Audit 358612

FY End
2024-09-30
Total Expended
$5.09M
Findings
20
Programs
9
Year: 2024 Accepted: 2025-06-11

Organization Exclusion Status:

Checking exclusion status...

Findings

ID Ref Severity Repeat Requirement
564472 2024-002 Material Weakness Yes L
564473 2024-002 Material Weakness Yes L
564474 2024-002 Material Weakness Yes L
564475 2024-002 Material Weakness Yes L
564476 2024-002 Material Weakness Yes L
564477 2024-003 Material Weakness Yes B
564478 2024-003 Material Weakness Yes B
564479 2024-003 Material Weakness Yes B
564480 2024-003 Material Weakness Yes B
564481 2024-003 Material Weakness Yes B
1140914 2024-002 Material Weakness Yes L
1140915 2024-002 Material Weakness Yes L
1140916 2024-002 Material Weakness Yes L
1140917 2024-002 Material Weakness Yes L
1140918 2024-002 Material Weakness Yes L
1140919 2024-003 Material Weakness Yes B
1140920 2024-003 Material Weakness Yes B
1140921 2024-003 Material Weakness Yes B
1140922 2024-003 Material Weakness Yes B
1140923 2024-003 Material Weakness Yes B

Contacts

Name Title Type
LZ6CXQEL6ES8 Carrie Tripp Auditee
3209636500 Kristin Schmidt Auditor
No contacts on file

Notes to SEFA

Title: REPORTING ENTITY 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 Title 2 U.S. Code of Federal Regulations Part 200, Subpart E – Cost Principles, wherein certain types of expenditures are not allowed or are limited as to reimbursement. Pass-through entity identifying numbers are presented where available. De Minimis Rate Used: N Rate Explanation: Wright County Community Action, Inc. elected not to charge the de minimis indirect cost rate of 10% to federal programs. The schedule of expenditures of federal awards presents the activities of federal award programs expended by Wright County Community Action, Inc. (the Organization). The Organization’s reporting entity is defined in Note 1 to the financial statements.
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 Title 2 U.S. Code of Federal Regulations Part 200, Subpart E – Cost Principles, wherein certain types of expenditures are not allowed or are limited as to reimbursement. Pass-through entity identifying numbers are presented where available. De Minimis Rate Used: N Rate Explanation: Wright County Community Action, Inc. elected not to charge the de minimis indirect cost rate of 10% to federal programs. The accompanying schedule of expenditures of federal awards (the Schedule) includes the federal grant 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 the Title 2 U.S. Code of Federal Regulations Part 200, Uniform Administrative Requirements, Cost Principles, and Audit Requirements for Federal Awards. 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.
Title: SUBRECIPIENTS 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 Title 2 U.S. Code of Federal Regulations Part 200, Subpart E – Cost Principles, wherein certain types of expenditures are not allowed or are limited as to reimbursement. Pass-through entity identifying numbers are presented where available. De Minimis Rate Used: N Rate Explanation: Wright County Community Action, Inc. elected not to charge the de minimis indirect cost rate of 10% to federal programs. During the years ended September 30, 2024, the Organization did not pass any federal money to subrecipients.

Finding Details

Federal Agency: U.S. Department of Health and Human Services Federal Program Name: Head Start Cluster Federal Assistance Listing Number: 93.600 Federal Award Identification Number(s) and Year(s): 05CH010838-2023, 05CH010838-2024 Award Period: March, 1 2023 to February 29, 2024; and March 1, 2024 to February 28, 2025 Type of Finding: Material Weakness in Internal Control over Major Federal Programs Criteria or Specific Requirement: Under 2 CFR section 200.303, a nonfederal entity must establish and maintain effective internal controls over the federal awards that provides reasonable assurance that the nonfederal 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). Timely review and approval should be maintained to ensure accurate reports are submitted. Condition: The Organization does not have adequate internal controls in place to ensure required reports are approved by the appropriate personnel before being submitted. Questioned Costs: N/A Context: The two financial status reports selected for testing both did not contain a formal documented review and approval. Cause: While management does have a separate individual assigned to review the required reports prepared by the Fiscal Director, that review is not formally documented. Effect: Potential for inaccurate information reported. Repeat Finding: This is a repeat finding. Recommendation: We recommend that the assigned individual to review formally documents their review and approval of the reports with a signature before the required date to be submitted. Views of responsible officials and planned corrective actions: There is no disagreement with the finding. WCCA has already implemented a process to ensure all reports are reviewed and approved with documentation before submission.
