Audit 414584

FY End

2024-12-31

Total Expended

$1.00M

Findings

1

Programs

1

Organization: GAP INC. COMMUNITY CHILD DEVELOPMENT CENTER (DC)

Year: 2024 Accepted: 2026-10-05

Auditor: F S TAYLOR & ASSOCIATES PC

Organization Exclusion Status:

Checking exclusion status...

ID	Ref	Severity	Repeat	Requirement
1239909	2024-001	Material Weakness	Yes	L

ALN	Program	Spent	Major	Findings
93.575	CHILD CARE AND DEVELOPMENT BLOCK GRANT	$1.00M	Yes	1

Contacts

Name	Title	Type
GM3FGG378MC7	Travis Hardmon	Auditee
2024623636	Rachel Locus	Auditor
No contacts on file

Notes to SEFA

Basis of Accounting - The accompanying schedule of expenditures of federal awards is prepared on the accrual basis of accounting. Allowability is determined according to the principles contained in Title 2 U.S. Code of Federal Regulations Part 200, Uniform Administrative Requirements, Cost Principles, and Audit Requirements for Federal Awards (Uniform Guidance). Under those cost principles, certain expenditures are not allowable or are limited as to reimbursement.

The Uniform Guidance audit was performed for the year ended December 31, 2024. All federal awards received by GAP directly or indirectly have been included in the schedule of federal awards and are within the scope of the audit pursuant to the Uniform Guidance.

GAP’s management determined that GAP has one program activity which is providing quality education to young children. Management does not allocate expenses between program and general and administrative, except for office expenses, as management considers all expenses to be program related. For the year ended December 31, 2024, no indirect costs were charged to the federal award programs. GAP has elected not to use the 10-percent de minimis indirect cost rate allowed under Uniform Guidance.

Federal grants received by GAP are subject to review and audit by grantor agencies. GAP’s management believes that the results of such audits will not have a material effect on the schedule of expenditures of federal awards.

Finding Details

Finding 2024-001

C. Federal Awards Findings and Questioned Costs Finding Reference: 2024-001 Federal Agency: Department of Health and Human Services Compliance Requirement: Reporting Type of Finding: Significant Deficiency in Internal Control over Compliance, Other Matters Federal Program: 93.575- Child Care and Development Block Grant Grant Award: Federal Fiscal Year 2024 Condition/Context: The single audit report was not submitted to the Office Management and Budget in accordance with the reporting requirement. Criteria: COSO/Internal Control Framework defines control activities as “policies and procedures that help ensures management’s directives are carried out” This would include preparation of the Schedule of Expenditures of Federal Awards and the related Data Collection Form in a timely manner. Uniform Guidance 2 CFR 200.501 states that the audit shall be completed, and the data collection form shall be submitted within the earlier of 30 days after the receipt of the auditor’s report, or nine months after the end of the audit period. Accordingly, audit for fiscal year ending December 31, 2024 was due on September 30, 2025. Cause: The single audit report was not submitted due to delays in year-end closing entries, schedules, and reconciliations. Effect: As a result of the finding, GAP did not provide required information to its federal oversight agency in a timely manner. Questioned Costs: None Recommendation: We believe that the year-end closing process could proceed in a timely manner by adhering to a closing schedule and maintaining timely account reconciliations. Progress should be monitored by management to determine that due dates are being met and required reports are submitted to regulatory agencies within the compliance time frame. Views of Responsible Officials and Planned Corrective Actions: See Corrective Action Plans section.