Finding Text
Federal program information:
Funding agency: U.S. Department of Health and Human
Services
Title: Head Start
CFDA number: 93.600
Award number and years: 152734, 152734-014; July 1, 2022 through
June 30, 2023
Pass-through grantor: City of Phoenix
Compliance Requirements: Allowable Costs/Cost Principles
Questioned Costs: Unknown
Criteria: The Pass-through Grantor, the City of Phoenix, requires that the Organization provide a
25% match (nonfederal share) of the federal funding.
Condition: During fiscal year 2023, the total federal amounts reported for the Head Start
program related to the non-COVID-19 related contracts was $4,843,064 which would require a
$1,210,766 match based on 25%. Of the match that Booker T. Washington Child Development
Center was initially able to document, $192,182 related to meals provided by a school district for
free to the Booker T. Washington children. The value of these free meals in total as calculated
by the Organization was $796,647, but only $192,182 was needed to cover the shortfall from
other categories. These free meals were not contemplated as part of the Budgeted match when
the contract with the City of Phoenix was established, nor were these free meals included as part
of the Quarterly Admin reports provided to the City.
Cause and Effect: During the year, the Organization determined that $808,793 of the required
match was met through expenses of other funding sources. However, it only $598,268 of these
other funding sources was spent on program related items during fiscal year 2023, causing
$192,182 of this reported match to not be legitimate. Due to this $192,182 shortfall, the
Organization rethought its sources of matching funds and determined that they believe that the
Organization received $796,647 in free meals provided to kids that could be used to make up for
this $192,182 shortfall in the required match. These free meals were not specified in the
quarterly reports submitted to the City of Phoenix because these free meals were considered
part of the required match only after the auditors determined that the reported match categories
that could be supported was short of the requirement by $192,182,
Auditors’ Recommendations: The Organization should establish policies where the required
match is periodically summarized throughout the year and analyzed to ensure that the required
match will be met by contract year end.