Finding 1167654 (2024-101)

Material Weakness Repeat Finding
Requirement
L
Questioned Costs
-
Year
2024
Accepted
2026-01-05

AI Summary

  • Core Issue: The Organization failed to submit its annual single audit reporting package and data collection form on time, violating federal compliance requirements.
  • Impacted Requirements: This affects compliance with 200.512 of the Uniform Guidance, which mandates timely submission of audit materials.
  • Recommended Follow-up: Management should implement policies and procedures to ensure timely completion of the annual single audit to avoid repeat findings.

Finding Text

2024-101 – Reporting-Report Submission – (Significant Deficiency in Internal Controls over Compliance) Repeat Finding Federal program information: Funding agency: U.S. Department of Health and Human Services Title: Head Start CFDA number: 93.600 Award number and years: 152734, 152734-019; July 1, 2023 through June 30, 2024 Pass-through grantor: City of Phoenix Compliance Requirements: Reporting Questioned Costs: N/A Criteria: 200.512 of the Uniform Guidance requires that the Organization submit an annual single audit reporting package and submit the data collection form prior to nine months after the end of the audit period. Condition: The Organization did not submit its single audit reporting package or data collection form within the required deadline. Cause and Effect: The Organization had turnover in finance staff and had not established policies and procedures to ensure the annual single audit is completed timely. As a result, the Organization did not comply with federal requirements. Auditors’ Recommendations: Management should ensure that the annual single audit is completed within the required timeframe. This finding is similar to prior year finding 2023-102.

Corrective Action Plan

Person Responsible: Josie Ayon Estimated Completion Date: 3/31/2026 Planned Corrective Action: The organization converted from the Cash Basis of Accounting to the Accrual Basis of Accounting (GAAP) in fiscal year 2023. Additionally, the organization converted to a new accounting system and hired outside consultants to assist with data entry and financial reporting. The audit for June 30, 2025 is planned to start in December 2025, which will provide adequate time to comply with this requirement.

Categories

Reporting Significant Deficiency Internal Control / Segregation of Duties

Programs in Audit

ALN Program Name Expenditures
93.600 HEAD START $5.50M