Material Weakness and Reportable Noncompliance
Condition: The audit reports for 2017, 2018, 2019, 2020, 2021, 2022, and 2023 were not timely submitted to the Federal Clearinghouse.
Criteria: Uniform Guidance requires audits to be submitted to the Clearinghouse no later than nine months after year-end.
Cause: Turnover in upper management and inadequate resources prevented the audits from being completed in a timely manner and submitted.
Effect: Noncompliance with reporting requirements.
Recommendation: Management needs to ensure that financial information is complete and provided to the auditors within a reasonable time frame so that the audit can be completed and submitted within nine months after year end.
Views of Responsible Officials and Planned Corrective Actions: Community Action of East Central Indiana, Inc. ceased operations as of July 31, 2024 for any new business. Community Development Institute (CDI), as contracted by the Office of Head Start, has taken over the leadership and operations.
Condition: The governance board did not include an individual with financial expertise for part of the year.
Criteria: The governing body has legal and fiscal responsibility for the Head Start agency. The governing body must include not less than one member with a background and expertise in fiscal management or accounting and not less than one licensed attorney familiar with issues that come before the governing body. If the types of persons described above are not available to serve as members of the governing body, the governing body must use a consultant, or other individual(s) with relevant expertise who must work directly with the governing body (42 USC 9837(c)(1)(B)).
Cause: The board member with financial expertise resigned in April 2023 and the vacancy was not filled.
Effect: Noncompliance with special provisions regarding program governance.
Recommendation: The Organization needs to fill board vacancies and ensure at least one board member has financial expertise.
Views of Responsible Officials and Planned Corrective Actions: Community Action of East Central Indiana, Inc. ceased operations as of July 31, 2024 for any new business. Community Development Institute (CDI), as contracted by the Office of Head Start, has taken over the leadership and operations.
Condition: On the semi-annual SF-425 filing as of August 31, 2023, management denoted the basis of accounting as accrual. The Federal share of expenditures reported did not include $152,752 of reimbursable expenses claimed on August 28, 2023 and received August 31, 2023. The August 28, 2023 request reimbursement included accrued items that were paid subsequently after August 31, 2023 and should have been included in the total.
Criteria: All Head Start recipients are required to submit financial reports detailing the expenditures incurred for their awards. The federal expenditures reported should be reported based on the basis of accounting selected.
Cause: Management was completing the SF-425 on a cash basis.
Effect: The SF-425 filed was inaccurate.
Recommendation: The Organization should amend its SF-425 filings to correctly report financial information.
Views of Responsible Officials and Planned Corrective Actions: Community Action of East Central Indiana, Inc. ceased operations as of July 31, 2024 for any new business. Community Development Institute (CDI), as contracted by the Office of Head Start, has taken over the leadership and operations.
Material Weakness and Reportable Noncompliance
Condition: The audit reports for 2017, 2018, 2019, 2020, 2021, 2022, and 2023 were not timely submitted to the Federal Clearinghouse.
Criteria: Uniform Guidance requires audits to be submitted to the Clearinghouse no later than nine months after year-end.
Cause: Turnover in upper management and inadequate resources prevented the audits from being completed in a timely manner and submitted.
Effect: Noncompliance with reporting requirements.
Recommendation: Management needs to ensure that financial information is complete and provided to the auditors within a reasonable time frame so that the audit can be completed and submitted within nine months after year end.
Views of Responsible Officials and Planned Corrective Actions: Community Action of East Central Indiana, Inc. ceased operations as of July 31, 2024 for any new business. Community Development Institute (CDI), as contracted by the Office of Head Start, has taken over the leadership and operations.
Condition: The governance board did not include an individual with financial expertise for part of the year.
Criteria: The governing body has legal and fiscal responsibility for the Head Start agency. The governing body must include not less than one member with a background and expertise in fiscal management or accounting and not less than one licensed attorney familiar with issues that come before the governing body. If the types of persons described above are not available to serve as members of the governing body, the governing body must use a consultant, or other individual(s) with relevant expertise who must work directly with the governing body (42 USC 9837(c)(1)(B)).
