U.S. Department of Health and Human Services, California Department of Social Services
Federal Financial Assistance Listing/CFDA Number 93.575
Award Year 2022/23
Child Care and Development Fund Cluster
Compliance Requirement: Allowable Costs/Cost Principles
Type of Finding: Significant Deficiency in Internal Control and Instance of Non-Compliance
Criteria:
Title 2 CFR Section 200.302(b)(7) of the Uniform Guidance requires all non-Federal entities establish written procedures to implement the requirements for determining the allowability of costs in accordance with Subpart E – Cost Principles and the conditions of the Federal award.
Condition:
The Commission has not established written procedures for determining allowability of costs in accordance with Subpart E – Cost Principles or the conditions of the Federal award.
Cause:
The Commission’s procedures did not ensure the required written procedures were developed and implemented in accordance with the Uniform Guidance.
Effect:
The Commission has not complied with Title 2 CFR Section 200.302(b)(7) regarding establishing written procedures for determining the allowability of costs.
Questioned Costs:
None reported.
Context:
The condition noted above was identified during our procedures related to allowable costs.
Repeat Finding from Prior Year:
Yes – 2022-001
Recommendation:
We recommend the Commission establish policies and formalize written procedures related to allowable costs in accordance with Subpart E – Cost Principles.
Views of Responsible Officials:
Management agrees. See separately issued Corrective Action Plan.
U.S. Department of Health and Human Services, California Department of Social Services
Federal Financial Assistance Listing/CFDA Number 93.575
Award Year 2022/23
Child Care and Development Fund Cluster
Compliance Requirement: Subrecipient Monitoring
Type of Finding: Material Weakness in Internal Control and Material Instance of
Non-Compliance
Criteria:
In accordance with Title 2 U.S. Code of Federal Regulations (CFR) 200.332, pass-through entities must comply with the following:
• 2 CFR 200.332(a) - Ensure that every subaward is clearly identified to the subrecipient as a subaward and includes the information at 2 CFR 200.332(a)(1) through (6) at the time of the subaward and if any of those data elements change, include the changes in subsequent subaward modification.
• 2 CFR 200.332(d)- Monitor the activities of the subrecipient as necessary to ensure that the subaward is used for authorized purposes, in compliance with Federal statutes, regulations, and the terms and conditions of the subaward; and that subaward performance goals are achieved. Pass-through entity monitoring of the subrecipient must include the information at 2 CFR 200.332(d)(1) through (4).
• 2 CFR 200.332(f) – Verify that every subrecipient is audited as required by Subpart F of this part when it is expected that the subrecipient’s Federal awards expended during the respective fiscal year equaled or exceeded the threshold set forth in 200.501.
Condition:
The information required in accordance with 2 CFR 200.332(a)(1) through (6) was not provided at the time of the subaward. The information was provided to the subrecipients subsequent to the start date of the subaward.
The Commission was responsible for the monitoring of the subrecipients to ensure that the subawards were used for authorized purposes, in compliance with Federal statutes, regulations, and the terms and conditions of the subaward. During our testing, we noted the Commission did not perform the risk assessment for 3 of 3 subrecipients.
Due to the timing of the notifications of subaward to the subrecipients, the Commission was not able to verify whether subrecipients had reported the subawards within their financial statements as federal awards.
Cause:
During the current fiscal year, the Commission was implementing policies and procedures for subrecipient monitoring. However, the subrecipient monitoring procedures were not fully implemented as of year-end.
Effect:
The Commission had not fully complied with subrecipient monitoring requirements.
Questioned Costs:
None reported.
Context:
A nonstatistical sample of three (3) of three (3) subrecipients were selected for subrecipient monitoring testing.
Repeat Finding from Prior Year:
Yes – 2022-002
Recommendation:
We recommend that the Commission adhere to their policies and procedures in accordance with 2 CFR 200.332 to ensure compliance with subrecipient monitoring requirements.
Views of Responsible Officials:
Management agrees. See separately issued Corrective Action Plan.
