Finding Text
Head Start Cluster – Assistance Listing # 93.600; Reporting Compliance Condition: Garrett County, Maryland, Community Action Committee, Inc. failed to have proper review of the Annual and Semi Annual Federal Financial Reports and was certified by the Contract Manager for the reporting period end date September 30, 2023. The Annual and Semi Annual Federal Financial Reports were filed without review or signed off on by the Director of Administration & Finance. Criteria: Under Uniform Guidance Reporting compliance requirements there is supposed to be proper internal controls over the filing of the Annual and Semi Annual Federal Financial Reports. Context: During the audit we found that the client did not have proper procedures in place to monitor the report process of the Federal Financial Reports. Cause: Garrett County, Maryland, Community Action Committee, Inc. allowed the Annual and Semi Annual Federal Financial Reports to be filed without review and signed off on by the proper personnel due to thinking that review by HHS after upload is sufficient. Effect: Garrett County, Maryland, Community Action Committee, Inc. is not in compliance with the Reporting compliance requirements for this grant. As a result, the Committee’s Annual & Semi Annual Federal Financial reports could be materially misstated. No questioned costs were noted. Auditor’s Recommendations: Garrett County, Maryland, Community Action Committee, Inc. should have a second person review and certify the Annual and Semi Annual Federal Financial reports other than the Contract Manager who prepares them. Views of Responsible Officials and Planned Corrective Actions: Garrett County, Maryland, Community Action Committee, Inc. agrees with the finding and will start to have a second person review and certify the Annual and Semi Annual Federal Financial Reports. Identification of a Repeat Finding: This is a repeat finding from the previous audit, 2022-002 due to the condition not being able to be resolved, since the FY 2022 audit was not completed until Garrett County, Maryland, Community Action Committee, Inc.’s, FY 2024. This condition occurred throughout the organization’s FY 2023 as well.