Federal Agency: U.S. Department of Health and Human Services Federal Program Name: Head Start Cluster Federal Assistance Listing Number: 93.600 Federal Award Identification Number(s) and Year(s): 05CH010838-2023, 05CH010838-2024 Award Period: March, 1 2023 to February 29, 2024; and March 1, 2024 to February 28, 2025 Type of Finding: Material Weakness in Internal Control over Major Federal Programs Criteria or Specific Requirement: Under 2 CFR section 200.303, a nonfederal entity must establish and maintain effective internal controls over the federal awards that provides reasonable assurance that the nonfederal 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). Timely review and approval should be maintained to ensure accurate reports are submitted. Condition: The Organization does not have adequate internal controls in place to ensure required reports are approved by the appropriate personnel before being submitted. Questioned Costs: N/A Context: The two financial status reports selected for testing both did not contain a formal documented review and approval. Cause: While management does have a separate individual assigned to review the required reports prepared by the Fiscal Director, that review is not formally documented. Effect: Potential for inaccurate information reported. Repeat Finding: This is a repeat finding. Recommendation: We recommend that the assigned individual to review formally documents their review and approval of the reports with a signature before the required date to be submitted. Views of responsible officials and planned corrective actions: There is no disagreement with the finding. WCCA has already implemented a process to ensure all reports are reviewed and approved with documentation before submission.
Federal Agency: U.S. Department of Health and Human Services Federal Program Name: Head Start Cluster Federal Assistance Listing Number: 93.600 Federal Award Identification Number(s) and Year(s): 05CH010838-2023, 05CH010838-2024 Award Period: March, 1 2023 to February 29, 2024; and March 1, 2024 to February 28, 2025 Type of Finding: Material Weakness in Internal Control over Major Federal Programs Criteria or Specific Requirement: Under 2 CFR section 200.303, a nonfederal entity must establish and maintain effective internal controls over the federal awards that provides reasonable assurance that the nonfederal 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). Timely review and approval should be maintained to ensure accurate reports are submitted. Condition: The Organization does not have adequate internal controls in place to ensure required reports are approved by the appropriate personnel before being submitted. Questioned Costs: N/A Context: The two financial status reports selected for testing both did not contain a formal documented review and approval. Cause: While management does have a separate individual assigned to review the required reports prepared by the Fiscal Director, that review is not formally documented. Effect: Potential for inaccurate information reported. Repeat Finding: This is a repeat finding. Recommendation: We recommend that the assigned individual to review formally documents their review and approval of the reports with a signature before the required date to be submitted. Views of responsible officials and planned corrective actions: There is no disagreement with the finding. WCCA has already implemented a process to ensure all reports are reviewed and approved with documentation before submission.
Federal Agency: U.S. Department of Health and Human Services Federal Program Name: Head Start Cluster Federal Assistance Listing Number: 93.600 Federal Award Identification Number(s) and Year(s): 05CH010838-2023, 05CH010838-2024 Award Period: March, 1 2023 to February 29, 2024; and March 1, 2024 to February 28, 2025 Type of Finding: Material Weakness in Internal Control over Major Federal Programs Criteria or Specific Requirement: Under 2 CFR section 200.303, a nonfederal entity must establish and maintain effective internal controls over the federal awards that provides reasonable assurance that the nonfederal 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). Timely review and approval should be maintained to ensure accurate reports are submitted. Condition: The Organization does not have adequate internal controls in place to ensure required reports are approved by the appropriate personnel before being submitted. Questioned Costs: N/A Context: The two financial status reports selected for testing both did not contain a formal documented review and approval. Cause: While management does have a separate individual assigned to review the required reports prepared by the Fiscal Director, that review is not formally documented. Effect: Potential for inaccurate information reported. Repeat Finding: This is a repeat finding. Recommendation: We recommend that the assigned individual to review formally documents their review and approval of the reports with a signature before the required date to be submitted. Views of responsible officials and planned corrective actions: There is no disagreement with the finding. WCCA has already implemented a process to ensure all reports are reviewed and approved with documentation before submission.
