#2022-002 FINDING: Audit and SEFA Adjustments Federal Programs Affected: Head Start/ALN #93.600; Child and Adult Care Food Program (CACFP)/ALN #10.558 Compliance Requirement: Allowable Costs Questioned Costs: $55,615 known questioned costs. Condition and Cause: During the course of our engagement, we proposed material audit and SEFA adjustments. Criteria and Effect: These adjustments were not identified as a result of the Organization?s existing internal controls, and therefore, could have resulted in a material misstatement of the Organization?s consolidated financial statements or noncompliance with federal programs. One adjustment related to a Head Start expenditure for a cloud-based teaching curriculum subscription covering a 5-year period. Curriculum expenditures are allowable costs for Head Start, but Head Start agencies cannot charge 5 years of cost to one grant period. An audit adjustment was made to properly record the expenditure as a prepaid expense, and Head Start expenditures reported in the SEFA were also reduced by the $55,615 of prepaid costs. Repeat Finding from Prior Year: Yes, revision of prior year finding #2021-002. Recommendation: We recommend the following: ? Investments be adjusted to actual. ? Prepaid contracts be recorded as an asset upon payment and expensed over the life of the service contract. ? Record deferred revenue for unspent conditional funding ? The Organization work with Head Start representatives to return the funds drawn down for the prepaid costs or reduce future draw requests. Views of Responsible Officials: See Organization?s Corrective Action Plan
2022-003 FINDING: Eligibility Federal Program Affected: Child and Adult Care Food Program/ALN #10.558 Compliance Requirement: Eligibility Questioned Costs: No known or likely questioned costs exceeding $25,000. Condition and Cause: One child tested for eligibility was being charged for reimbursement at a free rate of $3.92, however the Organization was only eligible to receive reimbursement for this child at a paid rate of $0.62. The cause of this error was a result of the child being formerly enrolled in the Head Start program and upon disenrollment, the Organization failed to update the child?s status to a paid rate. Criteria and Effect: The CACFP requires the Organization to appropriately track eligibility for students enrolled in the program. The Organization currently does not have a control to switch students CACFP status if Head Start eligibility changes. Repeat Finding from Prior Year: N/A Recommendation: We recommend the Organization develop an internal control to track eligibility for Head Start students who become ineligible for Head Start. Response/Corrective Action Plan: See Organization?s Corrective Action Plan
#2022-002 FINDING: Audit and SEFA Adjustments Federal Programs Affected: Head Start/ALN #93.600; Child and Adult Care Food Program (CACFP)/ALN #10.558 Compliance Requirement: Allowable Costs Questioned Costs: $55,615 known questioned costs. Condition and Cause: During the course of our engagement, we proposed material audit and SEFA adjustments. Criteria and Effect: These adjustments were not identified as a result of the Organization?s existing internal controls, and therefore, could have resulted in a material misstatement of the Organization?s consolidated financial statements or noncompliance with federal programs. One adjustment related to a Head Start expenditure for a cloud-based teaching curriculum subscription covering a 5-year period. Curriculum expenditures are allowable costs for Head Start, but Head Start agencies cannot charge 5 years of cost to one grant period. An audit adjustment was made to properly record the expenditure as a prepaid expense, and Head Start expenditures reported in the SEFA were also reduced by the $55,615 of prepaid costs. Repeat Finding from Prior Year: Yes, revision of prior year finding #2021-002. Recommendation: We recommend the following: ? Investments be adjusted to actual. ? Prepaid contracts be recorded as an asset upon payment and expensed over the life of the service contract. ? Record deferred revenue for unspent conditional funding ? The Organization work with Head Start representatives to return the funds drawn down for the prepaid costs or reduce future draw requests. Views of Responsible Officials: See Organization?s Corrective Action Plan
