FAC Explorer

Audit 81455

FY End
2022-06-30
Total Expended
$2.28M
Findings
2
Programs
3
Organization: McKinley Children's Center, Inc. (CA)
Year: 2022 Accepted: 2023-03-06
Auditor: Vasquez & Company LLP

Organization Exclusion Status:

Findings

ID Ref Severity Repeat Requirement
84042 2022-001 Significant Deficiency - P
660484 2022-001 Significant Deficiency - P

Programs

ALN Program Spent Major Findings
93.658 Foster Care_title IV-E $1.90M Yes 1
93.958 Block Grants for Community Mental Health Services $291,431 - 0
93.659 Adoption Assistance $89,000 - 0

Contacts

Name Title Type
LCJNYFVWRKK4 George King Auditee
9095991227 Linda Narciso Auditor
No contacts on file

Notes to SEFA

Title: PASS-THROUGH TO SUB-RECIPIENTS Accounting Policies: BASIS FOR PRESENTATIONThe accompanying schedule of expenditures of federal and non-federal awards (the Schedule) includes the federal award activity of McKinley Childrens Center, Inc. (McKinley), under programs of the federal government for the year ended June 30, 2022. The information in this Schedule is presented in accordance with the requirements of Title 2 U.S. Code of Federal Regulations Part 200, Uniform Administrative Requirements, Cost Principles, and Audit Requirements for Federal Awards (Uniform Guidance). Because the Schedule presents only a selected portion of the operations of McKinley, it is not intended to, and does not present the financial position and changes in net assets, or cash flows of McKinley.BASIS OF ACCOUNTING 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. McKinley did not provide any federal awards to sub-recipients.
Title: PROVIDER RELIEF FUND Accounting Policies: BASIS FOR PRESENTATIONThe accompanying schedule of expenditures of federal and non-federal awards (the Schedule) includes the federal award activity of McKinley Childrens Center, Inc. (McKinley), under programs of the federal government for the year ended June 30, 2022. The information in this Schedule is presented in accordance with the requirements of Title 2 U.S. Code of Federal Regulations Part 200, Uniform Administrative Requirements, Cost Principles, and Audit Requirements for Federal Awards (Uniform Guidance). Because the Schedule presents only a selected portion of the operations of McKinley, it is not intended to, and does not present the financial position and changes in net assets, or cash flows of McKinley.BASIS OF ACCOUNTING 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. Funds under the Provider Relief Fund program totaling to $495,538 received by McKinley in March 2022 and spent during fiscal year 2022 were excluded in the accompanying Schedule of Expenditures of Federal and Non-federal Awards, in accordance with the OMB Compliance Supplement.
Title: OTHER INFORMATION Accounting Policies: BASIS FOR PRESENTATIONThe accompanying schedule of expenditures of federal and non-federal awards (the Schedule) includes the federal award activity of McKinley Childrens Center, Inc. (McKinley), under programs of the federal government for the year ended June 30, 2022. The information in this Schedule is presented in accordance with the requirements of Title 2 U.S. Code of Federal Regulations Part 200, Uniform Administrative Requirements, Cost Principles, and Audit Requirements for Federal Awards (Uniform Guidance). Because the Schedule presents only a selected portion of the operations of McKinley, it is not intended to, and does not present the financial position and changes in net assets, or cash flows of McKinley.BASIS OF ACCOUNTING 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. McKinley did not receive federal insurance, loans, or non-cash assistance during the year ended June 30, 2022.

