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HomeMy WebLinkAbout4Cs FinancialFORGEAHEAD.COM 1245 JORDAN CREEK PKWY #100 WEST DES MOINES, IA 50266 515.620.3050 July 30, 2024 To the Board of Directors and Trustees Community Coordinated Child Care We have audited the financial statements of Community Coordinated Child Care for the year ended June 30, 2022, and have issued our report thereon dated July 30, 2024. Professional standards require that we provide you with information about our responsibilities under generally accepted auditing standards, Government Auditing Standards and the Uniform Guidance, as well as certain information related to the planned scope and timing of our audit. We have communicated such information in our letter to you dated February 20, 2023. Professional standards also require that we communicate to you the following information related to our audit. Significant Audit Findings Qualitative Aspects of Accounting Practices Management is responsible for the selection and use of appropriate accounting policies. The significant accounting policies used by Community Coordinated Child Care are described in Note 1 to the financial statements. The Organization reported on the modified cash basis in the previous year (ended June 30, 2021) and reported on accrual basis for the year ended June 30, 2022. We noted no transactions entered into by the Organization during the year for which there is a lack of authoritative guidance or consensus. All significant transactions have been recognized in the financial statements in the proper period. Accounting estimates are an integral part of the financial statements prepared by management and are based on management’s knowledge and experience about past and current events and assumptions about future events. Certain accounting estimates are particularly sensitive because of their significance to the financial statements and because of the possibility that future events affecting them may differ significantly from those expected. The most sensitive estimates affecting the financial statements were: x Depreciation of property and equipment is based on management’s estimation of the useful lives of those assets. x Net realizable value of receivables based on subsequent collections and management estimation of remaining collections on outstanding receivables. The financial statement disclosures are neutral, consistent, and clear. Difficulties Encountered in Performing the Audit We encountered no significant difficulties in dealing with management in performing and completing our audit. Corrected and Uncorrected Misstatements Professional standards require us to accumulate all misstatements identified during the audit, other than those that are clearly trivial, and communicate them to the appropriate level of management. The attached schedule summarizes uncorrected misstatements of the financial statements. Management has determined that their effects are immaterial, both individually and in the aggregate, to the financial statements taken as a whole. The uncorrected misstatements or the matters underlying them could potentially cause future period financial statements to be materially misstated, even though, in our judgment, such uncorrected misstatements are immaterial to the financial statements under audit. The attached schedule of adjusting journal entries summarize all misstatements detected as a result of audit procedures