Cause: The board member with financial expertise resigned in April 2023 and the vacancy was not filled.
Effect: Noncompliance with special provisions regarding program governance.
Recommendation: The Organization needs to fill board vacancies and ensure at least one board member has financial expertise.
Views of Responsible Officials and Planned Corrective Actions: Community Action of East Central Indiana, Inc. ceased operations as of July 31, 2024 for any new business. Community Development Institute (CDI), as contracted by the Office of Head Start, has taken over the leadership and operations.
Condition: On the semi-annual SF-425 filing as of August 31, 2023, management denoted the basis of accounting as accrual. The Federal share of expenditures reported did not include $152,752 of reimbursable expenses claimed on August 28, 2023 and received August 31, 2023. The August 28, 2023 request reimbursement included accrued items that were paid subsequently after August 31, 2023 and should have been included in the total.
Criteria: All Head Start recipients are required to submit financial reports detailing the expenditures incurred for their awards. The federal expenditures reported should be reported based on the basis of accounting selected.
Cause: Management was completing the SF-425 on a cash basis.
Effect: The SF-425 filed was inaccurate.
Recommendation: The Organization should amend its SF-425 filings to correctly report financial information.
Views of Responsible Officials and Planned Corrective Actions: Community Action of East Central Indiana, Inc. ceased operations as of July 31, 2024 for any new business. Community Development Institute (CDI), as contracted by the Office of Head Start, has taken over the leadership and operations.
Material Weakness and Reportable Noncompliance
Condition: The audit reports for 2017, 2018, 2019, 2020, 2021, 2022, and 2023 were not timely submitted to the Federal Clearinghouse.
Criteria: Uniform Guidance requires audits to be submitted to the Clearinghouse no later than nine months after year-end.
Cause: Turnover in upper management and inadequate resources prevented the audits from being completed in a timely manner and submitted.
Effect: Noncompliance with reporting requirements.
Recommendation: Management needs to ensure that financial information is complete and provided to the auditors within a reasonable time frame so that the audit can be completed and submitted within nine months after year end.
Views of Responsible Officials and Planned Corrective Actions: Community Action of East Central Indiana, Inc. ceased operations as of July 31, 2024 for any new business. Community Development Institute (CDI), as contracted by the Office of Head Start, has taken over the leadership and operations.
Condition: The governance board did not include an individual with financial expertise for part of the year.
Criteria: The governing body has legal and fiscal responsibility for the Head Start agency. The governing body must include not less than one member with a background and expertise in fiscal management or accounting and not less than one licensed attorney familiar with issues that come before the governing body. If the types of persons described above are not available to serve as members of the governing body, the governing body must use a consultant, or other individual(s) with relevant expertise who must work directly with the governing body (42 USC 9837(c)(1)(B)).
Cause: The board member with financial expertise resigned in April 2023 and the vacancy was not filled.
Effect: Noncompliance with special provisions regarding program governance.
Recommendation: The Organization needs to fill board vacancies and ensure at least one board member has financial expertise.
Views of Responsible Officials and Planned Corrective Actions: Community Action of East Central Indiana, Inc. ceased operations as of July 31, 2024 for any new business. Community Development Institute (CDI), as contracted by the Office of Head Start, has taken over the leadership and operations.
Condition: On the semi-annual SF-425 filing as of August 31, 2023, management denoted the basis of accounting as accrual. The Federal share of expenditures reported did not include $152,752 of reimbursable expenses claimed on August 28, 2023 and received August 31, 2023. The August 28, 2023 request reimbursement included accrued items that were paid subsequently after August 31, 2023 and should have been included in the total.
Criteria: All Head Start recipients are required to submit financial reports detailing the expenditures incurred for their awards. The federal expenditures reported should be reported based on the basis of accounting selected.
Cause: Management was completing the SF-425 on a cash basis.
