Finding Text
2023-003: Internal Controls over Allowable Costs
CCDF Cluster:
93.575 - Child Care and Development Block Grant
93.596 - Child Care Mandatory and Matching Funds of the Child Care and Development
Fund
Passthrough Agency: Louisiana Department of Education
Questioned Costs: Not applicable.
Criteria: A non-federal entity is responsible for the establishment and maintenance of internal controls over a Federal award to provide reasonable assurance that an entity is managing an award
in compliance with Federal statutes, regulations and the terms and conditions of the award. The School Board requires a memorandum of understanding (MOU) for each vendor as part of its internal
control structure over compliance with federal program regulations. The Coordinated Funding Request Application and MOU is to be completed and approved by both the Child Care Provider
Director and Director for Early Childhood or Superintendent. Universe/Population: A population of 25 state approved daycare centers/childcare facilities existed.
Expenditures related to these vendors totaled $1,121,125 for the fiscal year ended June 30, 2023.
Condition: Out of the 25 approved daycare/childcare facilities, we selected a sample of 13 to test the established controls over program compliance. This was a non-statistical sample. The School Board was unable to provide MOUs for 8 out of the 13 vendors selected in our testing. While expenditures are reviewed and approved for each request submitted and our testing did not reveal any non-compliance with program regulations, established policies and procedures were not followed by the School Board.
Cause: The CCDF Program director retired in February 2024. Given the turnover in a key position, the new administration found it difficult to locate the MOU documentation requested.
Effect: Without adhering to internal controls established over federal compliance, the School Board may be at risk for non-compliance with Federal statutes, regulations or terms and conditions of the
Federal award.
Recommendations: The School Board should remind personnel of the need to comply with established procedures and work to obtaining all missing MOUs from approved daycare/childcare providers.
View of Responsible Official: Management concurs with this finding, see corrective action plan dated March 27, 2024.