Audit 289308

Finding 2022-001: U.S. Department of Health and Human Services - Community Services Block Grant - Assistance Listing No. 93.569. Eligibility, Significant Deficiency Criteria: 2 CFR 200 requires proper eligibility documentation on recipients to be received and retained for a period of three years from the date of submission of the final expenditure report or, for Federal awards that are renewed quarterly or annually, from the date of the submission of the quarterly or annual financial report, respectively, as reported to the Federal awarding agency or pass-through entity in the case of a subrecipient. Condition: Proper documentation was not maintained for three recipients tested. Effect: Inability to test the recipients income to see if they were eligible for payments. Questioned Costs: None. Cause: During our testing of eligibility, we noted three out of the twenty-five recipients tested did not have proper documentation proving they were eligible to receive payments. Recommendation: We recommend that the Organization review its procedures to ensure proper documentation is received and maintained on recipient files to ensure eligibility. Response: Documentation is now in place to ensure the eligibility for current and future clients. A system is in place to track the documentation. During FY2022, the agency had turnovers in the Case Manager department in which procedures were missed and/or not documented. Files are reviewed quarterly to ensure proper due diligence by the Program Director and/or their designee.

Finding 2022-002: U.S. Department of Health and Human Services - Community Services Block Grant - Assistance Listing No. 93.569. Reporting, Significant Deficiency Criteria: As required by the Federal Register notice dated June 26, 2007, auditees are required to submit a completed Form SF-SAC, along with one complete reporting package, to the Federal Audit Clearinghouse on/before the earlier of 30 days after receipt of the auditor’s report or nine months after the end of the audit period. Condition: An SF-SAC report was not timely filed. Effect: The Organization is at risk of jeopardizing the continued funding provided by federal agencies. Recommendation: We recommend that the Organization institute processes to ensure reporting requirement are addressed and complied with. Status: We noted a similar finding in 2021. Response: The delay in our FY2022 audit being completed in a timely manner was due to the FY2020 audit delay, which involved the Office of Head Start issuing a letter releasing the match for the periods of the fiscal year 2019/20. Once we received the results from FY2020 Audit, we immediately started work on FY2021. We are completing FY2022 and are back on track to file FY2023 promptly.

Finding 2022-001: U.S. Department of Health and Human Services - Community Services Block Grant - Assistance Listing No. 93.569. Eligibility, Significant Deficiency Criteria: 2 CFR 200 requires proper eligibility documentation on recipients to be received and retained for a period of three years from the date of submission of the final expenditure report or, for Federal awards that are renewed quarterly or annually, from the date of the submission of the quarterly or annual financial report, respectively, as reported to the Federal awarding agency or pass-through entity in the case of a subrecipient. Condition: Proper documentation was not maintained for three recipients tested. Effect: Inability to test the recipients income to see if they were eligible for payments. Questioned Costs: None. Cause: During our testing of eligibility, we noted three out of the twenty-five recipients tested did not have proper documentation proving they were eligible to receive payments. Recommendation: We recommend that the Organization review its procedures to ensure proper documentation is received and maintained on recipient files to ensure eligibility. Response: Documentation is now in place to ensure the eligibility for current and future clients. A system is in place to track the documentation. During FY2022, the agency had turnovers in the Case Manager department in which procedures were missed and/or not documented. Files are reviewed quarterly to ensure proper due diligence by the Program Director and/or their designee.

Finding 2022-002: U.S. Department of Health and Human Services - Community Services Block Grant - Assistance Listing No. 93.569. Reporting, Significant Deficiency Criteria: As required by the Federal Register notice dated June 26, 2007, auditees are required to submit a completed Form SF-SAC, along with one complete reporting package, to the Federal Audit Clearinghouse on/before the earlier of 30 days after receipt of the auditor’s report or nine months after the end of the audit period. Condition: An SF-SAC report was not timely filed. Effect: The Organization is at risk of jeopardizing the continued funding provided by federal agencies. Recommendation: We recommend that the Organization institute processes to ensure reporting requirement are addressed and complied with. Status: We noted a similar finding in 2021. Response: The delay in our FY2022 audit being completed in a timely manner was due to the FY2020 audit delay, which involved the Office of Head Start issuing a letter releasing the match for the periods of the fiscal year 2019/20. Once we received the results from FY2020 Audit, we immediately started work on FY2021. We are completing FY2022 and are back on track to file FY2023 promptly.