Internal Control over Compliance Criteria: Costs charged to the grant must be incurred within the period of performance in accordance with 2 CFR section 200.1. Condition: Documentation was not properly maintained to support time and effort for payroll amounts charged to the grant. Additionally, documentation to support approval of general disbursements was not maintained. Context: Twenty-seven out of sixty-five transactions lacked appropriate documentation or approval to substantiate that the expenditures were incurred within the authorized period of performance for the grant. Ten out of twenty payroll disbursements tested for performance period beginning dates during audit period did not have proper evidence to support amounts that were not charged prior to the beginning of the performance period. Questioned Costs: None over $25,000 Cause: Internal controls surrounding allocations were not properly designed and implemented and an audit trail for allocation journal entries/source documentation was not maintained . Effect: The lack of evidence for audit trail and lack of effective internal controls over allocations provides an opportunity for noncompliance and errors. Repeat Finding: No Recommendation: We recommend that the Organization design, implement and monitor internal controls over allocations as well as maintain source documentation to support amounts charged to the grant. Views of Responsible Officials of the Auditee: There is no disagreement with the audit finding.

2022-004 Period of Performance Federal Agency: U.S. Department of Health and Human Services Federal Program Title: Child Care and Development Block Grant Assistance Listing Number: 93.575 Award Period: July 1, 2021 to June 30, 2022Type of Finding: Significant Deficiency in Internal Control over Compliance Criteria: Costs charged to the grant must be incurred within the period of performance in accordance with 2 CFR section 200.1. Condition: Documentation was not properly maintained to support time and effort for payroll amounts charged to the grant. Additionally, documentation to support approval of general disbursements was not maintained. Context: Twenty-seven out of sixty-five transactions lacked appropriate documentation or approval to substantiate that the expenditures were incurred within the authorized period of performance for the grant. Ten out of twenty payroll disbursements tested for performance period beginning dates during audit period did not have proper evidence to support amounts that were not charged prior to the beginning of the performance period. Questioned Costs: None over $25,000 Cause: Internal controls surrounding allocations were not properly designed and implemented and an audit trail for allocation journal entries/source documentation was not maintained . Effect: The lack of evidence for audit trail and lack of effective internal controls over allocations provides an opportunity for noncompliance and errors. Repeat Finding: No Recommendation: We recommend that the Organization design, implement and monitor internal controls over allocations as well as maintain source documentation to support amounts charged to the grant. Views of Responsible Officials of the Auditee: There is no disagreement with the audit finding.

2022-004 Period of Performance Federal Agency: U.S. Department of Health and Human Services Federal Program Title: Child Care and Development Block Grant Assistance Listing Number: 93.575 Award Period: July 1, 2021 to June 30, 2022Type of Finding: Significant Deficiency in Internal Control over Compliance Criteria: Costs charged to the grant must be incurred within the period of performance in accordance with 2 CFR section 200.1. Condition: Documentation was not properly maintained to support time and effort for payroll amounts charged to the grant. Additionally, documentation to support approval of general disbursements was not maintained. Context: Twenty-seven out of sixty-five transactions lacked appropriate documentation or approval to substantiate that the expenditures were incurred within the authorized period of performance for the grant. Ten out of twenty payroll disbursements tested for performance period beginning dates during audit period did not have proper evidence to support amounts that were not charged prior to the beginning of the performance period. Questioned Costs: None over $25,000 Cause: Internal controls surrounding allocations were not properly designed and implemented and an audit trail for allocation journal entries/source documentation was not maintained . Effect: The lack of evidence for audit trail and lack of effective internal controls over allocations provides an opportunity for noncompliance and errors. Repeat Finding: No Recommendation: We recommend that the Organization design, implement and monitor internal controls over allocations as well as maintain source documentation to support amounts charged to the grant. Views of Responsible Officials of the Auditee: There is no disagreement with the audit finding.

2022-004 Period of Performance Federal Agency: U.S. Department of Health and Human Services Federal Program Title: Child Care and Development Block Grant Assistance Listing Number: 93.575 Award Period: July 1, 2021 to June 30, 2022Type of Finding: Significant Deficiency in Internal Control over Compliance Criteria: Costs charged to the grant must be incurred within the period of performance in accordance with 2 CFR section 200.1. Condition: Documentation was not properly maintained to support time and effort for payroll amounts charged to the grant. Additionally, documentation to support approval of general disbursements was not maintained. Context: Twenty-seven out of sixty-five transactions lacked appropriate documentation or approval to substantiate that the expenditures were incurred within the authorized period of performance for the grant. Ten out of twenty payroll disbursements tested for performance period beginning dates during audit period did not have proper evidence to support amounts that were not charged prior to the beginning of the performance period. Questioned Costs: None over $25,000 Cause: Internal controls surrounding allocations were not properly designed and implemented and an audit trail for allocation journal entries/source documentation was not maintained . Effect: The lack of evidence for audit trail and lack of effective internal controls over allocations provides an opportunity for noncompliance and errors. Repeat Finding: No Recommendation: We recommend that the Organization design, implement and monitor internal controls over allocations as well as maintain source documentation to support amounts charged to the grant. Views of Responsible Officials of the Auditee: There is no disagreement with the audit finding.

