Finding Text
2024-003 – Special Tests and Provisions; Program Governance - Significant Deficiency in Internal
Controls over Compliance
Federal Program Information:
Funding Agency: U. S. Department of Health and Human Services
Title: Head Start
CFDA Number: 93.600
Federal Award Identification number: 06CH012005
Pass Through Entity: N/A
Award Year: 2024
Condition: The Organization did not conduct the monthly board and policy council meetings.
Criteria: Per Title 2 US Code of Federal Regulations Part 200.303a, non-federal entities must establish
and maintain effective internal control over the Federal award 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).
A HSA must share accurate and regular financial information with the governing body and the policy
council, including monthly financial statements, credit card expenditures, and the financial audit (42
USC 9837(d)(2)(A) and (E)).
Questioned costs: None
Effect: The Organization could be unaware of important events or financial updates that could affect
the Organization if there is no timely discussion.
Cause: The Organization is not following its policies and procedures to ensure board meetings and
policy council meetings occur every month.