Effect: The SF-425 filed was inaccurate.
Recommendation: The Organization should amend its SF-425 filings to correctly report financial information.
Views of Responsible Officials and Planned Corrective Actions: Community Action of East Central Indiana, Inc. ceased operations as of July 31, 2024 for any new business. Community Development Institute (CDI), as contracted by the Office of Head Start, has taken over the leadership and operations.
Material Weakness and Reportable Noncompliance
Condition: The audit reports for 2017, 2018, 2019, 2020, 2021, 2022, and 2023 were not timely submitted to the Federal Clearinghouse.
Criteria: Uniform Guidance requires audits to be submitted to the Clearinghouse no later than nine months after year-end.
Cause: Turnover in upper management and inadequate resources prevented the audits from being completed in a timely manner and submitted.
Effect: Noncompliance with reporting requirements.
Recommendation: Management needs to ensure that financial information is complete and provided to the auditors within a reasonable time frame so that the audit can be completed and submitted within nine months after year end.
Views of Responsible Officials and Planned Corrective Actions: Community Action of East Central Indiana, Inc. ceased operations as of July 31, 2024 for any new business. Community Development Institute (CDI), as contracted by the Office of Head Start, has taken over the leadership and operations.
Condition: The governance board did not include an individual with financial expertise for part of the year.
Criteria: The governing body has legal and fiscal responsibility for the Head Start agency. The governing body must include not less than one member with a background and expertise in fiscal management or accounting and not less than one licensed attorney familiar with issues that come before the governing body. If the types of persons described above are not available to serve as members of the governing body, the governing body must use a consultant, or other individual(s) with relevant expertise who must work directly with the governing body (42 USC 9837(c)(1)(B)).
Cause: The board member with financial expertise resigned in April 2023 and the vacancy was not filled.
Effect: Noncompliance with special provisions regarding program governance.
Recommendation: The Organization needs to fill board vacancies and ensure at least one board member has financial expertise.
Views of Responsible Officials and Planned Corrective Actions: Community Action of East Central Indiana, Inc. ceased operations as of July 31, 2024 for any new business. Community Development Institute (CDI), as contracted by the Office of Head Start, has taken over the leadership and operations.
Condition: On the semi-annual SF-425 filing as of August 31, 2023, management denoted the basis of accounting as accrual. The Federal share of expenditures reported did not include $152,752 of reimbursable expenses claimed on August 28, 2023 and received August 31, 2023. The August 28, 2023 request reimbursement included accrued items that were paid subsequently after August 31, 2023 and should have been included in the total.
Criteria: All Head Start recipients are required to submit financial reports detailing the expenditures incurred for their awards. The federal expenditures reported should be reported based on the basis of accounting selected.
Cause: Management was completing the SF-425 on a cash basis.
Effect: The SF-425 filed was inaccurate.
Recommendation: The Organization should amend its SF-425 filings to correctly report financial information.
Views of Responsible Officials and Planned Corrective Actions: Community Action of East Central Indiana, Inc. ceased operations as of July 31, 2024 for any new business. Community Development Institute (CDI), as contracted by the Office of Head Start, has taken over the leadership and operations.
Material Weakness and Reportable Noncompliance
Condition: The audit reports for 2017, 2018, 2019, 2020, 2021, 2022, and 2023 were not timely submitted to the Federal Clearinghouse.
Criteria: Uniform Guidance requires audits to be submitted to the Clearinghouse no later than nine months after year-end.
Cause: Turnover in upper management and inadequate resources prevented the audits from being completed in a timely manner and submitted.
Effect: Noncompliance with reporting requirements.
Recommendation: Management needs to ensure that financial information is complete and provided to the auditors within a reasonable time frame so that the audit can be completed and submitted within nine months after year end.
Views of Responsible Officials and Planned Corrective Actions: Community Action of East Central Indiana, Inc. ceased operations as of July 31, 2024 for any new business. Community Development Institute (CDI), as contracted by the Office of Head Start, has taken over the leadership and operations.
