Finding Text
2024-003 – Head Start Equipment and Real Property Management - Significant Deficiency in Internal Control over Compliance Department of Health and Human Services AL # 93.600 Head Start Cluster Federal Grantor/ Pass-Through Grantor Grant Number Grant Period U.S. Department of Health and Human Services 07CH011972-03 04/01/23 – 03/31/24 U.S. Department of Health and Human Services 07CH011972-04 04/01/24 – 03/31/25 Questioned Costs: None How were questioned costs computed: Not applicable Condition: Young Women’s Christian Association of Metropolitan St. Louis, Inc. did follow the capitalization policy for capitalizing property and equipment funded by Head Start. Repeat of prior year finding: No Criteria: Equipment purchases exceeding $5,000 that were approved by Head Start must be properly listed in the program's official equipment inventory. Cause: The Organization experienced turnover in key financial positions during the year and after year end that impacted the year end close process as the Organization did not have a formal year end close set of procedures. Effect: Because of the above conditions, equipment purchases exceeding $5,000, that were approved by Head Start, were initially expensed, and were adjusted to property and equipment during the audit. The equipment needs to be added to the program's official equipment inventory. Recommendation: We recommend that Young Women’s Christian Association of Metropolitan St. Louis, Inc. establish a month end or year end process to review expenditures for items that should be capitalized in accordance with the Organization's capitalization policy and then add those capitalized items to the Head Start inventory listing. View of Responsible Officials: Management agrees with the assessment and has committed to a corrective action plan.