FAC Explorer

Audit 2508

FY End
2022-05-31
Total Expended
$2.97M
Findings
8
Programs
4
Organization: Northwest Montana Headstart, Inc. (MT)
Year: 2022 Accepted: 2023-11-07
Auditor: Wipfli LLP

Organization Exclusion Status:

Findings

ID Ref Severity Repeat Requirement
1343 2022-001 - - L
1344 2022-001 - - L
1345 2022-002 Significant Deficiency - L
1346 2022-002 Significant Deficiency - L
577785 2022-001 - - L
577786 2022-001 - - L
577787 2022-002 Significant Deficiency - L
577788 2022-002 Significant Deficiency - L

Programs

ALN Program Spent Major Findings
10.766 Community Facilities Loans and Grants $658,758 - 0
10.558 Child and Adult Care Food Program $127,222 - 0
93.600 Head Start $26,686 Yes 2
93.870 Maternal, Infant and Early Childhood Home Visiting Grant $16,371 - 0

Contacts

Name Title Type
FT7XDPASC1N3 Marcy Otten Auditee
4067527011 Kimberly Dare Auditor
No contacts on file

Notes to SEFA

Title: SUBRECIPIENT Accounting Policies: The accompanying schedule of expenditures of federal awards includes the federal grant activity of Northwest Montana Head Start, Inc. and is presented on the accrual basis of accounting. The information in this schedule is presented in accordance with the requirements of Title 2 U.S. Code of Federal Regulations (CFR) Part 200, Uniform Administrative Requirements, Cost Principles and Audit Requirements for Federal Awards (Uniform Guidance). Therefore, some amounts presented in this schedule may differ from amounts presented in, or used in the preparation of, the basic financial statements. De Minimis Rate Used: N Rate Explanation: N/A Northwest Montana Head Start does not have subrecipients or subrecipient expenditures. Federal expenditures for the U.S. Department Agriculture ("USDA") Community Facilities Loans and Grants Cluster program includes the balance of a loan outstanding. This particular loan was funded by a grant from USDA who passed through these funds in the form of a low-interest loan and for which the grantor imposes continuing compliance requirements. Total principal on this loan was $1,750,000 which was used to finance the purchase of a building for Northwest Montana Head Start, Inc. Monthly payments of principal and interest of$6,545 are due on this loan. Balance on June 1, 2021 $658,758, Repayments-Principal $(65,534), Total $593,224.

