Audit 412147

#2025-001 FINDING: Activities Allowed or Unallowed Federal Program Affected: Head Start (ALN 93.600) Compliance Requirement: Activities Allowed or Unallowed Questioned Costs: No known or likely questioned costs exceeding $25,000. Condition and Cause: The Program requires the Organization to accurately monitor and allocate administrative costs charged to the grant. During the year, the Organization allocated 16.1 percent of total grant costs to administrative expenses. This exceeds the allowable limit of 15 percent, as specified by the grant requirements. Excess costs were due to turnover in the Fiscal Specialist position which required significant training, oversight, and duplication of efforts. The Organization has attempted to get a waiver, but as of the date of financial statement issuance the waiver has not been obtained. Criteria and Effect: Excess administrative costs were not identified as a result of the Organization’s existing internal controls and therefore resulted in noncompliance with the federal program. Repeat Finding from Prior Year: Yes, prior year Finding #2024-001. Recommendation: We recommend the Organization review and revise its current administrative cost allocations to ensure they reflect actual operations. Allocations should also be updated to account for any changes in employee responsibilities. Additionally, management should perform thorough reviews of administrative cost allocations throughout the grant period to ensure accuracy and compliance with program requirements. Response/Corrective Action Plan: The Organization agrees with the above finding. See Corrective Action Plan.

#2025-002 FINDING: Reporting Federal Program Affected: Head Start (ALN 93.600) Compliance Requirement: Reporting Questioned Costs: No known or likely questioned costs exceeding $25,000. Condition and Cause: The Organization filed Form 425 with incorrect drawdown amounts. This was due to an error on the reporting website. The Organization is aware of the issue and working with the Office of Grants Management to correct this issue. Criteria and Effect: Reports were submitted with inaccurate information and therefore resulted in noncompliance withthe federal program. Repeat Finding from Prior Year: N/A Recommendation: We recommend the Organization remain in contact with reporting agencies and work with them tocorrect any inaccurate reporting amounts. Response/Corrective Action Plan: The Organization agrees with the above finding. See Corrective Action Plan.