CORRECTIVE ACTION PLAN
March 31, 2025
Total Action Against Poverty respectfully submits the following corrective action plan for the year ended June 30, 2024.
Name and address of independent public accounting firm:
Brown, Edwards & Company, L.L.P. 3906 Electric Road
Roanoke, VA 24018
Audit period...
CORRECTIVE ACTION PLAN
March 31, 2025
Total Action Against Poverty respectfully submits the following corrective action plan for the year ended June 30, 2024.
Name and address of independent public accounting firm:
Brown, Edwards & Company, L.L.P. 3906 Electric Road
Roanoke, VA 24018
Audit period: June 30, 2024
The findings from the June 30, 2024, Schedule of Findings and Questioned Costs (the “Schedule”) are discussed below. The findings are numbered consistently with the number assigned in the Schedule.
FINDINGS AND QUESTIONED COSTS – MAJOR FEDERAL AWARD PROGRAM AUDIT
2024-001: HeadStart Cluster– Assistance Listing #93.600; Activities Allowed/Unallowed
Condition:
Included in HeadStart expenditures for 2024 are amounts that are believed to be fraudulently expended and not for their intended use. In some instances, the funds were disbursed without proper authorization, primarily through use of Agency credit cards. In other instances, co-payments for HeadStart services were not properly remitted for deposits, resulting in the need to use additional Federal funds to cover costs.
Criteria:
All expenditures are to be properly authorized, and all funds are to be properly remitted for deposit. The Agency does have policies in place requiring these to occur.
Cause:
Employees acted outside the policies and procedures in place to misappropriate funds.
Effect:
HeadStart funds were not used for their intended purpose.
Questioned Costs:
Final amounts to be determined.
Perspective Information:
N/A
Repeat Finding:
N/A
Recommendation:
While HeadStart has review and approval policies in place, we recommend that they continue to look for ways to tighten policies and procedures around agency card use and remittance of funds for deposit. Any additional segregation of processes that can be feasibly made should be taken.
Corrective Action:
1) We have and will be working closely with our HR and Head Start attorneys to recoup as much of the potentially fraudulent charges as possible and for guidance in communication with the persons involved. The Head start Attorney suggested we retain forensic accountants to conduct a fraud audit of all Tap Head start financial records. The accountants have been retained and are beginning work.
2) We will create policies to require detailed explanation of meal purchases, prohibit TAP credit card use for purchases from personal on-line accounts, and address any additional issues they auditors may find. Our Junior staff accountant will review credit card payment vouchers for compliance.
3) A separate object code (account) will be created in our accounting software where all gift card purchases will be coded. Our accounts payable clerks will submit copies of any gift card charges to our Junior staff accountant, who will be responsible for reviewing and verifying that all required
documentation is included (as required in Gift Card policies on TAP’s accounting manual).
4) Copies of Center receipt logs for parent payments will be submitted to Finance where they will be reconciled by the Head Start Finance Director to funds remitted.
If the Federal Audit Clearinghouse has questions regarding this plan, please call Angela Penn, President & CEO at 540-283-4818.
Sincerely yours,
Angela Penn President & CEO