U.S. Department of Health and Human Services Federal Financial Assistance Listing #93.600 Head Start Cluster Applicable Federal Award Number and Year – 07HP000640-02-00 9/1/2025 – 8/31/2026 Preparation of Schedule of Expenditures of Federal Awards Material Weakness in Internal Control Over Compliance Criteria: Proper controls over financial reporting include the ability to prepare the schedule of expenditures of federal awards (Schedule) and accompanying notes to the Schedule in accordance with requirements of the Uniform Guidance. Condition: The Organization’s internal controls over the preparation of the Schedule were not operating effectively. As a result of our audit procedures, misstatements in the Schedule were identified and adjustments to the Schedule were proposed and recorded by management. Cause: The Organization’s internal controls over the preparation of the Schedule were not operating effectively and certain federal expenditures were excluded from the Schedule. Effect: Expenditures in the Schedule were understated and adjustments to the Schedule were required to properly report all federal expenditures incurred during the reporting period. Questioned Costs: None reported. Context: Sampling was not used. Repeat Finding From Prior Years: No Recommendation: We recommend that management continue to evaluate its processes and controls to ensure that reimbursement requests for expenditures are properly reconciled to supporting documentation. Views of Responsible Officials: Management is aware of the deficiency in internal control over compliance related to the preparation of the Schedule. Management is in the process of reviewing its existing controls over the tracking and submitting of its expenditures included in its reimbursement requests.
U.S. Department of Health and Human Services Federal Financial Assistance Listing #93.600 Head Start Cluster Early Head Start Child Care Partnership Applicable Federal Award Number and Year – 07HP000640-01-00 and 07HP000640-02-00 9/1/2024 – 8/31/2025 and 9/1/2025 – 8/31/2026 Reporting Significant Deficiency in Internal Control Over Compliance Criteria: CFR 200.303(a) establishes that the auditee must establish and maintain effective internal control over federal awards that provides reasonable assurance that the Organization is managing the federal awards in compliance with federal statutes, regulations and terms and conditions of the federal award. Condition: The Organization was unable to provide adequate documentation of expenditures incurred to support the drawdown of federal awards claimed for reimbursement on an interim basis throughout the reporting period. Cause: The Organization did not properly reconcile its reimbursement claims to underlying supporting documentation for expenditures incurred. However, the total amount of drawdowns requested did not exceed the total federal expenditures incurred during the reporting period. Effect: Amounts claimed for reimbursement by the Organization throughout the year were not properly supported by its internal records. Questioned Costs: None reported. Context: Monthly drawdown requests from all months within the reporting period were tested and reviewed for adequate supporting documentation. Of the 12 monthly drawdown requests tested, supporting documentation for 8 of the 12 months tested did not match the amount of the drawdown request. Repeat Finding From Prior Years: No Recommendation: We recommend that management continue to evaluate its processes and controls over compliance to ensure that drawdown requests for reimbursement of federal expenditures incurred throughout the reporting period are properly supported and reconciled to appropriate documentation from its accounting records. Views of Responsible Officials: Management is aware of the deficiency in internal control over compliance.