Finding Text
Program Name – Head Start and Early Head Start Assistance Listing Number – 93.600 Finding Type – Material Weakness and Noncompliance Criteria – Amounts drawn down from federal grants should be based on actual expenditures incurred. Any costs allocated to the grant should be based on a reasonable and appropriate allocation methodology. Condition – We noted certain grants were drawn or billed in excess of actual expenses incurred. Questioned Costs – $51,664 Identification of a Repeat Finding – This is not a repeat finding from the prior year audit. Cause/Effect – Documented program expenses were less than the Federal funds received. Recommendation – We recommend that the Agency reconcile the federal expenditures timely and make adjustments to future draws as and when necessary. View of Responsible Officials and Corrective Action Plan – TOFMHS concurs with the finding. The excess drawdowns were the result of accounting entries to record refunds, or other adjustments which reduced previously allowable expenses. Subsequent drawdowns should have been reduced to offset these adjustments. TOFMHS will implement ACF-IM-HS-23-01 (Treatment of Rebates, Refunds, Discounts), and prevent a recurrence of this issue in the future. TOFMHS returned the $51,664 to the Payment Management System on January 16, 2025 in accordance with the referenced Information Memorandum. Drawdowns will be based upo