Audit 398559

Criteria – In accordance with 2 CFR 200.305(b), non-federal entities must minimize the time elapsing between the transfer of funds from the U.S. Treasury or pass-through entity and the disbursement of those funds for program costs. Condition and Description – During testing of cash management procedures for the program, we noted a few instances where federal funds received from the pass-through entity were not timely disbursed. Questioned Costs – None identified. Identification of a Repeat Finding – This finding was not reported in the prior year. Cause - The delay resulted primarily from timing differences between receipt of federal reimbursement funds and processing of vendor payments associated with program expenditures. Effect – Holding federal funds for extended periods prior to disbursement may result in noncompliance with federal cash management requirements and increases the risk that federal funds are not utilized in accordance with program guidelines.

Criteria – • As per CFR 1302.34(b)(3), teachers should hold parent conferences, as needed, but no less than two times per program year. • As per CFR 1302.34(b)(7), teachers should conduct at least two home visits per program year for each family. Condition and Description – During our testing of compliance with parent engagement requirements, we reviewed a sample of 20 participant files and noted the following: • For 3 of 20 samples, documentation to verify that required home visits and parent-teacher conferences were conducted during the year was not provided for our review. • For 6 of 20 samples, the documentation available was incomplete and did not demonstrate that the required frequency of two parent-teacher conferences and two home visits was met. Questioned Costs – None identified. Identification of a Repeat Finding – This finding was not reported in the prior year. Cause - Program staff did not consistently maintain documentation supporting the completion of required parent engagement activities within participant files. Effect – Failure to maintain adequate documentation supporting required activities may result in noncompliance with Head Start program requirements and reduces the Organization’s ability to demonstrate that required program services were provided.

Criteria – • As per CFR 1302.93(a) and the grant agreement, a program must ensure each staff member has an initial health examination and TB testing and periodic re-examination as recommended by their health care provider. • As per CFR 1302.90 and the grant agreement, a program must conduct a complete background check which includes central registry clearance for child abuse prior to hiring. • As per CFR 1302.92 and the grant agreement, a program must conduct annual performance evaluations and establish and implement a systematic approach to staff training and professional development designed to assist staff in acquiring or increasing the knowledge and skills needed to provide high-quality, comprehensive services. Condition and Description – During testing of personnel files for employees funded under the Head Start program, we noted the following: • The Organization did not have a formal process to ensure staff members receive periodic health examinations and TB re-examinations after their initial hire date. As a result, documentation supporting periodic health re-examinations could not be verified. • For 1 out of 10 samples tested documentation supporting the required central registry clearance for child abuse was not provided for our review. • For 18 out of 40 samples tested, documentation of annual performance evaluations for program year 2024-2025 was not available for review. Questioned Costs – None identified. Identification of a Repeat Finding – This finding was not reported in the prior year. Cause - Procedures were not consistently followed to ensure personnel files contained all required documentation related to health requirements, background checks, and performance evaluations. Effect – Incomplete personnel documentation may result in noncompliance with Head Start program requirements and could impair the Organization’s ability to demonstrate compliance with federal regulations.