Finding 1155754 (2024-002)

Material Weakness Repeat Finding
Requirement
L
Questioned Costs
-
Year
2024
Accepted
2025-09-27

AI Summary

  • Core Issue: The Council lacks proper supervisory review and approval procedures for grant reporting.
  • Impacted Requirements: Effective internal controls require timely and documented supervisory review to prevent errors.
  • Recommended Follow-Up: Implement a documented review and approval process for all future grant reports before submission.

Finding Text

Condition: The Council does not have appropriate supervisory review and approval procedures related to the grant reporting function. Criteria: Effective internal control over compliance includes appropriate, timely, and documented supervisory review and approval procedures. Cause: The grant reporting is prepared and submitted without prior documented supervisory review and approval. Effect: The Council is at an increased risk for grant reporting errors or omissions without timely supervisory review and approval. Context: All three financial reports that were required to be filed during the year were tested. Questioned Costs: N/A Recommendation: We recommend the review and approval of all future grant reports prior to their submission. The approval should be documented in writing. View of Responsible Officials: Management concurs with the finding and understands the importance of a documented review and approval process related to the grant reporting function. The lack of formal approval processes was due, in part, to staffing limitations and the absence of a dedicated financial leadership role during the audit period.

Corrective Action Plan

Findings & Questioned Costs – Major Federal Award Program Audit – 2024-002 Controls Over Grant Reporting (93.600 Head Start Cluster) Corrective Action Plan: To strengthen internal controls and mitigate this risk, the Council hired a Finance Director / CFO which will enhance oversight. All federal grant reports will be prepared by the Finance Director/CFO. All federal grant reports will then subsequently be approved by the Executive Director / CEO prior to final submission. Documented evidence of supervisory review and approval will be maintained with each grant report submission. Implementation Timeline: Completed by September 30, 2025 Responsible Person(s): Finance Director / CFO & Executive Director / CEO

Categories

Reporting Internal Control / Segregation of Duties

Programs in Audit

ALN Program Name Expenditures
93.600 Head Start $7.90M
10.555 National School Lunch Program $78,673
10.558 Child and Adult Care Food Program $3,455