Audit 359451

U.S. Department of Health and Human Services: 2024-001 Allowable Costs Fiscal year finding initially occurred: 2021 Head Start Cluster (93.600) CRITERIA: In accordance with the Uniform Guidance, the Organization should have internal controls over the compliance requirements for major federal programs. CONDITION: The Organization's internal controls over compliance for allowable costs were determined to be ineffective during the performance of internal control over compliance testing for the major federal program. CAUSE: The Organization did not adhere to their established controls and procedures over allowable costs. EFFECT: The Organization may have included costs that were not allowable in their cost of assistance. A sample of 99 transactions totaling $121,329 was selected for testing. There was one disbursement transaction included a payment for an invoice of another entity that was erroneously submitted by a vendor, which was credited on the subsequent month’s invoice. One disbursement transaction that was not properly approved and one transaction was for a period subsequent to the grant year. As a result, the Organization had questioned costs totaling $3,494 for the payment for services subsequent to the grant year. Our sample was a non-statistical sample. RECOMMENDATION: The Organization should review their established policies and procedures for effectiveness and ensure all employees adhere to all established procedures. Additionally, management should ensure all costs charged to the program are allowable under the grant guidelines. MANAGEMENT’S CORRECTIVE ACTION PLAN: United Way of Acadiana hired a new Finance Director in late 2024 who will develop and ensure internal controls for Federal grant programs. Internal controls have been addressed and implemented in 2025 to provide better operational efficiency.

U.S. Department of Health and Human Services: 2024-002 Reporting Fiscal year finding initially occurred: 2021 Head Start Cluster (93.600) CRITERIA: In accordance with the federal program guidelines, the Organization is required to file the SF-429 Real Property Status Report, SF-429A General Reporting, and the SF-425 Federal Financial Report. The Organization should have internal controls over the preparation and timely submission of these required reports. CONDITION: The Organization did not have adequate internal controls over the preparation and timely submission of the required reports for their major federal program. CAUSE: The Organization has established controls and procedures over reporting; however, the controls are not operating effectively. EFFECT: The Organization’s SF-429 was filed approximately 61 days after the prescribed due date. Additionally, the Organization’s SF-425 was filed 1 day late and with inaccurate and incomplete information. RECOMMENDATION: The Organization should review their established policies and procedures and ensure that the required federal program reporting is submitted within the prescribed timelines and with accurate and complete information. MANAGEMENT’S CORRECTIVE ACTION PLAN: United Way of Acadiana has committed to ensure internal controls for financial reporting and to consistently submitting timely and accurate reports. Due to the change in the Finance Director, we have established a master calendar and timelines to ensure timely reporting.

U.S. Department of Health and Human Services: 2024-003 Allowable Costs Fiscal year finding initially occurred: 2021 Head Start Cluster (93.600) CRITERIA: In accordance with the Uniform Guidance, the Organization should have internal controls over the compliance requirements for major federal programs. CONDITION: The Organization's internal controls over compliance for allowable costs were determined to be ineffective during the performance of internal control over compliance testing for the major federal program. CAUSE: The Organization did not adhere to their established controls and procedures over allowable costs. EFFECT: The Organization may have included costs that were not allowable in their cost of assistance. A sample of 99 transactions totaling $121,329 was selected for testing. There was one disbursement transaction included a payment for an invoice of another entity that was erroneously submitted by a vendor, which was credited on the subsequent month’s invoice. One disbursement transaction that was not properly approved and one transaction was for a period subsequent to the grant year. As a result, the Organization had questioned costs totaling $3,494 for the payment for services subsequent to the grant year. Our sample was a non-statistical sample. RECOMMENDATION: The Organization should review their established policies and procedures for effectiveness and ensure all employees adhere to all established procedures. Additionally, management should ensure all costs charged to the program are allowable under the grant guidelines. MANAGEMENT’S CORRECTIVE ACTION PLAN: United Way of Acadiana hired a new Finance Director in late 2024 who will develop and ensure internal controls for Federal grant programs. Internal controls have been addressed and implemented in 2025 to provide better operational efficiency.

2024-004 Reporting Fiscal year finding initially occurred: 2021 Head Start Cluster (93.600) CRITERIA: In accordance with the federal program guidelines, the Organization is required to file the SF-429 Real Property Status Report, SF-429A General Reporting, and the SF-425 Federal Financial Report. The Organization should have internal controls over the preparation and timely submission of these required reports. CONDITION: The Organization did not have adequate internal controls over the preparation and timely submission of the required reports for their major federal program. CAUSE: The Organization has established controls and procedures over reporting; however, the controls are not operating effectively. EFFECT: The Organization’s SF-429 was filed approximately 61 days after the prescribed due date. Additionally, the Organization’s SF-425 was filed 1 day late and with inaccurate and incomplete information. RECOMMENDATION: The Organization should review their established policies and procedures and ensure that the required federal program reporting is submitted within the prescribed timelines and with accurate and complete information. MANAGEMENT’S CORRECTIVE ACTION PLAN: United Way of Acadiana has committed to ensure internal controls for financial reporting and to consistently submitting timely and accurate reports. Due to the change in the Finance Director, we have established a master calendar and timelines to ensure timely reporting.

