CITY OF EMERYVILLE
EMERYVILLE CHILD DEVELOPMENT CENTER
BASIC FINANCIAL STATEMENTS
FOR THE YEAR ENDED JUNE 30, 2023
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i
CITY OF EMERYVILLE
EMERYVILLE CHILD DEVELOPMENT CENTER
BASIC FINANCIAL STATEMENTS
FOR THE YEAR ENDED JUNE 30, 2023
Table of Contents
Page
INTRODUCTORY SECTION:
Table of Contents .......................................................................................................................................... i FINANCIAL SECTION:
Independent Auditor’s Report ................................................................................................................. 1 Basic Financial Statements
Statement of Net Position and Governmental Fund Balance Sheet ..................................................... 5 Statement of Activities and Governmental Fund Revenues, Expenditures and Changes in Fund Balance .................................................................................... 6 Notes to the Basic Financial Statements ............................................................................................... 7 Supplementary Information
Schedule of Federal and State Awards ............................................................................................ 12 Combining Statement of Activities and Governmental Fund Revenues, Expenditures, and Changes in Fund Balance ................................................................................ 13 Schedule of Expenditures by State Categories ................................................................................... 14 Reconciliation of CDE and GAAP Expense Reporting ................................................................... 15 Schedule of Claimed Equipment Expenditures .................................................................................. 16 Schedule of Claimed Expenditures for Renovation and Repairs ..................................................... 17 Schedule of Claimed Administrative Costs ........................................................................................ 18 Audited Enrollment, Attendance and Fiscal Report/Audited Fiscal Reports CSPP-2009 – California State Preschool Programs ........................................................................ 19 Center Based Programs – Summary of Meals Reported ................................................................. 33 Schedule of CACFP Reported, Adjusted and Allowed Enrollment ............................................... 39 Notes to the Supplementary Information ............................................................................................ 41 Independent Auditor’s Report on Internal Control Over Financial Reporting and on Compliance and Other Matters Based on an Audit of Financial Statements Preformed in Accordance with Government Auditing Standards ....................................................................... 43 Schedule of Findings and Questioned Costs ....................................................................................... 45 Current Status of Prior Year Findings and Questioned Costs ............................................................. 46 This Page Left Intentionally Blank
INDEPENDENT AUDITOR’S REPORT
To the Honorable Mayor and Members of the City Council
Emeryville Child Development Center
City of Emeryville, California
Report on the Audit of the Financial Statements
Opinion
We have audited the accompanying financial statements of the Emeryville Child Development Center (Center) of the City of Emeryville, California (City), as of and for the year ended June 30, 2023, and the related notes to the financial statements, which collectively comprise the Center’s basic financial statements as listed in the Table of Contents.
In our opinion, the financial statements referred to above present fairly, in all material respects, the financial position of the Center as of June 30, 2023, and the changes in financial position for the year then ended in accordance with accounting principles generally accepted in the United States of America.
Basis for Opinion
We conducted our audit in accordance with auditing standards generally accepted in the United States of America and the standards applicable to financial audits contained in Government Auditing Standards, issued by the Comptroller General of the United States. Our responsibilities under those standards are further described in the Auditor’s Responsibilities for the Audit of the Financial Statements section of our report. We are required to be independent of the Center and to meet our other ethical responsibilities, in accordance with the relevant ethical requirement relating to our audit. We believe that the audit evidence we have obtained is sufficient and appropriate to provide a basis for our audit opinion.
Responsibilities of Management for the Financial Statements Management is responsible for the preparation and fair presentation of these financial statements in accordance with accounting principles generally accepted in the United States of America, and for the design, implementation, and maintenance of internal control relevant to the preparation and fair presentation of the financial statements that are free from material misstatement, whether due to fraud or error.
Auditor’s Responsibilities for the Audit of the Financial Statements Our objectives are to obtain reasonable assurance about whether the financial statements as a whole are free from material misstatement, whether due to fraud or error, and to issue an auditor’s report that includes our opinion. Reasonable assurance is a high level of assurance but is not absolute assurance and therefore is not a guarantee that an audit conducted in accordance with generally accepted auditing standards and Government Auditing Standards will always detect a material misstatement when it exists.
The risk of not detecting a material misstatement resulting from fraud is higher than for one resulting from error, as fraud may involve collusion, forgery, intentional omissions, misrepresentations, or the override of internal control. Misstatements are considered material if there is a substantial likelihood that, individually or in the aggregate, they would influence the judgment made by a reasonable user based on the financial statements.
1 In performing an audit in accordance with generally accepted auditing standards and Government Auditing Standards, we:
Exercise professional judgment and maintain professional skepticism throughout the audit. Identify and assess the risks of material misstatement of the financial statements, whether due to fraud or error, and design and perform audit procedures responsive to those risks. Such procedures include examining, on a test basis, evidence regarding the amounts and disclosures in the financial statements.
Obtain an understanding of internal control relevant to the audit in order to design audit procedures that are appropriate in the circumstances, but not for the purpose of expressing an opinion on the effectiveness of the Center’s internal control. Accordingly, no such opinion is expressed.
Evaluate the appropriateness of accounting policies used and the reasonableness of significant accounting estimates made by management, as well as evaluate the overall presentation of the financial statements.
We are required to communicate with those charged with governance regarding, among other matters, the planned scope and timing of the audit, significant audit findings, and certain internal control-related matters that we identified during the audit.
Emphasis of Matter
As discussed in Note 1, the financial statements present only the revenues, support, and expenditures of the Center and do not purport to, and do not present fairly the financial position of the City as of June 30, 2023, the changes in its financial position, or where applicable, it’s cash flows for the year ended in accordance with accounting principles generally accepted in the United States of America. Our opinion is not modified with respect to this matter.
Supplementary Information
Our audit was conducted for the purpose of forming an opinion on the Center’s financial statements that collectively comprise the Center’s basic financial statements. The accompanying Supplementary Information, as listed in the Table of Contents, is presented for purposes of additional analysis and is not a required part of the basic financial statements. Such information is the responsibility of management and was derived from and relates directly to the underlying accounting and other records used to prepare the basic financial statements. The information has been subjected to the auditing procedures applied in the audit of the basic financial statements and certain additional procedures and in conformity with the CDE Audit Guide, issued by the California Department of Education, including comparing and reconciling such information directly to the underlying accounting and other records used to prepare the basic financial statements or to the financial statements themselves, and other additional procedures in accordance with auditing standards generally accepted in the United States of America. In our opinion, the Supplementary Information is fairly stated, in all material respects, in relation to the basic financial statements as a whole.
2 Other Reporting Required by Government Auditing Standards In accordance with Government Auditing Standards, we have also issued our report dated December 5, 2023, on our consideration of the Center’s internal control over financial reporting and on our tests of its compliance with certain provisions of laws, regulations, contracts, and grant agreements and other matters. The purpose of that report is of that testing, and not to provide an opinion on the effectiveness of the Center’s internal control over financial solely to describe the scope of our testing of internal control over financial reporting and compliance and the results reporting or on compliance. That report is an integral part of an audit performed in accordance with Government Auditing Standards in considering the Center’s internal control over financial reporting and compliance.
