Finding 1156891 (2024-002)

Material Weakness Repeat Finding
Requirement
L
Questioned Costs
-
Year
2024
Accepted
2025-09-30

AI Summary

  • Core Issue: Bossier Office of Community Services, Inc. did not provide accurate monthly financial statements to its Board, impacting decision-making.
  • Impacted Requirements: This violates Section 642(d)(2)(A) of the Head Start Act, which mandates monthly financial reporting to the Board.
  • Recommended Follow-Up: Management should explore alternatives for timely financial reporting, ensuring accuracy even if key staff are unavailable.

Finding Text

2024-004 Program Governance Fiscal year finding initially occurred: 2022 CONDITION: Bossier Office of Community Services, Inc. failed to provide accurate monthly financial statements to its Board of Directors during the fiscal year under audit. Although the entity hired a CPA firm to assist with reconciling their financial transactions. This did not occur until after the fiscal year end. In review of detail general ledger activity and performance of audit procedures, it was noted that significant adjustments were made to various revenue and expense accounts in order to balance the financial statements at year end. CRITERIA: Section 642(d)(2)(A) of the Head Start Act requires agencies to provide monthly financial statements to their Board of Directors CAUSE: The Bossier Office of Community Services, Inc. did not have proper internal controls over reconciling monthly bank statements as well as controls over preparing accurate financials. EFFECT: The Board of Directors of Bossier Office of Community Services, Inc. may not have the complete and accurate financial information needed to make informed operational decisions. RECOMMENDATION: Management should consider alternatives for preparing and reviewing monthly financial reports in the event financial management staff are unavailable in the future to perform these duties in a timely manner. VIEW OF RESPONSIBLE OFFICIAL: Management have contracted a CPA to work with Financial staff to ensure the accuracy of financial records. CPA will review financial record monthly for accuracy to ensure the Board of Directors receive accurate financial information.

Corrective Action Plan

Management have contracted a CPA to work with Financial staff to ensure the accuracy of financial records. CPA will review financial record monthly for accuracy to ensure the Board of Directors receive accurate financial information.

Categories

Internal Control / Segregation of Duties

Other Findings in this Audit

  • 1156887 2024-001
    Material Weakness Repeat
  • 1156888 2024-002
    Material Weakness Repeat
  • 1156889 2024-003
    Material Weakness Repeat
  • 1156890 2024-001
    Material Weakness Repeat
  • 1156892 2024-003
    Material Weakness Repeat

Programs in Audit

ALN Program Name Expenditures
93.600 Head Start $3.32M
93.568 Low-Income Home Energy Assistance $1.27M
10.558 Child and Adult Care Food Program $346,183
93.569 Community Services Block Grant $125,065