2022-003 Allowable Costs – Payroll, Fringe, and General Disbursements Federal Agency: U.S. Department of Health and Human Services Federal Program Title: Child Care and Development Block Grant Assistance Listing Number: 93.575 Award Period: July 1, 2021 to June 30, 2022 Type of Finding: Material Weakness in Internal Control over Compliance and Material Non-Compliance Criteria: Recipients of federal funds are required to establish and maintain effective internal controls over federal funds received, per 2 CFR section 200.303. Allowable costs must be approved by the awarding agency (2 CFR section 200.407) and necessary and reasonable for the performance of the federal award and allocable under the principles of 2 CFR, Subpart E. Additionally, costs must be adequately documented. Condition: Direct costs incurred were allocated through journal entries to the grant without support of an allocation methodology. Management was unable to provide an understanding of how to trace the allocated amounts to a consistent methodology or to original source documentation. Additionally, credit card costs did not have proper evidence of approval maintained. Lastly, time and effort was not supported for one transaction for the amount charged to the grant. Context: Of the general disbursement population, $121,199 of general disbursements were booked via unsupported journal entry (allocated). Of the payroll and fringe benefit disbursement population, $120,483 were booked via unsupported journal entry (allocated). Lastly, one of the forty payroll transactions tested did not agree to the amount charged to the grant. Questioned Costs: $241,682 Cause: Internal controls surrounding allocations were not properly designed and implemented and an audit trail for allocation journal entries/source documentation was not maintained. Effect: The lack of evidence for audit trail and lack of effective internal controls over allocations provides an opportunity for noncompliance and errors. Repeat Finding: Yes Recommendation: We recommend that the Organization design, implement and monitor internal controls over allocations as well as maintain source documentation to support amounts charged to the grant. Views of Responsible Officials of the Auditee: There is no disagreement with the audit finding.

2022-003 Allowable Costs – Payroll, Fringe, and General Disbursements Federal Agency: U.S. Department of Health and Human Services Federal Program Title: Child Care and Development Block Grant Assistance Listing Number: 93.575 Award Period: July 1, 2021 to June 30, 2022 Type of Finding: Material Weakness in Internal Control over Compliance and Material Non-Compliance Criteria: Recipients of federal funds are required to establish and maintain effective internal controls over federal funds received, per 2 CFR section 200.303. Allowable costs must be approved by the awarding agency (2 CFR section 200.407) and necessary and reasonable for the performance of the federal award and allocable under the principles of 2 CFR, Subpart E. Additionally, costs must be adequately documented. Condition: Direct costs incurred were allocated through journal entries to the grant without support of an allocation methodology. Management was unable to provide an understanding of how to trace the allocated amounts to a consistent methodology or to original source documentation. Additionally, credit card costs did not have proper evidence of approval maintained. Lastly, time and effort was not supported for one transaction for the amount charged to the grant. Context: Of the general disbursement population, $121,199 of general disbursements were booked via unsupported journal entry (allocated). Of the payroll and fringe benefit disbursement population, $120,483 were booked via unsupported journal entry (allocated). Lastly, one of the forty payroll transactions tested did not agree to the amount charged to the grant. Questioned Costs: $241,682 Cause: Internal controls surrounding allocations were not properly designed and implemented and an audit trail for allocation journal entries/source documentation was not maintained. Effect: The lack of evidence for audit trail and lack of effective internal controls over allocations provides an opportunity for noncompliance and errors. Repeat Finding: Yes Recommendation: We recommend that the Organization design, implement and monitor internal controls over allocations as well as maintain source documentation to support amounts charged to the grant. Views of Responsible Officials of the Auditee: There is no disagreement with the audit finding.

