Finding 1102131 (2024-001)

Significant Deficiency
Requirement
L
Questioned Costs
-
Year
2024
Accepted
2025-03-05

AI Summary

  • Core Issue: Middle Kentucky Community Action Partnership, Inc. failed to report subaward data on time and with accurate amounts.
  • Impacted Requirements: Non-compliance with the Transparency Act, which mandates timely and accurate reporting of subawards in FSRS.
  • Recommended Follow-Up: Implement procedures to ensure timely and correct reporting, utilizing a scheduling calendar for alerts on due dates.

Finding Text

Federal Program: Head Start Cluster Assistance Listing Number: 93.600 Federal Award Number: 04CH011976 Grant period: 04/01/2024 – 03/31/2025 Federal Agency: U.S. Department of Health and Human Services Questioned Costs: None. Condition: Middle Kentucky Community Action Partnership, Inc. did not report subaward data through the Federal Funding Accountability and Transparency Act Subaward Reporting System (FSRS) in a timely manner. Additionally, the subaward amount was reported incorrectly. The following is a summary of the results of audit testing for compliance with this requirement: Cause: Management completed the Federal Funding Accountability and Transparency Act (Transparency Act) reporting requirement past the deadline and reported an amount that differed from the obligated amount. Effect: Middle Kentucky Community Action Partnership, Inc. was not in compliance with this compliance requirement and a significant deficiency in internal control over compliance exists. Criteria: The Transparency Act (Pub. L. No. 109-282) that is codified in 2 CFR Part 170 requires subaward actions be reported in FSRS no later than the last day of the month following the month in which the subaward/subaward amendment obligation was made. Recommendation: We recommend that Middle Kentucky Community Action Partnership, Inc. establish procedures to ensure that required reports are filed in a timely manner with the correct subaward amounts. Response: Management agrees with the finding and has committed to a corrective action plan. Middle Kentucky has the use of a scheduling calendar in which required dates of reports and other key events are now placed. Middle Kentucky CFO has added the dates of reports including the FSRS report and its due date. From this calendar an alert can and will e sent to the CFO and a designated second person to alert them as to the upcoming required date that this and other reports are to be submitted. The calendar both electronic and in written form is now in use and no further instances of this occurrence should occur within the fiscal department in the future.

Categories

Subrecipient Monitoring Reporting Significant Deficiency Internal Control / Segregation of Duties

Other Findings in this Audit

  • 525689 2024-001
    Significant Deficiency

Programs in Audit

ALN Program Name Expenditures
93.600 Head Start $2.74M
93.568 Low-Income Home Energy Assistance $2.41M
17.277 Workforce Investment Act (wia) National Emergency Grants $2.19M
93.569 Community Services Block Grant $362,307
97.088 Disaster Assistance Projects $272,171
20.509 Formula Grants for Rural Areas and Tribal Transit Program $217,017
10.558 Child and Adult Care Food Program $168,297
17.258 Wia Adult Program $112,908
17.259 Wia Youth Activities $89,581
17.278 Wia Dislocated Worker Formula Grants $71,265
20.513 Enhanced Mobility of Seniors and Individuals with Disabilities $66,785
17.268 H-1b Job Training Grants $37,196
97.024 Emergency Food and Shelter National Board Program $29,611