that were corrected by management. The misstatements detected and corrected were material to the financial statements. Disagreements with Management For purposes of this letter, a disagreement with management is a financial accounting, reporting, or auditing matter, whether or not resolved to our satisfaction, that could be significant to the financial statements or the auditor’s report. We are pleased to report that no such disagreements arose during the course of our audit. Management Representations We have requested certain representations from management that are included in the management representation letter dated July 30, 2024. Management Consultations with Other Independent Accountants In some cases, management may decide to consult with other accountants about auditing and accounting matters, similar to obtaining a “second opinion” on certain situations. If a consultation involves application of an accounting principle to the Organization’s financial statements or a determination of the type of auditor’s opinion that may be expressed on those statements, our professional standards require the consulting accountant to check with us to determine that the consultant has all the relevant facts. To our knowledge, there were no such consultations with other accountants. Other Audit Findings or Issues We generally discuss a variety of matters, including the application of accounting principles and auditing standards, with management each year prior to retention as the Organization’s auditors. However, these discussions occurred in the normal course of our professional relationship and our responses were not a condition to our retention. Other Information in Documents Containing Audited Financial Statements With respect to the supplementary information accompanying the financial statements, we made certain inquiries of management and evaluated the form, content, and methods of preparing the information to determine that the information complies with U.S. generally accepted accounting principles, the method of preparing it has not changed from the prior period, and the information is appropriate and complete in relation to our audit of the financial statements. We compared and reconciled the supplementary information to the underlying accounting records used to prepare the financial statements or to the financial statements themselves. This information is intended solely for the use of the board of directors, board of trustees and management of Community Coordinated Child Care and is not intended to be and should not be used by anyone other than these specified parties. Very truly yours, Forge Financial and Management Consulting, Inc. West Des Moines, Iowa De s c r i p t i o n Fa c t u a l ( F ) , Ju d g m e n t a l ( J ) , or P r o j e c t e d ( P ) Ac c o u n t Cl a s s W/ P R e f D e b i t C r e d i t As s e t s L i a b i l i t i e s N e t A s s e t s R e v e n u e s E x p e n s e s Ch a n g e i n Ne t A s s e t s Wo r k i n g Ca p i t a l Pa s s e d J o u r n a l E n t r y J E # 1 M- 2 . 1 Ac c o u n t s p a y a b l e P r o j e c t e d L i a b i l i t y 7 , 2 6 6 . 0 0 - ( 7 , 2 6 6 ) - - - - Ex p e n s e s E x p e n s e 7 , 2 6 6 . 0 0 - - - - ( 7 , 2 6 6 ) 7 , 2 6 6 - - - - - - - - - - - - 7, 2 6 6 . 0 0 7 , 2 6 6 . 0 0 Pa s s e d J o u r n a l E n t r y J E # 2 Ne t a s s e t s P r o j e c t e d N e t A s s e t s 2 , 9 8 3 . 0 0 - - 2 , 9 8 3 - - - Ex p e n s e s E x p e n s e 2 , 9 8 3 . 