Pleasant Hill, California
December 5, 2023
3 This Page Left Intentionally Blank
CITY OF EMERYVILLE
EMERYVILLE CHILD DEVELOPMENT CENTER
STATEMENT OF NET POSITION AND GOVERNMENTAL FUND BALANCE SHEET JUNE 30, 2023
Governmental Statement of
Fund Reclassifications Net Position
Assets
Cash and investments (Note 2) 686,038 $ - $ 686,038 $
Accounts receivable 50,840 50,840
Interest receivable 1,932 1,932
Total Assets - 738,810 738,810
Liabilities and Fund Balance
Liabilities
Accounts payable 33,510 33,510
Unearned revenue 637 637
Total Liabilities 34,147 - 34,147
Fund Balances
Restricted:
Child development 704,663 (704,663) -
Total Fund Balance 704,663 (704,663) -
Total Liabilities and Fund Balance $ 738,810
Net Position
Restricted for child development 704,663 704,663
Total Net Position $ 704,663 - $
See accompanying notes to financial statements
5 CITY OF EMERYVILLE
EMERYVILLE CHILD DEVELOPMENT CENTER
STATEMENT OF ACTIVITIES AND GOVERNMENTAL FUND REVENUES,
EXPENDITURES AND CHANGES IN FUND BALANCE
FOR THE YEAR ENDED JUNE 30, 2023
Governmental Statement of
Fund Reclassifications Activities
Revenues and Support
Restricted:
Grants:
State Department of Education
Current Year Contract (including American Rescue Plan Act Grant) 418,641 $ - $ 418,641 $ Child Care Food Program 20,380 20,380
Quality Counts Grant 4,221 4,221
Unrestricted:
City of Emeryville General Fund Contribution (Note 3) 1,087,354 1,087,354 Parent fees:
Full cost child 1,005,517 1,005,517
Other revenue and donations 10,841 10,841
Total Revenues - 2,546,954 2,546,954
Expenditures/Expenses
Certificated personnel salaries 716,737 716,737
Classified personnel salaries 301,504 301,504
Employee benefits 831,010 831,010
Books and supplies 1,059 1,059
Services other than operating expenses 395,968 395,968
Total Expenditures/Expenses - 2,246,278 2,246,278
Excess (Deficiency) of Revenues Over (Under) Expenditures 300,676 - 300,676 Fund Balance/Net Position
Beginning of year 403,987 403,987
End of year $ - 704,663 $ 704,663 $
See accompanying notes to financial statements
6 CITY OF EMERYVILLE
CHILD DEVELOPMENT CENTER
Notes to the Basic Financial Statements
For the Year Ended June 30, 2023
NOTE 1 – ORGANIZATION AND SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES a. The Financial Reporting Entity
The Emeryville Child Development Center (the Center) is a special revenue fund of the City of Emeryville, California, (the City) to provide educational programs and care for children participating in the program. Families of participating children pay a fee for these services which are subsidized by the City and by grants from the California State Department of Education, Office of Child Development.
The City is a municipal corporation and is exempt from federal and state income taxes.
Accordingly, a provision for such taxes has not been made in the accompanying financial statements.
The Financial Accounting Standards Board, which determines accounting principles for nonprofit organizations, and the Government Accounting Standards Board, which determines accounting principles for governmental organizations, have agreed that organizations should be considered "governmental organizations" if its fund balance reverts to a government upon dissolution. Program operations are partially financed by transfers from the City and upon dissolution, any remaining fund balance would revert to the City, which is a government. b. Government Wide and Fund Financial Statements
The Statement of Net Position and the Statement of Activities include the financial activities of the overall Center.
The Statement of Activities demonstrates the degree to which the direct expenses of a given function or segment are offset by program revenues. Direct expenses are those that are clearly identifiable with a specific function or segment.
c. Measurement Focus, Basis of Accounting and Financial Statement Presentation The government wide financial statements are reported using the economic resources measurement focus and the accrual basis of accounting. Revenues are recorded when earned and expenses are recorded when a liability is incurred, regardless of the timing of related cash flows.
Governmental fund financial statements are reported using the current financial resources measurement focus and the modified accrual basis of accounting. Revenues are recognized as soon as they are both measurable and available. Revenues are considered to be available when they are collectible within the current period or soon enough thereafter to pay liabilities of the current period. For this purpose, the government considers revenues to be available if they are collected within 60 days of the end of the current fiscal period. Expenditures generally are recorded when a liability is incurred, as under accrual accounting.
7 CITY OF EMERYVILLE
CHILD DEVELOPMENT CENTER
Notes to the Basic Financial Statements
For the Year Ended June 30, 2023
NOTE 1 – ORGANIZATION AND SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES (Continued)
d. Assets, Liabilities and Net Position or Equity
1. Cash and Investments
The Center's cash and cash equivalents are pooled with the City of Emeryville’s cash and investments as discussed in Note 2.
2. Receivables and Payables
All trade receivables are shown net of an allowance for uncollectibles.
3. Accumulated Unpaid Vacation and Sick Leave
In the event of termination, an employee is paid for accumulated vacation days up to the equivalent of 50 days of vacation or twice the annual rate of accrual. Employees hired prior to November 1, 2014 are entitled to compensation for 60% of accumulated sick leave up to 120 days upon termination. Employees hired on or after November 1, 2014 are entitled to compensation for 30% of accumulated sick leave up to 120 days after 10 years of continuous services. Accumulated unpaid employee vacation and sick leave benefits related to the Center are recognized as a liability of the City of Emeryville and are not reflected in the accompanying financial statements.
4. Reserve Account
The Center's California State Preschool program is eligible to retain a portion of unearned grant funds received from the State. The reserve account is subject to terms, conditions and limitations of the grant agreement and is retained by the Center. Reserve account balances, if any, are reported as a reservation of fund balance at year end. During the year ended June 30, 2023, the Center had no reserve account activity, nor were reserve account funds held by the Center as of year-end.
5. Rent Expenses
The Center is located in a City owned building and was not charged rent.
6. Other Revenue
Interest revenue on pooled investment accounts is recorded as other revenue. 8 CITY OF EMERYVILLE
CHILD DEVELOPMENT CENTER
Notes to the Basic Financial Statements
For the Year Ended June 30, 2023
NOTE 2 – CASH AND INVESTMENTS
Cash and investments reported in the accompanying financial statements consisted of the following:
Cash and investments $686,038
The Center's funds are pooled with the City of Emeryville's cash and investments in order to generate optimum interest income. The information required by generally accepted accounting principles, related to authorized investments, credit risk, etc. is available in the Annual Comprehensive Financial Report of the City.
NOTE 3 – REVENUES
The City of Emeryville General Fund Contribution of $1,087,354 represents funds transferred from the General Fund to the Child Development Special Revenue Fund to support early childhood education programs.
