FAC Explorer

Audit 56334

FY End
2022-08-31
Total Expended
$39.15M
Findings
2
Programs
5
Organization: Child-Parent Centers, Inc. (AZ)
Year: 2022 Accepted: 2023-05-16
Auditor: Beachfleischman PLLC

Organization Exclusion Status:

Findings

ID Ref Severity Repeat Requirement
58928 2022-002 Significant Deficiency - AB
635370 2022-002 Significant Deficiency - AB

Programs

ALN Program Spent Major Findings
93.600 Head Start $37.06M Yes 1
10.558 Child and Adult Care Food Program $954,320 - 0
93.575 Child Care and Development Block Grant $69,240 - 0
21.019 Coronavirus Relief Fund $58,628 - 0
93.596 Child Care Mandatory and Matching Funds of the Child Care and Development Fund $44,269 - 0

Contacts

Name Title Type
CKJAU7DXRM77 Dan Fry Auditee
5208820100 Eric Maneval Auditor
No contacts on file

Notes to SEFA

Title: Reconciliation to budgetary basis: 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. De Minimis Rate Used: N Rate Explanation: The auditee did not use the de minimis cost rate. The Organization draws Head Start funds when expenditures have been incurred and recognizes revenue and expenses for financial statement presentation on an accrual basis. Head Start grant awards allow for encumbered spending and such spending does not qualify for current year expense recognition under accounting principles generally accepted in the United States of America (GAAP). Therefore, the Head Start expenditures reported on the SF425 Final Financial Status Reports will differ from the Head Start expenditures under GAAP due to the encumbrances.

Finding Details

Finding 2022-002
As discussed at Finding 2022-001, internal controls should be in place to provide reasonable assurance that employee timesheets are appropriately approved by supervisors at the end of the pay period. We found two instances where time sheets were not approved by an appropriate supervisor. We recommend the Organization adhere to its policies and procedures for approving timesheets, reevaluate if more time should be provided for supervisor signoff, and require supervisor response as appropriate to emails to ensure compliance with the controls. Criteria: Internal controls should be in place to provide reasonable assurance that employee timesheets are appropriately approved by supervisors at the end of the pay period and prior to the time file transfer for payroll processing. Condition: In our sample of payroll transactions, timesheets were missing approval by an appropriate supervisor for one or more days in the pay period. Cause: The Organization has controls in place requiring appropriate supervisor approval; however, there appears to be inadequate time provided to supervisors to effectively and consistently approve timesheets at the end of the pay period. Effect: Without proper authorization of timesheets, information on the timesheets may not be complete and accurate, employees may be incorrectly compensated, and benefit accrual balances may be over or understated. Recommendation: We recommend the Organization adhere to its policies and procedures for approving timesheets and reevaluate if more time should be provided for supervisor signoff. Auditee response: Child-Parent Centers acknowledges and agrees with this finding. We are in communication with our staff regarding the importance of supervisor approvals, and leadership is making it a priority to improve existing controls and identifying any areas where new controls may be required.
Finding 2022-002
As discussed at Finding 2022-001, internal controls should be in place to provide reasonable assurance that employee timesheets are appropriately approved by supervisors at the end of the pay period. We found two instances where time sheets were not approved by an appropriate supervisor. We recommend the Organization adhere to its policies and procedures for approving timesheets, reevaluate if more time should be provided for supervisor signoff, and require supervisor response as appropriate to emails to ensure compliance with the controls. Criteria: Internal controls should be in place to provide reasonable assurance that employee timesheets are appropriately approved by supervisors at the end of the pay period and prior to the time file transfer for payroll processing. Condition: In our sample of payroll transactions, timesheets were missing approval by an appropriate supervisor for one or more days in the pay period. Cause: The Organization has controls in place requiring appropriate supervisor approval; however, there appears to be inadequate time provided to supervisors to effectively and consistently approve timesheets at the end of the pay period. Effect: Without proper authorization of timesheets, information on the timesheets may not be complete and accurate, employees may be incorrectly compensated, and benefit accrual balances may be over or understated. Recommendation: We recommend the Organization adhere to its policies and procedures for approving timesheets and reevaluate if more time should be provided for supervisor signoff. Auditee response: Child-Parent Centers acknowledges and agrees with this finding. We are in communication with our staff regarding the importance of supervisor approvals, and leadership is making it a priority to improve existing controls and identifying any areas where new controls may be required.