Federal Agency: U.S. Department of Health and Human Services Federal Program Name: Head Start Cluster Federal Assistance Listing Number: 93.600 Federal Award Identification Number(s) and Year(s): 05CH010838-2023, 05CH010838-2024 Award Period: March, 1 2023 to February 29, 2024; and March 1, 2024 to February 28, 2025 Type of Finding: Material Weakness in Internal Control over Major Federal Programs Criteria or Specific Requirement: Under 2 CFR section 200.303, a nonfederal entity must establish and maintain effective internal controls over the federal awards that provides reasonable assurance that the nonfederal 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). Timely review and approval should be maintained to ensure accurate reports are submitted. Condition: The Organization does not have adequate internal controls in place to ensure required reports are approved by the appropriate personnel before being submitted. Questioned Costs: N/A Context: The two financial status reports selected for testing both did not contain a formal documented review and approval. Cause: While management does have a separate individual assigned to review the required reports prepared by the Fiscal Director, that review is not formally documented. Effect: Potential for inaccurate information reported. Repeat Finding: This is a repeat finding. Recommendation: We recommend that the assigned individual to review formally documents their review and approval of the reports with a signature before the required date to be submitted. Views of responsible officials and planned corrective actions: There is no disagreement with the finding. WCCA has already implemented a process to ensure all reports are reviewed and approved with documentation before submission.
Federal Agency: U.S. Department of Health and Human Services Federal Program Name: Head Start Cluster Federal Assistance Listing Number: 93.600 Federal Award Identification Number(s) and Year(s): 05CH010838-2023, 05CH010838-2024 Award Period: March, 1 2023 to February 29, 2024; and March 1, 2024 to February 28, 2025 Type of Finding: Material Weakness in Internal Control over Major Federal Programs Criteria or Specific Requirement: The Organization must have a process in place to review and approve the indirect costs that are being appropriately allocated to the grant. Condition: While performing audit procedures, it was noted that for seven of the seven indirect cost allocations tested, management does not have a review and approval process related to the indirect costs that are allocated by the preparer to ensure they are being appropriately allocated. Questioned Costs: N/A Context: There were no signs of review or approval related to the indirect costs that are allocated by the preparer. Cause: The Organization has not adequately implemented a policy related to the indirect costs that are allocated by the preparer. Effect: Potential for errors in the indirect costs allocated to the grants. Repeat Finding: This is a repeat finding. Recommendation: We recommend that the Organization should review and approve the indirect costs that are allocated by the preparer and retain support of this review and approval. Views of responsible officials and planned corrective actions: There is no disagreement with the finding. WCCA has already implemented a process to ensure indirect cost allocations are reviewed and approved with proper documentation.
Federal Agency: U.S. Department of Health and Human Services Federal Program Name: Head Start Cluster Federal Assistance Listing Number: 93.600 Federal Award Identification Number(s) and Year(s): 05CH010838-2023, 05CH010838-2024 Award Period: March, 1 2023 to February 29, 2024; and March 1, 2024 to February 28, 2025 Type of Finding: Material Weakness in Internal Control over Major Federal Programs Criteria or Specific Requirement: The Organization must have a process in place to review and approve the indirect costs that are being appropriately allocated to the grant. Condition: While performing audit procedures, it was noted that for seven of the seven indirect cost allocations tested, management does not have a review and approval process related to the indirect costs that are allocated by the preparer to ensure they are being appropriately allocated. Questioned Costs: N/A Context: There were no signs of review or approval related to the indirect costs that are allocated by the preparer. Cause: The Organization has not adequately implemented a policy related to the indirect costs that are allocated by the preparer. Effect: Potential for errors in the indirect costs allocated to the grants. Repeat Finding: This is a repeat finding. Recommendation: We recommend that the Organization should review and approve the indirect costs that are allocated by the preparer and retain support of this review and approval. Views of responsible officials and planned corrective actions: There is no disagreement with the finding. WCCA has already implemented a process to ensure indirect cost allocations are reviewed and approved with proper documentation.