NOTE 4 – CONTINGENCY
The Center's California State Preschool program is subject to further examination by the grantors and the amount, if any, of expenditures which may be disallowed by the granting agencies cannot be determined at this time.
9 This Page Left Intentionally Blank
SUPPLEMENTARY INFORMATION
CITY OF EMERYVILLE
EMERYVILLE CHILD DEVELOPMENT CENTER
SCHEDULE OF FEDERAL AND STATE AWARDS
FOR THE YEAR ENDED JUNE 30, 2023
Program
Federal
Assistance
Listing
Number
Grantor's
Number Federal State Total Federal State Total
U.S. Department of Agriculture, passed through
State of California, Department of Education:
Child Nutrition and Food Distribution Division
Child and Adult Care Food Program 10.558 01-1903-3A 16,733 $ 3,647 $ 20,380$ $ 20,380 -$ 20,380$ U.S. Department of Health and Human Services, passed through State of California, Department of Education:
COVID 19 - ARPA -- Child Development: ARP California State Childcare And Child Development Block Grant 93.575 Not available 87,168 $ $ 87,168 - $ $ 87,168 $ 87,168 - $ State of California Department of Education:
Child State Preschool Program N/A CSPP-2009 331,473 331,473 2,138,730 2,138,730 Total Current Year Contract $ 331,473 87,168 $ 418,641 $ 87,168 $ 2,138,730 $ 2,225,898 $ Total Federal and State Awards 103,901 $ 335,120$ $ 439,021 107,548$ $ 2,138,730 $ 2,246,278 Award Amount Expenditures
12 CITY OF EMERYVILLE
EMERYVILLE CHILD DEVELOPMENT CENTER
COMBINING STATEMENT OF ACTIVITIES AND GOVERNMENTAL FUND REVENUES,
EXPENDITURES AND CHANGES IN FUND BALANCE
FOR THE YEAR ENDED JUNE 30, 2023
CSPP - 2009
Revenues and Support
Restricted:
Grants:
State Department of Education
Current Year Contract (including American Rescue Plan Act Grant) 418,641 $ Child Care Food Program 20,380
Quality Counts Grant 4,221
Unrestricted:
City of Emeryville General Fund Contribution 1,087,354
Parent fees:
Full cost child 1,005,517
Other revenue and donations 10,841
Total Revenues 2,546,954
Expenditures/Expenses
Certificated personnel salaries 716,737
Classified personnel salaries 301,504
Employee benefits 831,010
Books and supplies 1,059
Services other than operating expenses 395,968
Total Expenditures/Expenses 2,246,278
Change in Fund Balance/Net Position 300,676
Fund Balance/Net Position
Beginning of year 403,987
End of year $ 704,663
13 CITY OF EMERYVILLE
EMERYVILLE CHILD DEVELOPMENT CENTER
SCHEDULE OF EXPENDITURES BY STATE CATEGORIES
FOR THE YEAR ENDED JUNE 30, 2023
CSPP-2009
EXPENDITURES*
1000 Certified salaries 716,737 $
2000 Classified salaries 301,504
3000 Employee benefits 831,010
4000 Books and supplies 1,059
5000 Services and other operating expenditures 395,968
Total Expenditures Claimed for Reimbursement 2,246,278
Total Expenditures $ 2,246,278
* We have examined the claims filed for reimbursement and the original records supporting the transactions recorded under the contracts listed above to an extent considered necessary to assure ourselves that the amounts claimed by the contractor were eligible for reimbursement, reasonable, necessary, and adequately supported, according to governing laws, regulations, and contract provisions.
14 CITY OF EMERYVILLE
EMERYVILLE CHILD DEVELOPMENT CENTER
RECONCILIATION OF CDE AND GAAP EXPENSE REPORTING
FOR THE YEAR ENDED JUNE 30, 2023
CSPP-2009
Schedule of Expenditures by State Categories (CDE) $ 2,246,278 Adjustment to Reconcile Differences in Reporting -
Combining Statement of Activities (GAAP) $ 2,246,278
15 CITY OF EMERYVILLE
EMERYVILLE CHILD DEVELOPMENT CENTER
SCHEDULE OF CLAIMED EQUIPMENT EXPENDITURES
FOR THE YEAR ENDED JUNE 30, 2023
Reimbursable Equipment Expenditures CSPP-2009
None $ -
Total $ -
16 CITY OF EMERYVILLE
EMERYVILLE CHILD DEVELOPMENT CENTER
SCHEDULE OF CLAIMED EXPENDITURES FOR RENOVATIONS AND REPAIRS FOR THE YEAR ENDED JUNE 30, 2023
Reimbursable Expenditures for Renovations and Repairs CSPP-2009 None $ -
Total $ -
17 CITY OF EMERYVILLE
EMERYVILLE CHILD DEVELOPMENT CENTER
SCHEDULE OF CLAIMED ADMINISTRATIVE COSTS
FOR THE YEAR ENDED JUNE 30, 2023
Reimbursable Administrative Costs CSPP-2009
Administrative Costs
Salaries and Benefits $ 88,779
Services and other operating expenses 32,500
Total $ 121,279
18 Contractor Name:
California Department of Education Audited Enrollment, Attendance and Fiscal Report for California State Preschool Program Contract Number:
Fiscal Year Ended: June 30, 202
Vendor Code:
Section 1 – Number of Counties Where Services are Provided Number of counties where the agency provided services to certified children (Form 1): Number of counties where the agency provided mental health consultation services to certified children (Form 2): Number of counties where the agency provided services to non-certified children (Form 3): Number of counties where the agency provided mental health consultation services to non-certified children (Form 4): Total enrollment and attendance forms to attach: Note: For each of the above categories, submit one form for each service county.
