FAC Explorer

Audit 353111

FY End
2024-09-30
Total Expended
$9.42M
Findings
16
Programs
6
Organization: Tri-County Community Action Partnership, Inc. (MN)
Year: 2024 Accepted: 2025-04-09
Auditor: Cliftonlarsonallen LLP

Organization Exclusion Status:

Findings

ID Ref Severity Repeat Requirement
554475 2024-002 Significant Deficiency - L
554476 2024-002 Significant Deficiency - L
554477 2024-002 Significant Deficiency - L
554478 2024-002 Significant Deficiency - L
554479 2024-003 Significant Deficiency Yes F
554480 2024-003 Significant Deficiency Yes F
554481 2024-003 Significant Deficiency Yes F
554482 2024-003 Significant Deficiency Yes F
1130917 2024-002 Significant Deficiency - L
1130918 2024-002 Significant Deficiency - L
1130919 2024-002 Significant Deficiency - L
1130920 2024-002 Significant Deficiency - L
1130921 2024-003 Significant Deficiency Yes F
1130922 2024-003 Significant Deficiency Yes F
1130923 2024-003 Significant Deficiency Yes F
1130924 2024-003 Significant Deficiency Yes F

Programs

ALN Program Spent Major Findings
93.600 Head Start $1.54M Yes 2
93.568 Low-Income Home Energy Assistance $646,939 - 0
81.042 Weatherization Assistance for Low-Income Persons $354,852 - 0
10.558 Child and Adult Care Food Program $276,931 - 0
10.580 Supplemental Nutrition Assistance Program, Process and Technology Improvement Grants $15,059 - 0
93.569 Community Services Block Grant $3,304 - 0

Contacts

Name Title Type
W6NFBMQU2DY7 Rita Zilka Auditee
3206323691 Kristin Schmidt Auditor
No contacts on file

Notes to SEFA

Title: BASIS OF PRESENTATION Accounting Policies: Expenditures reported on the Schedule are reported on the accrual basis of accounting. Such expenditures are recognized following the cost principles contained in the Uniform Guidance, wherein certain types of expenditures are not allowable or are limited as to reimbursement. Negative amounts shown on the Schedule represent adjustments or credits made in the normal course of business to amounts reported as expenditures in prior years. De Minimis Rate Used: N Rate Explanation: The Organization has elected not to use the 10 percent de minimis indirect cost rate as allowed under the Uniform Guidance. The accompanying schedule of expenditures of federal awards (the Schedule) includes the federal award activity of the Organization under programs of the federal government for the year ended September 30, 2024. The information in this Schedule is presented in accordance with the requirements of Title 2 U.S. Code of Federal Regulations Part 200, Uniform Administrative Requirements, Cost Principles, and Audit Requirements for Federal Awards (Uniform Guidance). Because the Schedule presents only a selected portion of the operations of the Organization, it is not intended to and does not present the financial position, changes in net assets, or cash flows of the Organization.

