Finding 1094206 (2023-003)

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

AI Summary

  • Core Issue: The SF-425 filing inaccurately reported federal expenditures due to management using a cash basis instead of the required accrual basis.
  • Impacted Requirements: All Head Start recipients must accurately report expenditures based on the selected accounting method.
  • Recommended Follow-Up: Amend the SF-425 filings to reflect correct financial information and ensure compliance moving forward.

Finding Text

Condition: On the semi-annual SF-425 filing as of August 31, 2023, management denoted the basis of accounting as accrual. The Federal share of expenditures reported did not include $152,752 of reimbursable expenses claimed on August 28, 2023 and received August 31, 2023. The August 28, 2023 request reimbursement included accrued items that were paid subsequently after August 31, 2023 and should have been included in the total. Criteria: All Head Start recipients are required to submit financial reports detailing the expenditures incurred for their awards. The federal expenditures reported should be reported based on the basis of accounting selected. Cause: Management was completing the SF-425 on a cash basis. Effect: The SF-425 filed was inaccurate. Recommendation: The Organization should amend its SF-425 filings to correctly report financial information. 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

Cash Management Reporting

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
  • 1094202 2023-002
    Material Weakness
  • 1094203 2023-003
    Material Weakness
  • 1094204 2023-001
    Material Weakness Repeat
  • 1094205 2023-002
    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