Section 2 – Days of Enrollment, Attendance and Operation Enrollment and Attendance Form Summary
Column A
Cumulative FY
per CPARIS
Column B
Audit
Adjustments
Column C
Cumulative FY
per Audit
Column D
Adjusted Days
per Audit
Total Certified Days of Enrollment Total &HUWLILHG'D\VRI(QUROOPHQWZLWKMental Health Consultation Services Days of Attendance (including MHCS) N/A Total Non-Certified Days of Enrollment Total 1RQ&HUWLILHG'D\VRI(QUROOPHQWZLWKMental Health Consultation Services Days of Operation
Column A
Cumulative FY
per CPARIS
Column B
Audit
Adjustments
Column C
Cumulative FY
per Audit
Column D
Adjusted Days
per Audit
Days of Operation N/A
AUD 8501 Page 1 of 6 Audit Report Page 19
Emeryville Child Development Center CSPP 2009
2178
1 0
1 0
2 2,351 2,351 3,004.8000
0 2,351 2,3518,122 8,122 12,166.8000
0 246 246
Contractor Name: Contract Number:
Section 3 – Revenue
Restricted Income Column A – Cumulative FY per CPARIS Column B – Audit Adjustments Column C – Cumulative FY per Audit Child Nutrition Programs County Maintenance of Effort (EC Section 82) Other: Other:
TOTAL RESTRICTED INCOME
Transfer from Reserve Column A – Cumulative FY per CPARIS Column B – Audit Adjustments Column C – Cumulative FY per Audit Transfer from 3UHVFKRROReserve$FFRXQW
Other Income Column A – Cumulative FY per CPARIS Column B – Audit Adjustments Column C – Cumulative FY per Audit Waived Family Fees for Certified Children Interest Earned on Child Development Apportionment Payments 8QUHVWULFWHG,QFRPH
Fees for Non-Certified Children
Unrestricted Income: Head Start Other: Other:
AUD 8501 Page 2 of 6 Audit Report Page 20
16,608 3,772 20,380
0 87,168 87,168
0 16,608 90,940 107,548
0 2,417 2,417
0 1,005,759 (242) 1,005,517
000
Emeryville Child Development Center CSPP 2009
American Rescue Plan Act Grant
Contractor Name: Contract Number:
Section 4 - Reimbursable Expenses
Cost Category Column A – Cumulative FY per CPARIS Column B – Audit Adjustments Column C – Cumulative FY per Audit Direct Payments to Providers (FCCH only) 1000 Certificated Salaries 2000 Classified Salaries 3000 Employee Benefits 4000 Books and Supplies 5000 Services and Other Operating Expenses 6100/6200 Other Approved Capital Outlay 6400 New Equipment (program-related) 6500 Equipment Replacement (program-related) Depreciation or Use Allowance Start-up Expenses (service level exemption) Indirect Costs (include in Total Administrative Cost)
TOTAL REIMBURSABLE EXPENSES
Does the agency have an indirect cost rate approved by its cognizant agency (Select YES or NO)? <HV 1RApproved Indirect Cost Rate:
Specific Items of Reimbursable Expenses Column A – Cumulative FY per CPARIS Column B – Audit Adjustments Column C – Cumulative FY per Audit Total Administrative Cost (included in Reimbursable Expenses) Total Staff Training Cost (included in Reimbursable Expenses) AUD 8501 Page 3 of 6 Audit Report Page
126833/(0(17$/5(9(18((;3(16(6&KHFNWKLVER[DQGRPLWSDJH 0 716,737 716,737301,504 301,504820,778 10,232 831,010
1,059 1,059
369,132 26,836 395,968
000000
2,209,210 37,068 2,246,278
121,279 121,279
0 Emeryville Child Development Center CSPP 2009
✔
✔
21 Contractor Name: Contract Number:
Section 6 - Summary
Description Column A – Cumulative FY per CPARIS Column B – Audit Adjustments Column C – Cumulative FY per Audit Total Certified Days of Enrollment (including MHCS) Days of Operation Days of Attendance (including MHCS) Total Certified Adjusted Days of Enrollment N/A N/A Total Non-Certified Adjusted Days of Enrollment N/A N/A Restricted Program Income Transfer from 3UHVFKRROReserve$FFRXQW Interest Earned on Apportionment Payments Direct Payments to Providers Start-up Expenses (service level exemption) Total Reimbursable Expenses Total Administrative Cost Total Staff Training Cost Non-Reimbursable Cost (State Use Only) N/A N/A AUD 8501 Page 5 of 6 Audit Report Page 22
2,351 0 2,351
246 0 246
2,351 0 2,351
3,004.8000
12,166.8000
16,608 90,940 107,548
000000000000
2,209,210 37,068 2,246,278
121,279 0 121,279
000
Emeryville Child Development Center CSPP 2009
Contractor Name: Contract Number:
Section 7 – Auditor’s Assurances Independent auditor's assurances on agency's compliance with the contract funding terms and conditions and program requirements of the California Department of Education, Early Education Division:
1R Eligibility, enrollment and attendance records are being maintained as required (Select YES or NO): <HV Reimbursable expenses claimed in Section 4 are eligible for reimbursement, reasonable, necessary, and adequately supported (Select YES or NO): 1R <HV Section 8 – Comments Include any comments in the comment box. If necessary, attach additional sheets to explain adjustments. AUD 8501 Page 6 of 6 Audit Report Page 23 ✔
✔
Adjustments in Column B represent year-end closing entries posted by the Emeryville Child Development Center.
Emeryville Child Development Center CSPP 2009
Contractor Name:
California Department of Education Audited Enrollment, Attendance and Fiscal Report for California State Preschool Program Contract Number:
Fiscal Year Ended: June 30, 202
Vendor Code:
Section 1 – Number of Counties Where Services are Provided Number of counties where the agency provided services to certified children (Form 1): Number of counties where the agency provided mental health consultation services to certified children (Form 2): Number of counties where the agency provided services to non-certified children (Form 3): Number of counties where the agency provided mental health consultation services to non-certified children (Form 4): Total enrollment and attendance forms to attach: Note: For each of the above categories, submit one form for each service county.
Section 2 – Days of Enrollment, Attendance and Operation Enrollment and Attendance Form Summary
Column A
Cumulative FY
per CPARIS
Column B
Audit
Adjustments
Column C
Cumulative FY
per Audit
Column D
Adjusted Days
per Audit
Total Certified Days of Enrollment Total &HUWLILHG'D\VRI(QUROOPHQWZLWKMental Health Consultation Services Days of Attendance (including MHCS) N/A Total Non-Certified Days of Enrollment Total 1RQ&HUWLILHG'D\VRI(QUROOPHQWZLWKMental Health Consultation Services Days of Operation
Column A
Cumulative FY
per CPARIS
Column B
Audit
Adjustments
Column C
Cumulative FY
per Audit
Column D
Adjusted Days
per Audit
