Finding Text
Finding Reference 2024-003
Federal Agency: U.S. Department of Health and Human Services
Pass-through Agency: Puerto Rico Department of Family
Program: Head Start Program Cluster (ALN 93.600 & 93.365)
Compliance Requirement: Reporting - Financial Administration (L)
Type of Finding: Significant Deficiency in Internal Controls (SD), Instance of Noncompliance (NC)
This finding is similar to prior-year finding(s) 2023-003, 2022-003 and 2021-003 .
Statement of Condition In our Reporting Test, we found the financial reports do not agree with the program accounting records.
Criteria The OMB Common Rules, Subpart C, Section .20 (b) (1), states that the grantee must maintain internal control procedures that permit proper tracing of funds to the accounting records. Also, it requires accurate, current and complete disclosure of financial results.
Cause of Condition The accounting system is not used as a reporting source. Adequate internal controls do not exist to ensure that the accounting system is used, and the information is reconciled with the closing reports submitted to the federal agencies.
Effect of Condition The program is not in compliance with the Common Rules, Subpart C, Section .20 (b) (1).
Recommendation We recommend the Program establish monitoring procedures to ensure the accuracy of accounting records and the correct completion of the closing reports. The Program fiscal area ensures that accounting records are updated at the end of each month in order to prepare accurate reports for the federal agency.
Questioned Cost None
Views of Responsible
Officials and Planned
Corrective Action The Head Start and Early Head Start Program accountant will reconcile transactions to the general ledger on a monthly basis, that is, review and compare each transaction to the IDs. After reviewing, appropriate corrections will be made if necessary.
Implementation Date: During fiscal year 2024-2025.
Responsible Person: Mrs. Idenisse Díaz
Head Start Program Director