Federal Agency: U.S. Department of Health and Human Services Federal Program Name: Head Start Cluster Federal Assistance Listing Number: 93.600 Federal Award Identification Number(s) and Year(s): 05CH010838-2023, 05CH010838-2024 Award Period: March, 1 2023 to February 29, 2024; and March 1, 2024 to February 28, 2025 Type of Finding: Material Weakness in Internal Control over Major Federal Programs Criteria or Specific Requirement: The Organization must have a process in place to review and approve the indirect costs that are being appropriately allocated to the grant. Condition: While performing audit procedures, it was noted that for seven of the seven indirect cost allocations tested, management does not have a review and approval process related to the indirect costs that are allocated by the preparer to ensure they are being appropriately allocated. Questioned Costs: N/A Context: There were no signs of review or approval related to the indirect costs that are allocated by the preparer. Cause: The Organization has not adequately implemented a policy related to the indirect costs that are allocated by the preparer. Effect: Potential for errors in the indirect costs allocated to the grants. Repeat Finding: This is a repeat finding. Recommendation: We recommend that the Organization should review and approve the indirect costs that are allocated by the preparer and retain support of this review and approval. Views of responsible officials and planned corrective actions: There is no disagreement with the finding. WCCA has already implemented a process to ensure indirect cost allocations are reviewed and approved with proper documentation.
Federal Agency: U.S. Department of Health and Human Services Federal Program Name: Head Start Cluster Federal Assistance Listing Number: 93.600 Federal Award Identification Number(s) and Year(s): 05CH010838-2023, 05CH010838-2024 Award Period: March, 1 2023 to February 29, 2024; and March 1, 2024 to February 28, 2025 Type of Finding: Material Weakness in Internal Control over Major Federal Programs Criteria or Specific Requirement: The Organization must have a process in place to review and approve the indirect costs that are being appropriately allocated to the grant. Condition: While performing audit procedures, it was noted that for seven of the seven indirect cost allocations tested, management does not have a review and approval process related to the indirect costs that are allocated by the preparer to ensure they are being appropriately allocated. Questioned Costs: N/A Context: There were no signs of review or approval related to the indirect costs that are allocated by the preparer. Cause: The Organization has not adequately implemented a policy related to the indirect costs that are allocated by the preparer. Effect: Potential for errors in the indirect costs allocated to the grants. Repeat Finding: This is a repeat finding. Recommendation: We recommend that the Organization should review and approve the indirect costs that are allocated by the preparer and retain support of this review and approval. Views of responsible officials and planned corrective actions: There is no disagreement with the finding. WCCA has already implemented a process to ensure indirect cost allocations are reviewed and approved with proper documentation.
Federal Agency: U.S. Department of Health and Human Services Federal Program Name: Head Start Cluster Federal Assistance Listing Number: 93.600 Federal Award Identification Number(s) and Year(s): 05CH010838-2023, 05CH010838-2024 Award Period: March, 1 2023 to February 29, 2024; and March 1, 2024 to February 28, 2025 Type of Finding: Material Weakness in Internal Control over Major Federal Programs Criteria or Specific Requirement: The Organization must have a process in place to review and approve the indirect costs that are being appropriately allocated to the grant. Condition: While performing audit procedures, it was noted that for seven of the seven indirect cost allocations tested, management does not have a review and approval process related to the indirect costs that are allocated by the preparer to ensure they are being appropriately allocated. Questioned Costs: N/A Context: There were no signs of review or approval related to the indirect costs that are allocated by the preparer. Cause: The Organization has not adequately implemented a policy related to the indirect costs that are allocated by the preparer. Effect: Potential for errors in the indirect costs allocated to the grants. Repeat Finding: This is a repeat finding. Recommendation: We recommend that the Organization should review and approve the indirect costs that are allocated by the preparer and retain support of this review and approval. Views of responsible officials and planned corrective actions: There is no disagreement with the finding. WCCA has already implemented a process to ensure indirect cost allocations are reviewed and approved with proper documentation.