Finding Details

Finding 2024-002
Federal Agency: U.S. Department of Health and Human Services Federal Program Title: Head Start Federal Assistance Listing Number: 93.600 Award Period: June 1, 2023 to May 31, 2024, June 1, 2024 to May 31, 2025 Type of Finding: Significant Deficiency in Internal Control over Major Federal Programs Criteria or Specific Requirement: Timely review and approval should be maintained to ensure accurate amounts are being drawdown and accurate reports are submitted. Under 2 CFR section 200.303, a non-federal entity must establish and maintain effective internal controls over the federal awards that provides reasonable assurance that the non-federal entity is managing the federal award in compliance with federal statutes, regulations, and the terms and conditions of the federal award. These internal controls should be in compliance with guidance in “Standards for Internal Control in the Federal Government” issued by the Comptroller General of the United States or the “Internal Control Integrated Framework”, issued by the Committee of Sponsoring Organizations of the Treadway Commission (COSO). Condition: The Organization did not adequately follow internal controls in place to ensure required reports are approved by the appropriate personnel before being submitted. Questioned Costs: N/A Context: The control in place for internal review prior to submitting financial reports to HS/EHS was not followed for two of the five reports tested. Cause: Management was unable to obtain the signature of the assigned individual due to their unavailability during a break period. Effect: Potential for inaccurate information to be reported. Repeat Finding: No Recommendation: Establish a backup signatory process to ensure that there is always an available individual to provide necessary signatures, even during periods of unavailability. Views of responsible officials and planned corrective actions: There is no disagreement with the audit finding.
Finding 2024-002
Federal Agency: U.S. Department of Health and Human Services Federal Program Title: Head Start Federal Assistance Listing Number: 93.600 Award Period: June 1, 2023 to May 31, 2024, June 1, 2024 to May 31, 2025 Type of Finding: Significant Deficiency in Internal Control over Major Federal Programs Criteria or Specific Requirement: Timely review and approval should be maintained to ensure accurate amounts are being drawdown and accurate reports are submitted. Under 2 CFR section 200.303, a non-federal entity must establish and maintain effective internal controls over the federal awards that provides reasonable assurance that the non-federal entity is managing the federal award in compliance with federal statutes, regulations, and the terms and conditions of the federal award. These internal controls should be in compliance with guidance in “Standards for Internal Control in the Federal Government” issued by the Comptroller General of the United States or the “Internal Control Integrated Framework”, issued by the Committee of Sponsoring Organizations of the Treadway Commission (COSO). Condition: The Organization did not adequately follow internal controls in place to ensure required reports are approved by the appropriate personnel before being submitted. Questioned Costs: N/A Context: The control in place for internal review prior to submitting financial reports to HS/EHS was not followed for two of the five reports tested. Cause: Management was unable to obtain the signature of the assigned individual due to their unavailability during a break period. Effect: Potential for inaccurate information to be reported. Repeat Finding: No Recommendation: Establish a backup signatory process to ensure that there is always an available individual to provide necessary signatures, even during periods of unavailability. Views of responsible officials and planned corrective actions: There is no disagreement with the audit finding.
Finding 2024-002
Federal Agency: U.S. Department of Health and Human Services Federal Program Title: Head Start Federal Assistance Listing Number: 93.600 Award Period: June 1, 2023 to May 31, 2024, June 1, 2024 to May 31, 2025 Type of Finding: Significant Deficiency in Internal Control over Major Federal Programs Criteria or Specific Requirement: Timely review and approval should be maintained to ensure accurate amounts are being drawdown and accurate reports are submitted. Under 2 CFR section 200.303, a non-federal entity must establish and maintain effective internal controls over the federal awards that provides reasonable assurance that the non-federal entity is managing the federal award in compliance with federal statutes, regulations, and the terms and conditions of the federal award. These internal controls should be in compliance with guidance in “Standards for Internal Control in the Federal Government” issued by the Comptroller General of the United States or the “Internal Control Integrated Framework”, issued by the Committee of Sponsoring Organizations of the Treadway Commission (COSO). Condition: The Organization did not adequately follow internal controls in place to ensure required reports are approved by the appropriate personnel before being submitted. Questioned Costs: N/A Context: The control in place for internal review prior to submitting financial reports to HS/EHS was not followed for two of the five reports tested. Cause: Management was unable to obtain the signature of the assigned individual due to their unavailability during a break period. Effect: Potential for inaccurate information to be reported. Repeat Finding: No Recommendation: Establish a backup signatory process to ensure that there is always an available individual to provide necessary signatures, even during periods of unavailability. Views of responsible officials and planned corrective actions: There is no disagreement with the audit finding.