U.S. Department of Health and Human Services, California Department of Social Services
Federal Financial Assistance Listing/CFDA Number 93.575
Award Year 2022/23
Child Care and Development Fund Cluster
Compliance Requirement: Allowable Costs/Cost Principles
Type of Finding: Significant Deficiency in Internal Control and Instance of Non-Compliance
Criteria:
Title 2 CFR Section 200.302(b)(7) of the Uniform Guidance requires all non-Federal entities establish written procedures to implement the requirements for determining the allowability of costs in accordance with Subpart E – Cost Principles and the conditions of the Federal award.
Condition:
The Commission has not established written procedures for determining allowability of costs in accordance with Subpart E – Cost Principles or the conditions of the Federal award.
Cause:
The Commission’s procedures did not ensure the required written procedures were developed and implemented in accordance with the Uniform Guidance.
Effect:
The Commission has not complied with Title 2 CFR Section 200.302(b)(7) regarding establishing written procedures for determining the allowability of costs.
Questioned Costs:
None reported.
Context:
The condition noted above was identified during our procedures related to allowable costs.
Repeat Finding from Prior Year:
Yes – 2022-001
Recommendation:
We recommend the Commission establish policies and formalize written procedures related to allowable costs in accordance with Subpart E – Cost Principles.
Views of Responsible Officials:
Management agrees. See separately issued Corrective Action Plan.
U.S. Department of Health and Human Services, California Department of Social Services
Federal Financial Assistance Listing/CFDA Number 93.575
Award Year 2022/23
Child Care and Development Fund Cluster
Compliance Requirement: Subrecipient Monitoring
Type of Finding: Material Weakness in Internal Control and Material Instance of
Non-Compliance
Criteria:
In accordance with Title 2 U.S. Code of Federal Regulations (CFR) 200.332, pass-through entities must comply with the following:
• 2 CFR 200.332(a) - Ensure that every subaward is clearly identified to the subrecipient as a subaward and includes the information at 2 CFR 200.332(a)(1) through (6) at the time of the subaward and if any of those data elements change, include the changes in subsequent subaward modification.
• 2 CFR 200.332(d)- Monitor the activities of the subrecipient as necessary to ensure that the subaward is used for authorized purposes, in compliance with Federal statutes, regulations, and the terms and conditions of the subaward; and that subaward performance goals are achieved. Pass-through entity monitoring of the subrecipient must include the information at 2 CFR 200.332(d)(1) through (4).
• 2 CFR 200.332(f) – Verify that every subrecipient is audited as required by Subpart F of this part when it is expected that the subrecipient’s Federal awards expended during the respective fiscal year equaled or exceeded the threshold set forth in 200.501.
Condition:
The information required in accordance with 2 CFR 200.332(a)(1) through (6) was not provided at the time of the subaward. The information was provided to the subrecipients subsequent to the start date of the subaward.
The Commission was responsible for the monitoring of the subrecipients to ensure that the subawards were used for authorized purposes, in compliance with Federal statutes, regulations, and the terms and conditions of the subaward. During our testing, we noted the Commission did not perform the risk assessment for 3 of 3 subrecipients.
Due to the timing of the notifications of subaward to the subrecipients, the Commission was not able to verify whether subrecipients had reported the subawards within their financial statements as federal awards.
Cause:
During the current fiscal year, the Commission was implementing policies and procedures for subrecipient monitoring. However, the subrecipient monitoring procedures were not fully implemented as of year-end.
Effect:
The Commission had not fully complied with subrecipient monitoring requirements.
Questioned Costs:
None reported.
Context:
A nonstatistical sample of three (3) of three (3) subrecipients were selected for subrecipient monitoring testing.
Repeat Finding from Prior Year:
Yes – 2022-002
Recommendation:
We recommend that the Commission adhere to their policies and procedures in accordance with 2 CFR 200.332 to ensure compliance with subrecipient monitoring requirements.
Views of Responsible Officials:
Management agrees. See separately issued Corrective Action Plan.
