FAC Explorer

Audit 7032

FY End
2023-06-30
Total Expended
$8.86M
Findings
2
Programs
10
Organization: Child Lane (CA)
Year: 2023 Accepted: 2023-12-15
Auditor: Guzman & Gray

Organization Exclusion Status:

Findings

ID Ref Severity Repeat Requirement
4873 2023-001 Material Weakness - E
581315 2023-001 Material Weakness - E

Programs

ALN Program Spent Major Findings
10.558 Child and Adult Care Food Program-Homes $5.46M Yes 1
93.575 Child Care and Development Block Grant (general Center Child Care) $1.73M - 0
93.575 Child Care and Development Block Grant (family Child Care Homes) $544,135 - 0
93.596 Child Care and Development Fund (general Center Child Care) $355,247 - 0
93.596 Child Care and Development Fund (family Chilc Care Homes) $263,477 - 0
10.558 Child and Adult Care Food Program-Centers $257,154 Yes 0
84.425R Family Child Care Homes (crrsa) $131,304 - 0
84.425R California State Preschool (crrsa) $104,573 - 0
84.425R Child and Adult Care Food Program-Homes (crrsa) $7,825 - 0
84.425R General Center Child Care (crrsa) $4,678 - 0

Contacts

Name Title Type
K68XXVJJMNJ6 Connie Arizmendi Wilder Auditee
5624278834 Patrick Guzman Auditor
No contacts on file

Notes to SEFA

Title: Summary of Significant Accounting Policies Accounting Policies: Expenditures reported on this schedule are reported on the accrual basis of accounting. Sunch expenditures are recognized following the cost principles contained in the Title 2 U.S. Code of Federal Regulation (CFR) Part 200, Uniform Administrative Requirements, wherein certain types of expenditures are not allowable or are limited for reimbursement. De Minimis Rate Used: N Rate Explanation: Child Lane has not elected to use the 10 percent de minis indirect cost rate as a;llowed under the Uniform Guidance. Expenditures reported on this schedule are reported on the accrual basis of accounting. Such expenditures are recognized following the cost principles contained in the Title 2 U.S. Code of Federal Regulation (CFR) Part 200, Uniform Administrative Requirements, wherein certain types of expenditures are not allowable or are limited for reimbursement.
Title: De Mininis 10% Indirect Cost Rate Accounting Policies: Expenditures reported on this schedule are reported on the accrual basis of accounting. Sunch expenditures are recognized following the cost principles contained in the Title 2 U.S. Code of Federal Regulation (CFR) Part 200, Uniform Administrative Requirements, wherein certain types of expenditures are not allowable or are limited for reimbursement. De Minimis Rate Used: N Rate Explanation: Child Lane has not elected to use the 10 percent de minis indirect cost rate as a;llowed under the Uniform Guidance. Child Lane has not elected to use the 10 percent de minimis indirect cost rate as allowed under the Uniform Guidance.

Finding Details

Finding 2023-001
Condition: An employee of the Organization was able to access the Organization’s nutrition database and made unauthorized changes to nutrition provider information. As a result of these unauthorized changes, the employee submitted false nutrition claim reimbursements during the periods January 2020 to March 2023 for the employee’s personal benefit. Criteria: According to CACFP Administrative Manual Section 5.1, agencies must submit a claim for reimbursement using the Child Nutrition Information and Payment System (CNIPS) no later than 60 calendar days after the month claimed. Centers must ensure that staffing information, types of meals served, months of service, times of service, and all other information are correct and current DCH sponsors must ensure that all provider applications are complete, correct, and approved for the correct claiming month. Effect: The Organization received nutrition claim reimbursements from false nutrition claim reimbursement submissions. Recommendation: The Organization should implement policies and procedures to tighten controls over authorized access to the Organization’s nutrition database.
Finding 2023-001
Condition: An employee of the Organization was able to access the Organization’s nutrition database and made unauthorized changes to nutrition provider information. As a result of these unauthorized changes, the employee submitted false nutrition claim reimbursements during the periods January 2020 to March 2023 for the employee’s personal benefit. Criteria: According to CACFP Administrative Manual Section 5.1, agencies must submit a claim for reimbursement using the Child Nutrition Information and Payment System (CNIPS) no later than 60 calendar days after the month claimed. Centers must ensure that staffing information, types of meals served, months of service, times of service, and all other information are correct and current DCH sponsors must ensure that all provider applications are complete, correct, and approved for the correct claiming month. Effect: The Organization received nutrition claim reimbursements from false nutrition claim reimbursement submissions. Recommendation: The Organization should implement policies and procedures to tighten controls over authorized access to the Organization’s nutrition database.