Finding Text
Criteria
The City of Chicago requires that certain of its Head Start Cluster grantees submit financial and audit reports six (6) months after the end of their fiscal year during which the Head Start Cluster funding was received. During 2020 the deadline was extended by six (6) months to December 31, 2020 due to the effects of the COVID-19 pandemic.
Condition
SCCC did not submit its financial and single audit report package to the City of Chicago prior to the extended deadline.
Cause
This condition was due to management of SCCC lacking experience and knowledge of the financial reporting and compliance reporting requirements for the Head Start Cluster. As such, SCCC didn’t engage an auditor to perform its financial and compliance audits in time to meet its extended deadline.
Effect
Noncompliance with financial reporting and compliance reporting deadlines could cause in the suspension of funding from the City of Chicago until compliance is met.
Questioned Costs
None noted.