Days of Operation N/A
AUD 8501 Page 1 of 6 Audit Report Page 24
Emeryville Child Development Center CSPP 2009
2178
1 0
1 0
2 2,351 2,351 3,004.8000
0 2,351 2,3518,122 8,122 12,166.8000
0 246 246
Contractor Name: Contract Number:
Section 3 – Revenue
Restricted Income Column A – Cumulative FY per CPARIS Column B – Audit Adjustments Column C – Cumulative FY per Audit Child Nutrition Programs County Maintenance of Effort (EC Section 82) Other: Other:
TOTAL RESTRICTED INCOME
Transfer from Reserve Column A – Cumulative FY per CPARIS Column B – Audit Adjustments Column C – Cumulative FY per Audit Transfer from 3UHVFKRROReserve$FFRXQW
Other Income Column A – Cumulative FY per CPARIS Column B – Audit Adjustments Column C – Cumulative FY per Audit Waived Family Fees for Certified Children Interest Earned on Child Development Apportionment Payments 8QUHVWULFWHG,QFRPH
Fees for Non-Certified Children
Unrestricted Income: Head Start Other: Other:
AUD 8501 Page 2 of 6 Audit Report Page 25
16,608 3,772 20,380
0 87,168 87,168
0 16,608 90,940 107,548
0 2,417 2,417
0 1,005,759 (242) 1,005,517
000
Emeryville Child Development Center CSPP 2009
American Rescue Plan Act Grant
Contractor Name: Contract Number:
Section 4 - Reimbursable Expenses
Cost Category Column A – Cumulative FY per CPARIS Column B – Audit Adjustments Column C – Cumulative FY per Audit Direct Payments to Providers (FCCH only) 1000 Certificated Salaries 2000 Classified Salaries 3000 Employee Benefits 4000 Books and Supplies 5000 Services and Other Operating Expenses 6100/6200 Other Approved Capital Outlay 6400 New Equipment (program-related) 6500 Equipment Replacement (program-related) Depreciation or Use Allowance Start-up Expenses (service level exemption) Indirect Costs (include in Total Administrative Cost)
TOTAL REIMBURSABLE EXPENSES
Does the agency have an indirect cost rate approved by its cognizant agency (Select YES or NO)? <HV 1RApproved Indirect Cost Rate:
Specific Items of Reimbursable Expenses Column A – Cumulative FY per CPARIS Column B – Audit Adjustments Column C – Cumulative FY per Audit Total Administrative Cost (included in Reimbursable Expenses) Total Staff Training Cost (included in Reimbursable Expenses) AUD 8501 Page 3 of 6 Audit Report Page
126833/(0(17$/5(9(18((;3(16(6&KHFNWKLVER[DQGRPLWSDJH 0 716,737 716,737301,504 301,504820,778 10,232 831,010
1,059 1,059
369,132 26,836 395,968
000000
2,209,210 37,068 2,246,278
121,279 121,279
0 Emeryville Child Development Center CSPP 2009
✔
✔
26 Contractor Name: Contract Number:
Section 6 - Summary
Description Column A – Cumulative FY per CPARIS Column B – Audit Adjustments Column C – Cumulative FY per Audit Total Certified Days of Enrollment (including MHCS) Days of Operation Days of Attendance (including MHCS) Total Certified Adjusted Days of Enrollment N/A N/A Total Non-Certified Adjusted Days of Enrollment N/A N/A Restricted Program Income Transfer from 3UHVFKRROReserve$FFRXQW Interest Earned on Apportionment Payments Direct Payments to Providers Start-up Expenses (service level exemption) Total Reimbursable Expenses Total Administrative Cost Total Staff Training Cost Non-Reimbursable Cost (State Use Only) N/A N/A AUD 8501 Page 5 of 6 Audit Report Page 27
2,351 0 2,351
246 0 246
2,351 0 2,351
3,004.8000
12,166.8000
16,608 90,940 107,548
000000000000
2,209,210 37,068 2,246,278
121,279 0 121,279
000
Emeryville Child Development Center CSPP 2009
Contractor Name: Contract Number:
Section 7 – Auditor’s Assurances Independent auditor's assurances on agency's compliance with the contract funding terms and conditions and program requirements of the California Department of Education, Early Education Division:
1R Eligibility, enrollment and attendance records are being maintained as required (Select YES or NO): <HV Reimbursable expenses claimed in Section 4 are eligible for reimbursement, reasonable, necessary, and adequately supported (Select YES or NO): 1R <HV Section 8 – Comments Include any comments in the comment box. If necessary, attach additional sheets to explain adjustments. AUD 8501 Page 6 of 6 Audit Report Page 28 ✔
✔
Adjustments in Column B represent year-end closing entries posted by the Emeryville Child Development Center.
Emeryville Child Development Center CSPP 2009
Contractor Name: Contract Number:
AUD 8501 – Form 1
)<±
Audit Report Page 29 Page 1 of 2 California State Preschool Program – Form 1 Certified Children Days of Enrollment and Attendance Service County:
Enrollment Description
Column A
Cumulative FY
per CPARIS June Report
Column B
Audit
Adjustments
Column C
Cumulative FY
per Audit
Column D
Adjustment
Factor
Column E
Adjusted Days
per Audit
Three Years Old Full-time-plus 2.1240 Three Years Old Full-time 1.8000 Three Years Old Part-time Four Years and Older Full-time-plus 1.1800 Four Years and Older Full-time 1.0000 Four Years and Older Part-time Exceptional Needs Full-time-plus 2.8320 Exceptional Needs Full-time 2.4000 Exceptional Needs Part-time Dual Language Learner Full-time-plus 1.4160 Dual Language Learner Full-time 1.2000 Dual Language Learner Part-time Emeryville Child Development Center CSPP 2009
Alameda
0 0.0000
805 805 1,449.0000
0 1.0827 0.00000 0.0000
1,497 1,497 1,497.0000
0 0.6015 0.00000 0.00000 0.00000 1.4436 0.00000 0.0000
49 49 58.8000
0 0.6015 0.0000
Contractor Name: Contract Number:
AUD 8501 – Form 1
)<±
Audit Report Page 30 Page 2 of 2
Enrollment Description
Column A
Cumulative FY
per CPARIS June Report
Column B
Audit
Adjustments
Column C
Cumulative FY
per Audit
Column D
Adjustment
Factor
Column E
Adjusted Days
per Audit
At Risk of Abuse or Neglect Full-time-plus 1.2980 At Risk of Abuse or Neglect Full-time 1.1000 At Risk of Abuse or Neglect Part-time Severely Disabled Full-time-plus 2.8320 Severely Disabled Full-time 2.4000 Severely Disabled Part-time
TOTAL CERTIFIED DAYS OF ENROLLMENT N/A
Attendance
Column A
Cumulative FY
per CPARIS June Report
Column B
Audit
Adjustments
Column C
Cumulative FY
per Audit
Column D
Adjustment
Factor
Column E
Adjusted Days
per Audit
DAYS OF ATTENDANCE N/A N/A
Enter the sum of Total Certified Days of Enrollment from all Form 1s in the Total Certified Days of Enrollment line of AUD 8501, Section 2. Enter the sum of Days of Attendance from all Form 1s and Form 2s in the Days of Attendance line of AUD 8501, Section 2.
