Finding 1182647 (2025-002)

Material Weakness Repeat Finding
Requirement
N
Questioned Costs
-
Year
2025
Accepted
2026-03-25

AI Summary

  • Core Issue: A new board member lacked documentation proving they received required training within 180 days of their term start.
  • Impacted Requirements: Compliance with 2 CFR section 200.303 and internal control standards for federal awards.
  • Recommended Follow-up: Retain documentation to confirm all new board members complete training on time to ensure effective oversight.

Finding Text

Federal Agency: U.S. Department of Health and Human Services Federal Program Title: Head Start Federal Assistance Listing Number: 93.600 Award Period: June 1, 2024 to June 30, 2025, August 1, 2024 to July 31, 2025, July 1, 2025 to May 31, 2026, August 1, 2025 to July 31, 2026 Type of Finding:  Significant Deficiency in Internal Control over Major Federal Programs and Other Matters Criteria or Specific Requirement: The organization must train all governing body and policy council members within 180 days of the beginning of the term of a new governing body or council. Under 2 CFR section 200.303, a non-federal entity must establish and maintain effective internal controls over the federal awards 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). Condition: During our testing we noted one new board member did not have support verifying they received the appropriate training. This individual was a past employee who would have received the training while employed but no support was retained to support that the training was done. Questioned Costs: N/A Context: No documentation was retained to support that a new board member had proper training. Cause: Individual was a past employee who would have received the training while employed but not support was retained to support that the training was done. Effect: Potential for a board member to not have the proper knowledge and understanding of how to provide adequate oversight of the Head Start program. Repeat Finding: No Recommendation: Ensure support is retained to show all new board members received training within 180 days. Views of responsible officials and planned corrective actions: There is no disagreement with the audit finding.

Corrective Action Plan

Head Start - AL #93.6000 Recommendation: The Organization should ensure all new board members receive training within 180 days. Explanation of disagreement with audit finding: There is no disagreement with the audit finding. Action taken in response to finding: We will ensure that all new and existing board members receive necessary training within 180 days of being seated and on an annual basis. Name(s) of the contact person(s) responsible for corrective action: Rita Zilka, Fiscal Director Planned completion date for corrective action plan: September 30, 2026

Categories

Internal Control / Segregation of Duties Significant Deficiency Matching / Level of Effort / Earmarking

Other Findings in this Audit

  • 1182644 2025-002
    Material Weakness Repeat
  • 1182645 2025-002
    Material Weakness Repeat
  • 1182646 2025-002
    Material Weakness Repeat

Programs in Audit

ALN Program Name Expenditures
93.600 HEAD START $1.06M
81.042 WEATHERIZATION ASSISTANCE FOR LOW-INCOME PERSONS $420,621
10.558 CHILD AND ADULT CARE FOOD PROGRAM $294,834
93.569 COMMUNITY SERVICES BLOCK GRANT $188,411
93.568 LOW-INCOME HOME ENERGY ASSISTANCE $47,888
10.580 SUPPLEMENTAL NUTRITION ASSISTANCE PROGRAM, PROCESS AND TECHNOLOGY IMPROVEMENT GRANTS $5,476