2022-003 FINDING: Eligibility Federal Program Affected: Child and Adult Care Food Program/ALN #10.558 Compliance Requirement: Eligibility Questioned Costs: No known or likely questioned costs exceeding $25,000. Condition and Cause: One child tested for eligibility was being charged for reimbursement at a free rate of $3.92, however the Organization was only eligible to receive reimbursement for this child at a paid rate of $0.62. The cause of this error was a result of the child being formerly enrolled in the Head Start program and upon disenrollment, the Organization failed to update the child?s status to a paid rate. Criteria and Effect: The CACFP requires the Organization to appropriately track eligibility for students enrolled in the program. The Organization currently does not have a control to switch students CACFP status if Head Start eligibility changes. Repeat Finding from Prior Year: N/A Recommendation: We recommend the Organization develop an internal control to track eligibility for Head Start students who become ineligible for Head Start. Response/Corrective Action Plan: See Organization?s Corrective Action Plan
#2022-002 FINDING: Audit and SEFA Adjustments Federal Programs Affected: Head Start/ALN #93.600; Child and Adult Care Food Program (CACFP)/ALN #10.558 Compliance Requirement: Allowable Costs Questioned Costs: $55,615 known questioned costs. Condition and Cause: During the course of our engagement, we proposed material audit and SEFA adjustments. Criteria and Effect: These adjustments were not identified as a result of the Organization?s existing internal controls, and therefore, could have resulted in a material misstatement of the Organization?s consolidated financial statements or noncompliance with federal programs. One adjustment related to a Head Start expenditure for a cloud-based teaching curriculum subscription covering a 5-year period. Curriculum expenditures are allowable costs for Head Start, but Head Start agencies cannot charge 5 years of cost to one grant period. An audit adjustment was made to properly record the expenditure as a prepaid expense, and Head Start expenditures reported in the SEFA were also reduced by the $55,615 of prepaid costs. Repeat Finding from Prior Year: Yes, revision of prior year finding #2021-002. Recommendation: We recommend the following: ? Investments be adjusted to actual. ? Prepaid contracts be recorded as an asset upon payment and expensed over the life of the service contract. ? Record deferred revenue for unspent conditional funding ? The Organization work with Head Start representatives to return the funds drawn down for the prepaid costs or reduce future draw requests. Views of Responsible Officials: See Organization?s Corrective Action Plan
#2022-002 FINDING: Audit and SEFA Adjustments Federal Programs Affected: Head Start/ALN #93.600; Child and Adult Care Food Program (CACFP)/ALN #10.558 Compliance Requirement: Allowable Costs Questioned Costs: $55,615 known questioned costs. Condition and Cause: During the course of our engagement, we proposed material audit and SEFA adjustments. Criteria and Effect: These adjustments were not identified as a result of the Organization?s existing internal controls, and therefore, could have resulted in a material misstatement of the Organization?s consolidated financial statements or noncompliance with federal programs. One adjustment related to a Head Start expenditure for a cloud-based teaching curriculum subscription covering a 5-year period. Curriculum expenditures are allowable costs for Head Start, but Head Start agencies cannot charge 5 years of cost to one grant period. An audit adjustment was made to properly record the expenditure as a prepaid expense, and Head Start expenditures reported in the SEFA were also reduced by the $55,615 of prepaid costs. Repeat Finding from Prior Year: Yes, revision of prior year finding #2021-002. Recommendation: We recommend the following: ? Investments be adjusted to actual. ? Prepaid contracts be recorded as an asset upon payment and expensed over the life of the service contract. ? Record deferred revenue for unspent conditional funding ? The Organization work with Head Start representatives to return the funds drawn down for the prepaid costs or reduce future draw requests. Views of Responsible Officials: See Organization?s Corrective Action Plan
#2022-002 FINDING: Audit and SEFA Adjustments Federal Programs Affected: Head Start/ALN #93.600; Child and Adult Care Food Program (CACFP)/ALN #10.558 Compliance Requirement: Allowable Costs Questioned Costs: $55,615 known questioned costs. Condition and Cause: During the course of our engagement, we proposed material audit and SEFA adjustments. Criteria and Effect: These adjustments were not identified as a result of the Organization?s existing internal controls, and therefore, could have resulted in a material misstatement of the Organization?s consolidated financial statements or noncompliance with federal programs. One adjustment related to a Head Start expenditure for a cloud-based teaching curriculum subscription covering a 5-year period. Curriculum expenditures are allowable costs for Head Start, but Head Start agencies