Federal Agency: U.S. Department of Health and Human Services Federal Program Name: Head Start Cluster Federal Assistance Listing Number: 93.600 Federal Award Identification Number(s) and Year(s): 05CH010838-2023, 05CH010838-2024 Award Period: March, 1 2023 to February 29, 2024; and March 1, 2024 to February 28, 2025 Type of Finding: Material Weakness in Internal Control over Major Federal Programs Criteria or Specific Requirement: Under 2 CFR section 200.303, a nonfederal entity must establish and maintain effective internal controls over the federal awards that provides reasonable assurance that the nonfederal 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). Timely review and approval should be maintained to ensure accurate reports are submitted. Condition: The Organization does not have adequate internal controls in place to ensure required reports are approved by the appropriate personnel before being submitted. Questioned Costs: N/A Context: The two financial status reports selected for testing both did not contain a formal documented review and approval. Cause: While management does have a separate individual assigned to review the required reports prepared by the Fiscal Director, that review is not formally documented. Effect: Potential for inaccurate information reported. Repeat Finding: This is a repeat finding. Recommendation: We recommend that the assigned individual to review formally documents their review and approval of the reports with a signature before the required date to be submitted. Views of responsible officials and planned corrective actions: There is no disagreement with the finding. WCCA has already implemented a process to ensure all reports are reviewed and approved with documentation before submission.
Federal Agency: U.S. Department of Health and Human Services Federal Program Name: Head Start Cluster Federal Assistance Listing Number: 93.600 Federal Award Identification Number(s) and Year(s): 05CH010838-2023, 05CH010838-2024 Award Period: March, 1 2023 to February 29, 2024; and March 1, 2024 to February 28, 2025 Type of Finding: Material Weakness in Internal Control over Major Federal Programs Criteria or Specific Requirement: Under 2 CFR section 200.303, a nonfederal entity must establish and maintain effective internal controls over the federal awards that provides reasonable assurance that the nonfederal 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). Timely review and approval should be maintained to ensure accurate reports are submitted. Condition: The Organization does not have adequate internal controls in place to ensure required reports are approved by the appropriate personnel before being submitted. Questioned Costs: N/A Context: The two financial status reports selected for testing both did not contain a formal documented review and approval. Cause: While management does have a separate individual assigned to review the required reports prepared by the Fiscal Director, that review is not formally documented. Effect: Potential for inaccurate information reported. Repeat Finding: This is a repeat finding. Recommendation: We recommend that the assigned individual to review formally documents their review and approval of the reports with a signature before the required date to be submitted. Views of responsible officials and planned corrective actions: There is no disagreement with the finding. WCCA has already implemented a process to ensure all reports are reviewed and approved with documentation before submission.
Federal Agency: U.S. Department of Health and Human Services Federal Program Name: Head Start Cluster Federal Assistance Listing Number: 93.600 Federal Award Identification Number(s) and Year(s): 05CH010838-2023, 05CH010838-2024 Award Period: March, 1 2023 to February 29, 2024; and March 1, 2024 to February 28, 2025 Type of Finding: Material Weakness in Internal Control over Major Federal Programs Criteria or Specific Requirement: Under 2 CFR section 200.303, a nonfederal entity must establish and maintain effective internal controls over the federal awards that provides reasonable assurance that the nonfederal 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). Timely review and approval should be maintained to ensure accurate reports are submitted. Condition: The Organization does not have adequate internal controls in place to ensure required reports are approved by the appropriate personnel before being submitted. Questioned Costs: N/A Context: The two financial status reports selected for testing both did not contain a formal documented review and approval. Cause: While management does have a separate individual assigned to review the required reports prepared by the Fiscal Director, that review is not formally documented. Effect: Potential for inaccurate information reported. Repeat Finding: This is a repeat finding. Recommendation: We recommend that the assigned individual to review formally documents their review and approval of the reports with a signature before the required date to be submitted. Views of responsible officials and planned corrective actions: There is no disagreement with the finding. WCCA has already implemented a process to ensure all reports are reviewed and approved with documentation before submission.
Federal Agency: U.S. Department of Health and Human Services Federal Program Name: Head Start Cluster Federal Assistance Listing Number: 93.600 Federal Award Identification Number(s) and Year(s): 05CH010838-2023, 05CH010838-2024 Award Period: March, 1 2023 to February 29, 2024; and March 1, 2024 to February 28, 2025 Type of Finding: Material Weakness in Internal Control over Major Federal Programs Criteria or Specific Requirement: Under 2 CFR section 200.303, a nonfederal entity must establish and maintain effective internal controls over the federal awards that provides reasonable assurance that the nonfederal 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). Timely review and approval should be maintained to ensure accurate reports are submitted. Condition: The Organization does not have adequate internal controls in place to ensure required reports are approved by the appropriate personnel before being submitted. Questioned Costs: N/A Context: The two financial status reports selected for testing both did not contain a formal documented review and approval. Cause: While management does have a separate individual assigned to review the required reports prepared by the Fiscal Director, that review is not formally documented. Effect: Potential for inaccurate information reported. Repeat Finding: This is a repeat finding. Recommendation: We recommend that the assigned individual to review formally documents their review and approval of the reports with a signature before the required date to be submitted. Views of responsible officials and planned corrective actions: There is no disagreement with the finding. WCCA has already implemented a process to ensure all reports are reviewed and approved with documentation before submission.