Finding 2024-002
Federal Agency: U.S. Department of Health and Human Services Federal Program Title: Head Start Federal Assistance Listing Number: 93.600 Award Period: June 1, 2023 to May 31, 2024, June 1, 2024 to May 31, 2025 Type of Finding: Significant Deficiency in Internal Control over Major Federal Programs Criteria or Specific Requirement: Timely review and approval should be maintained to ensure accurate amounts are being drawdown and accurate reports are submitted. Under 2 CFR section 200.303, a non-federal entity must establish and maintain effective internal controls over the federal awards that provides reasonable assurance that the non-federal entity is managing the federal award in compliance with federal statutes, regulations, and the terms and conditions of the federal award. These internal controls should be in compliance with guidance in “Standards for Internal Control in the Federal Government” issued by the Comptroller General of the United States or the “Internal Control Integrated Framework”, issued by the Committee of Sponsoring Organizations of the Treadway Commission (COSO). Condition: The Organization did not adequately follow internal controls in place to ensure required reports are approved by the appropriate personnel before being submitted. Questioned Costs: N/A Context: The control in place for internal review prior to submitting financial reports to HS/EHS was not followed for two of the five reports tested. Cause: Management was unable to obtain the signature of the assigned individual due to their unavailability during a break period. Effect: Potential for inaccurate information to be reported. Repeat Finding: No Recommendation: Establish a backup signatory process to ensure that there is always an available individual to provide necessary signatures, even during periods of unavailability. Views of responsible officials and planned corrective actions: There is no disagreement with the audit finding.
Finding 2024-003
Federal Agency: U.S. Department of Health and Human Services Federal Program Title: Head Start Federal Assistance Listing Number: 93.600 Award Period: June 1, 2023 to May 31, 2024, June 1, 2024 to May 31, 2025 Type of Finding:  Significant Deficiency in Internal Control over Major Federal Programs and Other Matters Criteria or Specific Requirement: A physical inventory of the property must be taken and the results reconciled with the property records at least once every two years. Under 2 CFR section 200.303 a non-federal entity must establish and maintain effective internal controls over the federal awards that provides reasonable assurance that the non-federal entity is managing the federal award in compliance with federal statutes, regulations, and the terms and conditions of the federal award. These internal controls should be in compliance with guidance in “Standards for Internal Control in the Federal Government” issued by the Comptroller General of the United States or the “Internal Control Integrated Framework”, issued by the Committee of Sponsoring Organizations of the Treadway Commission (COSO). Condition: During our testing, we noted the no reconciliation of the inventory count to the asset listing. Questioned Costs: N/A Context: There was no documented reconciliation of inventory count. Cause: The Organization performed an inventory count during the fiscal year, however, there were no policies in place to formally document the count, reconcile the count to the asset listing, or review such reconciliation. Effect: Potential for missing, old, or out of use property Repeat Finding: Yes Recommendation: The Organization should perform an inventory count with proper reconciliations to the asset listing, along with having a different individual review and document such review of the count and the reconciliation. Views of responsible officials and planned corrective actions: There is no disagreement with the audit finding.
Finding 2024-003