U.S. Department of Health and Human Services, California Department of Social Services
Federal Financial Assistance Listing/CFDA Number 93.575
Award Year 2022/23
Child Care and Development Fund Cluster
Compliance Requirement: Allowable Costs/Cost Principles
Type of Finding: Significant Deficiency in Internal Control and Instance of Non-Compliance
Criteria:
Title 2 CFR Section 200.302(b)(7) of the Uniform Guidance requires all non-Federal entities establish written procedures to implement the requirements for determining the allowability of costs in accordance with Subpart E – Cost Principles and the conditions of the Federal award.
Condition:
The Commission has not established written procedures for determining allowability of costs in accordance with Subpart E – Cost Principles or the conditions of the Federal award.
Cause:
The Commission’s procedures did not ensure the required written procedures were developed and implemented in accordance with the Uniform Guidance.
Effect:
The Commission has not complied with Title 2 CFR Section 200.302(b)(7) regarding establishing written procedures for determining the allowability of costs.
Questioned Costs:
None reported.
Context:
The condition noted above was identified during our procedures related to allowable costs.
Repeat Finding from Prior Year:
Yes – 2022-001
Recommendation:
We recommend the Commission establish policies and formalize written procedures related to allowable costs in accordance with Subpart E – Cost Principles.
Views of Responsible Officials:
Management agrees. See separately issued Corrective Action Plan.
U.S. Department of Health and Human Services, California Department of Social Services
Federal Financial Assistance Listing/CFDA Number 93.575
Award Year 2022/23
Child Care and Development Fund Cluster
Compliance Requirement: Subrecipient Monitoring
Type of Finding: Material Weakness in Internal Control and Material Instance of
Non-Compliance
Criteria:
In accordance with Title 2 U.S. Code of Federal Regulations (CFR) 200.332, pass-through entities must comply with the following:
• 2 CFR 200.332(a) - Ensure that every subaward is clearly identified to the subrecipient as a subaward and includes the information at 2 CFR 200.332(a)(1) through (6) at the time of the subaward and if any of those data elements change, include the changes in subsequent subaward modification.
• 2 CFR 200.332(d)- Monitor the activities of the subrecipient as necessary to ensure that the subaward is used for authorized purposes, in compliance with Federal statutes, regulations, and the terms and conditions of the subaward; and that subaward performance goals are achieved. Pass-through entity monitoring of the subrecipient must include the information at 2 CFR 200.332(d)(1) through (4).
• 2 CFR 200.332(f) – Verify that every subrecipient is audited as required by Subpart F of this part when it is expected that the subrecipient’s Federal awards expended during the respective fiscal year equaled or exceeded the threshold set forth in 200.501.
Condition:
The information required in accordance with 2 CFR 200.332(a)(1) through (6) was not provided at the time of the subaward. The information was provided to the subrecipients subsequent to the start date of the subaward.
The Commission was responsible for the monitoring of the subrecipients to ensure that the subawards were used for authorized purposes, in compliance with Federal statutes, regulations, and the terms and conditions of the subaward. During our testing, we noted the Commission did not perform the risk assessment for 3 of 3 subrecipients.
Due to the timing of the notifications of subaward to the subrecipients, the Commission was not able to verify whether subrecipients had reported the subawards within their financial statements as federal awards.
Cause:
During the current fiscal year, the Commission was implementing policies and procedures for subrecipient monitoring. However, the subrecipient monitoring procedures were not fully implemented as of year-end.
Effect:
The Commission had not fully complied with subrecipient monitoring requirements.
Questioned Costs:
None reported.
Context:
A nonstatistical sample of three (3) of three (3) subrecipients were selected for subrecipient monitoring testing.
Repeat Finding from Prior Year:
Yes – 2022-002
Recommendation:
We recommend that the Commission adhere to their policies and procedures in accordance with 2 CFR 200.332 to ensure compliance with subrecipient monitoring requirements.
Views of Responsible Officials:
Management agrees. See separately issued Corrective Action Plan.