Finding Details

Finding 2022-001
Section III - Federal Award Findings and Questioned Costs Finding 2022-001: Reporting Department of Health and Human Services Head Start Program – CFDA No. 93.600; Grant period: June 1, 2021 through May 31, 2022. Criteria: CFR section 200.512(a) requires the reporting package and data collection form be submitted to the Federal Audit Clearinghouse the earlier of 30 calendar days after the reports are received from auditors or nine months after the end of the audit period. Northwest Montana Head Start, In,c.'s audited financial statements for the year ended May 31, 2022 were due to the federal single audit clearing house by February 28, 2023. Condition: Northwest Montana Head Start, Inc.’s May 31, 2022 audited financial statements were not completed for submission to the federal audit clearinghouse until after February 28, 2023. Cause: Northwest Montana Head Start, Inc. did not submit the required reporting package to the Federal Audit Clearing House in a timely manner. Effect: There is a potential for suspension or cessation of federal funding. Questioned Costs: None Repeat Finding: No Recommendation: We recommend Northwest Montana Head Start, Inc. implement procedures to ensure timely completion of the annual audit. View of responsible officials: Management agrees with the finding and has developed and begun implementation of a corrective action plan.
Finding 2022-001
Section III - Federal Award Findings and Questioned Costs Finding 2022-001: Reporting Department of Health and Human Services Head Start Program – CFDA No. 93.600; Grant period: June 1, 2021 through May 31, 2022. Criteria: CFR section 200.512(a) requires the reporting package and data collection form be submitted to the Federal Audit Clearinghouse the earlier of 30 calendar days after the reports are received from auditors or nine months after the end of the audit period. Northwest Montana Head Start, In,c.'s audited financial statements for the year ended May 31, 2022 were due to the federal single audit clearing house by February 28, 2023. Condition: Northwest Montana Head Start, Inc.’s May 31, 2022 audited financial statements were not completed for submission to the federal audit clearinghouse until after February 28, 2023. Cause: Northwest Montana Head Start, Inc. did not submit the required reporting package to the Federal Audit Clearing House in a timely manner. Effect: There is a potential for suspension or cessation of federal funding. Questioned Costs: None Repeat Finding: No Recommendation: We recommend Northwest Montana Head Start, Inc. implement procedures to ensure timely completion of the annual audit. View of responsible officials: Management agrees with the finding and has developed and begun implementation of a corrective action plan.
Finding 2022-002
Section III - Federal Award Findings and Questioned Costs Finding 2022-002: Reporting Department of Health and Human Services Head Start Program – CFDA No. 93.600; Grant period: June 1, 2021 through May 31, 2022. Criteria: Section 200.237 of the Uniform Guidance states that financial reports must be submitted with the frequency required by the terms and conditions of the Federal Award. Head Start Program Instruction ACF-PI-HS-04 indicates the due dates for each budget period and what is required to be included in Box 12 – Remarks on the final Federal Financial Report. Condition: During the audit, Wipfli LLP observed that the final Federal Financial Report (SF-425) for this grant was not filed on time. The final report was due on October 31, 2022, and was not filed until January 18, 2023. Cause: Northwest Montana Head Start, Inc. did not file the required financial reports for the above grant in a timely manner. Effect: As a result of the matters noted above, a significant deficiency exists in internal control over reporting. Questioned Costs: None Repeat Finding: No Recommendation: We recommend Northwest Montana Head Start, Inc. implement additional controls over reporting including, but not limited to, training staff on the Head Start reporting deadlines and requirements. View of responsible officials: Management agrees with the assessment and has committed to a corrective action plan.
Finding 2022-002
Section III - Federal Award Findings and Questioned Costs Finding 2022-002: Reporting Department of Health and Human Services Head Start Program – CFDA No. 93.600; Grant period: June 1, 2021 through May 31, 2022. Criteria: Section 200.237 of the Uniform Guidance states that financial reports must be submitted with the frequency required by the terms and conditions of the Federal Award. Head Start Program Instruction ACF-PI-HS-04 indicates the due dates for each budget period and what is required to be included in Box 12 – Remarks on the final Federal Financial Report. Condition: During the audit, Wipfli LLP observed that the final Federal Financial Report (SF-425) for this grant was not filed on time. The final report was due on October 31, 2022, and was not filed until January 18, 2023. Cause: Northwest Montana Head Start, Inc. did not file the required financial reports for the above grant in a timely manner. Effect: As a result of the matters noted above, a significant deficiency exists in internal control over reporting. Questioned Costs: None Repeat Finding: No Recommendation: We recommend Northwest Montana Head Start, Inc. implement additional controls over reporting including, but not limited to, training staff on the Head Start reporting deadlines and requirements. View of responsible officials: Management agrees with the assessment and has committed to a corrective action plan.