Federal Agency: U.S. Department of Health and Human Services Federal Program Title: Head Start Federal Assistance Listing Number: 93.600 Award Period: June 1, 2023 to May 31, 2024, June 1, 2024 to May 31, 2025 Type of Finding:  Significant Deficiency in Internal Control over Major Federal Programs and Other Matters Criteria or Specific Requirement: A physical inventory of the property must be taken and the results reconciled with the property records at least once every two years. Under 2 CFR section 200.303 a non-federal entity must establish and maintain effective internal controls over the federal awards that provides reasonable assurance that the non-federal entity is managing the federal award in compliance with federal statutes, regulations, and the terms and conditions of the federal award. These internal controls should be in compliance with guidance in “Standards for Internal Control in the Federal Government” issued by the Comptroller General of the United States or the “Internal Control Integrated Framework”, issued by the Committee of Sponsoring Organizations of the Treadway Commission (COSO). Condition: During our testing, we noted the no reconciliation of the inventory count to the asset listing. Questioned Costs: N/A Context: There was no documented reconciliation of inventory count. Cause: The Organization performed an inventory count during the fiscal year, however, there were no policies in place to formally document the count, reconcile the count to the asset listing, or review such reconciliation. Effect: Potential for missing, old, or out of use property Repeat Finding: Yes Recommendation: The Organization should perform an inventory count with proper reconciliations to the asset listing, along with having a different individual review and document such review of the count and the reconciliation. Views of responsible officials and planned corrective actions: There is no disagreement with the audit finding.
Finding 2024-003
Federal Agency: U.S. Department of Health and Human Services Federal Program Title: Head Start Federal Assistance Listing Number: 93.600 Award Period: June 1, 2023 to May 31, 2024, June 1, 2024 to May 31, 2025 Type of Finding:  Significant Deficiency in Internal Control over Major Federal Programs and Other Matters Criteria or Specific Requirement: A physical inventory of the property must be taken and the results reconciled with the property records at least once every two years. Under 2 CFR section 200.303 a non-federal entity must establish and maintain effective internal controls over the federal awards that provides reasonable assurance that the non-federal entity is managing the federal award in compliance with federal statutes, regulations, and the terms and conditions of the federal award. These internal controls should be in compliance with guidance in “Standards for Internal Control in the Federal Government” issued by the Comptroller General of the United States or the “Internal Control Integrated Framework”, issued by the Committee of Sponsoring Organizations of the Treadway Commission (COSO). Condition: During our testing, we noted the no reconciliation of the inventory count to the asset listing. Questioned Costs: N/A Context: There was no documented reconciliation of inventory count. Cause: The Organization performed an inventory count during the fiscal year, however, there were no policies in place to formally document the count, reconcile the count to the asset listing, or review such reconciliation. Effect: Potential for missing, old, or out of use property Repeat Finding: Yes Recommendation: The Organization should perform an inventory count with proper reconciliations to the asset listing, along with having a different individual review and document such review of the count and the reconciliation. Views of responsible officials and planned corrective actions: There is no disagreement with the audit finding.
Finding 2024-003
Federal Agency: U.S. Department of Health and Human Services Federal Program Title: Head Start Federal Assistance Listing Number: 93.600 Award Period: June 1, 2023 to May 31, 2024, June 1, 2024 to May 31, 2025 Type of Finding:  Significant Deficiency in Internal Control over Major Federal Programs and Other Matters Criteria or Specific Requirement: A physical inventory of the property must be taken and the results reconciled with the property records at least once every two years. Under 2 CFR section 200.303 a non-federal entity must establish and maintain effective internal controls over the federal awards that provides reasonable assurance that the non-federal entity is managing the federal award in compliance with federal statutes, regulations, and the terms and conditions of the federal award. These internal controls should be in compliance with guidance in “Standards for Internal Control in the Federal Government” issued by the Comptroller General of the United States or the “Internal Control Integrated Framework”, issued by the Committee of Sponsoring Organizations of the Treadway Commission (COSO). Condition: During our testing, we noted the no reconciliation of the inventory count to the asset listing. Questioned Costs: N/A Context: There was no documented reconciliation of inventory count. Cause: The Organization performed an inventory count during the fiscal year, however, there were no policies in place to formally document the count, reconcile the count to the asset listing, or review such reconciliation. Effect: Potential for missing, old, or out of use property Repeat Finding: Yes Recommendation: The Organization should perform an inventory count with proper reconciliations to the asset listing, along with having a different individual review and document such review of the count and the reconciliation. Views of responsible officials and planned corrective actions: There is no disagreement with the audit finding.