Condition: The governance board did not include an individual with financial expertise for part of the year.
Criteria: The governing body has legal and fiscal responsibility for the Head Start agency. The governing body must include not less than one member with a background and expertise in fiscal management or accounting and not less than one licensed attorney familiar with issues that come before the governing body. If the types of persons described above are not available to serve as members of the governing body, the governing body must use a consultant, or other individual(s) with relevant expertise who must work directly with the governing body (42 USC 9837(c)(1)(B)).
Cause: The board member with financial expertise resigned in April 2023 and the vacancy was not filled.
Effect: Noncompliance with special provisions regarding program governance.
Recommendation: The Organization needs to fill board vacancies and ensure at least one board member has financial expertise.
Views of Responsible Officials and Planned Corrective Actions: Community Action of East Central Indiana, Inc. ceased operations as of July 31, 2024 for any new business. Community Development Institute (CDI), as contracted by the Office of Head Start, has taken over the leadership and operations.
Condition: On the semi-annual SF-425 filing as of August 31, 2023, management denoted the basis of accounting as accrual. The Federal share of expenditures reported did not include $152,752 of reimbursable expenses claimed on August 28, 2023 and received August 31, 2023. The August 28, 2023 request reimbursement included accrued items that were paid subsequently after August 31, 2023 and should have been included in the total.
Criteria: All Head Start recipients are required to submit financial reports detailing the expenditures incurred for their awards. The federal expenditures reported should be reported based on the basis of accounting selected.
Cause: Management was completing the SF-425 on a cash basis.
Effect: The SF-425 filed was inaccurate.
Recommendation: The Organization should amend its SF-425 filings to correctly report financial information.
Views of Responsible Officials and Planned Corrective Actions: Community Action of East Central Indiana, Inc. ceased operations as of July 31, 2024 for any new business. Community Development Institute (CDI), as contracted by the Office of Head Start, has taken over the leadership and operations.
Material Weakness and Reportable Noncompliance
Condition: The audit reports for 2017, 2018, 2019, 2020, 2021, 2022, and 2023 were not timely submitted to the Federal Clearinghouse.
Criteria: Uniform Guidance requires audits to be submitted to the Clearinghouse no later than nine months after year-end.
Cause: Turnover in upper management and inadequate resources prevented the audits from being completed in a timely manner and submitted.
Effect: Noncompliance with reporting requirements.
Recommendation: Management needs to ensure that financial information is complete and provided to the auditors within a reasonable time frame so that the audit can be completed and submitted within nine months after year end.
Views of Responsible Officials and Planned Corrective Actions: Community Action of East Central Indiana, Inc. ceased operations as of July 31, 2024 for any new business. Community Development Institute (CDI), as contracted by the Office of Head Start, has taken over the leadership and operations.
Condition: The governance board did not include an individual with financial expertise for part of the year.
Criteria: The governing body has legal and fiscal responsibility for the Head Start agency. The governing body must include not less than one member with a background and expertise in fiscal management or accounting and not less than one licensed attorney familiar with issues that come before the governing body. If the types of persons described above are not available to serve as members of the governing body, the governing body must use a consultant, or other individual(s) with relevant expertise who must work directly with the governing body (42 USC 9837(c)(1)(B)).
Cause: The board member with financial expertise resigned in April 2023 and the vacancy was not filled.
Effect: Noncompliance with special provisions regarding program governance.
Recommendation: The Organization needs to fill board vacancies and ensure at least one board member has financial expertise.
Views of Responsible Officials and Planned Corrective Actions: Community Action of East Central Indiana, Inc. ceased operations as of July 31, 2024 for any new business. Community Development Institute (CDI), as contracted by the Office of Head Start, has taken over the leadership and operations.