Federal Agency: U.S. Department of Health and Human Services Federal Program Name: Head Start Cluster Federal Assistance Listing Number: 93.600 Federal Award Identification Number(s) and Year(s): 05CH010838-2023, 05CH010838-2024 Award Period: March, 1 2023 to February 29, 2024; and March 1, 2024 to February 28, 2025 Type of Finding: Material Weakness in Internal Control over Major Federal Programs Criteria or Specific Requirement: Under 2 CFR section 200.303, a nonfederal entity must establish and maintain effective internal controls over the federal awards that provides reasonable assurance that the nonfederal 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). Timely review and approval should be maintained to ensure accurate reports are submitted. Condition: The Organization does not have adequate internal controls in place to ensure required reports are approved by the appropriate personnel before being submitted. Questioned Costs: N/A Context: The two financial status reports selected for testing both did not contain a formal documented review and approval. Cause: While management does have a separate individual assigned to review the required reports prepared by the Fiscal Director, that review is not formally documented. Effect: Potential for inaccurate information reported. Repeat Finding: This is a repeat finding. Recommendation: We recommend that the assigned individual to review formally documents their review and approval of the reports with a signature before the required date to be submitted. Views of responsible officials and planned corrective actions: There is no disagreement with the finding. WCCA has already implemented a process to ensure all reports are reviewed and approved with documentation before submission.
Federal Agency: U.S. Department of Health and Human Services Federal Program Name: Head Start Cluster Federal Assistance Listing Number: 93.600 Federal Award Identification Number(s) and Year(s): 05CH010838-2023, 05CH010838-2024 Award Period: March, 1 2023 to February 29, 2024; and March 1, 2024 to February 28, 2025 Type of Finding: Material Weakness in Internal Control over Major Federal Programs Criteria or Specific Requirement: The Organization must have a process in place to review and approve the indirect costs that are being appropriately allocated to the grant. Condition: While performing audit procedures, it was noted that for seven of the seven indirect cost allocations tested, management does not have a review and approval process related to the indirect costs that are allocated by the preparer to ensure they are being appropriately allocated. Questioned Costs: N/A Context: There were no signs of review or approval related to the indirect costs that are allocated by the preparer. Cause: The Organization has not adequately implemented a policy related to the indirect costs that are allocated by the preparer. Effect: Potential for errors in the indirect costs allocated to the grants. Repeat Finding: This is a repeat finding. Recommendation: We recommend that the Organization should review and approve the indirect costs that are allocated by the preparer and retain support of this review and approval. Views of responsible officials and planned corrective actions: There is no disagreement with the finding. WCCA has already implemented a process to ensure indirect cost allocations are reviewed and approved with proper documentation.
Federal Agency: U.S. Department of Health and Human Services Federal Program Name: Head Start Cluster Federal Assistance Listing Number: 93.600 Federal Award Identification Number(s) and Year(s): 05CH010838-2023, 05CH010838-2024 Award Period: March, 1 2023 to February 29, 2024; and March 1, 2024 to February 28, 2025 Type of Finding: Material Weakness in Internal Control over Major Federal Programs Criteria or Specific Requirement: The Organization must have a process in place to review and approve the indirect costs that are being appropriately allocated to the grant. Condition: While performing audit procedures, it was noted that for seven of the seven indirect cost allocations tested, management does not have a review and approval process related to the indirect costs that are allocated by the preparer to ensure they are being appropriately allocated. Questioned Costs: N/A Context: There were no signs of review or approval related to the indirect costs that are allocated by the preparer. Cause: The Organization has not adequately implemented a policy related to the indirect costs that are allocated by the preparer. Effect: Potential for errors in the indirect costs allocated to the grants. Repeat Finding: This is a repeat finding. Recommendation: We recommend that the Organization should review and approve the indirect costs that are allocated by the preparer and retain support of this review and approval. Views of responsible officials and planned corrective actions: There is no disagreement with the finding. WCCA has already implemented a process to ensure indirect cost allocations are reviewed and approved with proper documentation.