00.000000.00000 0.6015 0.000000.000000.00000 1.4436 0.0000 2,351 0 2,351 3,004.8000
2,351 2,351
Emeryville Child Development Center CSPP 2009
Contractor Name: Contract Number:
AUD 8501 – Form 3 (FY 22–23) Audit Report Page 31 Page 1 of 2 California State Preschool Program – Form 3 Non-Certified Children Days of Enrollment Service County:
Enrollment Description
Column A
Cumulative FY
per CPARIS June Report
Column B
Audit
Adjustments
Column C
Cumulative
FY per Audit
Column D
Adjustment
Factor
Column E
Adjusted Days
per Audit
Toddlers (18 up to 36 months) Full-time-plus 2.1240 Toddlers (18 up to 36 months) Full-time 1.8000 Toddlers (18 up to 36 months) 3DUWtime Three Years Old Full-time-plus 2.1240 Three Years Old Full-time 1.8000 Three Years Old 3DUW-time Four Years and Older Full-time-plus 1.1800 Four Years and Older Full-time 1.0000 Four Years and Older 3DUW-time Exceptional Needs Full-time-plus 2.8320 Exceptional Needs Full-time 2.4000 Exceptional Needs 3DUW-time Dual Language Learner Full-time-plus 1.4160 Dual Language Learner Full-time 1.2000 Dual Language Learner 3DUW-time Emeryville Child Development Center CSPP 2009
Alameda
0 0.0000
3,023 3,023 5,441.4000
0 0.9900 0.0000
0 0.0000
2,033 2,033 3,659.4000
0 1.0827 0.00000 0.0000
3,066 3,066 3,066.0000
0 0.6015 0.00000 0.00000 0.00000 1.4436 0.00000 0.00000 0.00000 0.6015 0.0000 Contractor Name: Contract Number:
AUD 8501 – Form 3 (FY 22–23) Audit Report Page 32 Page 2 of 2 Enrollment Description
Column A
Cumulative FY
per CPARIS June Report
Column B
Audit
Adjustments
Column C
Cumulative
FY per Audit
Column D
Adjustment
Factor
Column E
Adjusted Days
per Audit
At Risk of Abuse or Neglect Full-time-plus 1.2980 At Risk of Abuse or Neglect Full-time 1.1000 At Risk of Abuse or Neglect 3DUW-time Severely Disabled Full-time-plus 2.8320 Severely Disabled Full-time 2.4000 Severely Disabled 3DUW-time
TOTAL NON-CERTIFIED DAYS OF ENROLLMENT N/A
Enter the sum of Total Non-Certified Days of Enrollment from all Form 3s in the Total Non-Certified Days of Enrollment line of AUD 8501, Section 2.
0 0.00000 0.00000 0.6015 0.00000 0.00000 0.00000 1.4436 0.0000 8,122 0 8,122 12,166.8000
Emeryville Child Development Center CSPP 2009
CITY OF EMERYVILLE
EMERYVILLE CHILD DEVELOPMENT CENTER
CENTER BASED PROGRAMS - SUMMARY OF MEALS REPORTED
FOR THE YEAR ENDED JUNE 30, 2023
Statutory Meal Statutory Meal Cash In Meal
Reported Adjustments * Allowed Rate Reimbursement Rate Reimbursement Lieu Reimbursement July 2022
Breakfast
Full price/base rate 467 467 - 0.4500 $ 0.0000 210 $ 0.0000 - $ - Reduced price 68 68 - 1.9100 0.0000 130 0.0000 - -
Free 34 34 - 2.2100 0.0000 75 0.0000 - -
State reimbursement 102 102 0.1975 20
Lunch
Full price/base rate 649 649 - 0.4700 0.0000 305 0.3000 - 195 Reduced price 95 95 - 3.6300 0.0000 345 0.3000 - 29
Free 48 48 - 4.0300 0.0000 193 0.3000 - 14
State reimbursement 143 143 0.1975 28
Supplement
Full price/base rate 622 622 - 0.1900 0.0000 118 0.0000 - - Reduced price 91 91 - 0.6400 0.0000 58 0.0000 - -
Free 46 46 - 1.1800 0.0000 54 0.0000 - -
$ 1,489 $ 48 $ 238
August 2022
Breakfast
Full price/base rate 321 321 - 0.4500 $ 0.0000 144 $ 0.0000 - $ - Reduced price 47 47 - 1.9100 0.0000 90 0.0000 - -
Free 23 23 - 2.2100 0.0000 51 0.0000 - -
State reimbursement 70 70 0.1975 14
Lunch
Full price/base rate 504 504 - 0.4700 0.0000 237 0.3000 - 151 Reduced price 74 74 - 3.6300 0.0000 269 0.3000 - 22
Free 37 37 - 4.0300 0.0000 149 0.3000 - 11
State reimbursement 111 111 0.1975 22
Supplement
Full price/base rate 470 470 - 0.1900 0.0000 89 0.0000 - - Reduced price 69 69 - 0.6400 0.0000 44 0.0000 - -
Free 34 34 - 1.1800 0.0000 40 0.0000 - -
$ 1,113 $ 36 $ 185
Meals
Federal State
33 Statutory Meal Statutory Meal Cash In Meal
Reported Adjustments * Allowed Rate Reimbursement Rate Reimbursement Lieu Reimbursement September 2022
Breakfast
Full price/base rate 388 - 388 0.4500 175 $ 0.0000 - $ 0.0000 - $ Reduced price 57 - 57 1.9100 109 0.0000 - 0.0000 -
Free 28 - 28 2.2100 62 0.0000 - 0.0000 -
State reimbursement 85 85 0.1975 17
Lunch
Full price/base rate 742 - 742 0.4700 349 0.0000 - 0.3000 223 Reduced price 109 - 109 3.6300 396 0.0000 - 0.3000 33
Free 54 - 54 4.0300 218 0.0000 - 0.3000 16
State reimbursement 163 163 0.1975 32
Supplement
Full price/base rate 634 - 634 0.1900 120 0.0000 - 0.0000 - Reduced price 93 - 93 0.6400 60 0.0000 - 0.0000 -
Free 46 - 46 1.1800 54 0.0000 - 0.0000 -
$ 49 1,542 $ 272 $
October 2022
Breakfast
Full price/base rate 399 - 399 0.4500 180 $ 0.0000 - $ 0.0000 - $ Reduced price 17 - 17 1.9100 32 0.0000 - 0.0000 -
Free 34 - 34 2.2100 75 0.0000 - 0.0000 -
State reimbursement 51 51 0.1975 10
Lunch
Full price/base rate 793 793 - 0.4700 0.0000 373 0.3000 - 238 Reduced price 34 34 - 3.6300 0.0000 123 0.3000 - 10
Free 68 68 - 4.0300 0.0000 274 0.3000 - 20
State reimbursement 102 102 0.1975 20
Supplement
Full price/base rate 740 740 - 0.1900 0.0000 141 0.0000 - - Reduced price 31 31 - 0.6400 0.0000 20 0.0000 - -
Free 63 63 - 1.1800 0.0000 74 0.0000 - -
$ 1,292 $ 30 $ 269
Meals
Federal State
34 Statutory Meal Statutory Meal Cash In Meal
Reported Adjustments * Allowed Rate Reimbursement Rate Reimbursement Lieu Reimbursement November 2022
Breakfast
Full price/base rate 433 - 433 0.4500 195 $ 0.0000 - $ 0.0000 - $ Reduced price 18 - 18 1.9100 34 0.0000 - 0.0000 -
Free 37 - 37 2.2100 82 0.0000 - 0.0000 -
State reimbursement 55 55 0.1975 11
Lunch
Full price/base rate 793 - 793 0.4700 373 0.0000 - 0.3000 238 Reduced price 34 - 34 3.6300 123 0.0000 - 0.3000 10
Free 68 - 68 4.0300 274 0.0000 - 0.3000 20
State reimbursement 102 102 0.1975 20
Supplement
Full price/base rate 767 - 767 0.1900 146 0.0000 - 0.0000 - Reduced price 33 - 33 0.6400 21 0.0000 - 0.0000 -
Free 65 - 65 1.1800 77 0.0000 - 0.0000 -
$ 31 1,325 $ 269 $
December 2022
Breakfast
Full price/base rate 334 - 334 0.4500 150 $ 0.0000 - $ 0.0000 - $ Reduced price 14 - 14 1.9100 27 0.0000 - 0.0000 -
Free 28 - 28 2.2100 62 0.0000 - 0.0000 -
State reimbursement 42 42 0.1975 8
Lunch