Finding 2024-002
Federal Agency: U.S. Department of Health and Human Services Federal Program Title: Head Start Federal Assistance Listing Number: 93.600 Award Period: June 1, 2023 to May 31, 2024, June 1, 2024 to May 31, 2025 Type of Finding: Significant Deficiency in Internal Control over Major Federal Programs Criteria or Specific Requirement: Timely review and approval should be maintained to ensure accurate amounts are being drawdown and accurate reports are submitted. Under 2 CFR section 200.303, a non-federal entity must establish and maintain effective internal controls over the federal awards that provides reasonable assurance that the non-federal entity is managing the federal award in compliance with federal statutes, regulations, and the terms and conditions of the federal award. These internal controls should be in compliance with guidance in “Standards for Internal Control in the Federal Government” issued by the Comptroller General of the United States or the “Internal Control Integrated Framework”, issued by the Committee of Sponsoring Organizations of the Treadway Commission (COSO). Condition: The Organization did not adequately follow internal controls in place to ensure required reports are approved by the appropriate personnel before being submitted. Questioned Costs: N/A Context: The control in place for internal review prior to submitting financial reports to HS/EHS was not followed for two of the five reports tested. Cause: Management was unable to obtain the signature of the assigned individual due to their unavailability during a break period. Effect: Potential for inaccurate information to be reported. Repeat Finding: No Recommendation: Establish a backup signatory process to ensure that there is always an available individual to provide necessary signatures, even during periods of unavailability. Views of responsible officials and planned corrective actions: There is no disagreement with the audit finding.
Finding 2024-002
Federal Agency: U.S. Department of Health and Human Services Federal Program Title: Head Start Federal Assistance Listing Number: 93.600 Award Period: June 1, 2023 to May 31, 2024, June 1, 2024 to May 31, 2025 Type of Finding: Significant Deficiency in Internal Control over Major Federal Programs Criteria or Specific Requirement: Timely review and approval should be maintained to ensure accurate amounts are being drawdown and accurate reports are submitted. Under 2 CFR section 200.303, a non-federal entity must establish and maintain effective internal controls over the federal awards that provides reasonable assurance that the non-federal entity is managing the federal award in compliance with federal statutes, regulations, and the terms and conditions of the federal award. These internal controls should be in compliance with guidance in “Standards for Internal Control in the Federal Government” issued by the Comptroller General of the United States or the “Internal Control Integrated Framework”, issued by the Committee of Sponsoring Organizations of the Treadway Commission (COSO). Condition: The Organization did not adequately follow internal controls in place to ensure required reports are approved by the appropriate personnel before being submitted. Questioned Costs: N/A Context: The control in place for internal review prior to submitting financial reports to HS/EHS was not followed for two of the five reports tested. Cause: Management was unable to obtain the signature of the assigned individual due to their unavailability during a break period. Effect: Potential for inaccurate information to be reported. Repeat Finding: No Recommendation: Establish a backup signatory process to ensure that there is always an available individual to provide necessary signatures, even during periods of unavailability. Views of responsible officials and planned corrective actions: There is no disagreement with the audit finding.
Finding 2024-002
Federal Agency: U.S. Department of Health and Human Services Federal Program Title: Head Start Federal Assistance Listing Number: 93.600 Award Period: June 1, 2023 to May 31, 2024, June 1, 2024 to May 31, 2025 Type of Finding: Significant Deficiency in Internal Control over Major Federal Programs Criteria or Specific Requirement: Timely review and approval should be maintained to ensure accurate amounts are being drawdown and accurate reports are submitted. Under 2 CFR section 200.303, a non-federal entity must establish and maintain effective internal controls over the federal awards that provides reasonable assurance that the non-federal entity is managing the federal award in compliance with federal statutes, regulations, and the terms and conditions of the federal award. These internal controls should be in compliance with guidance in “Standards for Internal Control in the Federal Government” issued by the Comptroller General of the United States or the “Internal Control Integrated Framework”, issued by the Committee of Sponsoring Organizations of the Treadway Commission (COSO). Condition: The Organization did not adequately follow internal controls in place to ensure required reports are approved by the appropriate personnel before being submitted. Questioned Costs: N/A Context: The control in place for internal review prior to submitting financial reports to HS/EHS was not followed for two of the five reports tested. Cause: Management was unable to obtain the signature of the assigned individual due to their unavailability during a break period. Effect: Potential for inaccurate information to be reported. Repeat Finding: No Recommendation: Establish a backup signatory process to ensure that there is always an available individual to provide necessary signatures, even during periods of unavailability. Views of responsible officials and planned corrective actions: There is no disagreement with the audit finding.