0 0 - - - - 2 , 9 8 3 ( 2 , 9 8 3 ) 2, 9 8 3 . 0 0 2 , 9 8 3 . 0 0 Pa s s e d J o u r n a l E n t r y J E # 3 E- 2 . 2 Cr i s i s c a r e g r a n t s r e v e n u e F a c t u a l R e v e n u e 1 , 0 7 6 . 9 4 - - - 1 , 0 7 7 - 1 , 0 7 7 Ne t a s s e t s N e t A s s e t s 1 , 0 7 6 . 9 4 - - ( 1 , 0 7 7 ) - - - Cr i s i s c a r e g r a n t s r e v e n u e R e v e n u e 1 , 0 8 3 . 1 5 - - - ( 1 , 0 8 3 ) - ( 1 , 0 8 3 ) Ac c o u n t s r e c e i v a b l e A s s e t 1 , 0 8 3 . 1 5 ( 1 , 0 8 3 ) - - - - - 2, 1 6 0 . 0 9 2 , 1 6 0 . 0 9 Pa s s e d J o u r n a l E n t r y J E # 4 Ne t a s s e t s J u d g m e n t a l N e t A s s e t s 1 0 , 5 6 9 . 5 6 - - 1 0 , 5 7 0 - - - Pr o v i d e r r e i m b u r s e m e n t e x p E x p e n s e 1 0 , 5 6 9 . 5 6 - - - - 1 0 , 5 7 0 ( 1 0 , 5 7 0 ) 10 , 5 6 9 . 5 6 1 0 , 5 6 9 . 5 6 To t a l s -$ 1 , 0 8 3 - $ 7 , 2 6 6 $ 1 2 , 4 7 6 - $ 6 $ 6 , 2 8 7 - $ 6 , 2 9 3 $ 0 Ef f e c t o f U n a d j u s t e d A D — P r i o r Y e a r s $0 $0 $ 0 Co m b i n e d C u r r e n t a n d P r i o r Y e a r A D ( R o l l o v e r M e t h o d ) -$ 1 , 0 8 3 - $ 7 , 2 6 6 $ 1 2 , 4 7 6 - $ 6 $ 6 , 2 8 7 - $ 6 , 2 9 3 $ 0 Fi n a n c i a l S t a t e m e n t C a p t i o n T o t a l s $3 5 0 , 1 0 3 $ 1 0 0 , 4 4 0 $ 2 4 9 , 6 6 3 $ 1 , 3 2 3 , 8 4 5 $ 1 , 3 0 8 , 7 5 7 $ 1 5 , 0 8 8 $ 1 7 3 , 4 7 9 Cu r r e n t a n d P r i o r Y e a r A D a s % o f F S C a p t i o n s ( R o l l o v e r M e t h o d ) -0 . 3 1 % - 7 . 2 3 % 5 . 0 0 % 0 . 0 0 % 0 . 4 8 % - 4 1 . 7 1 % 0 . 0 0 % Fi n a n c i a l S t a t e m e n t E f f e c t — A m o u n t o f O v e r ( U n d e r ) S t a t e m e n t o f : Pa s s o n p r o j e c t i o n o f m i s s t a t e m e n t i n A / P a t 6 / 3 0 / 2 2 f r o m su b s e q u e n t d i s b u r s e m e n t t e s t i n g ( c u t o f f ) Pa s s o n p r o j e c t i o n o f m i s s t a t e m e n t o f A / P a t 6 / 3 0 / 2 1 b a s e d o n su b s e q u e n t d i s b u r s e m e n t t e s t i n g ( c u t o f f ) Pa s s o n c u t o f f f o r c r i s i s c a r e g r a n t s f o r 6 / 3 0 / 2 1 a n d 6 / 3 0 / 2 2 Di f f e r e n c e o n p r o v i d e r r e i m b u r s e m e n t e x p e n s e v e r s u s d e t a i l f r o m mo n t h l y c l a i m d o c u m e n t s Client:4CS COMMUNITY COORDINATED CHILD CARE Engagement:Community Coordinated Child Care (4C's) 6-30-2022 Current Period:06/30/2022 Workpaper:AJE Report Account Description Workpaper Reference Debit Credit 1 4390 GRANTS:4390 UNITED WAY ALLOCATION 31,358.00 0.00 3900 RETAINED EARNINGS 0.00 31,358.00 4182 FEES:4180 CACFP:4182 Administrative Income 6,455.00 0.00 4181 FEES:4180 CACFP:4181 Provider Income 30,509.20 0.00 4182 FEES:4180 CACFP:4182 Administrative Income 720.03 0.00 4181 FEES:4180 CACFP:4181 Provider Income 3,417.84 0.00 3900 RETAINED EARNINGS 0.00 41,102.07 5140 PROFESSIONAL CONTRACT/SERVICES:5140 PROVIDER REIMBURSEMENTS 0.00 30,509.20 3900 RETAINED EARNINGS 30,509.20 0.00 5010 PAYROLL EXPENSES:5010 Salaries 0.00 2,038.84 5020 PAYROLL EXPENSES:5020 Hourly Wages 0.00 9,998.62 3900 RETAINED EARNINGS 12,037.46 0.00 Total 115,006.73 115,006.73 2 4390 GRANTS:4390 UNITED WAY ALLOCATION 0.00 31,358.00 1550 Receivable - United Way 31,358.00 0.00 Total 31,358.00 31,358.00 3 3900 RETAINED EARNINGS 0.00 14,002.15 6000 Depreciation expense 4,882.14 0.00 1850 Accumulated Depreciation 0.00 4,882.14 1800 Furniture & Equipment 3,786.62 0.00 1905 Community Foundation - Invest 10,215.53 0.00 5140 