FAC Explorer

Audit 396275

FY End
2025-08-31
Total Expended
$1.89M
Findings
2
Programs
1
Organization: Clayton Child Care, Inc. (TX)
Year: 2025 Accepted: 2026-03-30
Auditor: SUTTON FROST CARY LLP

Organization Exclusion Status:

Findings

ID Ref Severity Repeat Requirement
1203023 2025-002 Material Weakness Yes AB
1203024 2025-002 Material Weakness Yes AB

Programs

ALN Program Spent Major Findings
84.287 TWENTY-FIRST CENTURY COMMUNITY LEARNING CENTERS $1.66M Yes 1

Contacts

Name Title Type
UPATBDH33LD3 Brittany Lee Auditee
8179239888 Emily Hill Auditor
No contacts on file

Notes to SEFA

The accompanying schedule of expenditures of federal awards (Schedule) includes the federal grant activity of Clayton Child Care, Inc. (Organization) under programs of the federal government for the period from July 1, 2024 to August 31, 2025. The information in the 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 the Organization, it is not intended to 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 elected to use the 10 percent de minimis indirect cost rate as allowed under the Uniform Guidance.
The Organization received grants totaling $598,285 that were included in government grants and contracts revenue on the consolidated statement of activities that were not subject to the audit requirements of the Uniform Guidance and therefore were not included on the Schedule.

Finding Details

Finding 2025-002
Finding 2025‐002: Allowable costs and activities‐significant deficiency in internal controls over compliance. Twenty‐First Century Community Learning Centers Grant ALN 84.287C Criteria: Clayton Child Care, Inc.’s (Organization) internal control procedures over compliance specify that the Director of Finance approves payroll prior to payment. Section 200 of the Code of Federal Regulations requires recipients to implement robust internal controls to reduce the risk of noncompliance with cost principles for all activities allocated to the grant and to retain supporting documentation of control completion for three years from the date of submission of the expenditure request. Condition: During allowable activities for the Twenty‐First Century Community Learning Centers Grant, for 4 out of 26 payroll samples tested, the payroll was approved verbally and no documentation supporting the approval was retained. Cause: Internal control documentation was not being appropriately retained. Effect: Key internal control documentation was not properly retained and readily available to support the testing of key controls over the payroll process. Questioned Costs: None. Recommendation: In order to comply with the Code of Federal Regulations, we recommend the Organization’s policies be updated to require document retention for at least three years for all key control documentation. Management’s Response: See corrective action plan.