Full price/base rate 622 622 - 0.4700 0.0000 292 0.3000 - 187 Reduced price 26 26 - 3.6300 0.0000 94 0.3000 - 8
Free 53 53 - 4.0300 0.0000 214 0.3000 - 16
State reimbursement 79 79 0.1975 16
Supplement
Full price/base rate 613 613 - 0.1900 0.0000 116 0.0000 - - Reduced price 26 26 - 0.6400 0.0000 17 0.0000 - -
Free 52 52 - 1.1800 0.0000 61 0.0000 - -
$ 1,034 $ 24 $ 210
Federal State
Meals
35 Statutory Meal Statutory Meal Cash In Meal
Reported Adjustments * Allowed Rate Reimbursement Rate Reimbursement Lieu Reimbursement January 2023
Breakfast
Full price/base rate 470 - 470 0.4500 212 $ 0.0000 - $ 0.0000 - $ Reduced price 20 - 20 1.9100 38 0.0000 - 0.0000 -
Free 40 - 40 2.2100 88 0.0000 - 0.0000 -
State reimbursement 60 60 0.1975 12
Lunch
Full price/base rate 886 - 886 0.4700 416 0.0000 - 0.3000 266 Reduced price 38 - 38 3.6300 138 0.0000 - 0.3000 11
Free 75 - 75 4.0300 302 0.0000 - 0.3000 23
State reimbursement 113 113 0.1975 22
Supplement
Full price/base rate 790 - 790 0.1900 150 0.0000 - 0.0000 - Reduced price 34 - 34 0.6400 22 0.0000 - 0.0000 -
Free 67 - 67 1.1800 79 0.0000 - 0.0000 -
$ 34 1,446 $ 300 $
February 2023
Breakfast
Full price/base rate 472 - 472 0.4500 212 $ 0.0000 - $ 0.0000 - $ Reduced price 20 - 20 1.9100 38 0.0000 - 0.0000 -
Free 40 - 40 2.2100 88 0.0000 - 0.0000 -
State reimbursement 60 60 0.1975 12
Lunch
Full price/base rate 855 855 - 0.4700 0.0000 402 0.3000 - 257 Reduced price 36 36 - 3.6300 0.0000 131 0.3000 - 11
Free 73 73 - 4.0300 0.0000 294 0.3000 - 22
State reimbursement 109 109 0.1975 22
Supplement
Full price/base rate 824 824 - 0.1900 0.0000 157 0.0000 - - Reduced price 35 35 - 0.6400 0.0000 22 0.0000 - -
Free 70 70 - 1.1800 0.0000 83 0.0000 - -
$ 1,427 $ 33 $ 289
Federal State
Meals
36 Statutory Meal Statutory Meal Cash In Meal
Reported Adjustments * Allowed Rate Reimbursement Rate Reimbursement Lieu Reimbursement March 2023
Breakfast
Full price/base rate 531 - 531 0.4500 239 $ 0.0000 - $ 0.0000 - $ Reduced price 23 - 23 1.9100 44 0.0000 - 0.0000 -
Free 45 - 45 2.2100 99 0.0000 - 0.0000 -
State reimbursement 68 68 0.1975 13
Lunch
Full price/base rate 821 - 821 0.4700 386 0.0000 - 0.3000 246 Reduced price 35 - 35 3.6300 127 0.0000 - 0.3000 11
Free 70 - 70 4.0300 282 0.0000 - 0.3000 21
State reimbursement 105 105 0.1975 21
Supplement
Full price/base rate 1,027 - 1,027 0.1900 195 0.0000 - 0.0000 - Reduced price 44 - 44 0.6400 28 0.0000 - 0.0000 -
Free 87 - 87 1.1800 103 0.0000 - 0.0000 -
$ 34 1,503 $ 278 $
April 2023
Breakfast
Full price/base rate 469 - 469 0.4500 211 $ 0.0000 - $ 0.0000 - $ Reduced price 20 - 20 1.9100 38 0.0000 - 0.0000 -
Free 40 - 40 2.2100 88 0.0000 - 0.0000 -
State reimbursement 60 60 0.1975 12
Lunch
Full price/base rate 788 788 - 0.4700 0.0000 370 0.3000 - 236 Reduced price 34 34 - 3.6300 0.0000 123 0.3000 - 10
Free 67 67 - 4.0300 0.0000 270 0.3000 - 20
State reimbursement 101 101 0.1975 20
Supplement
Full price/base rate 776 776 - 0.1900 0.0000 147 0.0000 - - Reduced price 33 33 - 0.6400 0.0000 21 0.0000 - -
Free 66 66 - 1.1800 0.0000 78 0.0000 - -
$ 1,348 $ 32 $ 267
Federal State
Meals
37 Statutory Meal Statutory Meal Cash In Meal
Reported Adjustments * Allowed Rate Reimbursement Rate Reimbursement Lieu Reimbursement May 2023
Breakfast
Full price/base rate 558 - 558 0.4500 251 $ 0.0000 - $ 0.0000 - $ Reduced price 24 - 24 1.9100 46 0.0000 - 0.0000 -
Free 48 - 48 2.2100 106 0.0000 - 0.0000 -
State reimbursement 72 72 0.1975 14
Lunch
Full price/base rate 980 - 980 0.4700 461 0.0000 - 0.3000 294 Reduced price 42 - 42 3.6300 152 0.0000 - 0.3000 13
Free 83 - 83 4.0300 334 0.0000 - 0.3000 25
State reimbursement 125 125 0.1975 25
Supplement
Full price/base rate 931 - 931 0.1900 177 0.0000 - 0.0000 - Reduced price 40 - 40 0.6400 26 0.0000 - 0.0000 -
Free 79 - 79 1.1800 93 0.0000 - 0.0000 -
$ 39 1,646 $ 332 $
June 2023
Breakfast
Full price/base rate 534 - 534 0.4500 240 $ 0.0000 - $ 0.0000 - $ Reduced price 23 - 23 1.9100 44 0.0000 - 0.0000 -
Free 46 - 46 2.2100 102 0.0000 - 0.0000 -
State reimbursement 69 69 0.1975 14
Lunch
Full price/base rate 927 927 - 0.4700 0.0000 436 0.3000 - 278 Reduced price 39 39 - 3.6300 0.0000 142 0.3000 - 12
Free 79 79 - 4.0300 0.0000 318 0.3000 - 24
State reimbursement 118 118 0.1975 23
Supplement
Full price/base rate 901 901 - 0.1900 0.0000 171 0.0000 - - Reduced price 38 38 - 0.6400 0.0000 24 0.0000 - -
Free 77 77 - 1.1800 0.0000 91 0.0000 - -
$ 1,568 $ 37 $ 314
Adjustments
GRAND TOTAL 29,480 $ 16,733 $ 428 $ 3,219
* The adjustments are due to the resubmitted claims for reimbursement that were changed as a result of the recalculation of the fixed percentage enrollment subsequent to the end of the fiscal year
Meals
Federal State
38 CITY OF EMERYVILLE
EMERYVILLE CHILD DEVELOPMENT CENTER
SCHEDULE OF CACFP REPORTED, ADJUSTED AND ALLOWED ENROLLMENT FOR THE YEAR ENDED JUNE 30, 2023
Month Total Free Reduced Based
July Reported 50 3 6 41
Allowed 50 3 6 41
August Reported 50 3 6 41
Allowed 50 3 6 41
September Reported 50 3 6 41
Allowed 50 3 6 41
October Reported 53 4 2 47
Allowed 53 4 2 47
November Reported 53 4 2 47
Allowed 53 4 2 47
December Reported 53 4 2 47
Allowed 53 4 2 47
January Reported 53 4 2 47
Allowed 53 4 2 47
February Reported 53 4 2 47
Allowed 53 4 2 47
March Reported 53 4 2 47
Allowed 53 4 2 47
April Reported 53 4 2 47
Allowed 53 4 2 47
May Reported 53 4 2 47
Allowed 53 4 2 47
June Reported 53 4 2 47
Allowed 53 4 2 47
39 This Page Left Intentionally Blank
CITY OF EMERYVILLE
EMERYVILLE CHILD DEVELOPMENT CENTER
Notes to the Child Development Program Supplementary Information For the Year Ended June 30, 2023
NOTE 1 – NOTE TO SUPPLEMENTARY INFORMATION
In accordance with the applicable requirements from the Funding Terms and Conditions of the City of Emeryville’s child development contract:
a. Interest Expense
