Finding 383331 (2023-004)

Material Weakness

Requirement

Questioned Costs

Year

2023

Accepted

2024-03-21

Audit: 296524

Organization: Vermont Association for the Education of Young Children (VT)

Auditor: Mudgett Jennett & Krogh-Wisner PC

AI Summary

Core Issue: VTAEYC's Schedule of Expenditures of Federal Awards was overstated by $137,488 due to unaccounted State of Vermont funded expenditures.
Impacted Requirements: This finding violates Uniform Guidance §200.510, which mandates accurate reporting of all Federal awards.
Recommended Follow-up: Ensure future schedules accurately reflect all funding sources to prevent similar discrepancies.

Finding Text

Condition - The VTAEYC Schedule of Expenditures of Federal Awards presented for audit for the year ended June 30, 2023 included State of Vermont funded expenditures totaling $137,488. The Schedule of Expenditures of Federal Awards has been corrected to account for this error. Criteria - Uniform Guidance §200.510 states that an auditee must “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”. Cause - When preparing the Schedule of Expenditures of Federal Awards VTAEYC did not account for two grant agreements that are partially funded with State of Vermont funds. Effect - VTAEYC’s Schedule of Expenditures of Federal Awards presented for audit was overstated by $137,488.

Corrective Action Plan

Recommendation - We recommend that VTAEYC closely review the grant agreements for each grant listed on its Schedule of Expenditures of Federal Awards and verify that only federally funded expenditures are included on the Schedule of Expenditures of Federal Awards.Management’s response - VTAEYC was required to complete a Schedule of Expenditures of Federal Awards (SEFA) for the first time as part of a single audit. VTAEYC correctly identified all grants that were federally funded, however when reporting the expenses on the SEFA report, two of the grant awards were a mix of state and federal funds. VTAEYC reported all grant expenditures for FY23 and should have adjusted the total grant expenditures in FY23 to reflect only federally funded expenses. VTAEYC management is now aware of this issue and has noted this in their SEFA report template to ensure this is done correctly in the future.

Other Findings in this Audit

383332 2023-005

Material Weakness
959773 2023-004

Material Weakness
959774 2023-005

Material Weakness

Programs in Audit

ALN	Program Name	Expenditures
93.575	Child Care and Development Block Grant	$265,018