FAC Explorer

Audit 388709

FY End
2025-06-30
Total Expended
$854,506
Findings
1
Programs
1
Organization: Children and Adults with Attention Deficit/hyperactivity Disorder (MD)
Year: 2025 Accepted: 2026-02-24
Auditor: GELMAN ROSENBERG & FREEDMAN

Organization Exclusion Status:

Findings

ID Ref Severity Repeat Requirement
1175085 2025-001 Material Weakness Yes AB

Programs

ALN Program Spent Major Findings
93.073 BIRTH DEFECTS AND DEVELOPMENTAL DISABILITIES - PREVENTION AND SURVEILLANCE $854,506 Yes 1

Contacts

Name Title Type
XDJBFJFX2TP8 Alvaro Vasquez Auditee
3013067070 Alejandra Jensen Auditor
No contacts on file

Notes to SEFA

The accompanying Schedule of Expenditures of Federal Awards (the Schedule) includes the Federal award activity of CHADD under programs of the Federal Government for the year ended June 30, 2025. 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). The Schedule presents only a selected portion of the operations of CHADD; accordingly, it is not intended to and does not present the financial position, changes in net assets or cash flows of CHADD.
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. CHADD has elected not to use the 10-percent de minimis indirect cost rate as allowed under the Uniform Guidance.

Finding Details

Finding 2025-001
Finding 2025-001: Payroll Allocations Information on the Federal Program: 93.073 - Centers for Disease Control and Prevention: Birth Defects and Developmental Disabilities, Prevention and Surveillance. Criteria or Specific Requirement: Under Uniform Guidance (2 CFR Part 200), specifically § 200.430 (Compensation – Personal Services), labor costs must be allocated to programs based on actual time worked by employees on those specific programs. The guidance also mandates that overtime pay must be allocated in proportion to the time worked across the different programs. Failure to properly allocate employee time and overtime costs could result in non-compliance with Federal grant requirements, misreporting of program costs, and inaccurate financial statements. Condition: During the audit for the fiscal year ended June 30, 2025, it was found that employee time worked, including overtime hours, was not being properly allocated to the various programs. Specifically, overtime hours worked by employees were not included in the program allocations, resulting in the misallocation of labor costs. In several cases, overtime worked by employees on specific programs was omitted or incorrectly allocated, leading to a misrepresentation of actual program costs. Cause: Overtime hours were excluded from program allocations entirely. Effect or Potential Effect: Due to incorrect allocation of hours, including overtime, the financial statements inaccurately reflect the costs of various programs or projects. Many programs, especially those funded by grants or other restricted funding sources, require accurate reporting of labor costs. The failure to allocate overtime to the appropriate programs could result in non-compliance with the terms of those grants or funding agreements, potentially leading to audits, penalties, or the loss of funding. Questioned Costs: None. Context: CHADD misallocated time to programs for any employee that worked overtime for the fiscal year ending June 30, 2025. Identification as a Repeat Finding, if Applicable: Yes (2024-001). Recommendation: The payroll system should be updated to automatically calculate and allocate overtime hours to the correct program or project. This should be integrated with the standard time allocation processes, ensuring that overtime pay is properly distributed across programs.