FAC Explorer

Audit 409908

FY End
2024-12-31
Total Expended
$834,250
Findings
2
Programs
2
Organization: Kids Cove Community Outreach (TX)
Year: 2024 Accepted: 2026-08-27
Auditor: LOGAN AND ASSOCIATES PC

Organization Exclusion Status:

Findings

ID Ref Severity Repeat Requirement
1228066 2024-002 Material Weakness Yes B
1228067 2024-003 Material Weakness Yes B

Programs

ALN Program Spent Major Findings
10.558 CHILD AND ADULT CARE FOOD PROGRAM $721,909 Yes 1
10.559 SUMMER FOOD SERVICE PROGRAM FOR CHILDREN $112,341 Yes 1

Contacts

Name Title Type
EQ52RQJGE3P1 Dana Wilson Auditee
2149866735 Thaland D Logan Auditor
No contacts on file

Notes to SEFA

Basis of Presentation The accompanying schedule of expenditures of federal awards (the Schedule) includes the federal grant activity of Kids Cove Community Outreach (KCCO) for the year ended December 31, 2024. 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 KCCO, it is not intended to and does not present the financial position, changes in net assets, or cash flows of KCCO.
Relationship to Financial Statements Expenditures incurred under the Federal award programs were reported in the basic financial statements.
Summary of Significant Accounting Policies 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. Pass-through entity identifying numbers are presented where available.
Indirect Cost Rate KCCO has elected not to use a 15% de minimis indirect cost rate as allowed under the Uniform Guidance.
Subrecipients KCCO did not provide federal awards to subrecipients.

Finding Details

Finding 2024-002
Finding No. 2024‐002: Allowable costs – Material weakness in internal control over compliance and compliance finding 10.559 Summer Food Service Program For Children (SFSP) Criteria: In accordance with Section 200.430 of the Uniform Guidance, charges for personnel expenses using federal awards must be supported by a system of internal control that provides reasonable assurance that charges are accurate, allowable and properly allocated. Condition: During our review of personnel expenses, we noted that 24 of 24 sampled personnel costs were recorded at the net amounts paid to the employees on the manual grant program expenditure listing. This had the effect of understating the total costs charged to the grant program for both the taxes withheld from the employees as well as the company match. It also understated the total amount of grant program expenditures listed on the SEFA. Cause: Management error. Effect: Understatement of total costs charged to the grant program for both the taxes withheld from the employees as well as the company match. It also understated the total amount of grant program expenditures listed on the SEFA. Questioned costs: None. There were no questioned costs as amounts paid to KCCO are based on meals served multiplied by the applicable rate per meal and are not based on actual costs incurred or reported. Recommendation: Management should review the current procedures and the requirements of Section 200.430 and implement changes where necessary to ensure personnel costs are charged in accordance with Section 200.430. Management’s Response: See corrective action plan.
Finding 2024-003
Finding No. 2024‐003: Allowable costs – Material weakness in internal control over compliance and compliance finding 10.558 Child And Adult Care Food Program (CACFP) Criteria: In accordance with Section 200.430 of the Uniform Guidance, charges for personnel expenses using federal awards must be supported by a system of internal control that provides reasonable assurance that charges are accurate, allowable and properly allocated. Condition: During our review of personnel expenses, we noted that 3 of 3 sampled personnel costs were recorded at the net amounts paid to the employees on the manual grant program expenditure listing. This had the effect of understating the total costs charged to the grant program for both the taxes withheld from the employees as well as the company match. It also understated the total amount of grant program expenditures listed on the SEFA. Cause: Management error. Effect: Understatement of total costs charged to the grant program for both the taxes withheld from the employees as well as the company match. It also understated the total amount of grant program expenditures listed on the SEFA. Questioned costs: None. There were no questioned costs as amounts paid to KCCO are based on meals served multiplied by the applicable rate per meal and are not based on actual costs incurred or reported. Recommendation: Management should review the current procedures and the requirements of Section 200.430 and implement changes where necessary to ensure personnel costs are charged in accordance with Section 200.430. Management’s Response: See corrective action plan.