FAC Explorer

Audit 369678

FY End
2024-06-30
Total Expended
$8.31M
Findings
1
Programs
5
Organization: Early Education and Care, Inc. (FL)
Year: 2024 Accepted: 2025-09-30
Auditor: Carr Riggs & Ingram LLC

Organization Exclusion Status:

Findings

ID Ref Severity Repeat Requirement
1157417 2024-002 Material Weakness Yes F

Programs

ALN Program Spent Major Findings
93.600 Head Start $4.13M Yes 0
10.558 Child and Adult Care Food Program $548,453 Yes 0
97.036 Disaster Grants - Public Assistance (presidentially Declared Disasters) $438,593 Yes 0
93.575 Child Care and Development Block Grant $114,917 Yes 0
93.667 Social Services Block Grant $20,040 Yes 0

Contacts

Name Title Type
Z2LJLRGWMJ93 Sabara Quinn Auditee
8508727550 Michael Maddox Auditor
No contacts on file

Notes to SEFA

The accompanying Schedule summarizes the federal expenditures of the Agency under programs of the federal government for the year ended June 30, 2024. The amounts reported as federal grant expenditures were obtained from the Agency’s general ledger. Because the Schedule presents only a selected portion of the operations of the Agency, it is not intended to and does not present the financial position, changes in net assets and cash flows of the Agency. For purposes of the Schedule, federal awards include all grants, contracts, and similar agreements entered into directly with the federal government and other pass through entities. Payments received for goods or services provided as a vendor do not constitute federal awards for purposes of the Schedule. The Agency has obtained Assistance Listing Numbers (ALN) to ensure that all programs have been identified in the Schedule. Clusters Federal programs with different ALNs that are closely related because they share common compliance requirements are defined as a cluster by the Uniform Guidance. Head Start/Early Head Start (ALN 93.600) is reported as the Head Start Cluster and the Child Care and Development Block Grant (ALN 93.575) is reported as CCDF Cluster in the Schedule.
The amounts reflected in the financial reports submitted to the awarding federal and/or pass-through agencies and the Schedule may differ. Some of the factors that may account for any difference include the following:  The Agency’s fiscal year end may differ from the program’s year end.  Accruals recognized in the Schedule, because of year end procedures, may not be reported in the program financial reports until the next program reporting period.  Fixed asset purchases and the resultant depreciation charges are recognized as fixed assets in the Agency’s financial statements and as expenditures in the program financial reports and the Schedule.
The Agency is also the sub-recipient of federal funds that have been subjected to testing and are reported as expenditures and listed as federal pass-through funds. Federal awards other than those indicated as “pass-through” are considered direct.
Grant monies received and disbursed by the Agency are for specific purposes and are subject to review by the grantor agencies. Such audits may result in requests for reimbursement due to disallowed expenditures. Based upon prior experience, the Agency does not believe that such disallowance, if any, would have a material effect on the financial position of the Agency. As of June 30, 2024, there were no material questioned or disallowed costs as a result of grant audits in process or completed.
The Agency did not receive any federal noncash assistance for the fiscal year ended June 30, 2024.
The Agency did not provide federal funds to subrecipients for the fiscal year ended June 30, 2024.
The Agency did not have any loans or loan guarantee programs required to be reported on the schedule for the fiscal year ended June 30, 2024.
The Agency did not have any federally funded insurance required to be reported on the Schedule for the fiscal year ended June 30, 2024.
The Agency incurred $438,593 of federal expenses in the prior year that is reported on the Schedule for the year ended June 30, 2024. These expenses were incurred prior to the Agency’s Project Worksheets being approved for reimbursement by FEMA.

Finding Details

Finding 2024-002
Item 2024-002 Equipment/Real Property Management Head Start ALN# 93.600 US Department of Health & Human Services Federal Grant/Contract Number: 04CH010658 Grant period – 2024 Criteria – 2 CFR 200.439(d)(1) requires that property records must be maintained for equipment acquired under a federal award that include a description of the property, a serial number or other identification number, the source of funding for the property (including the FAIN), who holds title, the acquisition date, and cost of the property, percentage of federal participation in the project costs for the federal award under which the property was acquired, the location, use and condition of the property, and any ultimate disposition data including the date of disposal and sale price of the property. A physical inventory of the property must be taken and the results reconciled with the property records at least once every two years. Condition – During testing it was noted that the Inventory tracking sheet was not updated to reflect items that were abandoned when the Agency moved out of a leased property. Cause – The Agency did not properly update the fixed asset schedule for disposals, which resulted in items included on the listing and depreciation calculation that were disposed of previously. Effect – Failure to remove disposals and take a full physical inventory observation could result in noncompliance with the grant agreements. Questioned Costs – Not applicable. Recommendation – We recommend the Agency follow its capital asset management policy to ensure all assets are adequately accounted for and properly safeguarded. CRI also recommends the Agency include all of the information required by the Uniform Guidance in one central tracking spreadsheet or database. Management’s Response – Management has reviewed and accepted the finding. See “Corrective Action Plan”.