The chief administrator for a group of not-for-profit early education centers and outreach facilities has hired you to conduct an audit. A mission of the organization is to provide child care and early education to children in economically distressed areas of the county. The organization receives funds from several sources, including federal programs. The federal programs and the amount of funding expended from each program for the fiscal year are as follows:

Required

Use the OMB Compliance Supplement to answer the following questions:

a. What federal departments are sponsoring the programs listed?

b. OMB allows “cluster programs” to be considered as a single program when conducting the risk-based approach to selecting programs for audit under the single audit. Of the programs listed, which (if any) are part of the same cluster?

c. Based on size alone, are there any Type A programs? Are there any programs that would be exempt from assessment under the risk-based approach?

d. Based on size alone, which programs would you select for audit and why?

e. If the not-for-profit has received an unmodified opinion in each of the last two years and the Head Start program was selected for audit in both years, would the programs you select for audit change? If not, why not? If so, what programs would you select and why?

Transcribed Image Text:

Program Child Care and Development Block Grant National School Lunch Program National School Breakfast Program Special Milk Program for Children Head Start Maternal, Infant, and Early Childhood Home Visiting Program Special Education-Grants for Infants and Families Funds Expended $280,000 174,320 98,829 8,112 800,000 195,000 25,000