cannot charge 5 years of cost to one grant period. An audit adjustment was made to properly record the expenditure as a prepaid expense, and Head Start expenditures reported in the SEFA were also reduced by the $55,615 of prepaid costs. Repeat Finding from Prior Year: Yes, revision of prior year finding #2021-002. Recommendation: We recommend the following: ? Investments be adjusted to actual. ? Prepaid contracts be recorded as an asset upon payment and expensed over the life of the service contract. ? Record deferred revenue for unspent conditional funding ? The Organization work with Head Start representatives to return the funds drawn down for the prepaid costs or reduce future draw requests. Views of Responsible Officials: See Organization?s Corrective Action Plan
#2022-002 FINDING: Audit and SEFA Adjustments Federal Programs Affected: Head Start/ALN #93.600; Child and Adult Care Food Program (CACFP)/ALN #10.558 Compliance Requirement: Allowable Costs Questioned Costs: $55,615 known questioned costs. Condition and Cause: During the course of our engagement, we proposed material audit and SEFA adjustments. Criteria and Effect: These adjustments were not identified as a result of the Organization?s existing internal controls, and therefore, could have resulted in a material misstatement of the Organization?s consolidated financial statements or noncompliance with federal programs. One adjustment related to a Head Start expenditure for a cloud-based teaching curriculum subscription covering a 5-year period. Curriculum expenditures are allowable costs for Head Start, but Head Start agencies cannot charge 5 years of cost to one grant period. An audit adjustment was made to properly record the expenditure as a prepaid expense, and Head Start expenditures reported in the SEFA were also reduced by the $55,615 of prepaid costs. Repeat Finding from Prior Year: Yes, revision of prior year finding #2021-002. Recommendation: We recommend the following: ? Investments be adjusted to actual. ? Prepaid contracts be recorded as an asset upon payment and expensed over the life of the service contract. ? Record deferred revenue for unspent conditional funding ? The Organization work with Head Start representatives to return the funds drawn down for the prepaid costs or reduce future draw requests. Views of Responsible Officials: See Organization?s Corrective Action Plan
#2022-002 FINDING: Audit and SEFA Adjustments Federal Programs Affected: Head Start/ALN #93.600; Child and Adult Care Food Program (CACFP)/ALN #10.558 Compliance Requirement: Allowable Costs Questioned Costs: $55,615 known questioned costs. Condition and Cause: During the course of our engagement, we proposed material audit and SEFA adjustments. Criteria and Effect: These adjustments were not identified as a result of the Organization?s existing internal controls, and therefore, could have resulted in a material misstatement of the Organization?s consolidated financial statements or noncompliance with federal programs. One adjustment related to a Head Start expenditure for a cloud-based teaching curriculum subscription covering a 5-year period. Curriculum expenditures are allowable costs for Head Start, but Head Start agencies cannot charge 5 years of cost to one grant period. An audit adjustment was made to properly record the expenditure as a prepaid expense, and Head Start expenditures reported in the SEFA were also reduced by the $55,615 of prepaid costs. Repeat Finding from Prior Year: Yes, revision of prior year finding #2021-002. Recommendation: We recommend the following: ? Investments be adjusted to actual. ? Prepaid contracts be recorded as an asset upon payment and expensed over the life of the service contract. ? Record deferred revenue for unspent conditional funding ? The Organization work with Head Start representatives to return the funds drawn down for the prepaid costs or reduce future draw requests. Views of Responsible Officials: See Organization?s Corrective Action Plan
2022-003 FINDING: Eligibility Federal Program Affected: Child and Adult Care Food Program/ALN #10.558 Compliance Requirement: Eligibility Questioned Costs: No known or likely questioned costs exceeding $25,000. Condition and Cause: One child tested for eligibility was being charged for reimbursement at a free rate of $3.92, however the Organization was only eligible to receive reimbursement for this child at a paid rate of $0.62. The cause of this error was a result of the child being formerly enrolled in the Head Start program and upon disenrollment, the Organization failed to update the child?s status to a paid rate. Criteria and Effect: The CACFP requires the Organization to appropriately track eligibility for students enrolled in the program. The Organization currently does not have a control to switch students CACFP status if Head Start eligibility changes. Repeat Finding from Prior Year: N/A Recommendation: We recommend the Organization develop an internal control to track eligibility for Head Start students who become ineligible for Head Start. Response/Corrective Action Plan: See Organization?s Corrective Action Plan
