FAC Explorer

Finding 382636 (2023-001)

Significant Deficiency
Requirement
C
Questioned Costs
-
Year
2023
Accepted
2024-03-20
Audit: 296217
Organization: Early Learning Coalition of Southwest Florida, Inc. (FL)
Auditor: Moss Krusick & Associates LLC

AI Summary

  • Core Issue: The Coalition did not follow its cash management policy, depositing federal funds into non-interest-bearing accounts.
  • Impacted Requirements: This violates federal regulations requiring advance payments to be in interest-bearing accounts, affecting compliance with 2 CFR 200.305.
  • Recommended Follow-Up: Transfer DEL grant funds to an interest-bearing account and return any accrued interest to the Department of Health and Human Services.

Finding Text

Section IV - Federal Award and State Projects Findings and Questioned Costs Findings and Questioned Costs – Major Federal Programs Finding 2023-001: Internal Control over Compliance and Compliance with Cash Management Federal Programs: ALN 93.575/93.596, and 93.558 Criteria: In accordance with the grant agreement and 2 CFR 200.305(8) and (9), the non-Federal entity must maintain advance payments of Federal awards in interest-bearing accounts. Interest earned amounts up to $500 per year may be retained by the non-Federal entity for administrative expense. Any additional interest earned on Federal advance payments deposited in interest-bearing accounts must be remitted annually to the Department of Health and Human Services. Condition: The Coalition has a cash management policy in accordance with federal regulations, however, the policy was not followed. Federal funds were deposited into non-interest-bearing accounts. Cause: Lack of effective controls surrounding cash management and review of controls to ensure compliance with federal regulations. Effect: The Coalition has not accrued interest on DEL grant funds in accordance with federal regulations. Recommendation: We recommend the Coalition transfer all DEL grant funds to its interest-bearing account and return accrued interest to DEL. Management’s Response: See Management’s Corrective Action Plan beginning on page 25.

Corrective Action Plan

Finding 2023-001 & 2023-002 Internal Control over Compliance and Compliance with Cash Management Responsible Official’s Response and Corrective Action Plan Pursuant to s. 216.181(16)(b), F.S., 2 CFR § 200.305(8) and (9), Federal payment, and DEL Program Guidance 240.01 – Cash Management Procedures, the Early Learning Coalition of Southwest Florida will invest the funds it receives under the Florida Department of Education’s Division of Early Learning (DEL) Grant Agreement in secure, interest-bearing accounts, unless DEL otherwise authorizes. The ELC shall return to DEL all interest income earned on VPK funds and interest earned on CCDF funds in excess of $500 for the program year. The ELC shall notify DEL if there are no interest payments due to be returned. The target date for completion is on or before September 1, 2024. The immediate goal is to comply prior to the new contract year beginning July 1, 2024. However, if meeting compliance requirements precipitates a change in banking institutions, this change would require implementing a procurement process in compliance with s. 287.057, F.S., and 2 CFR Parts 200.318-320. Anticipated Completion Date: September 1, 2024 Responsible Party: Melanie Stefanowicz, Chief Executive Officer

Categories

Cash Management

Other Findings in this Audit

  • 382637 2023-001
    Significant Deficiency
  • 382638 2023-001
    Significant Deficiency
  • 382639 2023-001
    Significant Deficiency
  • 382640 2023-001
    Significant Deficiency
  • 382641 2023-001
    Significant Deficiency
  • 382642 2023-001
    Significant Deficiency
  • 382643 2023-001
    Significant Deficiency
  • 959078 2023-001
    Significant Deficiency
  • 959079 2023-001
    Significant Deficiency
  • 959080 2023-001
    Significant Deficiency
  • 959081 2023-001
    Significant Deficiency
  • 959082 2023-001
    Significant Deficiency
  • 959083 2023-001
    Significant Deficiency
  • 959084 2023-001
    Significant Deficiency
  • 959085 2023-001
    Significant Deficiency

Programs in Audit

ALN Program Name Expenditures
93.575 Child Care and Development Block Grant $16.83M
93.596 Child Care Mandatory and Matching Funds of the Child Care and Development Fund $9.00M
93.558 Temporary Assistance for Needy Families $5.97M
21.027 Coronavirus State and Local Fiscal Recovery Funds $1.28M
93.575 American Rescue Plan $259,474
93.575 Child Care and Development Block Grant - Cares $186,086
93.575 Coronavirus Response and Relief Supplemental Appropriations Funds $77,120
93.434 Preschool Development Grant $55,712
93.667 Social Services Block Grant $16,623
84.452D Elementary and Secondary School Emergency Relief Fund $9,735