Interest expense is only allowable as a reimbursable cost in certain circumstances when it has been preapproved by the administering state department or relates to the lease purchase, acquisition, or repair or renovation of early learning and care facilities owned or leased by the contractor. No interest expense was claimed as a reimbursable expense for the year ended June 30, 2023. b. Related Party Rent Expense
All expenses claimed for reimbursement under a related party rent transaction must be supported by a fair market rental estimate from an independent appraiser, licensed by the California Office of Real Estate Appraisers. No related party rent expense was claimed as a reimbursable expense for the year ended June 30, 2023.
c. Bad Debt Expense
Bad debt expense is unallowable unless it relates to uncollected family fees where documentation of adequate collection attempts exists. No bad debt expense was claimed to a child development contract for the year ended June 30, 2023.
41 This Page Left Intentionally Blank
INDEPENDENT AUDITOR’S REPORT ON
INTERNAL CONTROL OVER FINANCIAL REPORTING
AND ON COMPLIANCE AND OTHER MATTERS BASED ON AN
AUDIT OF FINANCIAL STATEMENTS PERFORMED IN ACCORDANCE
WITH GOVERNMENT AUDITING STANDARDS
To the Honorable Members of the City Council
City of Emeryville, California
We have audited, in accordance with the auditing standards generally accepted in the United States of America and the standards applicable to financial audits contained in Government Auditing Standards issued by the Comptroller General of the United States, the basic financial statements of the Emeryville Child Development Center (Center), California, as of and for the year ended June 30, 2023, and the related notes to the financial statements, and have issued our report thereon dated December 5, 2023. Our report included an emphasis of matter paragraph the fact that the financial statements present only the revenues, support and expenditures of the Center and do not present fairly the financial position of the City.
Report on Internal Control Over Financial Reporting
In planning and performing our audit of the financial statements, we considered the Center’s internal control over financial reporting (internal control) as a basis for designing the audit procedures that are appropriate in the circumstances for the purpose of expressing our opinions on the financial statements, but not for the purpose of expressing an opinion on the effectiveness of the Center’s internal control.
Accordingly, we do not express an opinion on the effectiveness of the Center’s internal control.
A deficiency in internal control exists when the design or operation of a control does not allow management or employees, in the normal course of performing their assigned functions, to prevent, or detect and correct, misstatements on a timely basis. A material weakness is a deficiency, or a combination of deficiencies, in internal control, such that there is a reasonable possibility that a material misstatement of the Center’s financial statements will not be prevented, or detected and corrected on a timely basis. A significant deficiency is a deficiency, or a combination of deficiencies, in internal control that is less severe than a material weakness, yet important enough to merit attention by those charged with governance.
Our consideration of internal control was for the limited purpose described in the first paragraph of this section and was not designed to identify all deficiencies in internal control that might be material weaknesses or significant deficiencies and therefore, material weaknesses or significant deficiencies may exist that were not identified. Given these limitations, during our audit we did not identify any deficiencies in internal control that we consider to be material weaknesses. We identified certain deficiencies in internal control that we consider to be significant deficiencies as listed on the Schedule of Significant Deficiencies included as part of our separately issued Memorandum on Internal Control dated December 5, 2023, which is an integral part of our audit and should be read in conjunction with this report.
43 Report on Compliance and Other Matters
As part of obtaining reasonable assurance about whether the Center’s financial statements are free from material misstatement, we performed tests of its compliance with certain provisions of laws, regulations, contracts, and grant agreements, noncompliance with which could have a direct and material effect on the financial statement. However, providing an opinion on compliance with those provisions was not an objective of our audit, and accordingly, we do not express such an opinion. The results of our tests disclosed no instances of noncompliance that are required to be reported under Government Auditing Standards.
City’s Response to Findings
Government Auditing Standards require the auditor to perform limited procedures on the City’s response to the findings identified in our audit and described in our separately issued Memorandum on Internal Control dated December 5, 2023, which is an integral part of our audit and should be read in conjunction with this report. The City’s response was not subjected to the other auditing procedures applied in the audit of the financial statements and, accordingly, we express no opinion on the response.
Purpose of this Report
The purpose of this report is solely to describe the scope of our testing of internal control and compliance and the results of that testing, and not to provide an opinion on the effectiveness of the Center’s internal control or on compliance. This report is an integral part of an audit performed in accordance with Government Auditing Standards in considering the Center’s internal control and compliance.
Accordingly, this communication is not suitable for any other purpose.
Pleasant Hill, California
December 5, 2023
44 CITY OF EMERYVILLE
EMERYVILLE CHILD DEVELOPMENT CENTER
SCHEDULE OF FINDINGS AND QUESTIONED COSTS
None noted in current year.
45 CITY OF EMERYVILLE
EMERYVILLE CHILD DEVELOPMENT CENTER
CURRENT STATUS OF PRIOR YEAR FINDINGS AND QUESTIONED COSTS Not applicable in current year.
46