Audit 393724

Assistance Listing Number, Federal Agency, and Program Name: Across all major programs Federal Award Identification Number and Year: Across all major programs Pass-through Entity – N/A Finding Type – Material weakness in internal control over compliance and noncompliance with Uniform Guidance Single Audit reporting package submission requirement. Repeat Finding – This is a repeat finding and a similar finding was identified in the prior year as Finding 2023-001. Criteria – Per 2 CFR 200.512 (a) (1), the audit must be completed, and the data collection must be submitted within the earlier of 30 calendar days after receipt of the auditor's report(s), or nine months after the end of the audit period. Per 2 CFR 200.501 (b), a non-Federal entity that expends $750,000 or more during the non-Federal entity's fiscal year in Federal awards must have a single audit conducted in accordance with § 200.514. Condition – The data collection form was not submitted within the required time as required by 2 CFR 200.512 for the year ended June 30, 2024. Identification of How Questioned Costs Were Computed – N/A Questioned Costs – None Cause/Effect – The Agency’s books and records for the 2024 fiscal year were not reconciled or closed in a timely manner. Therefore, the data collection form was not submitted within the required time. Recommendation – We recommend that the Agency maintain a system of policies, procedures, and controls to ensure that the financial records closed in a timely manner in order to facilitate the timely submission of the data collection form. View of Responsible Officials and Corrective Action Plan – The Agency will take all reasonable measures to work with the new auditors to complete the audit process and submit the data collection report within the required time period

Assistance Listing Number, Federal Agency, and Program Name: 93.600 Head Start Federal Award Identification Number and Year: across all major programs. Pass-through Entity – N/A Finding Type – Material weakness in internal control over compliance Repeat Finding – No Criteria – Per 2 CFR § 200.303, the non-Federal entity must establish and maintain effective internal control over the Federal award that provides reasonable assurance that the non-Federal 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). Condition – During our testing for Activities Allowed - Allowable Cost-Cost Principles, it was noted the client could not provide evidence of approval to charge the grant for 13 out of 42 expenditures selected for testing. Identification of How Questioned Costs Were Computed – N/A Cause/Effect – Management could not provide the evidence of approval for the data requested due to changes in personnel who were responsible for monitoring and managing the records for the federal program compliance requirement. Recommendation – We recommend management monitor the Federal program compliance requirements on a regular basis. In addition, we recommend that management review its procedures and controls in place to ensure that all disbursements are reviewed and approved and include proper evidence of the review and approval. View of Responsible Officials and Corrective Action Plan –There was turnover in the finance department, and its filing systems were not consistently followed by accountants from contracted staffing agencies. It should be noted that both documentation for expenditures for personnel and non-personnel costs were examined for propriety and allowability by the program director and board treasurer as check signers, prior to disbursement of federal funds.

Assistance Listing Number, Federal Agency, and Program Name: Assistance Listing Number 93.600, Head Start Federal Award Identification Number and Year: 05HP000378-05-01 Pass-through Entity – N/A Finding Type – Significant deficiency in internal control over compliance and noncompliance with reporting requirement filing deadline Repeat Finding – No Criteria – Per 2 CFR § 200.303, the non-Federal entity must establish and maintain effective internal control over the Federal award that provides reasonable assurance that the non-Federal 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). Condition – During our testing for Reporting compliance, it was noted the client failed to submit the semi-annual financial report for the period ended 02/29/2024 within the required time frame. Identification of How Questioned Costs Were Computed – N/A Questioned Costs – None Cause/Effect – Management noted that the accounting staff were not completing necessary accounting tasks in a timely manner and, therefore required reports were not submitted on time. Recommendation – We recommend management increase awareness of federal program compliance requirements and monitor compliance with the requirements on regular basis. In addition, we recommend that management review its procedures and controls in place to ensure that reports are completed and submitted by the required due dates. View of Responsible Officials and Corrective Action Plan –The Agency filed both semiannual and annual financial reports for three grants during the fiscal year on a timely basis. The one semi-annual report was inadvertently filed late. However, upon notice by the Payment Management System of it being overdue, it was immediately filed. The Agency will prepare a checklist of required federal reports by the finance department, which will be monitored by the Program Director.