2022-003 Allowable Costs – Payroll, Fringe, and General Disbursements Federal Agency: U.S. Department of Health and Human Services Federal Program Title: Child Care and Development Block Grant Assistance Listing Number: 93.575 Award Period: July 1, 2021 to June 30, 2022 Type of Finding: Material Weakness in Internal Control over Compliance and Material Non-Compliance Criteria: Recipients of federal funds are required to establish and maintain effective internal controls over federal funds received, per 2 CFR section 200.303. Allowable costs must be approved by the awarding agency (2 CFR section 200.407) and necessary and reasonable for the performance of the federal award and allocable under the principles of 2 CFR, Subpart E. Additionally, costs must be adequately documented. Condition: Direct costs incurred were allocated through journal entries to the grant without support of an allocation methodology. Management was unable to provide an understanding of how to trace the allocated amounts to a consistent methodology or to original source documentation. Additionally, credit card costs did not have proper evidence of approval maintained. Lastly, time and effort was not supported for one transaction for the amount charged to the grant. Context: Of the general disbursement population, $121,199 of general disbursements were booked via unsupported journal entry (allocated). Of the payroll and fringe benefit disbursement population, $120,483 were booked via unsupported journal entry (allocated). Lastly, one of the forty payroll transactions tested did not agree to the amount charged to the grant. Questioned Costs: $241,682 Cause: Internal controls surrounding allocations were not properly designed and implemented and an audit trail for allocation journal entries/source documentation was not maintained. Effect: The lack of evidence for audit trail and lack of effective internal controls over allocations provides an opportunity for noncompliance and errors. Repeat Finding: Yes Recommendation: We recommend that the Organization design, implement and monitor internal controls over allocations as well as maintain source documentation to support amounts charged to the grant. Views of Responsible Officials of the Auditee: There is no disagreement with the audit finding.

2022-003 Allowable Costs – Payroll, Fringe, and General Disbursements Federal Agency: U.S. Department of Health and Human Services Federal Program Title: Child Care and Development Block Grant Assistance Listing Number: 93.575 Award Period: July 1, 2021 to June 30, 2022 Type of Finding: Material Weakness in Internal Control over Compliance and Material Non-Compliance Criteria: Recipients of federal funds are required to establish and maintain effective internal controls over federal funds received, per 2 CFR section 200.303. Allowable costs must be approved by the awarding agency (2 CFR section 200.407) and necessary and reasonable for the performance of the federal award and allocable under the principles of 2 CFR, Subpart E. Additionally, costs must be adequately documented. Condition: Direct costs incurred were allocated through journal entries to the grant without support of an allocation methodology. Management was unable to provide an understanding of how to trace the allocated amounts to a consistent methodology or to original source documentation. Additionally, credit card costs did not have proper evidence of approval maintained. Lastly, time and effort was not supported for one transaction for the amount charged to the grant. Context: Of the general disbursement population, $121,199 of general disbursements were booked via unsupported journal entry (allocated). Of the payroll and fringe benefit disbursement population, $120,483 were booked via unsupported journal entry (allocated). Lastly, one of the forty payroll transactions tested did not agree to the amount charged to the grant. Questioned Costs: $241,682 Cause: Internal controls surrounding allocations were not properly designed and implemented and an audit trail for allocation journal entries/source documentation was not maintained. Effect: The lack of evidence for audit trail and lack of effective internal controls over allocations provides an opportunity for noncompliance and errors. Repeat Finding: Yes Recommendation: We recommend that the Organization design, implement and monitor internal controls over allocations as well as maintain source documentation to support amounts charged to the grant. Views of Responsible Officials of the Auditee: There is no disagreement with the audit finding.

2022-003 Allowable Costs – Payroll, Fringe, and General Disbursements Federal Agency: U.S. Department of Health and Human Services Federal Program Title: Child Care and Development Block Grant Assistance Listing Number: 93.575 Award Period: July 1, 2021 to June 30, 2022 Type of Finding: Material Weakness in Internal Control over Compliance and Material Non-Compliance Criteria: Recipients of federal funds are required to establish and maintain effective internal controls over federal funds received, per 2 CFR section 200.303. Allowable costs must be approved by the awarding agency (2 CFR section 200.407) and necessary and reasonable for the performance of the federal award and allocable under the principles of 2 CFR, Subpart E. Additionally, costs must be adequately documented. Condition: Direct costs incurred were allocated through journal entries to the grant without support of an allocation methodology. Management was unable to provide an understanding of how to trace the allocated amounts to a consistent methodology or to original source documentation. Additionally, credit card costs did not have proper evidence of approval maintained. Lastly, time and effort was not supported for one transaction for the amount charged to the grant. Context: Of the general disbursement population, $121,199 of general disbursements were booked via unsupported journal entry (allocated). Of the payroll and fringe benefit disbursement population, $120,483 were booked via unsupported journal entry (allocated). Lastly, one of the forty payroll transactions tested did not agree to the amount charged to the grant. Questioned Costs: $241,682 Cause: Internal controls surrounding allocations were not properly designed and implemented and an audit trail for allocation journal entries/source documentation was not maintained. Effect: The lack of evidence for audit trail and lack of effective internal controls over allocations provides an opportunity for noncompliance and errors. Repeat Finding: Yes Recommendation: We recommend that the Organization design, implement and monitor internal controls over allocations as well as maintain source documentation to support amounts charged to the grant. Views of Responsible Officials of the Auditee: There is no disagreement with the audit finding.

