Finding 1177931 (2025-001)

Material Weakness Repeat Finding
Requirement
L
Questioned Costs
-
Year
2025
Accepted
2026-03-11
Audit: 391315
Organization: Ravalli Head Start, Inc. (UT)

AI Summary

  • Core Issue: The SF-425 was filed late and contained inaccuracies.
  • Impacted Requirements: Noncompliance with federal reporting standards affects the accuracy of Head Start reports.
  • Recommended Follow-Up: Create a robust system to ensure timely and accurate reporting of all requirements.

Finding Text

2025-001 Filing and Accuracy of the SF-425 – Significant Deficiency Criteria: The Organization should file the SF-425 within the required time period and reports should reconcile to the underlying accounting records. Condition: During our testing, we found that the report tested was filed a month and a half after the due date and found that elements included in the report should have been excluded. Cause: Undetermined. Effect: The Organization did not follow the program requirements for reporting, which creates noncompliance with federal awards. This may lead to inaccuracy with reporting the required items to Head Start. Recommendation: We recommend that the Organization develops a more comprehensive system to ensure that all reporting requirements are properly met.

Corrective Action Plan

Re: 2025-001 Filing and Accuracy of the SF-425 & 2025-002 Transaction Approvals The senior management team including the Executive Director Michele Craig, CFO Jill Hansen, and the Finance Committee of the Governing Board have reviewed and agree with the audit findings. Regarding the 2025-001 Filing and Accuracy of the SF 425, in order to file the semi-annual SF 425 that was due on 1/30/25 for the period of 7/1/24-12/31/24 we needed to have closed accounting periods with accurate financial statements. When our CFO Jill Hansen began in early December 2024, the last month that had been closed was September 2024 due to the resignation of both the accounting tech and the CFO. It took several months to accurately close and update financial records. We now have a checklist of month-end tasks that ensures the generation of accurate and on time financial statements. These tasks and deadlines are incorporated in the fiscal calendar that will be reviewed with the Finance Committee each month. We successfully submitted the most recent semiannual SF 425 on time and will meet the next SF 425 deadline, October, 2026. The above corrective actions have been incorporated and this issue has been corrected.

Categories

Reporting Significant Deficiency

Other Findings in this Audit

  • 1177932 2025-002
    Material Weakness Repeat

Programs in Audit

ALN Program Name Expenditures
93.600 HEAD START $4.22M
10.558 CHILD AND ADULT CARE FOOD PROGRAM $120,233