Audit 374655

Criteria Per the compliance supplement for the Head Start program, “A Head Start Agency (HSA) must share accurate and regular financial information with the governing body and the policy council, including monthly financial statements, credit card expenditures, and the financial audit (42 USC 9837(d)(2)(A) and (E)). Condition Credit card expenditure reports were not shared with the governing body and the policy council. Cause Change in staff and lack of knowledge of reporting requirements. When the current Head Start coordinator took over in 2022, credit card expenditure reports stopped being shared with the policy council as the District believed it was not necessary, unaware of the specific Head Start requirement. Effect Failure to provide the governing body and the policy council with such records could result in unallowable credit card transactions being charged to the grant. Questioned Costs None Recommendation Credit card expenditure reports should be prepared, reviewed, and approved before being subsequently shared monthly with the governing body and the policy council. Views of Responsible of Officials and Planned Corrective Actions The District agrees with the finding as presented. The Head Start department will ensure credit card expenditures, along with the other required financial information, are shared monthly with the governing body and the policy council. Corrective action has already taken place on a go forward basis starting when this was identified during a previous Head Start audit. Repeat Finding This is a new finding in the current year.