2022-003 Allowable Costs – Payroll, Fringe, and General Disbursements Federal Agency: U.S. Department of Health and Human Services Federal Program Title: Child Care and Development Block Grant Assistance Listing Number: 93.575 Award Period: July 1, 2021 to June 30, 2022 Type of Finding: Material Weakness in Internal Control over Compliance and Material Non-Compliance Criteria: Recipients of federal funds are required to establish and maintain effective internal controls over federal funds received, per 2 CFR section 200.303. Allowable costs must be approved by the awarding agency (2 CFR section 200.407) and necessary and reasonable for the performance of the federal award and allocable under the principles of 2 CFR, Subpart E. Additionally, costs must be adequately documented. Condition: Direct costs incurred were allocated through journal entries to the grant without support of an allocation methodology. Management was unable to provide an understanding of how to trace the allocated amounts to a consistent methodology or to original source documentation. Additionally, credit card costs did not have proper evidence of approval maintained. Lastly, time and effort was not supported for one transaction for the amount charged to the grant. Context: Of the general disbursement population, $121,199 of general disbursements were booked via unsupported journal entry (allocated). Of the payroll and fringe benefit disbursement population, $120,483 were booked via unsupported journal entry (allocated). Lastly, one of the forty payroll transactions tested did not agree to the amount charged to the grant. Questioned Costs: $241,682 Cause: Internal controls surrounding allocations were not properly designed and implemented and an audit trail for allocation journal entries/source documentation was not maintained. Effect: The lack of evidence for audit trail and lack of effective internal controls over allocations provides an opportunity for noncompliance and errors. Repeat Finding: Yes Recommendation: We recommend that the Organization design, implement and monitor internal controls over allocations as well as maintain source documentation to support amounts charged to the grant. Views of Responsible Officials of the Auditee: There is no disagreement with the audit finding.

2022-003 Allowable Costs – Payroll, Fringe, and General Disbursements Federal Agency: U.S. Department of Health and Human Services Federal Program Title: Child Care and Development Block Grant Assistance Listing Number: 93.575 Award Period: July 1, 2021 to June 30, 2022 Type of Finding: Material Weakness in Internal Control over Compliance and Material Non-Compliance Criteria: Recipients of federal funds are required to establish and maintain effective internal controls over federal funds received, per 2 CFR section 200.303. Allowable costs must be approved by the awarding agency (2 CFR section 200.407) and necessary and reasonable for the performance of the federal award and allocable under the principles of 2 CFR, Subpart E. Additionally, costs must be adequately documented. Condition: Direct costs incurred were allocated through journal entries to the grant without support of an allocation methodology. Management was unable to provide an understanding of how to trace the allocated amounts to a consistent methodology or to original source documentation. Additionally, credit card costs did not have proper evidence of approval maintained. Lastly, time and effort was not supported for one transaction for the amount charged to the grant. Context: Of the general disbursement population, $121,199 of general disbursements were booked via unsupported journal entry (allocated). Of the payroll and fringe benefit disbursement population, $120,483 were booked via unsupported journal entry (allocated). Lastly, one of the forty payroll transactions tested did not agree to the amount charged to the grant. Questioned Costs: $241,682 Cause: Internal controls surrounding allocations were not properly designed and implemented and an audit trail for allocation journal entries/source documentation was not maintained. Effect: The lack of evidence for audit trail and lack of effective internal controls over allocations provides an opportunity for noncompliance and errors. Repeat Finding: Yes Recommendation: We recommend that the Organization design, implement and monitor internal controls over allocations as well as maintain source documentation to support amounts charged to the grant. Views of Responsible Officials of the Auditee: There is no disagreement with the audit finding.