Finding 2022-001
Section III - Federal Award Findings and Questioned Costs Finding 2022-001: Reporting Department of Health and Human Services Head Start Program – CFDA No. 93.600; Grant period: June 1, 2021 through May 31, 2022. Criteria: CFR section 200.512(a) requires the reporting package and data collection form be submitted to the Federal Audit Clearinghouse the earlier of 30 calendar days after the reports are received from auditors or nine months after the end of the audit period. Northwest Montana Head Start, In,c.'s audited financial statements for the year ended May 31, 2022 were due to the federal single audit clearing house by February 28, 2023. Condition: Northwest Montana Head Start, Inc.’s May 31, 2022 audited financial statements were not completed for submission to the federal audit clearinghouse until after February 28, 2023. Cause: Northwest Montana Head Start, Inc. did not submit the required reporting package to the Federal Audit Clearing House in a timely manner. Effect: There is a potential for suspension or cessation of federal funding. Questioned Costs: None Repeat Finding: No Recommendation: We recommend Northwest Montana Head Start, Inc. implement procedures to ensure timely completion of the annual audit. View of responsible officials: Management agrees with the finding and has developed and begun implementation of a corrective action plan.
Finding 2022-001
Section III - Federal Award Findings and Questioned Costs Finding 2022-001: Reporting Department of Health and Human Services Head Start Program – CFDA No. 93.600; Grant period: June 1, 2021 through May 31, 2022. Criteria: CFR section 200.512(a) requires the reporting package and data collection form be submitted to the Federal Audit Clearinghouse the earlier of 30 calendar days after the reports are received from auditors or nine months after the end of the audit period. Northwest Montana Head Start, In,c.'s audited financial statements for the year ended May 31, 2022 were due to the federal single audit clearing house by February 28, 2023. Condition: Northwest Montana Head Start, Inc.’s May 31, 2022 audited financial statements were not completed for submission to the federal audit clearinghouse until after February 28, 2023. Cause: Northwest Montana Head Start, Inc. did not submit the required reporting package to the Federal Audit Clearing House in a timely manner. Effect: There is a potential for suspension or cessation of federal funding. Questioned Costs: None Repeat Finding: No Recommendation: We recommend Northwest Montana Head Start, Inc. implement procedures to ensure timely completion of the annual audit. View of responsible officials: Management agrees with the finding and has developed and begun implementation of a corrective action plan.
Finding 2022-002
Section III - Federal Award Findings and Questioned Costs Finding 2022-002: Reporting Department of Health and Human Services Head Start Program – CFDA No. 93.600; Grant period: June 1, 2021 through May 31, 2022. Criteria: Section 200.237 of the Uniform Guidance states that financial reports must be submitted with the frequency required by the terms and conditions of the Federal Award. Head Start Program Instruction ACF-PI-HS-04 indicates the due dates for each budget period and what is required to be included in Box 12 – Remarks on the final Federal Financial Report. Condition: During the audit, Wipfli LLP observed that the final Federal Financial Report (SF-425) for this grant was not filed on time. The final report was due on October 31, 2022, and was not filed until January 18, 2023. Cause: Northwest Montana Head Start, Inc. did not file the required financial reports for the above grant in a timely manner. Effect: As a result of the matters noted above, a significant deficiency exists in internal control over reporting. Questioned Costs: None Repeat Finding: No Recommendation: We recommend Northwest Montana Head Start, Inc. implement additional controls over reporting including, but not limited to, training staff on the Head Start reporting deadlines and requirements. View of responsible officials: Management agrees with the assessment and has committed to a corrective action plan.
Finding 2022-002
Section III - Federal Award Findings and Questioned Costs Finding 2022-002: Reporting Department of Health and Human Services Head Start Program – CFDA No. 93.600; Grant period: June 1, 2021 through May 31, 2022. Criteria: Section 200.237 of the Uniform Guidance states that financial reports must be submitted with the frequency required by the terms and conditions of the Federal Award. Head Start Program Instruction ACF-PI-HS-04 indicates the due dates for each budget period and what is required to be included in Box 12 – Remarks on the final Federal Financial Report. Condition: During the audit, Wipfli LLP observed that the final Federal Financial Report (SF-425) for this grant was not filed on time. The final report was due on October 31, 2022, and was not filed until January 18, 2023. Cause: Northwest Montana Head Start, Inc. did not file the required financial reports for the above grant in a timely manner. Effect: As a result of the matters noted above, a significant deficiency exists in internal control over reporting. Questioned Costs: None Repeat Finding: No Recommendation: We recommend Northwest Montana Head Start, Inc. implement additional controls over reporting including, but not limited to, training staff on the Head Start reporting deadlines and requirements. View of responsible officials: Management agrees with the assessment and has committed to a corrective action plan.