FAC Explorer

Audit 389691

FY End
2025-05-31
Total Expended
$2.17M
Findings
6
Programs
3
Organization: Texas Association for the Education of Young Children, Inc. (TX)
Year: 2025 Accepted: 2026-02-28
Auditor: SUTTON FROST CARY LLP

Organization Exclusion Status:

Findings

ID Ref Severity Repeat Requirement
1175789 2025-002 Material Weakness Yes AB
1175790 2025-002 Material Weakness Yes AB
1175791 2025-002 Material Weakness Yes AB
1175792 2025-003 Material Weakness Yes AB
1175793 2025-003 Material Weakness Yes AB
1175794 2025-003 Material Weakness Yes AB

Programs

ALN Program Spent Major Findings
84.371 COMPREHENSIVE LITERACY DEVELOPMENT $533,238 Yes 0
93.575 CHILD CARE AND DEVELOPMENT BLOCK GRANT $400,000 Yes 2
21.027 CORONAVIRUS STATE AND LOCAL FISCAL RECOVERY FUNDS $64,096 Yes 0

Contacts

Name Title Type
CZ8NMLDC4RJ9 Bernadine Martinez Auditee
5122158142 Deanna Frisby Auditor
No contacts on file

Notes to SEFA

The accompanying schedule of expenditures of federal awards (Schedule) includes the federal grant activity of Texas Association for the Education of Young Children, Inc. (Organization) and is presented on the accrual basis of accounting. The information in this Schedule is presented in accordance with the audit 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 only presents a selected portion of the operations of the Organization, it is not intended and does not present the financial position, changes in net assets, or cash flows of the Organization.
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 Organization has not elected to use the 10 percent de minimis indirect cost rate as allowed under the Uniform Guidance.

Finding Details

Finding 2025-002
Finding 2025-002: Allowable costs and activities – Significant deficiency in internal controls over compliance. ALN 93.575 Child Care and Development Block Grant Criteria: Section 200 of the Code of Federal Regulations requires recipients to implement robust internal controls to reduce the risk of noncompliance with allowable cost principles for all transactions allocated to the grant. Management’s response: See corrective action plan. Condition: During allowable cost and activities other cost testing for the program, 7 out of 40 samples did not include approval of the invoice prior to being allocated to the grant activities. Cause: As of May 31, 2025, the Organization does not have a standard procedure in place to ensure proper controls over allowable costs and activities allocated to federal grants. Effect: Internal controls over the program were not properly designed to reduce the risk of noncompliance. Questioned Costs: None. Recommendation: In order to comply with the Code of Federal Regulations, we recommend the Organization implement a prior approval process of all grant expenditures. In addition, support of approval should be documented and kept on file.
Finding 2025-003
Finding 2025-003: Allowable costs and activities – Significant deficiency in internal controls over compliance and compliance finding. ALN 93.575 Child Care and Development Block Grant Criteria: Section 200 of the Code of Federal Regulations requires recipients to implement robust internal controls to ensure compliance with allowable cost principles for all transactions allocated to the grant. Condition: During allowable cost testing for federal grants, for 13 out of 40 transactions tested, the amount charged to the grant did not agree to the cost allocation plan. Cause: Funding percentages in the accounting system did not match the cost allocation plan. Effect: The cumulative effect of the exceptions noted during testing resulted in the grants being overcharged by the Organization by a nominal amount. Questioned Costs: None. Recommendation: Management should ensure amount charged to the grants agree to the approved percentage per the cost allocation plan. Management’s response: See corrective action plan.