2022-003 Allowable Costs – Payroll, Fringe, and General Disbursements Federal Agency: U.S. Department of Health and Human Services Federal Program Title: Child Care and Development Block Grant Assistance Listing Number: 93.575 Award Period: July 1, 2021 to June 30, 2022 Type of Finding: Material Weakness in Internal Control over Compliance and Material Non-Compliance Criteria: Recipients of federal funds are required to establish and maintain effective internal controls over federal funds received, per 2 CFR section 200.303. Allowable costs must be approved by the awarding agency (2 CFR section 200.407) and necessary and reasonable for the performance of the federal award and allocable under the principles of 2 CFR, Subpart E. Additionally, costs must be adequately documented. Condition: Direct costs incurred were allocated through journal entries to the grant without support of an allocation methodology. Management was unable to provide an understanding of how to trace the allocated amounts to a consistent methodology or to original source documentation. Additionally, credit card costs did not have proper evidence of approval maintained. Lastly, time and effort was not supported for one transaction for the amount charged to the grant. Context: Of the general disbursement population, $121,199 of general disbursements were booked via unsupported journal entry (allocated). Of the payroll and fringe benefit disbursement population, $120,483 were booked via unsupported journal entry (allocated). Lastly, one of the forty payroll transactions tested did not agree to the amount charged to the grant. Questioned Costs: $241,682 Cause: Internal controls surrounding allocations were not properly designed and implemented and an audit trail for allocation journal entries/source documentation was not maintained. Effect: The lack of evidence for audit trail and lack of effective internal controls over allocations provides an opportunity for noncompliance and errors. Repeat Finding: Yes Recommendation: We recommend that the Organization design, implement and monitor internal controls over allocations as well as maintain source documentation to support amounts charged to the grant. Views of Responsible Officials of the Auditee: There is no disagreement with the audit finding.

2022-003 Allowable Costs – Payroll, Fringe, and General Disbursements Federal Agency: U.S. Department of Health and Human Services Federal Program Title: Child Care and Development Block Grant Assistance Listing Number: 93.575 Award Period: July 1, 2021 to June 30, 2022 Type of Finding: Material Weakness in Internal Control over Compliance and Material Non-Compliance Criteria: Recipients of federal funds are required to establish and maintain effective internal controls over federal funds received, per 2 CFR section 200.303. Allowable costs must be approved by the awarding agency (2 CFR section 200.407) and necessary and reasonable for the performance of the federal award and allocable under the principles of 2 CFR, Subpart E. Additionally, costs must be adequately documented. Condition: Direct costs incurred were allocated through journal entries to the grant without support of an allocation methodology. Management was unable to provide an understanding of how to trace the allocated amounts to a consistent methodology or to original source documentation. Additionally, credit card costs did not have proper evidence of approval maintained. Lastly, time and effort was not supported for one transaction for the amount charged to the grant. Context: Of the general disbursement population, $121,199 of general disbursements were booked via unsupported journal entry (allocated). Of the payroll and fringe benefit disbursement population, $120,483 were booked via unsupported journal entry (allocated). Lastly, one of the forty payroll transactions tested did not agree to the amount charged to the grant. Questioned Costs: $241,682 Cause: Internal controls surrounding allocations were not properly designed and implemented and an audit trail for allocation journal entries/source documentation was not maintained. Effect: The lack of evidence for audit trail and lack of effective internal controls over allocations provides an opportunity for noncompliance and errors. Repeat Finding: Yes Recommendation: We recommend that the Organization design, implement and monitor internal controls over allocations as well as maintain source documentation to support amounts charged to the grant. Views of Responsible Officials of the Auditee: There is no disagreement with the audit finding.

2022-003 Allowable Costs – Payroll, Fringe, and General Disbursements Federal Agency: U.S. Department of Health and Human Services Federal Program Title: Child Care and Development Block Grant Assistance Listing Number: 93.575 Award Period: July 1, 2021 to June 30, 2022 Type of Finding: Material Weakness in Internal Control over Compliance and Material Non-Compliance Criteria: Recipients of federal funds are required to establish and maintain effective internal controls over federal funds received, per 2 CFR section 200.303. Allowable costs must be approved by the awarding agency (2 CFR section 200.407) and necessary and reasonable for the performance of the federal award and allocable under the principles of 2 CFR, Subpart E. Additionally, costs must be adequately documented. Condition: Direct costs incurred were allocated through journal entries to the grant without support of an allocation methodology. Management was unable to provide an understanding of how to trace the allocated amounts to a consistent methodology or to original source documentation. Additionally, credit card costs did not have proper evidence of approval maintained. Lastly, time and effort was not supported for one transaction for the amount charged to the grant. Context: Of the general disbursement population, $121,199 of general disbursements were booked via unsupported journal entry (allocated). Of the payroll and fringe benefit disbursement population, $120,483 were booked via unsupported journal entry (allocated). Lastly, one of the forty payroll transactions tested did not agree to the amount charged to the grant. Questioned Costs: $241,682 Cause: Internal controls surrounding allocations were not properly designed and implemented and an audit trail for allocation journal entries/source documentation was not maintained. Effect: The lack of evidence for audit trail and lack of effective internal controls over allocations provides an opportunity for noncompliance and errors. Repeat Finding: Yes Recommendation: We recommend that the Organization design, implement and monitor internal controls over allocations as well as maintain source documentation to support amounts charged to the grant. Views of Responsible Officials of the Auditee: There is no disagreement with the audit finding.

