Finding 1130917 (2024-002)

Significant Deficiency
Requirement
L
Questioned Costs
-
Year
2024
Accepted
2025-04-09

AI Summary

  • Core Issue: Internal controls were not properly followed, leading to potential inaccuracies in financial reports submitted to Head Start.
  • Impacted Requirements: Timely review and approval of reports are essential for compliance with federal regulations under 2 CFR section 200.303.
  • Recommended Follow-Up: Implement a backup signatory process to ensure necessary approvals are always obtained, even during staff absences.

Finding Text

Federal Agency: U.S. Department of Health and Human Services Federal Program Title: Head Start Federal Assistance Listing Number: 93.600 Award Period: June 1, 2023 to May 31, 2024, June 1, 2024 to May 31, 2025 Type of Finding: Significant Deficiency in Internal Control over Major Federal Programs Criteria or Specific Requirement: Timely review and approval should be maintained to ensure accurate amounts are being drawdown and accurate reports are submitted. Under 2 CFR section 200.303, a non-federal entity must establish and maintain effective internal controls over the federal awards that provides reasonable assurance that the non-federal entity is managing the federal award in compliance with federal statutes, regulations, and the terms and conditions of the federal award. These internal controls should be in compliance with guidance in “Standards for Internal Control in the Federal Government” issued by the Comptroller General of the United States or the “Internal Control Integrated Framework”, issued by the Committee of Sponsoring Organizations of the Treadway Commission (COSO). Condition: The Organization did not adequately follow internal controls in place to ensure required reports are approved by the appropriate personnel before being submitted. Questioned Costs: N/A Context: The control in place for internal review prior to submitting financial reports to HS/EHS was not followed for two of the five reports tested. Cause: Management was unable to obtain the signature of the assigned individual due to their unavailability during a break period. Effect: Potential for inaccurate information to be reported. Repeat Finding: No Recommendation: Establish a backup signatory process to ensure that there is always an available individual to provide necessary signatures, even during periods of unavailability. Views of responsible officials and planned corrective actions: There is no disagreement with the audit finding.

Categories

Cash Management Significant Deficiency Matching / Level of Effort / Earmarking Internal Control / Segregation of Duties

Other Findings in this Audit

  • 554475 2024-002
    Significant Deficiency
  • 554476 2024-002
    Significant Deficiency
  • 554477 2024-002
    Significant Deficiency
  • 554478 2024-002
    Significant Deficiency
  • 554479 2024-003
    Significant Deficiency Repeat
  • 554480 2024-003
    Significant Deficiency Repeat
  • 554481 2024-003
    Significant Deficiency Repeat
  • 554482 2024-003
    Significant Deficiency Repeat
  • 1130918 2024-002
    Significant Deficiency
  • 1130919 2024-002
    Significant Deficiency
  • 1130920 2024-002
    Significant Deficiency
  • 1130921 2024-003
    Significant Deficiency Repeat
  • 1130922 2024-003
    Significant Deficiency Repeat
  • 1130923 2024-003
    Significant Deficiency Repeat
  • 1130924 2024-003
    Significant Deficiency Repeat

Programs in Audit

ALN Program Name Expenditures
93.600 Head Start $1.54M
93.568 Low-Income Home Energy Assistance $646,939
81.042 Weatherization Assistance for Low-Income Persons $354,852
10.558 Child and Adult Care Food Program $276,931
10.580 Supplemental Nutrition Assistance Program, Process and Technology Improvement Grants $15,059
93.569 Community Services Block Grant $3,304