Finding 1094202 (2023-002)

Material Weakness
Requirement
N
Questioned Costs
-
Year
2023
Accepted
2025-01-06

AI Summary

  • Issue: The governance board lacked a member with financial expertise for part of the year, leading to noncompliance with legal requirements.
  • Requirements: The board must include at least one member with fiscal management expertise and one licensed attorney to meet governance standards.
  • Follow-up: Ensure board vacancies are filled promptly and maintain compliance by having the necessary expertise on the board.

Finding Text

Condition: The governance board did not include an individual with financial expertise for part of the year. Criteria: The governing body has legal and fiscal responsibility for the Head Start agency. The governing body must include not less than one member with a background and expertise in fiscal management or accounting and not less than one licensed attorney familiar with issues that come before the governing body. If the types of persons described above are not available to serve as members of the governing body, the governing body must use a consultant, or other individual(s) with relevant expertise who must work directly with the governing body (42 USC 9837(c)(1)(B)). Cause: The board member with financial expertise resigned in April 2023 and the vacancy was not filled. Effect: Noncompliance with special provisions regarding program governance. Recommendation: The Organization needs to fill board vacancies and ensure at least one board member has financial expertise. Views of Responsible Officials and Planned Corrective Actions: Community Action of East Central Indiana, Inc. ceased operations as of July 31, 2024 for any new business. Community Development Institute (CDI), as contracted by the Office of Head Start, has taken over the leadership and operations.

Categories

Special Tests & Provisions

Other Findings in this Audit

  • 517750 2023-001
    Material Weakness Repeat
  • 517751 2023-002
    Material Weakness
  • 517752 2023-003
    Material Weakness
  • 517753 2023-001
    Material Weakness Repeat
  • 517754 2023-002
    Material Weakness
  • 517755 2023-003
    Material Weakness
  • 517756 2023-001
    Material Weakness Repeat
  • 517757 2023-002
    Material Weakness
  • 517758 2023-003
    Material Weakness
  • 517759 2023-001
    Material Weakness Repeat
  • 517760 2023-002
    Material Weakness
  • 517761 2023-003
    Material Weakness
  • 517762 2023-001
    Material Weakness Repeat
  • 517763 2023-002
    Material Weakness
  • 517764 2023-003
    Material Weakness
  • 1094192 2023-001
    Material Weakness Repeat
  • 1094193 2023-002
    Material Weakness
  • 1094194 2023-003
    Material Weakness
  • 1094195 2023-001
    Material Weakness Repeat
  • 1094196 2023-002
    Material Weakness
  • 1094197 2023-003
    Material Weakness
  • 1094198 2023-001
    Material Weakness Repeat
  • 1094199 2023-002
    Material Weakness
  • 1094200 2023-003
    Material Weakness
  • 1094201 2023-001
    Material Weakness Repeat
  • 1094203 2023-003
    Material Weakness
  • 1094204 2023-001
    Material Weakness Repeat
  • 1094205 2023-002
    Material Weakness
  • 1094206 2023-003
    Material Weakness

Programs in Audit

ALN Program Name Expenditures
93.600 Head Start $3.51M
10.558 Child and Adult Care Food Program $203,891