FAC Explorer

Audit 38061

FY End
2022-04-30
Total Expended
$16.05M
Findings
10
Programs
3
Organization: Child INC (TX)
Year: 2022 Accepted: 2022-11-01
Auditor: Abip PC

Organization Exclusion Status:

Findings

ID Ref Severity Repeat Requirement
30023 2022-001 - - C
34776 2022-001 - - C
34777 2022-001 - - C
34778 2022-001 - - C
34779 2022-001 - - C
606465 2022-001 - - C
611218 2022-001 - - C
611219 2022-001 - - C
611220 2022-001 - - C
611221 2022-001 - - C

Programs

ALN Program Spent Major Findings
10.558 Child and Adult Care Food Program $544,193 - 0
14.218 Community Development Block Grants/entitlement Grants $57,288 - 0
93.600 Head Start $1,227 Yes 1

Contacts

Name Title Type
EJ5AV5XDXVK7 Albert Black Auditee
5124517361 Michael Del Toro Auditor
No contacts on file

Notes to SEFA

Accounting Policies: (1) Basis of presentationThe accompanying schedule of expenditures of federal awards includes the federal award activity of the Organization under programs of the federal government for the year ended April 30, 2022. The information in this schedule is presented in accordance with the requirements of Title 2 U.S. Code of Federal Regulations (CFR) Part 200, Uniform Guidance Administrative Requirements, Cost Principles, and Audit Requirements for Federal Awards (Uniform Guidance). Because the schedule presents only a selected portion of the operations of the Organization, it is not intended to and does not present the financial position, changes in net assets or cash flows of the Organization.(2) Summary of significant accounting policiesExpenditures 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.(3) Indirect cost rateThe Organization has elected not to use the 10% de minimis indirect cost rate allowed under the Uniform Guidance. De Minimis Rate Used: N Rate Explanation: The auditee did not use the de minimis cost rate.