Condition: On the semi-annual SF-425 filing as of August 31, 2023, management denoted the basis of accounting as accrual. The Federal share of expenditures reported did not include $152,752 of reimbursable expenses claimed on August 28, 2023 and received August 31, 2023. The August 28, 2023 request reimbursement included accrued items that were paid subsequently after August 31, 2023 and should have been included in the total.
Criteria: All Head Start recipients are required to submit financial reports detailing the expenditures incurred for their awards. The federal expenditures reported should be reported based on the basis of accounting selected.
Cause: Management was completing the SF-425 on a cash basis.
Effect: The SF-425 filed was inaccurate.
Recommendation: The Organization should amend its SF-425 filings to correctly report financial information.
Views of Responsible Officials and Planned Corrective Actions: Community Action of East Central Indiana, Inc. ceased operations as of July 31, 2024 for any new business. Community Development Institute (CDI), as contracted by the Office of Head Start, has taken over the leadership and operations.
Material Weakness and Reportable Noncompliance
Condition: The audit reports for 2017, 2018, 2019, 2020, 2021, 2022, and 2023 were not timely submitted to the Federal Clearinghouse.
Criteria: Uniform Guidance requires audits to be submitted to the Clearinghouse no later than nine months after year-end.
Cause: Turnover in upper management and inadequate resources prevented the audits from being completed in a timely manner and submitted.
Effect: Noncompliance with reporting requirements.
Recommendation: Management needs to ensure that financial information is complete and provided to the auditors within a reasonable time frame so that the audit can be completed and submitted within nine months after year end.
Views of Responsible Officials and Planned Corrective Actions: Community Action of East Central Indiana, Inc. ceased operations as of July 31, 2024 for any new business. Community Development Institute (CDI), as contracted by the Office of Head Start, has taken over the leadership and operations.
Condition: The governance board did not include an individual with financial expertise for part of the year.
Criteria: The governing body has legal and fiscal responsibility for the Head Start agency. The governing body must include not less than one member with a background and expertise in fiscal management or accounting and not less than one licensed attorney familiar with issues that come before the governing body. If the types of persons described above are not available to serve as members of the governing body, the governing body must use a consultant, or other individual(s) with relevant expertise who must work directly with the governing body (42 USC 9837(c)(1)(B)).
Cause: The board member with financial expertise resigned in April 2023 and the vacancy was not filled.
Effect: Noncompliance with special provisions regarding program governance.
Recommendation: The Organization needs to fill board vacancies and ensure at least one board member has financial expertise.
Views of Responsible Officials and Planned Corrective Actions: Community Action of East Central Indiana, Inc. ceased operations as of July 31, 2024 for any new business. Community Development Institute (CDI), as contracted by the Office of Head Start, has taken over the leadership and operations.
Condition: On the semi-annual SF-425 filing as of August 31, 2023, management denoted the basis of accounting as accrual. The Federal share of expenditures reported did not include $152,752 of reimbursable expenses claimed on August 28, 2023 and received August 31, 2023. The August 28, 2023 request reimbursement included accrued items that were paid subsequently after August 31, 2023 and should have been included in the total.
Criteria: All Head Start recipients are required to submit financial reports detailing the expenditures incurred for their awards. The federal expenditures reported should be reported based on the basis of accounting selected.
Cause: Management was completing the SF-425 on a cash basis.
Effect: The SF-425 filed was inaccurate.
Recommendation: The Organization should amend its SF-425 filings to correctly report financial information.
Views of Responsible Officials and Planned Corrective Actions: Community Action of East Central Indiana, Inc. ceased operations as of July 31, 2024 for any new business. Community Development Institute (CDI), as contracted by the Office of Head Start, has taken over the leadership and operations.
Material Weakness and Reportable Noncompliance
Condition: The audit reports for 2017, 2018, 2019, 2020, 2021, 2022, and 2023 were not timely submitted to the Federal Clearinghouse.
Criteria: Uniform Guidance requires audits to be submitted to the Clearinghouse no later than nine months after year-end.
Cause: Turnover in upper management and inadequate resources prevented the audits from being completed in a timely manner and submitted.
