1. Elimination of Federal Allocation for Executive Salaries in 2023: Starting in 2023, KFA ensured that no executive salaries were charged to the federal funding portion of the foster care program, eliminating any potential misallocation.
2. Development of Cost Allocation Methodology: KFA has initiated the development of a consistent methodology for allocating direct and indirect costs. This includes A) Utilizing time certifications for staff whose work spans multiple foster care subprograms (e.g., ISFC, EISFC). B) Documenting allocation methods to ensure transparency and auditability.
3. Reconciliation Processes: Processes have been implemented to reconcile FC32 reports with functional expense statements and financial records to ensure consistency and accuracy.
4. Enhanced Training: Staff involved in financial reporting and cost allocation have received training on compliance with federal and state requirements, including proper preparation of FC32 reports.
5. System Enhancements: KFA is upgrading its financial management systems to facilitate accurate tracking of program-specific expenses and allocating costs to the appropriate funding sources.