Finding 6157 (2023-001)

Significant Deficiency Repeat Finding

Requirement

Questioned Costs

Year

2023

Accepted

2023-12-21

Audit: 8037

Organization: First 5 San Bernardino (CA)

Auditor: Eide Bailly LLP

AI Summary

Core Issue: The Commission lacks written procedures for determining allowable costs as required by federal guidelines.
Impacted Requirements: This finding indicates a significant deficiency in internal controls and non-compliance with Title 2 CFR Section 200.302(b)(7).
Recommended Follow-Up: The Commission should develop and formalize policies and procedures for allowable costs to ensure compliance with federal requirements.

Finding Text

U.S. Department of Health and Human Services, California Department of Social Services Federal Financial Assistance Listing/CFDA Number 93.575 Award Year 2022/23 Child Care and Development Fund Cluster Compliance Requirement: Allowable Costs/Cost Principles Type of Finding: Significant Deficiency in Internal Control and Instance of Non-Compliance Criteria: Title 2 CFR Section 200.302(b)(7) of the Uniform Guidance requires all non-Federal entities establish written procedures to implement the requirements for determining the allowability of costs in accordance with Subpart E – Cost Principles and the conditions of the Federal award. Condition: The Commission has not established written procedures for determining allowability of costs in accordance with Subpart E – Cost Principles or the conditions of the Federal award. Cause: The Commission’s procedures did not ensure the required written procedures were developed and implemented in accordance with the Uniform Guidance. Effect: The Commission has not complied with Title 2 CFR Section 200.302(b)(7) regarding establishing written procedures for determining the allowability of costs. Questioned Costs: None reported. Context: The condition noted above was identified during our procedures related to allowable costs. Repeat Finding from Prior Year: Yes – 2022-001 Recommendation: We recommend the Commission establish policies and formalize written procedures related to allowable costs in accordance with Subpart E – Cost Principles. Views of Responsible Officials: Management agrees. See separately issued Corrective Action Plan.

Corrective Action Plan

Finding 2023-001 Federal Agency Name: US Department of Health & Human Services, California Department of Social Services Program Name: Child Care and Development Fund Cluster CFDA #93.575 Finding Summary: The Commission has not established written procedures for determining allowability of costs in accordance with Subpart E- Cost principles or the conditions of the Federal award. Responsible Individuals: Debora Dickerson-Sims, Chief Financial Officer Corrective Action Plan: Review current policies and procedures to revise or develop new procedures for determining allowability of costs in accordance with Subpart E – Cost principles or the conditions of the Federal award. Anticipated Completion Date: June 30, 2024

Other Findings in this Audit

6158 2023-002

Material Weakness Repeat
6159 2023-001

Significant Deficiency Repeat
6160 2023-002

Material Weakness Repeat
582599 2023-001

Significant Deficiency Repeat
582600 2023-002

Material Weakness Repeat
582601 2023-001

Significant Deficiency Repeat
582602 2023-002

Material Weakness Repeat

Programs in Audit

ALN	Program Name	Expenditures
93.434	Every Student Succeeds Act/preschool Development Grants	$119,543
93.575	Child Care and Development Block Grant	$66,250