Finding Text
Program Information: See the Corrective Action Plan for chart/table Criteria or specific requirement: Per 2 CFR § 200.303 Internal controls, the non-Federal entity must: (a) Establish and maintain effective internal control over the Federal award that provides reasonable assurance that the non-Federal entity is managing the Federal award in compliance with Federal statutes, regulations, and the terms and conditions of the Federal award. These internal controls should be in compliance with guidance in “Standards for Internal Control in the Federal Government” issued by the Comptroller General of the United States or the “Internal Control Integrated Framework,” issued by the Committee of Sponsoring Organizations of the Treadway Commission (COSO). Proper internal controls related to compliance of Matching, Level of Effort and Earmarking for AL# 93.600 - Head Start, require that grantees must ensure that at least 10 percent of its total funded enrollment is filled by children eligible for service under the Individuals with Disabilities Education Act, unless a waiver has been approved in writing by OHS (42 USC 9835(d) and 45 CFR section 1302.14(b)). Condition/Context: The Head Start program was unable to provide documentation identifying the number of children served that qualified for the Individuals with Disabilities Education Act; thus, compliance with the 10 percent requirement could not be verified, and no waiver documentation was provided. [X] Compliance Finding [ ] Significant Deficiency [X] Material Weakness Cause: Lack of oversight, record retention, and the ability to locate information for prior years due to turnover. Effect: Failure to demonstrate compliance with targeted earmarking requirement could lead to additional oversight by the funding agency. Questioned Costs: Due to lack of sufficient documentation, we were unable to determine questioned costs. Repeat Finding: Yes – 2021-008. Recommendation: We recommend management emphasizes all documentation is obtained, properly completed, and retained for all children counted toward the 10 percent requirement. Views of Responsible Officials and Planned Corrective Action: Management agrees with the finding and has prepared corrective action as detailed in its Corrective Action Plan.