Federal Agency: U.S. Department of Health and Human Services Federal Program Name: Head Start Cluster Federal Assistance Listing Number: 93.600 Federal Award Identification Number(s) and Year(s): 05CH010838-2023, 05CH010838-2024 Award Period: March, 1 2023 to February 29, 2024; and March 1, 2024 to February 28, 2025 Type of Finding: Material Weakness in Internal Control over Major Federal Programs Criteria or Specific Requirement: The Organization must have a process in place to review and approve the indirect costs that are being appropriately allocated to the grant. Condition: While performing audit procedures, it was noted that for seven of the seven indirect cost allocations tested, management does not have a review and approval process related to the indirect costs that are allocated by the preparer to ensure they are being appropriately allocated. Questioned Costs: N/A Context: There were no signs of review or approval related to the indirect costs that are allocated by the preparer. Cause: The Organization has not adequately implemented a policy related to the indirect costs that are allocated by the preparer. Effect: Potential for errors in the indirect costs allocated to the grants. Repeat Finding: This is a repeat finding. Recommendation: We recommend that the Organization should review and approve the indirect costs that are allocated by the preparer and retain support of this review and approval. Views of responsible officials and planned corrective actions: There is no disagreement with the finding. WCCA has already implemented a process to ensure indirect cost allocations are reviewed and approved with proper documentation.
Federal Agency: U.S. Department of Health and Human Services Federal Program Name: Head Start Cluster Federal Assistance Listing Number: 93.600 Federal Award Identification Number(s) and Year(s): 05CH010838-2023, 05CH010838-2024 Award Period: March, 1 2023 to February 29, 2024; and March 1, 2024 to February 28, 2025 Type of Finding: Material Weakness in Internal Control over Major Federal Programs Criteria or Specific Requirement: The Organization must have a process in place to review and approve the indirect costs that are being appropriately allocated to the grant. Condition: While performing audit procedures, it was noted that for seven of the seven indirect cost allocations tested, management does not have a review and approval process related to the indirect costs that are allocated by the preparer to ensure they are being appropriately allocated. Questioned Costs: N/A Context: There were no signs of review or approval related to the indirect costs that are allocated by the preparer. Cause: The Organization has not adequately implemented a policy related to the indirect costs that are allocated by the preparer. Effect: Potential for errors in the indirect costs allocated to the grants. Repeat Finding: This is a repeat finding. Recommendation: We recommend that the Organization should review and approve the indirect costs that are allocated by the preparer and retain support of this review and approval. Views of responsible officials and planned corrective actions: There is no disagreement with the finding. WCCA has already implemented a process to ensure indirect cost allocations are reviewed and approved with proper documentation.
Federal Agency: U.S. Department of Health and Human Services Federal Program Name: Head Start Cluster Federal Assistance Listing Number: 93.600 Federal Award Identification Number(s) and Year(s): 05CH010838-2023, 05CH010838-2024 Award Period: March, 1 2023 to February 29, 2024; and March 1, 2024 to February 28, 2025 Type of Finding: Material Weakness in Internal Control over Major Federal Programs Criteria or Specific Requirement: The Organization must have a process in place to review and approve the indirect costs that are being appropriately allocated to the grant. Condition: While performing audit procedures, it was noted that for seven of the seven indirect cost allocations tested, management does not have a review and approval process related to the indirect costs that are allocated by the preparer to ensure they are being appropriately allocated. Questioned Costs: N/A Context: There were no signs of review or approval related to the indirect costs that are allocated by the preparer. Cause: The Organization has not adequately implemented a policy related to the indirect costs that are allocated by the preparer. Effect: Potential for errors in the indirect costs allocated to the grants. Repeat Finding: This is a repeat finding. Recommendation: We recommend that the Organization should review and approve the indirect costs that are allocated by the preparer and retain support of this review and approval. Views of responsible officials and planned corrective actions: There is no disagreement with the finding. WCCA has already implemented a process to ensure indirect cost allocations are reviewed and approved with proper documentation.