Audit 45413

Information on the Federal Program: Assistance Listing Number 93.600 - Head Start, US. Department of Health and Human Services. Award Number: 04CH011104-03-03. Compliance Requirements: Activities, Allowed or Unallowed, Allowable Costs/Cost Principles. Type of Finding: Significant Deficiency in Internal Control over Compliance. Criteria: A good system of internal control incorporates the proper review and reconciliation of the drawdown of funds to the entity's general ledger. Condition: For the year ended June 30, 2022, we identified three instances where program expenditures were drawn down twice. Cause: The program expenditures used for requesting drawdowns are not reconciled to the general ledger and therefore, three checks that were voided and reissued were requested on two drawdown request. Effect or Potential Effect: VCM could potentially drawdown funds in excess of actual program expenditures. Context: VCM drawdown $3,640 of expenditures twice due to the checks being voided and reissued in another month. This could have resulted in funds being drawn down in excess of actual program expenditures. VCM had additional program expenditures in excess of the amount requested that were not requested at all. Recommendation: We recommend that a process be implemented to reconcile drawdown requests to the general ledger prior to being submitted. Views of Responsible Official: Management agrees with the recommendation that drawdown requests be reconciled to the general ledger and will implement this in the current fiscal year.

Finding 2022-002 - Financial Reporting Information on the Federal Program: Assistance Listing Number 93.600 - Head Start, U.S. Department of Health and Human Services. Award Number: 04CH011104-03-03. Compliance Requirements: Reporting. Type of Finding: Noncompliance. Criteria: The Head Start program requires the semi-annual report to be filed by January 30, 2022. Condition: For the year ended June 30, 2022, we reviewed the semi-annual Federal Financial Report and noted that it was not filed within the required time period. Cause: Management experienced technical issues when submitting the semi annual Federal Financial Report and it was not submitted on time due to error. Effect or Potential Effect: VCM is not in compliance with the reporting requirements for the program. Context: The semi-annual Federal Financial Report was due by January 30, 2022 but was not filed until March 11, 2022. Views of Responsible Official: Management has established a calendar for all Federal Financial Reporting. The contract CFO prepares the FFR?s, they are reviewed and approved by the Executive Director who then files the report. The contract CFO and Executive Director check the Payment Management System to verify all reports have been timely filed. The contract CFO and Executive Director have also attended FFR training provided by EHS.

Information on the Federal Program: Assistance Listing Number 93.600 - Head Start, US. Department of Health and Human Services. Award Number: 04CH011104-03-03. Compliance Requirements: Activities, Allowed or Unallowed, Allowable Costs/Cost Principles. Type of Finding: Significant Deficiency in Internal Control over Compliance. Criteria: A good system of internal control incorporates the proper review and reconciliation of the drawdown of funds to the entity's general ledger. Condition: For the year ended June 30, 2022, we identified three instances where program expenditures were drawn down twice. Cause: The program expenditures used for requesting drawdowns are not reconciled to the general ledger and therefore, three checks that were voided and reissued were requested on two drawdown request. Effect or Potential Effect: VCM could potentially drawdown funds in excess of actual program expenditures. Context: VCM drawdown $3,640 of expenditures twice due to the checks being voided and reissued in another month. This could have resulted in funds being drawn down in excess of actual program expenditures. VCM had additional program expenditures in excess of the amount requested that were not requested at all. Recommendation: We recommend that a process be implemented to reconcile drawdown requests to the general ledger prior to being submitted. Views of Responsible Official: Management agrees with the recommendation that drawdown requests be reconciled to the general ledger and will implement this in the current fiscal year.

Finding 2022-002 - Financial Reporting Information on the Federal Program: Assistance Listing Number 93.600 - Head Start, U.S. Department of Health and Human Services. Award Number: 04CH011104-03-03. Compliance Requirements: Reporting. Type of Finding: Noncompliance. Criteria: The Head Start program requires the semi-annual report to be filed by January 30, 2022. Condition: For the year ended June 30, 2022, we reviewed the semi-annual Federal Financial Report and noted that it was not filed within the required time period. Cause: Management experienced technical issues when submitting the semi annual Federal Financial Report and it was not submitted on time due to error. Effect or Potential Effect: VCM is not in compliance with the reporting requirements for the program. Context: The semi-annual Federal Financial Report was due by January 30, 2022 but was not filed until March 11, 2022. Views of Responsible Official: Management has established a calendar for all Federal Financial Reporting. The contract CFO prepares the FFR?s, they are reviewed and approved by the Executive Director who then files the report. The contract CFO and Executive Director check the Payment Management System to verify all reports have been timely filed. The contract CFO and Executive Director have also attended FFR training provided by EHS.