2022-004 Period of Performance Federal Agency: U.S. Department of Health and Human Services Federal Program Title: Child Care and Development Block Grant Assistance Listing Number: 93.575 Award Period: July 1, 2021 to June 30, 2022Type of Finding: Significant Deficiency in Internal Control over Compliance Criteria: Costs charged to the grant must be incurred within the period of performance in accordance with 2 CFR section 200.1. Condition: Documentation was not properly maintained to support time and effort for payroll amounts charged to the grant. Additionally, documentation to support approval of general disbursements was not maintained. Context: Twenty-seven out of sixty-five transactions lacked appropriate documentation or approval to substantiate that the expenditures were incurred within the authorized period of performance for the grant. Ten out of twenty payroll disbursements tested for performance period beginning dates during audit period did not have proper evidence to support amounts that were not charged prior to the beginning of the performance period. Questioned Costs: None over $25,000 Cause: Internal controls surrounding allocations were not properly designed and implemented and an audit trail for allocation journal entries/source documentation was not maintained . Effect: The lack of evidence for audit trail and lack of effective internal controls over allocations provides an opportunity for noncompliance and errors. Repeat Finding: No Recommendation: We recommend that the Organization design, implement and monitor internal controls over allocations as well as maintain source documentation to support amounts charged to the grant. Views of Responsible Officials of the Auditee: There is no disagreement with the audit finding.

2022-004 Period of Performance Federal Agency: U.S. Department of Health and Human Services Federal Program Title: Child Care and Development Block Grant Assistance Listing Number: 93.575 Award Period: July 1, 2021 to June 30, 2022Type of Finding: Significant Deficiency in Internal Control over Compliance Criteria: Costs charged to the grant must be incurred within the period of performance in accordance with 2 CFR section 200.1. Condition: Documentation was not properly maintained to support time and effort for payroll amounts charged to the grant. Additionally, documentation to support approval of general disbursements was not maintained. Context: Twenty-seven out of sixty-five transactions lacked appropriate documentation or approval to substantiate that the expenditures were incurred within the authorized period of performance for the grant. Ten out of twenty payroll disbursements tested for performance period beginning dates during audit period did not have proper evidence to support amounts that were not charged prior to the beginning of the performance period. Questioned Costs: None over $25,000 Cause: Internal controls surrounding allocations were not properly designed and implemented and an audit trail for allocation journal entries/source documentation was not maintained . Effect: The lack of evidence for audit trail and lack of effective internal controls over allocations provides an opportunity for noncompliance and errors. Repeat Finding: No Recommendation: We recommend that the Organization design, implement and monitor internal controls over allocations as well as maintain source documentation to support amounts charged to the grant. Views of Responsible Officials of the Auditee: There is no disagreement with the audit finding.

2022-004 Period of Performance Federal Agency: U.S. Department of Health and Human Services Federal Program Title: Child Care and Development Block Grant Assistance Listing Number: 93.575 Award Period: July 1, 2021 to June 30, 2022Type of Finding: Significant Deficiency in Internal Control over Compliance Criteria: Costs charged to the grant must be incurred within the period of performance in accordance with 2 CFR section 200.1. Condition: Documentation was not properly maintained to support time and effort for payroll amounts charged to the grant. Additionally, documentation to support approval of general disbursements was not maintained. Context: Twenty-seven out of sixty-five transactions lacked appropriate documentation or approval to substantiate that the expenditures were incurred within the authorized period of performance for the grant. Ten out of twenty payroll disbursements tested for performance period beginning dates during audit period did not have proper evidence to support amounts that were not charged prior to the beginning of the performance period. Questioned Costs: None over $25,000 Cause: Internal controls surrounding allocations were not properly designed and implemented and an audit trail for allocation journal entries/source documentation was not maintained . Effect: The lack of evidence for audit trail and lack of effective internal controls over allocations provides an opportunity for noncompliance and errors. Repeat Finding: No Recommendation: We recommend that the Organization design, implement and monitor internal controls over allocations as well as maintain source documentation to support amounts charged to the grant. Views of Responsible Officials of the Auditee: There is no disagreement with the audit finding.

