Finding Text
2024.01 - Enrollment, Attendance, and Fiscal Reports (CCTR3062, CSPP3118, CMIG3003), (HHS - CFDA 93.596 & 93.575) Criteria: Contractors are required to submit enrollment, attendance, and fiscal reports every quarter to both CDE and CDSS. In addition to attendance information, contractors are required to report all sources of revenues, including restricted and unrestricted income utilized for the child development programs. Total expenditures related to the program’s operations for the reporting period and the year-to-date total, including all expenses for specific purposes, as designated by restricted income and all non-reimbursable expenses. Condition: The Organization has complied with all aspects of record-keeping, and they have identified all expenditures related to restricted income. As required, the Organization has only reported restricted income to the extent that they have been designated and earned for specific purposes. However, due to a misinterpretation of the reporting requirements, reportable expenditures were reduced to the extent they were allocated for specific restricted purposes resulting in total state-related expenditures of $1,071,581 not being reported. The following is a summary of the under-reporting by contract: Questioned Costs: None Cause: As noted in the condition, management misinterpreted the restricted expenditures reporting requirements. Effect: The under reporting of expenses reduced the Organization’s reimbursable state contract funding and related cash flows needed to operate the Organization's child development programs. Recommendation: We recommend the Organization adjust its reporting practices and report all expenses related to the operations of the state-sponsored child development programs. Management Response: Management concurs with the findings.