PROFESSIONAL CONTRACT/SERVICES:5140 PROVIDER REIMBURSEMENTS 0.00 16,854.26 3900 RETAINED EARNINGS 16,854.26 0.00 Total 35,738.55 35,738.55 4 5230 PROGRAM COSTS:5230 PROGRAM EXPENSE 0.00 12,157.00 4302 NEST Scholarships 12,157.00 0.00 Total 12,157.00 12,157.00 Prior period adjustments to convert to accrual basis (note A/P entry is entry #9) Record CY receivable for United Way allocation for 22-23 Prior year adjustments for unposted entries, post CY depreciation Reclass NEST scholarships 5N-2 2095 Accrued Payroll 0.00 28,085.13 5010 PAYROLL EXPENSES:5010 Salaries 4,699.90 0.00 5020 PAYROLL EXPENSES:5020 Hourly Wages 15,004.57 0.00 5010 PAYROLL EXPENSES:5010 Salaries 2,280.42 0.00 5020 PAYROLL EXPENSES:5020 Hourly Wages 6,100.24 0.00 Total 28,085.13 28,085.13 6C-1 1905 Community Foundation - Invest 0.00 7,949.79 4705 Change in Beneficial interest 7,949.79 0.00 Total 7,949.79 7,949.79 7M-1 2000 Accounts payable 0.00 9,370.66 5070 PAYROLL EXPENSES:5070 Work Comp Insurance 1,395.00 0.00 5310 TECHNOLOGY AND EQUIPMENT:5310 Computer/Software 76.00 0.00 5235 PROGRAM COSTS:5230 PROGRAM EXPENSE:5235 Food and Beverage 27.05 0.00 5112 PROFESSIONAL CONTRACT/SERVICES:5110 PROFESSIONAL FEES:5112 Computer Consulting Fees 1,030.44 0.00 5743 BUILDING/MAINT/INS/OVERHEAD:5743 Building/Grounds Maintenance 86.12 0.00 5213 PROGRAM COSTS:5210 ADMINISTRATIVE EXPENSES:5213 Janitorial Supplies 74.20 0.00 5750 BUILDING/MAINT/INS/OVERHEAD:5750 Insurance 782.42 0.00 5270 PROGRAM COSTS:5230 PROGRAM EXPENSE:5270 Crisis Care Expenses 96.00 0.00 5743 BUILDING/MAINT/INS/OVERHEAD:5743 Building/Grounds Maintenance 845.00 0.00 5125 PROFESSIONAL CONTRACT/SERVICES:5120 CONTRACT LABOR:5125 Other Contract Services 325.00 0.00 5120 PROFESSIONAL CONTRACT/SERVICES:5120 CONTRACT LABOR 40.00 0.00 5270 PROGRAM COSTS:5230 PROGRAM EXPENSE:5270 Crisis Care Expenses 516.00 0.00 5722 BUILDING/MAINT/INS/OVERHEAD:5722 Water/Sewer 19.96 0.00 5320 TECHNOLOGY AND EQUIPMENT:5320 Telephone 92.72 0.00 5125 PROFESSIONAL CONTRACT/SERVICES:5120 CONTRACT LABOR:5125 Other Contract Services 2,326.90 0.00 5230 PROGRAM COSTS:5230 PROGRAM EXPENSE 275.09 0.00 Record accrued payroll for July 1 check (full check) and July 15 check (4/10 days). To adjust Community Foundation balance Accrue A/P for 6/30/22 5320 TECHNOLOGY AND EQUIPMENT:5320 Telephone 112.76 0.00 5270 PROGRAM COSTS:5230 PROGRAM EXPENSE:5270 Crisis Care Expenses 300.00 0.00 5113 PROFESSIONAL CONTRACT/SERVICES:5110 PROFESSIONAL FEES:5113 Accounting/Audit Fees 950.00 0.00 Total 9,370.66 9,370.66 8AY-5.1 4383 GRANTS:4380 BLOCK GRANTS:4383 Iowa City CDGB 0.00 3,839.66 4182 FEES:4180 CACFP:4182 Administrative Income 0.00 2,011.57 4181 FEES:4180 CACFP:4181 Provider Income 0.00 57,938.08 4181 FEES:4180 CACFP:4181 Provider Income 0.00 13,249.80 1500 Accounts receivable 77,039.11 0.00 5140 PROFESSIONAL CONTRACT/SERVICES:5140 PROVIDER REIMBURSEMENTS 57,938.10 0.00 2000 Accounts payable 0.00 57,938.10 Total 134,977.21 134,977.21 9 5321 TECHNOLOGY AND EQUIPMENT:5320 Telephone:5321 Cell Phone Stipend 0.00 125.00 5217 PROGRAM COSTS:5210 ADMINISTRATIVE EXPENSES:5217 Bank/Finance Charges 0.00 5.45 5070 PAYROLL EXPENSES:5070 Work Comp Insurance 0.00 273.00 5722 BUILDING/MAINT/INS/OVERHEAD:5722 Water/Sewer 0.00 16.96 5211 PROGRAM COSTS:5210 ADMINISTRATIVE EXPENSES:5211 Office Supplies 0.00 15.89 5211 PROGRAM COSTS:5210 ADMINISTRATIVE EXPENSES:5211 Office Supplies 0.00 12.99 5213 PROGRAM COSTS:5210 ADMINISTRATIVE