Effect: Noncompliance with reporting requirements.
Recommendation: Management needs to ensure that financial information is complete and provided to the auditors within a reasonable time frame so that the audit can be completed and submitted within nine months after year end.
Views of Responsible Officials and Planned Corrective Actions: Community Action of East Central Indiana, Inc. ceased operations as of July 31, 2024 for any new business. Community Development Institute (CDI), as contracted by the Office of Head Start, has taken over the leadership and operations.
Condition: The governance board did not include an individual with financial expertise for part of the year.
Criteria: The governing body has legal and fiscal responsibility for the Head Start agency. The governing body must include not less than one member with a background and expertise in fiscal management or accounting and not less than one licensed attorney familiar with issues that come before the governing body. If the types of persons described above are not available to serve as members of the governing body, the governing body must use a consultant, or other individual(s) with relevant expertise who must work directly with the governing body (42 USC 9837(c)(1)(B)).
Cause: The board member with financial expertise resigned in April 2023 and the vacancy was not filled.
Effect: Noncompliance with special provisions regarding program governance.
Recommendation: The Organization needs to fill board vacancies and ensure at least one board member has financial expertise.
Views of Responsible Officials and Planned Corrective Actions: Community Action of East Central Indiana, Inc. ceased operations as of July 31, 2024 for any new business. Community Development Institute (CDI), as contracted by the Office of Head Start, has taken over the leadership and operations.
Condition: On the semi-annual SF-425 filing as of August 31, 2023, management denoted the basis of accounting as accrual. The Federal share of expenditures reported did not include $152,752 of reimbursable expenses claimed on August 28, 2023 and received August 31, 2023. The August 28, 2023 request reimbursement included accrued items that were paid subsequently after August 31, 2023 and should have been included in the total.
Criteria: All Head Start recipients are required to submit financial reports detailing the expenditures incurred for their awards. The federal expenditures reported should be reported based on the basis of accounting selected.
Cause: Management was completing the SF-425 on a cash basis.
Effect: The SF-425 filed was inaccurate.
Recommendation: The Organization should amend its SF-425 filings to correctly report financial information.
Views of Responsible Officials and Planned Corrective Actions: Community Action of East Central Indiana, Inc. ceased operations as of July 31, 2024 for any new business. Community Development Institute (CDI), as contracted by the Office of Head Start, has taken over the leadership and operations.
Material Weakness and Reportable Noncompliance
Condition: The audit reports for 2017, 2018, 2019, 2020, 2021, 2022, and 2023 were not timely submitted to the Federal Clearinghouse.
Criteria: Uniform Guidance requires audits to be submitted to the Clearinghouse no later than nine months after year-end.
Cause: Turnover in upper management and inadequate resources prevented the audits from being completed in a timely manner and submitted.
Effect: Noncompliance with reporting requirements.
Recommendation: Management needs to ensure that financial information is complete and provided to the auditors within a reasonable time frame so that the audit can be completed and submitted within nine months after year end.
Views of Responsible Officials and Planned Corrective Actions: Community Action of East Central Indiana, Inc. ceased operations as of July 31, 2024 for any new business. Community Development Institute (CDI), as contracted by the Office of Head Start, has taken over the leadership and operations.
Condition: The governance board did not include an individual with financial expertise for part of the year.
Criteria: The governing body has legal and fiscal responsibility for the Head Start agency. The governing body must include not less than one member with a background and expertise in fiscal management or accounting and not less than one licensed attorney familiar with issues that come before the governing body. If the types of persons described above are not available to serve as members of the governing body, the governing body must use a consultant, or other individual(s) with relevant expertise who must work directly with the governing body (42 USC 9837(c)(1)(B)).
Cause: The board member with financial expertise resigned in April 2023 and the vacancy was not filled.
Effect: Noncompliance with special provisions regarding program governance.
Recommendation: The Organization needs to fill board vacancies and ensure at least one board member has financial expertise.