#2022-002 FINDING: Audit and SEFA Adjustments Federal Programs Affected: Head Start/ALN #93.600; Child and Adult Care Food Program (CACFP)/ALN #10.558 Compliance Requirement: Allowable Costs Questioned Costs: $55,615 known questioned costs. Condition and Cause: During the course of our engagement, we proposed material audit and SEFA adjustments. Criteria and Effect: These adjustments were not identified as a result of the Organization?s existing internal controls, and therefore, could have resulted in a material misstatement of the Organization?s consolidated financial statements or noncompliance with federal programs. One adjustment related to a Head Start expenditure for a cloud-based teaching curriculum subscription covering a 5-year period. Curriculum expenditures are allowable costs for Head Start, but Head Start agencies cannot charge 5 years of cost to one grant period. An audit adjustment was made to properly record the expenditure as a prepaid expense, and Head Start expenditures reported in the SEFA were also reduced by the $55,615 of prepaid costs. Repeat Finding from Prior Year: Yes, revision of prior year finding #2021-002. Recommendation: We recommend the following: ? Investments be adjusted to actual. ? Prepaid contracts be recorded as an asset upon payment and expensed over the life of the service contract. ? Record deferred revenue for unspent conditional funding ? The Organization work with Head Start representatives to return the funds drawn down for the prepaid costs or reduce future draw requests. Views of Responsible Officials: See Organization?s Corrective Action Plan
2022-003 FINDING: Eligibility Federal Program Affected: Child and Adult Care Food Program/ALN #10.558 Compliance Requirement: Eligibility Questioned Costs: No known or likely questioned costs exceeding $25,000. Condition and Cause: One child tested for eligibility was being charged for reimbursement at a free rate of $3.92, however the Organization was only eligible to receive reimbursement for this child at a paid rate of $0.62. The cause of this error was a result of the child being formerly enrolled in the Head Start program and upon disenrollment, the Organization failed to update the child?s status to a paid rate. Criteria and Effect: The CACFP requires the Organization to appropriately track eligibility for students enrolled in the program. The Organization currently does not have a control to switch students CACFP status if Head Start eligibility changes. Repeat Finding from Prior Year: N/A Recommendation: We recommend the Organization develop an internal control to track eligibility for Head Start students who become ineligible for Head Start. Response/Corrective Action Plan: See Organization?s Corrective Action Plan
#2022-002 FINDING: Audit and SEFA Adjustments Federal Programs Affected: Head Start/ALN #93.600; Child and Adult Care Food Program (CACFP)/ALN #10.558 Compliance Requirement: Allowable Costs Questioned Costs: $55,615 known questioned costs. Condition and Cause: During the course of our engagement, we proposed material audit and SEFA adjustments. Criteria and Effect: These adjustments were not identified as a result of the Organization?s existing internal controls, and therefore, could have resulted in a material misstatement of the Organization?s consolidated financial statements or noncompliance with federal programs. One adjustment related to a Head Start expenditure for a cloud-based teaching curriculum subscription covering a 5-year period. Curriculum expenditures are allowable costs for Head Start, but Head Start agencies cannot charge 5 years of cost to one grant period. An audit adjustment was made to properly record the expenditure as a prepaid expense, and Head Start expenditures reported in the SEFA were also reduced by the $55,615 of prepaid costs. Repeat Finding from Prior Year: Yes, revision of prior year finding #2021-002. Recommendation: We recommend the following: ? Investments be adjusted to actual. ? Prepaid contracts be recorded as an asset upon payment and expensed over the life of the service contract. ? Record deferred revenue for unspent conditional funding ? The Organization work with Head Start representatives to return the funds drawn down for the prepaid costs or reduce future draw requests. Views of Responsible Officials: See Organization?s Corrective Action Plan
