FAC Explorer

Audit 373822

FY End
2024-06-30
Total Expended
$1.77M
Findings
4
Programs
3
Organization: UNITED FAMILIES, INC. (CA)
Year: 2024 Accepted: 2025-12-10
Auditor: ORTEGA ACCOUNTANCY APC

Organization Exclusion Status:

Findings

ID Ref Severity Repeat Requirement
1164387 2024-001 Material Weakness Yes L
1164388 2024-001 Material Weakness Yes L
1164389 2024-001 Material Weakness Yes L
1164390 2024-001 Material Weakness Yes L

Programs

ALN Program Spent Major Findings
10.558 CHILD AND ADULT CARE FOOD PROGRAM $637,137 Yes 0
93.596 CHILD CARE MANDATORY AND MATCHING FUNDS OF THE CHILD CARE AND DEVELOPMENT FUND $628,712 Yes 1
93.575 CHILD CARE AND DEVELOPMENT BLOCK GRANT $2,242 Yes 1

Contacts

Name Title Type
FUV8Z57YHMJ3 Magda Franco Auditee
7603368922 Mario Ortega Auditor
No contacts on file

Notes to SEFA

The accompanying schedule of expenditures of federal and state awards (the "Schedule") includes the federal and state grant activity of United Families, Inc. under programs of the federal and state governments for the year ended June 30, 2023. The information in the schedule is presented in accordance with the requirements of Title 2 U.S. Code of Federal Regulations (CFR) Part 200, Uniform Administrative Requirements, Cost Principles, and Audit Requirements for Federal Awards (the "Uniform Guidance"), and with the requirements of the California Department of Education issued Audit Guide. Because the schedule presents only a selected portion of the operations of United Families, Inc., it is not intended to, and does not present, the financial position, changes in net assets
(1) 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 to reimbursement. (2) United Families, 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
2024.01 - Enrollment, Attendance, and Fiscal Reports (CCTR3062, CSPP3118, CMIG3003), (HHS - CFDA 93.596 & 93.575) Criteria: Contractors are required to submit enrollment, attendance, and fiscal reports every quarter to both CDE and CDSS. In addition to attendance information, contractors are required to report all sources of revenues, including restricted and unrestricted income utilized for the child development programs. Total expenditures related to the program’s operations for the reporting period and the year-to-date total, including all expenses for specific purposes, as designated by restricted income and all non-reimbursable expenses. Condition: The Organization has complied with all aspects of record-keeping, and they have identified all expenditures related to restricted income. As required, the Organization has only reported restricted income to the extent that they have been designated and earned for specific purposes. However, due to a misinterpretation of the reporting requirements, reportable expenditures were reduced to the extent they were allocated for specific restricted purposes resulting in total state-related expenditures of $1,071,581 not being reported. The following is a summary of the under-reporting by contract: Questioned Costs: None Cause: As noted in the condition, management misinterpreted the restricted expenditures reporting requirements. Effect: The under reporting of expenses reduced the Organization’s reimbursable state contract funding and related cash flows needed to operate the Organization's child development programs. Recommendation: We recommend the Organization adjust its reporting practices and report all expenses related to the operations of the state-sponsored child development programs. Management Response: Management concurs with the findings.