Finding 2024-002
Federal Agency: U.S. Department of Health and Human Services Federal Program Title: Head Start Federal Assistance Listing Number: 93.600 Award Period: June 1, 2023 to May 31, 2024, June 1, 2024 to May 31, 2025 Type of Finding: Significant Deficiency in Internal Control over Major Federal Programs Criteria or Specific Requirement: Timely review and approval should be maintained to ensure accurate amounts are being drawdown and accurate reports are submitted. Under 2 CFR section 200.303, a non-federal entity must establish and maintain effective internal controls over the federal awards that provides reasonable assurance that the non-federal entity is managing the federal award in compliance with federal statutes, regulations, and the terms and conditions of the federal award. These internal controls should be in compliance with guidance in “Standards for Internal Control in the Federal Government” issued by the Comptroller General of the United States or the “Internal Control Integrated Framework”, issued by the Committee of Sponsoring Organizations of the Treadway Commission (COSO). Condition: The Organization did not adequately follow internal controls in place to ensure required reports are approved by the appropriate personnel before being submitted. Questioned Costs: N/A Context: The control in place for internal review prior to submitting financial reports to HS/EHS was not followed for two of the five reports tested. Cause: Management was unable to obtain the signature of the assigned individual due to their unavailability during a break period. Effect: Potential for inaccurate information to be reported. Repeat Finding: No Recommendation: Establish a backup signatory process to ensure that there is always an available individual to provide necessary signatures, even during periods of unavailability. Views of responsible officials and planned corrective actions: There is no disagreement with the audit finding.
Finding 2024-003
Federal Agency: U.S. Department of Health and Human Services Federal Program Title: Head Start Federal Assistance Listing Number: 93.600 Award Period: June 1, 2023 to May 31, 2024, June 1, 2024 to May 31, 2025 Type of Finding:  Significant Deficiency in Internal Control over Major Federal Programs and Other Matters Criteria or Specific Requirement: A physical inventory of the property must be taken and the results reconciled with the property records at least once every two years. Under 2 CFR section 200.303 a non-federal entity must establish and maintain effective internal controls over the federal awards that provides reasonable assurance that the non-federal entity is managing the federal award in compliance with federal statutes, regulations, and the terms and conditions of the federal award. These internal controls should be in compliance with guidance in “Standards for Internal Control in the Federal Government” issued by the Comptroller General of the United States or the “Internal Control Integrated Framework”, issued by the Committee of Sponsoring Organizations of the Treadway Commission (COSO). Condition: During our testing, we noted the no reconciliation of the inventory count to the asset listing. Questioned Costs: N/A Context: There was no documented reconciliation of inventory count. Cause: The Organization performed an inventory count during the fiscal year, however, there were no policies in place to formally document the count, reconcile the count to the asset listing, or review such reconciliation. Effect: Potential for missing, old, or out of use property Repeat Finding: Yes Recommendation: The Organization should perform an inventory count with proper reconciliations to the asset listing, along with having a different individual review and document such review of the count and the reconciliation. Views of responsible officials and planned corrective actions: There is no disagreement with the audit finding.
Finding 2024-003
