Finding 1172547 (2025-004)

Material Weakness Repeat Finding
Requirement
N
Questioned Costs
-
Year
2025
Accepted
2026-02-05

AI Summary

  • Core Issue: The governing body lacks a licensed attorney due to a change in the attorney's status, violating compliance requirements.
  • Impacted Requirements: The organization must have members with expertise in fiscal management and legal matters, or hire a qualified consultant.
  • Recommended Follow-Up: Review and update the board and consultant composition to ensure compliance with legal standards.

Finding Text

Finding 2025-004: Head Start Assistance Listing No. 93.600 Compliance Requirement: Special Tests and Provisions Grant No.: 08CH011429-04-00 Type of finding: Internal Control over Compliance (material weakness), and Other Matters Criteria: The HSA must include not less than one member with a background and expertise in fiscal management or accounting and not less than one licensed attorney familiar with issues that come before the governing body. If the types of persons described above are not available to serve as member s of the governing body, the governing body must use a consultant or other individual with relevant expertise who must work directly with the governing body. (42 USC 9837(d)(2)(A) and (E). Condition: The attorney that had previously worked with the Organization changed their license to inactive status and no longer met the requirement of licensed attorney. Cause: The Organization did not replace the consultant as required by the provision in a sufficient amount of time. Questioned Costs: $0 Effect: The Organization did not maintain the expertise within the Organization as required by the program. Recommendation: The Organization should review the composition of the board and the consultants to ensure that it is in compliance with the standard. Repeat Finding: No Views from responsible officials: The Organization agrees with the finding.

Corrective Action Plan

Corrective action Plan: Due to the termination of activities as mentioned in Note 8 of the financial statements, the Organization is unable to develop and implement a corrective action plan.

Categories

Special Tests & Provisions Material Weakness Internal Control / Segregation of Duties

Other Findings in this Audit

  • 1172545 2025-002
    Material Weakness Repeat
  • 1172546 2025-003
    Material Weakness Repeat

Programs in Audit

ALN Program Name Expenditures
93.600 Head Start Cluster $929,013
10.558 CHILD AND ADULT CARE FOOD PROGRAM $58,304