Audit 384543

FY End
2025-06-30
Total Expended
$1.42M
Findings
1
Programs
7
Year: 2025 Accepted: 2026-01-30

Organization Exclusion Status:

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Findings

ID Ref Severity Repeat Requirement
1171138 2025-001 Material Weakness Yes N

Contacts

Name Title Type
GNPRF9M21EY5 Dan Decarlo Auditee
2153511490 Adam Watson Auditor
No contacts on file

Notes to SEFA

The accompanying schedule of expenditures of federal, state and city awards (the “Schedule”) includes the federal, state and city award activity of ECS for the year ended June 30, 2025. All government financial assistance received directly from federal, state and city agencies, as well as assistance passed through other governmental agencies or not-for-profit organizations, are included on the schedule. The information in this Schedule is presented in accordance with the requirements of Title 2 U.S. Code of Federal Regulations Part 200, Uniform Administrative Requirements, Cost Principles, and Audit Requirements for Federal Awards (“Uniform Guidance”). Because the Schedule presents only a selected portion of the operations of ECS, it is not intended to, and does not, present the financial position, changes in net assets, or cash flows of ECS. During the year ended June 30, 2025, ECS did not pass-through federal funding to subrecipients.
Expenditures reported on the Schedule are reported on the accrual basis of accounting. Such expenditures are recognized following the cost principles contained in the Uniform Guidance wherein certain types of expenditures are not allowable or are limited as to reimbursement. The amounts reported in this Schedule as expenditures may differ from certain financial reports submitted to funding agencies because those reports may be submitted on either a cash or modified accrual basis of accounting. Expenditures of federal and state awards are reported on the statement of activities as operating expenses. In certain programs, the expenditures reported in the basic financial statements differ from the expenditures reported in the Schedule because other program expenditures and expenditures may exceed contract budget limitations, and are therefore not included as expenditures of federal, state and city awards.
ECS has not elected to use the 10% de minimis indirect cost rate for federal contracts allowed under the Uniform Guidance.

Finding Details

Finding 2025-001 – Special Tests and Provisions Federal Agency: U.S. Department of Health and Human Services Federal Program: Temporary Assistance for Needy Families – ALN 93.558 Criteria An organization should have a strong system of internal control that includes review, approval and submission of records for accuracy and allowability in accordance with the terms and conditions of the award agreements and federal regulations. Condition and Context ECS provides out-of-school time programming to youth to improve life skills, increase academic engagement and prepare youth for higher education and employment. ECS is required to maintain and submit attendance records as part of this program. Attendance records were not maintained and submitted for one of the sites tested. During our testing of nine monthly attendance records, we noted attendance records for one selection could not be provided. The sample was not intended to be, and was not, a statistically valid sample. Questioned Costs Unknown Cause Attendance records were not maintained and submitted. Effect or Potential Effect Because the actual attendance records were not maintained and submitted for one of the sites tested, the amounts charged to the grant could be under or overcharged. Recommendation We recommend the Organization implement a process and related controls related to review, approval and submission of attendance records of at the site. Contracted slots utilized should be based on actual attendance and related documentation maintained by the Organization to support those amounts. Views of Responsible Officials and Planned Corrective Action Management agrees with the finding and has taken corrective action by adopting review, approval and submission processes to support contracted slots utilized. Moreover, the site in question was closed and the staff responsible were terminated. These actions and controls were completed and placed in service, respectively, during the year ended June 30, 2025, but were not conducted for the entire year.