2022-004 Period of Performance Federal Agency: U.S. Department of Health and Human Services Federal Program Title: Child Care and Development Block Grant Assistance Listing Number: 93.575 Award Period: July 1, 2021 to June 30, 2022Type of Finding: Significant Deficiency in Internal Control over Compliance Criteria: Costs charged to the grant must be incurred within the period of performance in accordance with 2 CFR section 200.1. Condition: Documentation was not properly maintained to support time and effort for payroll amounts charged to the grant. Additionally, documentation to support approval of general disbursements was not maintained. Context: Twenty-seven out of sixty-five transactions lacked appropriate documentation or approval to substantiate that the expenditures were incurred within the authorized period of performance for the grant. Ten out of twenty payroll disbursements tested for performance period beginning dates during audit period did not have proper evidence to support amounts that were not charged prior to the beginning of the performance period. Questioned Costs: None over $25,000 Cause: Internal controls surrounding allocations were not properly designed and implemented and an audit trail for allocation journal entries/source documentation was not maintained . Effect: The lack of evidence for audit trail and lack of effective internal controls over allocations provides an opportunity for noncompliance and errors. Repeat Finding: No Recommendation: We recommend that the Organization design, implement and monitor internal controls over allocations as well as maintain source documentation to support amounts charged to the grant. Views of Responsible Officials of the Auditee: There is no disagreement with the audit finding.

2022-004 Period of Performance Federal Agency: U.S. Department of Health and Human Services Federal Program Title: Child Care and Development Block Grant Assistance Listing Number: 93.575 Award Period: July 1, 2021 to June 30, 2022Type of Finding: Significant Deficiency in Internal Control over Compliance Criteria: Costs charged to the grant must be incurred within the period of performance in accordance with 2 CFR section 200.1. Condition: Documentation was not properly maintained to support time and effort for payroll amounts charged to the grant. Additionally, documentation to support approval of general disbursements was not maintained. Context: Twenty-seven out of sixty-five transactions lacked appropriate documentation or approval to substantiate that the expenditures were incurred within the authorized period of performance for the grant. Ten out of twenty payroll disbursements tested for performance period beginning dates during audit period did not have proper evidence to support amounts that were not charged prior to the beginning of the performance period. Questioned Costs: None over $25,000 Cause: Internal controls surrounding allocations were not properly designed and implemented and an audit trail for allocation journal entries/source documentation was not maintained . Effect: The lack of evidence for audit trail and lack of effective internal controls over allocations provides an opportunity for noncompliance and errors. Repeat Finding: No Recommendation: We recommend that the Organization design, implement and monitor internal controls over allocations as well as maintain source documentation to support amounts charged to the grant. Views of Responsible Officials of the Auditee: There is no disagreement with the audit finding.

2022-004 Period of Performance Federal Agency: U.S. Department of Health and Human Services Federal Program Title: Child Care and Development Block Grant Assistance Listing Number: 93.575 Award Period: July 1, 2021 to June 30, 2022Type of Finding: Significant Deficiency in Internal Control over Compliance Criteria: Costs charged to the grant must be incurred within the period of performance in accordance with 2 CFR section 200.1. Condition: Documentation was not properly maintained to support time and effort for payroll amounts charged to the grant. Additionally, documentation to support approval of general disbursements was not maintained. Context: Twenty-seven out of sixty-five transactions lacked appropriate documentation or approval to substantiate that the expenditures were incurred within the authorized period of performance for the grant. Ten out of twenty payroll disbursements tested for performance period beginning dates during audit period did not have proper evidence to support amounts that were not charged prior to the beginning of the performance period. Questioned Costs: None over $25,000 Cause: Internal controls surrounding allocations were not properly designed and implemented and an audit trail for allocation journal entries/source documentation was not maintained . Effect: The lack of evidence for audit trail and lack of effective internal controls over allocations provides an opportunity for noncompliance and errors. Repeat Finding: No Recommendation: We recommend that the Organization design, implement and monitor internal controls over allocations as well as maintain source documentation to support amounts charged to the grant. Views of Responsible Officials of the Auditee: There is no disagreement with the audit finding.

2022-004 Period of Performance Federal Agency: U.S. Department of Health and Human Services Federal Program Title: Child Care and Development Block Grant Assistance Listing Number: 93.575 Award Period: July 1, 2021 to June 30, 2022Type of Finding: Significant Deficiency in Internal Control over Compliance Criteria: Costs charged to the grant must be incurred within the period of performance in accordance with 2 CFR section 200.1. Condition: Documentation was not properly maintained to support time and effort for payroll amounts charged to the grant. Additionally, documentation to support approval of general disbursements was not maintained. Context: Twenty-seven out of sixty-five transactions lacked appropriate documentation or approval to substantiate that the expenditures were incurred within the authorized period of performance for the grant. Ten out of twenty payroll disbursements tested for performance period beginning dates during audit period did not have proper evidence to support amounts that were not charged prior to the beginning of the performance period. Questioned Costs: None over $25,000 Cause: Internal controls surrounding allocations were not properly designed and implemented and an audit trail for allocation journal entries/source documentation was not maintained . Effect: The lack of evidence for audit trail and lack of effective internal controls over allocations provides an opportunity for noncompliance and errors. Repeat Finding: No Recommendation: We recommend that the Organization design, implement and monitor internal controls over allocations as well as maintain source documentation to support amounts charged to the grant. Views of Responsible Officials of the Auditee: There is no disagreement with the audit finding.