U.S. Department of Health and Human Services: 2024-001 Allowable Costs Fiscal year finding initially occurred: 2021 Head Start Cluster (93.600) CRITERIA: In accordance with the Uniform Guidance, the Organization should have internal controls over the compliance requirements for major federal programs. CONDITION: The Organization's internal controls over compliance for allowable costs were determined to be ineffective during the performance of internal control over compliance testing for the major federal program. CAUSE: The Organization did not adhere to their established controls and procedures over allowable costs. EFFECT: The Organization may have included costs that were not allowable in their cost of assistance. A sample of 99 transactions totaling $121,329 was selected for testing. There was one disbursement transaction included a payment for an invoice of another entity that was erroneously submitted by a vendor, which was credited on the subsequent month’s invoice. One disbursement transaction that was not properly approved and one transaction was for a period subsequent to the grant year. As a result, the Organization had questioned costs totaling $3,494 for the payment for services subsequent to the grant year. Our sample was a non-statistical sample. RECOMMENDATION: The Organization should review their established policies and procedures for effectiveness and ensure all employees adhere to all established procedures. Additionally, management should ensure all costs charged to the program are allowable under the grant guidelines. MANAGEMENT’S CORRECTIVE ACTION PLAN: United Way of Acadiana hired a new Finance Director in late 2024 who will develop and ensure internal controls for Federal grant programs. Internal controls have been addressed and implemented in 2025 to provide better operational efficiency.

U.S. Department of Health and Human Services: 2024-002 Reporting Fiscal year finding initially occurred: 2021 Head Start Cluster (93.600) CRITERIA: In accordance with the federal program guidelines, the Organization is required to file the SF-429 Real Property Status Report, SF-429A General Reporting, and the SF-425 Federal Financial Report. The Organization should have internal controls over the preparation and timely submission of these required reports. CONDITION: The Organization did not have adequate internal controls over the preparation and timely submission of the required reports for their major federal program. CAUSE: The Organization has established controls and procedures over reporting; however, the controls are not operating effectively. EFFECT: The Organization’s SF-429 was filed approximately 61 days after the prescribed due date. Additionally, the Organization’s SF-425 was filed 1 day late and with inaccurate and incomplete information. RECOMMENDATION: The Organization should review their established policies and procedures and ensure that the required federal program reporting is submitted within the prescribed timelines and with accurate and complete information. MANAGEMENT’S CORRECTIVE ACTION PLAN: United Way of Acadiana has committed to ensure internal controls for financial reporting and to consistently submitting timely and accurate reports. Due to the change in the Finance Director, we have established a master calendar and timelines to ensure timely reporting.

U.S. Department of Health and Human Services: 2024-003 Allowable Costs Fiscal year finding initially occurred: 2021 Head Start Cluster (93.600) CRITERIA: In accordance with the Uniform Guidance, the Organization should have internal controls over the compliance requirements for major federal programs. CONDITION: The Organization's internal controls over compliance for allowable costs were determined to be ineffective during the performance of internal control over compliance testing for the major federal program. CAUSE: The Organization did not adhere to their established controls and procedures over allowable costs. EFFECT: The Organization may have included costs that were not allowable in their cost of assistance. A sample of 99 transactions totaling $121,329 was selected for testing. There was one disbursement transaction included a payment for an invoice of another entity that was erroneously submitted by a vendor, which was credited on the subsequent month’s invoice. One disbursement transaction that was not properly approved and one transaction was for a period subsequent to the grant year. As a result, the Organization had questioned costs totaling $3,494 for the payment for services subsequent to the grant year. Our sample was a non-statistical sample. RECOMMENDATION: The Organization should review their established policies and procedures for effectiveness and ensure all employees adhere to all established procedures. Additionally, management should ensure all costs charged to the program are allowable under the grant guidelines. MANAGEMENT’S CORRECTIVE ACTION PLAN: United Way of Acadiana hired a new Finance Director in late 2024 who will develop and ensure internal controls for Federal grant programs. Internal controls have been addressed and implemented in 2025 to provide better operational efficiency.

2024-004 Reporting Fiscal year finding initially occurred: 2021 Head Start Cluster (93.600) CRITERIA: In accordance with the federal program guidelines, the Organization is required to file the SF-429 Real Property Status Report, SF-429A General Reporting, and the SF-425 Federal Financial Report. The Organization should have internal controls over the preparation and timely submission of these required reports. CONDITION: The Organization did not have adequate internal controls over the preparation and timely submission of the required reports for their major federal program. CAUSE: The Organization has established controls and procedures over reporting; however, the controls are not operating effectively. EFFECT: The Organization’s SF-429 was filed approximately 61 days after the prescribed due date. Additionally, the Organization’s SF-425 was filed 1 day late and with inaccurate and incomplete information. RECOMMENDATION: The Organization should review their established policies and procedures and ensure that the required federal program reporting is submitted within the prescribed timelines and with accurate and complete information. MANAGEMENT’S CORRECTIVE ACTION PLAN: United Way of Acadiana has committed to ensure internal controls for financial reporting and to consistently submitting timely and accurate reports. Due to the change in the Finance Director, we have established a master calendar and timelines to ensure timely reporting.