Audit 369240

2024-003 Financial Management Fiscal year finding initially occurred: 2021 CONDITION: While performing our audit procedures for FY 24, there were numerous instances of revenue and expense transactions being miscoded between federal grant program funds and expenditures being misclassified on the balance sheet. In addition, reconciliations of grant revenues to grant expenditures were not being performed which could lead to over drawing of federal funds. CRITERIA: 2 CFR 1.200.302(b) Financial Management requires that the financial management system of a non-Federal entity must provide records that identify adequately the source and application of funds for federally funded activities. These records must contain information pertaining to Federal awards, authorizations, financial obligations, unobligated balances, assets, expenditures, income and interest and be supported by source documentation. CAUSE: Reconciliation and review of detailed general ledger account balances were not performed in a timely manner during FY 24. EFFECT: Inaccurate and incomplete financial statement reports may be submitted to users of the financial statements, as well as grantor agencies. RECOMMENDATION: All detailed general ledger account balances should be reviewed and reconciled on a monthly basis to ensure complete and accurate financial information is provided to all users of the financial information. VIEW OF RESPONSIBLE OFFICIAL: Management have contracted a CPA to work with Financial staff to ensure the accuracy of revenue and expense transactions. CPA will review revenue and expense statements monthly and make any necessary corrections.

2024-004 Program Governance Fiscal year finding initially occurred: 2022 CONDITION: Bossier Office of Community Services, Inc. failed to provide accurate monthly financial statements to its Board of Directors during the fiscal year under audit. Although the entity hired a CPA firm to assist with reconciling their financial transactions. This did not occur until after the fiscal year end. In review of detail general ledger activity and performance of audit procedures, it was noted that significant adjustments were made to various revenue and expense accounts in order to balance the financial statements at year end. CRITERIA: Section 642(d)(2)(A) of the Head Start Act requires agencies to provide monthly financial statements to their Board of Directors CAUSE: The Bossier Office of Community Services, Inc. did not have proper internal controls over reconciling monthly bank statements as well as controls over preparing accurate financials. EFFECT: The Board of Directors of Bossier Office of Community Services, Inc. may not have the complete and accurate financial information needed to make informed operational decisions. RECOMMENDATION: Management should consider alternatives for preparing and reviewing monthly financial reports in the event financial management staff are unavailable in the future to perform these duties in a timely manner. VIEW OF RESPONSIBLE OFFICIAL: Management have contracted a CPA to work with Financial staff to ensure the accuracy of financial records. CPA will review financial record monthly for accuracy to ensure the Board of Directors receive accurate financial information.

2024-005 Federal Financial Reporting Fiscal year finding initially occurred: 2022 CONDITION: Bossier Office of Community Services, Inc. did not provide accurate and timely submissions of its Federal Financial Report (SF-425) during FY 24. CRITERIA: 45 CFR section 75.303(b) – Internal Controls, requires non-Federal agencies to comply with Federal statutes, regulations, and the terms and conditions of all Federal awards. CAUSE: The processing and preparation of Federal Financial Reports (SF-425) was delayed as a result of significant financial management staff turnover during the first quarter of FY 24. During the fiscal year ending December 31, 2024, the reports were filed late, and as noted in finding 2024-004 contained significant errors. EFFECT: By not receiving complete and accurate grant program activity financial reports, the Federal grantor agency may be prevented from making timely, informed decisions about grant program operations. RECOMMENDATION: Management should develop and implement procedures to ensure that complete and accurate Federal Financial Reports are prepared, reviewed, and submitted in a timely manner. View of Responsible Official: Management have contracted a CPA to work with Financial staff to ensure the accuracy of financial records. A schedule of financial activities is in place the include due date for submission of Federal Financial Report (SF-425) Executive Director will monitor the financial records of submission and report to the Board of directors.