Federal Agency: U.S. Department of Health and Human Services Federal Program Title: Head Start Federal Assistance Listing Number: 93.600 Award Period: June 1, 2023 to May 31, 2024, June 1, 2024 to May 31, 2025 Type of Finding:  Significant Deficiency in Internal Control over Major Federal Programs and Other Matters Criteria or Specific Requirement: A physical inventory of the property must be taken and the results reconciled with the property records at least once every two years. Under 2 CFR section 200.303 a non-federal entity must establish and maintain effective internal controls over the federal awards that provides reasonable assurance that the non-federal entity is managing the federal award in compliance with federal statutes, regulations, and the terms and conditions of the federal award. These internal controls should be in compliance with guidance in “Standards for Internal Control in the Federal Government” issued by the Comptroller General of the United States or the “Internal Control Integrated Framework”, issued by the Committee of Sponsoring Organizations of the Treadway Commission (COSO). Condition: During our testing, we noted the no reconciliation of the inventory count to the asset listing. Questioned Costs: N/A Context: There was no documented reconciliation of inventory count. Cause: The Organization performed an inventory count during the fiscal year, however, there were no policies in place to formally document the count, reconcile the count to the asset listing, or review such reconciliation. Effect: Potential for missing, old, or out of use property Repeat Finding: Yes Recommendation: The Organization should perform an inventory count with proper reconciliations to the asset listing, along with having a different individual review and document such review of the count and the reconciliation. Views of responsible officials and planned corrective actions: There is no disagreement with the audit finding.
Finding 2024-003
Federal Agency: U.S. Department of Health and Human Services Federal Program Title: Head Start Federal Assistance Listing Number: 93.600 Award Period: June 1, 2023 to May 31, 2024, June 1, 2024 to May 31, 2025 Type of Finding:  Significant Deficiency in Internal Control over Major Federal Programs and Other Matters Criteria or Specific Requirement: A physical inventory of the property must be taken and the results reconciled with the property records at least once every two years. Under 2 CFR section 200.303 a non-federal entity must establish and maintain effective internal controls over the federal awards that provides reasonable assurance that the non-federal entity is managing the federal award in compliance with federal statutes, regulations, and the terms and conditions of the federal award. These internal controls should be in compliance with guidance in “Standards for Internal Control in the Federal Government” issued by the Comptroller General of the United States or the “Internal Control Integrated Framework”, issued by the Committee of Sponsoring Organizations of the Treadway Commission (COSO). Condition: During our testing, we noted the no reconciliation of the inventory count to the asset listing. Questioned Costs: N/A Context: There was no documented reconciliation of inventory count. Cause: The Organization performed an inventory count during the fiscal year, however, there were no policies in place to formally document the count, reconcile the count to the asset listing, or review such reconciliation. Effect: Potential for missing, old, or out of use property Repeat Finding: Yes Recommendation: The Organization should perform an inventory count with proper reconciliations to the asset listing, along with having a different individual review and document such review of the count and the reconciliation. Views of responsible officials and planned corrective actions: There is no disagreement with the audit finding.
Finding 2024-003
Federal Agency: U.S. Department of Health and Human Services Federal Program Title: Head Start Federal Assistance Listing Number: 93.600 Award Period: June 1, 2023 to May 31, 2024, June 1, 2024 to May 31, 2025 Type of Finding:  Significant Deficiency in Internal Control over Major Federal Programs and Other Matters Criteria or Specific Requirement: A physical inventory of the property must be taken and the results reconciled with the property records at least once every two years. Under 2 CFR section 200.303 a non-federal entity must establish and maintain effective internal controls over the federal awards that provides reasonable assurance that the non-federal entity is managing the federal award in compliance with federal statutes, regulations, and the terms and conditions of the federal award. These internal controls should be in compliance with guidance in “Standards for Internal Control in the Federal Government” issued by the Comptroller General of the United States or the “Internal Control Integrated Framework”, issued by the Committee of Sponsoring Organizations of the Treadway Commission (COSO). Condition: During our testing, we noted the no reconciliation of the inventory count to the asset listing. Questioned Costs: N/A Context: There was no documented reconciliation of inventory count. Cause: The Organization performed an inventory count during the fiscal year, however, there were no policies in place to formally document the count, reconcile the count to the asset listing, or review such reconciliation. Effect: Potential for missing, old, or out of use property Repeat Finding: Yes Recommendation: The Organization should perform an inventory count with proper reconciliations to the asset listing, along with having a different individual review and document such review of the count and the reconciliation. Views of responsible officials and planned corrective actions: There is no disagreement with the audit finding.