Views of Responsible Officials and Planned Corrective Actions: Community Action of East Central Indiana, Inc. ceased operations as of July 31, 2024 for any new business. Community Development Institute (CDI), as contracted by the Office of Head Start, has taken over the leadership and operations.
Condition: On the semi-annual SF-425 filing as of August 31, 2023, management denoted the basis of accounting as accrual. The Federal share of expenditures reported did not include $152,752 of reimbursable expenses claimed on August 28, 2023 and received August 31, 2023. The August 28, 2023 request reimbursement included accrued items that were paid subsequently after August 31, 2023 and should have been included in the total.
Criteria: All Head Start recipients are required to submit financial reports detailing the expenditures incurred for their awards. The federal expenditures reported should be reported based on the basis of accounting selected.
Cause: Management was completing the SF-425 on a cash basis.
Effect: The SF-425 filed was inaccurate.
Recommendation: The Organization should amend its SF-425 filings to correctly report financial information.
Views of Responsible Officials and Planned Corrective Actions: Community Action of East Central Indiana, Inc. ceased operations as of July 31, 2024 for any new business. Community Development Institute (CDI), as contracted by the Office of Head Start, has taken over the leadership and operations.
Material Weakness and Reportable Noncompliance
Condition: The audit reports for 2017, 2018, 2019, 2020, 2021, 2022, and 2023 were not timely submitted to the Federal Clearinghouse.
Criteria: Uniform Guidance requires audits to be submitted to the Clearinghouse no later than nine months after year-end.
Cause: Turnover in upper management and inadequate resources prevented the audits from being completed in a timely manner and submitted.
Effect: Noncompliance with reporting requirements.
Recommendation: Management needs to ensure that financial information is complete and provided to the auditors within a reasonable time frame so that the audit can be completed and submitted within nine months after year end.
Views of Responsible Officials and Planned Corrective Actions: Community Action of East Central Indiana, Inc. ceased operations as of July 31, 2024 for any new business. Community Development Institute (CDI), as contracted by the Office of Head Start, has taken over the leadership and operations.
Condition: The governance board did not include an individual with financial expertise for part of the year.
Criteria: The governing body has legal and fiscal responsibility for the Head Start agency. The governing body must include not less than one member with a background and expertise in fiscal management or accounting and not less than one licensed attorney familiar with issues that come before the governing body. If the types of persons described above are not available to serve as members of the governing body, the governing body must use a consultant, or other individual(s) with relevant expertise who must work directly with the governing body (42 USC 9837(c)(1)(B)).
Cause: The board member with financial expertise resigned in April 2023 and the vacancy was not filled.
Effect: Noncompliance with special provisions regarding program governance.
Recommendation: The Organization needs to fill board vacancies and ensure at least one board member has financial expertise.
Views of Responsible Officials and Planned Corrective Actions: Community Action of East Central Indiana, Inc. ceased operations as of July 31, 2024 for any new business. Community Development Institute (CDI), as contracted by the Office of Head Start, has taken over the leadership and operations.
Condition: On the semi-annual SF-425 filing as of August 31, 2023, management denoted the basis of accounting as accrual. The Federal share of expenditures reported did not include $152,752 of reimbursable expenses claimed on August 28, 2023 and received August 31, 2023. The August 28, 2023 request reimbursement included accrued items that were paid subsequently after August 31, 2023 and should have been included in the total.
Criteria: All Head Start recipients are required to submit financial reports detailing the expenditures incurred for their awards. The federal expenditures reported should be reported based on the basis of accounting selected.
Cause: Management was completing the SF-425 on a cash basis.
Effect: The SF-425 filed was inaccurate.
Recommendation: The Organization should amend its SF-425 filings to correctly report financial information.
Views of Responsible Officials and Planned Corrective Actions: Community Action of East Central Indiana, Inc. ceased operations as of July 31, 2024 for any new business. Community Development Institute (CDI), as contracted by the Office of Head Start, has taken over the leadership and operations.