2022-004 Period of Performance Federal Agency: U.S. Department of Health and Human Services Federal Program Title: Child Care and Development Block Grant Assistance Listing Number: 93.575 Award Period: July 1, 2021 to June 30, 2022Type of Finding: Significant Deficiency in Internal Control over Compliance Criteria: Costs charged to the grant must be incurred within the period of performance in accordance with 2 CFR section 200.1. Condition: Documentation was not properly maintained to support time and effort for payroll amounts charged to the grant. Additionally, documentation to support approval of general disbursements was not maintained. Context: Twenty-seven out of sixty-five transactions lacked appropriate documentation or approval to substantiate that the expenditures were incurred within the authorized period of performance for the grant. Ten out of twenty payroll disbursements tested for performance period beginning dates during audit period did not have proper evidence to support amounts that were not charged prior to the beginning of the performance period. Questioned Costs: None over $25,000 Cause: Internal controls surrounding allocations were not properly designed and implemented and an audit trail for allocation journal entries/source documentation was not maintained . Effect: The lack of evidence for audit trail and lack of effective internal controls over allocations provides an opportunity for noncompliance and errors. Repeat Finding: No Recommendation: We recommend that the Organization design, implement and monitor internal controls over allocations as well as maintain source documentation to support amounts charged to the grant. Views of Responsible Officials of the Auditee: There is no disagreement with the audit finding.

2022-004 Period of Performance Federal Agency: U.S. Department of Health and Human Services Federal Program Title: Child Care and Development Block Grant Assistance Listing Number: 93.575 Award Period: July 1, 2021 to June 30, 2022Type of Finding: Significant Deficiency in Internal Control over Compliance Criteria: Costs charged to the grant must be incurred within the period of performance in accordance with 2 CFR section 200.1. Condition: Documentation was not properly maintained to support time and effort for payroll amounts charged to the grant. Additionally, documentation to support approval of general disbursements was not maintained. Context: Twenty-seven out of sixty-five transactions lacked appropriate documentation or approval to substantiate that the expenditures were incurred within the authorized period of performance for the grant. Ten out of twenty payroll disbursements tested for performance period beginning dates during audit period did not have proper evidence to support amounts that were not charged prior to the beginning of the performance period. Questioned Costs: None over $25,000 Cause: Internal controls surrounding allocations were not properly designed and implemented and an audit trail for allocation journal entries/source documentation was not maintained . Effect: The lack of evidence for audit trail and lack of effective internal controls over allocations provides an opportunity for noncompliance and errors. Repeat Finding: No Recommendation: We recommend that the Organization design, implement and monitor internal controls over allocations as well as maintain source documentation to support amounts charged to the grant. Views of Responsible Officials of the Auditee: There is no disagreement with the audit finding.

2022-004 Period of Performance Federal Agency: U.S. Department of Health and Human Services Federal Program Title: Child Care and Development Block Grant Assistance Listing Number: 93.575 Award Period: July 1, 2021 to June 30, 2022Type of Finding: Significant Deficiency in Internal Control over Compliance Criteria: Costs charged to the grant must be incurred within the period of performance in accordance with 2 CFR section 200.1. Condition: Documentation was not properly maintained to support time and effort for payroll amounts charged to the grant. Additionally, documentation to support approval of general disbursements was not maintained. Context: Twenty-seven out of sixty-five transactions lacked appropriate documentation or approval to substantiate that the expenditures were incurred within the authorized period of performance for the grant. Ten out of twenty payroll disbursements tested for performance period beginning dates during audit period did not have proper evidence to support amounts that were not charged prior to the beginning of the performance period. Questioned Costs: None over $25,000 Cause: Internal controls surrounding allocations were not properly designed and implemented and an audit trail for allocation journal entries/source documentation was not maintained . Effect: The lack of evidence for audit trail and lack of effective internal controls over allocations provides an opportunity for noncompliance and errors. Repeat Finding: No Recommendation: We recommend that the Organization design, implement and monitor internal controls over allocations as well as maintain source documentation to support amounts charged to the grant. Views of Responsible Officials of the Auditee: There is no disagreement with the audit finding.