Finding Details

Finding 2022-001
Finding 2022-001: Head Start/Early Head Start Cluster ALN #93.600 Condition/Cause: Child Inc. had $511,690 at April 30, 2022 of Head Start/Early Head Start funds that were drawndown from the federal government but allowable expenses had not been incurred during the fiscal year. Criteria: Child Inc. should have procedures that ensure that the time lapse between the transfer of funds from the federal government and the disbursement of those funds are minimized. Context: The $511,690 in federal drawdowns were not associated with allowable expenses incurred during the fiscal year. These funds are recorded as unearned revenue at April 30, 2022. Effect: Child Inc. was not in compliance with federal requirements to minimize the time between transfers of federal funds and disbursements of those funds for allowable expenses. Recommendation: Child Inc. should implement procedures to ensure that the Organization has allowable expenses prior to or at the time of the drawdown for federal programs.
Finding 2022-001
Finding 2022-001: Head Start/Early Head Start Cluster ALN #93.600 Condition/Cause: Child Inc. had $511,690 at April 30, 2022 of Head Start/Early Head Start funds that were drawndown from the federal government but allowable expenses had not been incurred during the fiscal year. Criteria: Child Inc. should have procedures that ensure that the time lapse between the transfer of funds from the federal government and the disbursement of those funds are minimized. Context: The $511,690 in federal drawdowns were not associated with allowable expenses incurred during the fiscal year. These funds are recorded as unearned revenue at April 30, 2022. Effect: Child Inc. was not in compliance with federal requirements to minimize the time between transfers of federal funds and disbursements of those funds for allowable expenses. Recommendation: Child Inc. should implement procedures to ensure that the Organization has allowable expenses prior to or at the time of the drawdown for federal programs.
Finding 2022-001
Finding 2022-001: Head Start/Early Head Start Cluster ALN #93.600 Condition/Cause: Child Inc. had $511,690 at April 30, 2022 of Head Start/Early Head Start funds that were drawndown from the federal government but allowable expenses had not been incurred during the fiscal year. Criteria: Child Inc. should have procedures that ensure that the time lapse between the transfer of funds from the federal government and the disbursement of those funds are minimized. Context: The $511,690 in federal drawdowns were not associated with allowable expenses incurred during the fiscal year. These funds are recorded as unearned revenue at April 30, 2022. Effect: Child Inc. was not in compliance with federal requirements to minimize the time between transfers of federal funds and disbursements of those funds for allowable expenses. Recommendation: Child Inc. should implement procedures to ensure that the Organization has allowable expenses prior to or at the time of the drawdown for federal programs.
Finding 2022-001
Finding 2022-001: Head Start/Early Head Start Cluster ALN #93.600 Condition/Cause: Child Inc. had $511,690 at April 30, 2022 of Head Start/Early Head Start funds that were drawndown from the federal government but allowable expenses had not been incurred during the fiscal year. Criteria: Child Inc. should have procedures that ensure that the time lapse between the transfer of funds from the federal government and the disbursement of those funds are minimized. Context: The $511,690 in federal drawdowns were not associated with allowable expenses incurred during the fiscal year. These funds are recorded as unearned revenue at April 30, 2022. Effect: Child Inc. was not in compliance with federal requirements to minimize the time between transfers of federal funds and disbursements of those funds for allowable expenses. Recommendation: Child Inc. should implement procedures to ensure that the Organization has allowable expenses prior to or at the time of the drawdown for federal programs.
Finding 2022-001
Finding 2022-001: Head Start/Early Head Start Cluster ALN #93.600 Condition/Cause: Child Inc. had $511,690 at April 30, 2022 of Head Start/Early Head Start funds that were drawndown from the federal government but allowable expenses had not been incurred during the fiscal year. Criteria: Child Inc. should have procedures that ensure that the time lapse between the transfer of funds from the federal government and the disbursement of those funds are minimized. Context: The $511,690 in federal drawdowns were not associated with allowable expenses incurred during the fiscal year. These funds are recorded as unearned revenue at April 30, 2022. Effect: Child Inc. was not in compliance with federal requirements to minimize the time between transfers of federal funds and disbursements of those funds for allowable expenses. Recommendation: Child Inc. should implement procedures to ensure that the Organization has allowable expenses prior to or at the time of the drawdown for federal programs.
Finding 2022-001
Finding 2022-001: Head Start/Early Head Start Cluster ALN #93.600 Condition/Cause: Child Inc. had $511,690 at April 30, 2022 of Head Start/Early Head Start funds that were drawndown from the federal government but allowable expenses had not been incurred during the fiscal year. Criteria: Child Inc. should have procedures that ensure that the time lapse between the transfer of funds from the federal government and the disbursement of those funds are minimized. Context: The $511,690 in federal drawdowns were not associated with allowable expenses incurred during the fiscal year. These funds are recorded as unearned revenue at April 30, 2022. Effect: Child Inc. was not in compliance with federal requirements to minimize the time between transfers of federal funds and disbursements of those funds for allowable expenses. Recommendation: Child Inc. should implement procedures to ensure that the Organization has allowable expenses prior to or at the time of the drawdown for federal programs.
Finding 2022-001
Finding 2022-001: Head Start/Early Head Start Cluster ALN #93.600 Condition/Cause: Child Inc. had $511,690 at April 30, 2022 of Head Start/Early Head Start funds that were drawndown from the federal government but allowable expenses had not been incurred during the fiscal year. Criteria: Child Inc. should have procedures that ensure that the time lapse between the transfer of funds from the federal government and the disbursement of those funds are minimized. Context: The $511,690 in federal drawdowns were not associated with allowable expenses incurred during the fiscal year. These funds are recorded as unearned revenue at April 30, 2022. Effect: Child Inc. was not in compliance with federal requirements to minimize the time between transfers of federal funds and disbursements of those funds for allowable expenses. Recommendation: Child Inc. should implement procedures to ensure that the Organization has allowable expenses prior to or at the time of the drawdown for federal programs.
Finding 2022-001
Finding 2022-001: Head Start/Early Head Start Cluster ALN #93.600 Condition/Cause: Child Inc. had $511,690 at April 30, 2022 of Head Start/Early Head Start funds that were drawndown from the federal government but allowable expenses had not been incurred during the fiscal year. Criteria: Child Inc. should have procedures that ensure that the time lapse between the transfer of funds from the federal government and the disbursement of those funds are minimized. Context: The $511,690 in federal drawdowns were not associated with allowable expenses incurred during the fiscal year. These funds are recorded as unearned revenue at April 30, 2022. Effect: Child Inc. was not in compliance with federal requirements to minimize the time between transfers of federal funds and disbursements of those funds for allowable expenses. Recommendation: Child Inc. should implement procedures to ensure that the Organization has allowable expenses prior to or at the time of the drawdown for federal programs.
Finding 2022-001
Finding 2022-001: Head Start/Early Head Start Cluster ALN #93.600 Condition/Cause: Child Inc. had $511,690 at April 30, 2022 of Head Start/Early Head Start funds that were drawndown from the federal government but allowable expenses had not been incurred during the fiscal year. Criteria: Child Inc. should have procedures that ensure that the time lapse between the transfer of funds from the federal government and the disbursement of those funds are minimized. Context: The $511,690 in federal drawdowns were not associated with allowable expenses incurred during the fiscal year. These funds are recorded as unearned revenue at April 30, 2022. Effect: Child Inc. was not in compliance with federal requirements to minimize the time between transfers of federal funds and disbursements of those funds for allowable expenses. Recommendation: Child Inc. should implement procedures to ensure that the Organization has allowable expenses prior to or at the time of the drawdown for federal programs.
Finding 2022-001
Finding 2022-001: Head Start/Early Head Start Cluster ALN #93.600 Condition/Cause: Child Inc. had $511,690 at April 30, 2022 of Head Start/Early Head Start funds that were drawndown from the federal government but allowable expenses had not been incurred during the fiscal year. Criteria: Child Inc. should have procedures that ensure that the time lapse between the transfer of funds from the federal government and the disbursement of those funds are minimized. Context: The $511,690 in federal drawdowns were not associated with allowable expenses incurred during the fiscal year. These funds are recorded as unearned revenue at April 30, 2022. Effect: Child Inc. was not in compliance with federal requirements to minimize the time between transfers of federal funds and disbursements of those funds for allowable expenses. Recommendation: Child Inc. should implement procedures to ensure that the Organization has allowable expenses prior to or at the time of the drawdown for federal programs.