FAC Explorer

Audit 8924

FY End
2022-12-31
Total Expended
$6.50M
Findings
2
Programs
2
Organization: Bright Nutrition (TX)
Year: 2022 Accepted: 2023-12-29
Auditor: Cascos & Associates PC

Organization Exclusion Status:

Findings

ID Ref Severity Repeat Requirement
6934 2022-001 Significant Deficiency - AB
583376 2022-001 Significant Deficiency - AB

Programs

ALN Program Spent Major Findings
10.558 Child and Adult Care Food Program $5.65M Yes 0
10.559 Summer Food Service Program for Children $854,500 Yes 1

Contacts

Name Title Type
V1P8HKMBEHD5 Nadia Martinez Auditee
9565896698 Delia Soto Auditor
No contacts on file

Notes to SEFA

Accounting Policies: 1. GENERAL Bright Nutrition is organized as a sponsor of child care centers. Revenues are recognized when services are rendered, and expenses realized when obligations are incurred. 2. BASIS OF ACCOUNTING The Schedule of Expenditures of Federal Awards (the ‘Schedule”) includes the federal grant activity of Bright Nutrition and is presented on the accrual basis of accounting. The information in this Schedule is presented in accordance with the requirements of Title 2 U.S. Code of Federal Regulations (CFR) 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 Bright Nutrition, it is not intended to and does not present the financial position, changes in net assets, or cash flows of Bright Nutrition. 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. 3. INDIRECT COSTS Bright Nutrition has not elected to use the 10% de minimis cost rate as allowed in the Uniform Guidance. Bright Nutrition, by contract, is authorized to use an administrative cost allowance between 10% and 15%. For the year ended December 31, 2022, administrative costs were $384,192 of $6,504,443 Federal Awards = 5.91%. De Minimis Rate Used: Y Rate Explanation: The auditee did not use the de minimis cost rate.

Finding Details

Finding 2022-001
Significant Deficiency Federal Program: Summer Food Service Program for Children (ALN 10.559) Federal Agency: U.S. Department of Agriculture Federal Award Year: 2022 Criteria: Under the Uniform Guidance, nonfederal entities must 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. These internal controls should be in compliance with guidance in “Standards for Internal Control in the Federal Government” issued by the Comptroller General of the United States or the “Internal Control Integrated Framework”, issued by the Committee of Sponsoring Organizations of the Treadway Commission (COSO). Condition: During our review of the federal program, we determined that the Organization lacks internal controls over expenditures. Cause: The Organization does not have detection and prevention procedures. Effect: Without proper internal controls, the Organization cannot prevent or detect instances of noncompliance with grant requirements. Questioned Costs: $0 Recommendation: We recommend the organization adhere to the Uniform Guidance and establish internal controls to ensure proper authorization and approvals of expenditures. Management’s views and Corrective Action Plan: Management agrees with finding. See Corrective Action Plan at page 20.
Finding 2022-001
Significant Deficiency Federal Program: Summer Food Service Program for Children (ALN 10.559) Federal Agency: U.S. Department of Agriculture Federal Award Year: 2022 Criteria: Under the Uniform Guidance, nonfederal entities must 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. These internal controls should be in compliance with guidance in “Standards for Internal Control in the Federal Government” issued by the Comptroller General of the United States or the “Internal Control Integrated Framework”, issued by the Committee of Sponsoring Organizations of the Treadway Commission (COSO). Condition: During our review of the federal program, we determined that the Organization lacks internal controls over expenditures. Cause: The Organization does not have detection and prevention procedures. Effect: Without proper internal controls, the Organization cannot prevent or detect instances of noncompliance with grant requirements. Questioned Costs: $0 Recommendation: We recommend the organization adhere to the Uniform Guidance and establish internal controls to ensure proper authorization and approvals of expenditures. Management’s views and Corrective Action Plan: Management agrees with finding. See Corrective Action Plan at page 20.