U.S. Department of Health and Human Services, California Department of Social Services
Federal Financial Assistance Listing/CFDA Number 93.575
Award Year 2022/23
Child Care and Development Fund Cluster
Compliance Requirement: Allowable Costs/Cost Principles
Type of Finding: Significant Deficiency in Internal Control and Instance of Non-Compliance
Criteria:
Title 2 CFR Section 200.302(b)(7) of the Uniform Guidance requires all non-Federal entities establish written procedures to implement the requirements for determining the allowability of costs in accordance with Subpart E – Cost Principles and the conditions of the Federal award.
Condition:
The Commission has not established written procedures for determining allowability of costs in accordance with Subpart E – Cost Principles or the conditions of the Federal award.
Cause:
The Commission’s procedures did not ensure the required written procedures were developed and implemented in accordance with the Uniform Guidance.
Effect:
The Commission has not complied with Title 2 CFR Section 200.302(b)(7) regarding establishing written procedures for determining the allowability of costs.
Questioned Costs:
None reported.
Context:
The condition noted above was identified during our procedures related to allowable costs.
Repeat Finding from Prior Year:
Yes – 2022-001
Recommendation:
We recommend the Commission establish policies and formalize written procedures related to allowable costs in accordance with Subpart E – Cost Principles.
Views of Responsible Officials:
Management agrees. See separately issued Corrective Action Plan.
U.S. Department of Health and Human Services, California Department of Social Services
Federal Financial Assistance Listing/CFDA Number 93.575
Award Year 2022/23
Child Care and Development Fund Cluster
Compliance Requirement: Subrecipient Monitoring
Type of Finding: Material Weakness in Internal Control and Material Instance of
Non-Compliance
Criteria:
In accordance with Title 2 U.S. Code of Federal Regulations (CFR) 200.332, pass-through entities must comply with the following:
• 2 CFR 200.332(a) - Ensure that every subaward is clearly identified to the subrecipient as a subaward and includes the information at 2 CFR 200.332(a)(1) through (6) at the time of the subaward and if any of those data elements change, include the changes in subsequent subaward modification.
• 2 CFR 200.332(d)- Monitor the activities of the subrecipient as necessary to ensure that the subaward is used for authorized purposes, in compliance with Federal statutes, regulations, and the terms and conditions of the subaward; and that subaward performance goals are achieved. Pass-through entity monitoring of the subrecipient must include the information at 2 CFR 200.332(d)(1) through (4).
• 2 CFR 200.332(f) – Verify that every subrecipient is audited as required by Subpart F of this part when it is expected that the subrecipient’s Federal awards expended during the respective fiscal year equaled or exceeded the threshold set forth in 200.501.
Condition:
The information required in accordance with 2 CFR 200.332(a)(1) through (6) was not provided at the time of the subaward. The information was provided to the subrecipients subsequent to the start date of the subaward.
The Commission was responsible for the monitoring of the subrecipients to ensure that the subawards were used for authorized purposes, in compliance with Federal statutes, regulations, and the terms and conditions of the subaward. During our testing, we noted the Commission did not perform the risk assessment for 3 of 3 subrecipients.
Due to the timing of the notifications of subaward to the subrecipients, the Commission was not able to verify whether subrecipients had reported the subawards within their financial statements as federal awards.
Cause:
During the current fiscal year, the Commission was implementing policies and procedures for subrecipient monitoring. However, the subrecipient monitoring procedures were not fully implemented as of year-end.
Effect:
The Commission had not fully complied with subrecipient monitoring requirements.
Questioned Costs:
None reported.
Context:
A nonstatistical sample of three (3) of three (3) subrecipients were selected for subrecipient monitoring testing.
Repeat Finding from Prior Year:
Yes – 2022-002
Recommendation:
We recommend that the Commission adhere to their policies and procedures in accordance with 2 CFR 200.332 to ensure compliance with subrecipient monitoring requirements.
Views of Responsible Officials:
Management agrees. See separately issued Corrective Action Plan.