2023 001 Audit Adjustments Audit finding 2023 001 represents a material weakness in internal control over compliance for Mid Columbia Children's Council, Inc.'s major federal program. Federal Program Information: Funding agency: U.S. Department of Health and Human Services Title: Head Start Cluster AL number: 93.600 Award year and number: 10CH011884 03 12/01/2022 11/30/2023 10HE00046301C5 04/01/2021 03/31/2023 10HE00046301C6 04/01/2021 03/31/2023 Questioned Costs: None
2023 002 Physical Inventory Observation Federal Program Information: Funding agency: U.S. Department of Health and Human Services Title: Head Start Cluster AL number: 93.600 Award year and number: 10CH011884 03 12/01/2022 11/30/2023 10HE00046301C5 04/01/2021 03/31/2023 10HE00046301C6 04/01/2021 03/31/2023 Criteria or Specific Requirement: Under 2 CFR section 200.313(4)(2), a physical inventory of property must be taken at least once every two years. The results should be reconciled with the general ledger. Condition: Mid Columbia Children's Council, Inc. did not maintain documentation of the physical inventory it performed during the fiscal year ended November 30, 2022. Questioned Costs: None Effect: The capital asset listing and corresponding financial statement balances may be misstated or incomplete. Without taking a physical inventory, Mid Columbia Children's Council, Inc. may be overstating or understating capital assets in its financial statements. Cause: Mid Columbia Children's Council, Inc. has experienced turnover in upper management, records from previous leadership could not be located. Auditor's Recommendation: Mid Columbia Children's Council, Inc. should maintain its documentation of an entity wide physical inventory of its capital assets performed every two years. Once completed, the listing should be reconciled to the general ledger control totals and the control totals adjusted to the balances supported by the physical inventory results. Mid Columbia Children's Council, Inc. should also implement procedures to retain adequate supporting documentation and ensure the proper recording of additions, deletions, and depreciation on a timely basis. View of Responsible Officials: Management agrees with the finding and has developed and begun implementation of a corrective action plan.
2023 003 Submission of SF 425 and SF 429 Federal Program Information: Funding agency: U.S. Department of Health and Human Services Title: Head Start Cluster AL number: 93.600 Award year and number: 10CH011884 03 12/01/2022 11/30/2023 10HE00046301C5 04/01/2021 03/31/2023 10HE00046301C6 04/01/2021 03/31/2023 Criteria or Specific Requirement: For financial reporting under 45 CFR section 75.302(b)(2), a non Federal entity's financial management system must provide for the identification of Federal awards received and expended, accurate, current, and complete disclosure of the financial results of each Federal award, records that identify adequately the source and application of funds for federally funded activities, as well as effective control over (and accountability for) all funds, property, and other assets. 45 CFR section 75.343 requires an organization to submit a report on the status of real property in which the federal government retains an interest. An SF 429 must be prepared and submitted on an annual basis at the same time as the annual SF 425 Federal Financial Report. Condition: Mid Columbia Children's Council, Inc.'s annual financial report for the grant ended November 30, 2023, did not agree with Mid Columbia Children's Council, Inc.'s general ledger. The SF 429 was also submitted after the required due date. Questioned Costs: None Effect: Filing a financial report with information that differs from the general ledger does not support monitoring activities under Federal awards. Grant reporting requirements for Mid Columbia Children's Council, Inc.'s real property were not met within the required timeline. Cause: Mid Columbia Children's Council, Inc. has experienced turnover in upper management. Adequate reconciliations of grant revenue to verify the completeness, validity, and accuracy of the financial records. Variances between the grant revenue and allowable expenses within the general ledger were left uncorrected during the period under audit. Accordingly, Mid Columbia Children's Council was not able to reconcile accounts and provide audit information in a timely manner. Additional time was also needed to identify the information to be included on the SF 429. Auditor's Recommendations: Mid Columbia Children's Council, Inc. should take steps to implement procedures to ensure its fiscal year is closed in a timely manner to ensure accurate reporting. It should also have a method to track required filings to ensure that reports are filed within due dates imposed by funding sources. View of Responsible Officials: Management agrees with the finding and has developed and begun implementation of a corrective action plan.