Finding Text
Grant No(s): 06HE000754-01, 06CH011990-02, 06CH011990-03, 06HP000184-01, 06HP000184-02, 06HP000184-03, 06HP000184-04, 06HP000184-05 Criteria: DHHS regulations and grant awards set the criteria for DHHS Financial Reports. These reports are due quarterly, semi-annually, and annually from Head Start grantees. Financial Reports must be submitted and reviewed within a certain timeframe based upon the end of the budget period. DHHS regulations and grant awards set the criteria for DHHS Annual Special Reports (OMB No. 4040-0016). This report is due annually from Head Start grantees. Annual Special Reports must be submitted and reviewed within a certain timeframe based upon the end of the budget period. Reports should be supported by applicable accounting and performance records. Condition: Of the reports selected for testing, the Parish did not submit the one SF-425 Semi-Annual Financial Report by the grantee submission deadlines. The SF- 425 Semi-Annual Financial Report had a submission deadline of January 30, 2024 and was submitted on January 31, 2024. The SF-425 Annual Financial Report had a submission deadline of July 30, 2023 and was submitted on October 30, 2023. The Parish also did not submit the one Annual Special Report by the grantee submission deadline. The SF-429 Real Property Status Report and SF-429A General Reporting had a submission deadline of July 30, 2023 and was submitted on September 20, 2023. In addition, some amounts in the SF-425 Semi-Annual Financial Report and SF-425 Annual Financial Report selected for testing did not agree to applicable accounting and performance records. Universe/Population: The universe/population for Financial Reporting is two SF-425 Semi-Annual Financial Reports and two SF-425 Annual Financial Reports. EA selected one out of the two SF-425 Semi-Annual Financial Reports and one out of the two SF-425 Annual Financial Reports for testing of reporting compliance requirements applicable to the program. The universe/population for Special Reporting is three annual SF-429 Real Property Status Reports and SF-429A General Reporting (OMB No. 4040-0016). EA selected one out of the three Annual Special Reports for testing of reporting compliance requirements. Cause: Jefferson Parish lacks an established control monitoring timely submission of Financial and Special Reports. Effect: Failure to comply with the reporting requirements may result in sanctions, including: temporary withholding of cash payments, whole or partial suspension of the Federal award, suspension, debarment or limited denial of participation in Department of Health and Human Services programs pursuant to 45 CFR 75.971. Questioned Costs: None determined. Identification of a repeat finding: This is a repeat finding from the previous audit, 2022-003. Recommendation: Jefferson Parish should establish a formalized control to monitor timely submission of Financial and Special Reports. View of Responsible Officials: With the support of a new leadership team, Jefferson Parish is committed to strengthening grants and financial management and enhancing the reliability of grants reporting. The Parish has engaged Deloitte & Touche LLP as a consultant to assist in establishing regular review practices, policies, procedures, and internal controls with the goal of improving audit readiness, refine documentation procedures, and strengthen internal controls to support accurate and complete financial data going forward. As part of this effort Jefferson Parish and Deloitte are working across Departments to re-define organizational structure, to establish governance and oversight between finance, accounting, and programmatic departments. Jefferson Parish and Deloitte are also working to implement data quality improvement measures, including the establishment of quarterly grants reconciliation and review processes. Jefferson Parish has also engaged Infor in the implementation of new financial and reporting technology to support improved financial processing and controls.