FAC Explorer

Finding 7199 (2023-001)

Significant Deficiency
Requirement
B
Questioned Costs
-
Year
2023
Accepted
2024-01-03
Audit: 9356
Organization: Child Care Resource Center Inc. (OH)
Auditor: Barnes Wendling CPAS INC

AI Summary

  • Core Issue: Alcoholic beverage costs were charged to a federal program, violating federal regulations.
  • Impacted Requirements: Compliance with 45 CFR 200.423, which prohibits costs for alcoholic beverages.
  • Recommended Follow-Up: Management should review compliance requirements and establish policies to prevent future violations.

Finding Text

Federal Agency: United States Department of Health and Human Services CFDA Number(s): 93.575 Program Name(s): Child Care and Development Block Grant Criteria or specific requirement: The Code of Federal Regulations 200.423 states: Costs of alcoholic beverages are unallowable. Context and Condition: During our testing of disbursements, we noted 1 of the 40 disbursements sampled pertained to monthly credit card disbursements with transactions including the cost of alcoholic beverages allocated to the Federal programs. Questioned Costs: None noted Cause and Effect: Program personnel did not adhere to the Code of Federal Regulations for ensuring alcoholic beverages are not charged to a federal program. Failure to follow federal regulations is noncompliance and may result in a loss of federal funding. Recommendation: We recommend the Organization's management review the requirements for compliance with Federal regulations. In addition, we recommend the Organization's management implement policies and procedures to ensure compliance with Federal regulations.

Corrective Action Plan

Agency: Child Care Resource Center, Inc. Name of contact person and title: Jennifer Dodge, Executive Director Anticipated completion date: December 31, 2023 Agency’s response: Concur Child Care Resource Center, Inc. agrees with this finding and will implement the following: • Distribute and train the staff on what costs are allowable and unallowable under federal programs. • During the review process of billing for reimbursement increased oversight of credit card disbursements submitted with the billings.

Categories

Allowable Costs / Cost Principles

Other Findings in this Audit

  • 7200 2023-001
    Significant Deficiency
  • 7201 2023-001
    Significant Deficiency
  • 583641 2023-001
    Significant Deficiency
  • 583642 2023-001
    Significant Deficiency
  • 583643 2023-001
    Significant Deficiency

Programs in Audit

ALN Program Name Expenditures
10.558 Child and Adult Care Food Program $1.51M
93.575 Child Care and Development Block Grant $690,404