Finding Details

Finding 2022-001
SA 2022-001 ? Improve Internal Control in the Preparation of Schedule of Expenditures of Federal Awards (SEFA) Criteria: The following sections of the Uniform Guidance provide the following requirements: Section ?200.510 (b) Schedule of Expenditures of Federal Awards; The auditee must also prepare a schedule of expenditures of federal awards for the period covered by the auditee's financial statements which must include the total Federal awards expended as determined in accordance with ?200.502 - Basis for determining Federal awards expended. While not required, the auditee may choose to provide the information requested by Federal awarding agencies and pass-through entities to make the schedule easier to use. For example, when a Federal program has multiple Federal award years, the auditee may list the amounts of Federal awards expended for each Federal award year separately. At a minimum, the schedule must: ? List individual Federal programs by Federal agency. For a cluster of programs, provide the cluster name, list individual Federal programs within the cluster of programs, and provide the applicable Federal agency name. ? Provide total Federal awards expended for each individual Federal program and the Assistance Listings number or other identifying number when the Assistance Listings information is not available. For a cluster of programs also provide the total for the cluster. Section 200.303: The non-federal entity should establish and maintain effective internal control over the Federal award that provides reasonable assurance that the non-federal entity is managing the Federal award in compliance with Federal statutes, regulations, and the terms and conditions of the Federal Award. Section 200.1 defines internal control for non-Federal entities as the processes designed and implemented by non-Federal entity to provide reasonable assurance regarding the achievement of the objectives in the following categories: (i) Effectiveness and efficiency of operations; (ii) Reliability of reporting for internal and external use Condition During our audit of the SEFA submitted by McKinley, we noted that McKinley omitted one federal program with total expenditures of $291,431. The SEFA was corrected after the error was brought up to McKinley?s attention. Cause/Effect McKinley?s current internal controls do not include procedures to ascertain all federal expenditures are captured in the SEFA. This resulted in the omission of a federal program from the SEFA reporting. Questioned Costs None Recommendation We recommend that McKinley update its current internal control processes to ensure all federal awards are identified for reporting as well as for compliance monitoring purposes. We also recommend that McKinley prepare SEFA in a format that is in accordance with the Uniform Guidance. Views of responsible officials and planned corrective actions: The McKinley Accounting Department, under the direction of George L. King, will ensure that federal grants received be clearly delineated on the trial balance through clear description that the source of funds is from a federal source and that the related expenditures are clearly identified from other expenditures on the trial balance. Completion of referenced corrective action will be implemented by February 10, 2023.
Finding 2022-001
SA 2022-001 ? Improve Internal Control in the Preparation of Schedule of Expenditures of Federal Awards (SEFA) Criteria: The following sections of the Uniform Guidance provide the following requirements: Section ?200.510 (b) Schedule of Expenditures of Federal Awards; The auditee must also prepare a schedule of expenditures of federal awards for the period covered by the auditee's financial statements which must include the total Federal awards expended as determined in accordance with ?200.502 - Basis for determining Federal awards expended. While not required, the auditee may choose to provide the information requested by Federal awarding agencies and pass-through entities to make the schedule easier to use. For example, when a Federal program has multiple Federal award years, the auditee may list the amounts of Federal awards expended for each Federal award year separately. At a minimum, the schedule must: ? List individual Federal programs by Federal agency. For a cluster of programs, provide the cluster name, list individual Federal programs within the cluster of programs, and provide the applicable Federal agency name. ? Provide total Federal awards expended for each individual Federal program and the Assistance Listings number or other identifying number when the Assistance Listings information is not available. For a cluster of programs also provide the total for the cluster. Section 200.303: The non-federal entity should establish and maintain effective internal control over the Federal award that provides reasonable assurance that the non-federal entity is managing the Federal award in compliance with Federal statutes, regulations, and the terms and conditions of the Federal Award. Section 200.1 defines internal control for non-Federal entities as the processes designed and implemented by non-Federal entity to provide reasonable assurance regarding the achievement of the objectives in the following categories: (i) Effectiveness and efficiency of operations; (ii) Reliability of reporting for internal and external use Condition During our audit of the SEFA submitted by McKinley, we noted that McKinley omitted one federal program with total expenditures of $291,431. The SEFA was corrected after the error was brought up to McKinley?s attention. Cause/Effect McKinley?s current internal controls do not include procedures to ascertain all federal expenditures are captured in the SEFA. This resulted in the omission of a federal program from the SEFA reporting. Questioned Costs None Recommendation We recommend that McKinley update its current internal control processes to ensure all federal awards are identified for reporting as well as for compliance monitoring purposes. We also recommend that McKinley prepare SEFA in a format that is in accordance with the Uniform Guidance. Views of responsible officials and planned corrective actions: The McKinley Accounting Department, under the direction of George L. King, will ensure that federal grants received be clearly delineated on the trial balance through clear description that the source of funds is from a federal source and that the related expenditures are clearly identified from other expenditures on the trial balance. Completion of referenced corrective action will be implemented by February 10, 2023.