Finding 1164826 (2025-001)

Material Weakness Repeat Finding
Requirement
N
Questioned Costs
-
Year
2025
Accepted
2025-12-15
Audit: 374655
Auditor: BRADY MARTZ

AI Summary

  • Core Issue: Credit card expenditure reports were not shared with the governing body and policy council, violating Head Start program requirements.
  • Impacted Requirements: Monthly financial statements and credit card expenditures must be provided to ensure compliance with federal regulations.
  • Recommended Follow-Up: Implement a process to prepare, review, and share credit card expenditure reports monthly with the governing body and policy council.

Finding Text

Criteria Per the compliance supplement for the Head Start program, “A Head Start Agency (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)). Condition Credit card expenditure reports were not shared with the governing body and the policy council. Cause Change in staff and lack of knowledge of reporting requirements. When the current Head Start coordinator took over in 2022, credit card expenditure reports stopped being shared with the policy council as the District believed it was not necessary, unaware of the specific Head Start requirement. Effect Failure to provide the governing body and the policy council with such records could result in unallowable credit card transactions being charged to the grant. Questioned Costs None Recommendation Credit card expenditure reports should be prepared, reviewed, and approved before being subsequently shared monthly with the governing body and the policy council. Views of Responsible of Officials and Planned Corrective Actions The District agrees with the finding as presented. The Head Start department will ensure credit card expenditures, along with the other required financial information, are shared monthly with the governing body and the policy council. Corrective action has already taken place on a go forward basis starting when this was identified during a previous Head Start audit. Repeat Finding This is a new finding in the current year.

Corrective Action Plan

Contact Person Darin Scherr, Business and Operations Manager Corrective Action Plan The District agrees with the finding as presented. The Head Start department will ensure credit card expenditures, along with the other required financial information, are shared monthly with the governing body and the policy council. Corrective action has already taken place on a go forward basis starting when this was identified during a previous Head Start audit. Completion Date Immediately

Categories

Allowable Costs / Cost Principles Reporting

Programs in Audit

ALN Program Name Expenditures
21.029 CORONAVIRUS CAPITAL PROJECTS FUND $5.89M
84.010 TITLE I GRANTS TO LOCAL EDUCATIONAL AGENCIES $4.71M
84.027 SPECIAL EDUCATION GRANTS TO STATES $4.29M
93.600 HEAD START $2.27M
84.367 SUPPORTING EFFECTIVE INSTRUCTION STATE GRANTS (FORMERLY IMPROVING TEACHER QUALITY STATE GRANTS) $1.16M
84.371 COMPREHENSIVE LITERACY DEVELOPMENT $893,333
10.553 SCHOOL BREAKFAST PROGRAM $786,934
10.555 NATIONAL SCHOOL LUNCH PROGRAM $704,496
84.424 STUDENT SUPPORT AND ACADEMIC ENRICHMENT PROGRAM $651,312
84.060 INDIAN EDUCATION GRANTS TO LOCAL EDUCATIONAL AGENCIES $397,145
84.048 CAREER AND TECHNICAL EDUCATION -- BASIC GRANTS TO STATES $274,952
93.566 REFUGEE AND ENTRANT ASSISTANCE STATE/REPLACEMENT DESIGNEE ADMINISTERED PROGRAMS $142,846
10.558 CHILD AND ADULT CARE FOOD PROGRAM $139,626
10.582 FRESH FRUIT AND VEGETABLE PROGRAM $137,226
84.196 EDUCATION FOR HOMELESS CHILDREN AND YOUTH $125,179
84.425 EDUCATION STABILIZATION FUND $121,481
84.002 ADULT EDUCATION - BASIC GRANTS TO STATES $98,996
84.173 SPECIAL EDUCATION PRESCHOOL GRANTS $78,598
84.365 ENGLISH LANGUAGE ACQUISITION STATE GRANTS $76,951
15.130 INDIAN EDUCATION ASSISTANCE TO SCHOOLS $48,329
16.540 JUVENILE JUSTICE AND DELINQUENCY PREVENTION $44,320
97.137 STATE AND LOCAL CYBERSECURITY GRANT PROGRAM TRIBAL CYBERSECURITY GRANT PROGRAM $39,565
10.560 STATE ADMINISTRATIVE EXPENSES FOR CHILD NUTRITION $26,816
10.559 SUMMER FOOD SERVICE PROGRAM FOR CHILDREN $1,456