FAC Explorer

Finding 33799 (2022-001)

Material Weakness
Requirement
P
Questioned Costs
-
Year
2022
Accepted
2023-08-21
Audit: 35487
Organization: Saugatuck Child Care Services Inc. (CT)
Auditor: Apicella Testa and Company

AI Summary

  • Core Issue: The organization failed to record all revenue and expenses for the Child and Adult Food Care Program, leading to incomplete financial statements.
  • Impacted Requirements: Financial statements must accurately reflect all organizational activities, which was not met due to insufficient accounting resources.
  • Recommended Follow-Up: Management should enhance bookkeeping and reconciliation processes to ensure accurate monthly recording of program activities.

Finding Text

Finding Number 2022-001 ? Federal Grantor ? U.S. Department of Agriculture ? Pass-Through Grantor ? State of Connecticut Department of Education ? Federal Program Name ? Child and Adult Food Care Program ? CFDA Number ? 10.558 ? Finding Type ? Material Weakness in Internal Control over Financial Reporting ? Criteria ? The financial statements should include all activity of the organization. ? Condition ? Not all of the revenue and expenses associated with the program were being recorded on the general ledger by the client and amounts were not readily determinable. ? Cause ? The organization is not devoting sufficient time and resources to accounting for the program. ? Effect ? Significant adjusting journal entries were required during the audit process to record the program activity on the statement of financial position and statement of activities at year-end in order for the financial statements and the schedule of federal awards to be fairly presented. ? Questioned Costs ? Not Applicable ? Repeat Finding ? No ? Recommendation ? Management needs to strengthen internal bookkeeping procedures and reconciliation processes related to the federal program. ? Views of Responsible Officials ? Management agrees with the finding. Actual revenue and expenses will be recorded each month in the general ledger and reconciled to the bank account.

Corrective Action Plan

Finding Number 2022-001 ? Description ? Not all of the revenue and expenses associated with the program was being recorded on the general ledger by the client and amounts were not readily determinable. ? Views of Responsible Officials and Planned Corrective Action ? We agree with the finding. We will record actual revenue and expenses each month in the general ledger and reconcile the activity to the bank account. ? Names and Title of Responsible Official ? Cathy Donahue, SON Director and Kathy Sabitsky, Finance Manager. ? Anticipated Completion Date ? September 2023.

Categories

Material Weakness Reporting Internal Control / Segregation of Duties

Other Findings in this Audit

  • 33800 2022-002
    Material Weakness
  • 33801 2022-003
    Significant Deficiency
  • 33802 2022-004
    -
  • 33803 2022-001
    Material Weakness
  • 33804 2022-002
    Material Weakness
  • 33805 2022-003
    Significant Deficiency
  • 33806 2022-004
    -
  • 33807 2022-001
    Material Weakness
  • 33808 2022-002
    Material Weakness
  • 33809 2022-003
    Significant Deficiency
  • 33810 2022-004
    -
  • 33811 2022-001
    Material Weakness
  • 33812 2022-002
    Material Weakness
  • 33813 2022-003
    Significant Deficiency
  • 33881 2022-004
    -
  • 610241 2022-001
    Material Weakness
  • 610242 2022-002
    Material Weakness
  • 610243 2022-003
    Significant Deficiency
  • 610244 2022-004
    -
  • 610245 2022-001
    Material Weakness
  • 610246 2022-002
    Material Weakness
  • 610247 2022-003
    Significant Deficiency
  • 610248 2022-004
    -
  • 610249 2022-001
    Material Weakness
  • 610250 2022-002
    Material Weakness
  • 610251 2022-003
    Significant Deficiency
  • 610252 2022-004
    -
  • 610253 2022-001
    Material Weakness
  • 610254 2022-002
    Material Weakness
  • 610255 2022-003
    Significant Deficiency
  • 610323 2022-004
    -

Programs in Audit

ALN Program Name Expenditures
93.575 Child Care and Development Block Grant $58,974
10.558 Child and Adult Care Food Program - Meals $52,326
10.558 Child and Adult Care Food Program - Admin $6,744