EXPENSES:5213 Janitorial Supplies 0.00 177.52 5213 PROGRAM COSTS:5210 ADMINISTRATIVE EXPENSES:5213 Janitorial Supplies 0.00 25.60 5212 PROGRAM COSTS:5210 ADMINISTRATIVE EXPENSES:5212 Health Supplies 0.00 13.04 5212 PROGRAM COSTS:5210 ADMINISTRATIVE EXPENSES:5212 Health Supplies 0.00 9.30 5235 PROGRAM COSTS:5230 PROGRAM EXPENSE:5235 Food and Beverage 0.00 23.01 5212 PROGRAM COSTS:5210 ADMINISTRATIVE EXPENSES:5212 Health Supplies 0.00 242.27 5200 PROGRAM COSTS 0.00 250.00 5213 PROGRAM COSTS:5210 ADMINISTRATIVE EXPENSES:5213 Janitorial Supplies 0.00 53.41 Accrue receivables for June claims for CACFP and CDBG **client entry**Record 6/30/21 Accounts payable to record beginning net assets w/ US GAAP 5211 PROGRAM COSTS:5210 ADMINISTRATIVE EXPENSES:5211 Office Supplies 0.00 177.31 5219 PROGRAM COSTS:5210 ADMINISTRATIVE EXPENSES:5219 Miscellaneous 0.00 9.45 5219 PROGRAM COSTS:5210 ADMINISTRATIVE EXPENSES:5219 Miscellaneous 0.00 13.60 5211 PROGRAM COSTS:5210 ADMINISTRATIVE EXPENSES:5211 Office Supplies 0.00 15.89 5525 STAFF DEVELOPMENT/TRAINING:5525 Miscellaneous 0.00 620.00 5219 PROGRAM COSTS:5210 ADMINISTRATIVE EXPENSES:5219 Miscellaneous 0.00 33.29 5211 PROGRAM COSTS:5210 ADMINISTRATIVE EXPENSES:5211 Office Supplies 0.00 28.62 5270 PROGRAM COSTS:5230 PROGRAM EXPENSE:5270 Crisis Care Expenses 0.00 252.00 5125 PROFESSIONAL CONTRACT/SERVICES:5120 CONTRACT LABOR:5125 Other Contract Services 0.00 115.00 5125 PROFESSIONAL CONTRACT/SERVICES:5120 CONTRACT LABOR:5125 Other Contract Services 0.00 1,656.20 5125 PROFESSIONAL CONTRACT/SERVICES:5120 CONTRACT LABOR:5125 Other Contract Services 0.00 984.33 5320 TECHNOLOGY AND EQUIPMENT:5320 Telephone 0.00 70.25 5320 TECHNOLOGY AND EQUIPMENT:5320 Telephone 0.00 274.95 5721 BUILDING/MAINT/INS/OVERHEAD:5721 Electricity/Gas 0.00 187.00 5270 PROGRAM COSTS:5230 PROGRAM EXPENSE:5270 Crisis Care Expenses 0.00 504.00 5113 PROFESSIONAL CONTRACT/SERVICES:5110 PROFESSIONAL FEES:5113 Accounting/Audit Fees 0.00 472.40 3900 RETAINED EARNINGS 6,657.73 0.00 Total 6,657.73 6,657.73 10 AY-5.1 5140 PROFESSIONAL CONTRACT/SERVICES:5140 PROVIDER REIMBURSEMENTS 0.00 9,601.25 4181 FEES:4180 CACFP:4181 Provider Income 9,601.25 0.00 Total 9,601.25 9,601.25 11 AY-5.1 4182 FEES:4180 CACFP:4182 Administrative Income 0.00 22,321.88 4181 FEES:4180 CACFP:4181 Provider Income 5,206.87 0.00 5140 PROFESSIONAL CONTRACT/SERVICES:5140 PROVIDER REIMBURSEMENTS 17,115.01 0.00 Total 22,321.88 22,321.88 Revision to amounts recorded for provider and admin income - entry per LLE 8-26 Remaining entry needed to agree revenue/expense to claim details for the year 12 M-1 2000 Accounts payable 0.00 5,095.00 5100 PROFESSIONAL CONTRACT/SERVICES 1,225.00 0.00 4302 NEST Scholarships 3,870.00 0.00 4370 GRANTS:4370 OTHER GRANTS 0.00 3,870.00 1500 Accounts receivable 3,870.00 0.00 Total 8,965.00 8,965.00 13 4210 DONATIONS & FUNDRAISING:4210 Donations 3,600.00 0.00 4370 GRANTS:4370 OTHER GRANTS 0.00 3,600.00 4210 DONATIONS & FUNDRAISING:4210 Donations 2,500.00 0.00 4370 GRANTS:4370 OTHER GRANTS 0.00 2,500.00 Total 6,100.00 6,100.00 14 E-2 4700 INTEREST/OTHER INCOME 0.00 20,000.00 9998 Rent expense - in-kind 20,000.00 0.00 Total 20,000.00 20,000.00 GRAND TOTAL 448,288.93 448,288.93 Record A/P identified during testing for 2022 Reclass Amerigroup grant for backpack program and CAEI grant for computers to other grants per Missie 3/12/24 **client does not need to post**Record in-kind rent contribution per GF-4