#2022-002 FINDING: Audit and SEFA Adjustments Federal Programs Affected: Head Start/ALN #93.600; Child and Adult Care Food Program (CACFP)/ALN #10.558 Compliance Requirement: Allowable Costs Questioned Costs: $55,615 known questioned costs. Condition and Cause: During the course of our engagement, we proposed material audit and SEFA adjustments. Criteria and Effect: These adjustments were not identified as a result of the Organization?s existing internal controls, and therefore, could have resulted in a material misstatement of the Organization?s consolidated financial statements or noncompliance with federal programs. One adjustment related to a Head Start expenditure for a cloud-based teaching curriculum subscription covering a 5-year period. Curriculum expenditures are allowable costs for Head Start, but Head Start agencies cannot charge 5 years of cost to one grant period. An audit adjustment was made to properly record the expenditure as a prepaid expense, and Head Start expenditures reported in the SEFA were also reduced by the $55,615 of prepaid costs. Repeat Finding from Prior Year: Yes, revision of prior year finding #2021-002. Recommendation: We recommend the following: ? Investments be adjusted to actual. ? Prepaid contracts be recorded as an asset upon payment and expensed over the life of the service contract. ? Record deferred revenue for unspent conditional funding ? The Organization work with Head Start representatives to return the funds drawn down for the prepaid costs or reduce future draw requests. Views of Responsible Officials: See Organization?s Corrective Action Plan
#2022-002 FINDING: Audit and SEFA Adjustments Federal Programs Affected: Head Start/ALN #93.600; Child and Adult Care Food Program (CACFP)/ALN #10.558 Compliance Requirement: Allowable Costs Questioned Costs: $55,615 known questioned costs. Condition and Cause: During the course of our engagement, we proposed material audit and SEFA adjustments. Criteria and Effect: These adjustments were not identified as a result of the Organization?s existing internal controls, and therefore, could have resulted in a material misstatement of the Organization?s consolidated financial statements or noncompliance with federal programs. One adjustment related to a Head Start expenditure for a cloud-based teaching curriculum subscription covering a 5-year period. Curriculum expenditures are allowable costs for Head Start, but Head Start agencies cannot charge 5 years of cost to one grant period. An audit adjustment was made to properly record the expenditure as a prepaid expense, and Head Start expenditures reported in the SEFA were also reduced by the $55,615 of prepaid costs. Repeat Finding from Prior Year: Yes, revision of prior year finding #2021-002. Recommendation: We recommend the following: ? Investments be adjusted to actual. ? Prepaid contracts be recorded as an asset upon payment and expensed over the life of the service contract. ? Record deferred revenue for unspent conditional funding ? The Organization work with Head Start representatives to return the funds drawn down for the prepaid costs or reduce future draw requests. Views of Responsible Officials: See Organization?s Corrective Action Plan
#2022-002 FINDING: Audit and SEFA Adjustments Federal Programs Affected: Head Start/ALN #93.600; Child and Adult Care Food Program (CACFP)/ALN #10.558 Compliance Requirement: Allowable Costs Questioned Costs: $55,615 known questioned costs. Condition and Cause: During the course of our engagement, we proposed material audit and SEFA adjustments. Criteria and Effect: These adjustments were not identified as a result of the Organization?s existing internal controls, and therefore, could have resulted in a material misstatement of the Organization?s consolidated financial statements or noncompliance with federal programs. One adjustment related to a Head Start expenditure for a cloud-based teaching curriculum subscription covering a 5-year period. Curriculum expenditures are allowable costs for Head Start, but Head Start agencies cannot charge 5 years of cost to one grant period. An audit adjustment was made to properly record the expenditure as a prepaid expense, and Head Start expenditures reported in the SEFA were also reduced by the $55,615 of prepaid costs. Repeat Finding from Prior Year: Yes, revision of prior year finding #2021-002. Recommendation: We recommend the following: ? Investments be adjusted to actual. ? Prepaid contracts be recorded as an asset upon payment and expensed over the life of the service contract. ? Record deferred revenue for unspent conditional funding ? The Organization work with Head Start representatives to return the funds drawn down for the prepaid costs or reduce future draw requests. Views of Responsible Officials: See Organization?s Corrective Action Plan