Finding Text
General Disbursement Allocation Federal Agency: U.S. Department of Health and Human Services Federal Program Name: Head Start Cluster Assistance Listing Number: 93.600 Federal Award Identification Number: 05CH011421 Pass-Through Agency: City of Chicago Department of Family and Support Services Pass-Through Award Number: PO 256022 Award Periods: March 1, 2024 – February 28, 2025 and December 1, 2023 – November 30, 2024 Type of Finding: Significant Deficiency in Internal Control over Compliance and Other Matters Criteria: Under allowable cost/cost principles, an organization in receipt of federal funding is required to have a system of controls in place to safeguard assets and ensure that only allowable costs are charged to federal programs. 2 CFR Part 200 states that charges to awards are to be supported by a system of internal control which provides reasonable assurance that the charges are accurate, allowable, and properly allocated. Condition: In testing cash disbursements, noted two items out of 15 sampled did not have documentation available to support program allocations. Questioned Costs: None Context: Changes to allocations were verbally discussed, no documentation available to review for audit testing. Cause: The Organization has not fully complied with established policies and procedures related to federal cost principles for cash disbursements. Effect: Appropriate up-to-date supporting documentation was not maintained for all cash disbursements charged to federal programs. Repeat Finding: This is not a repeat finding. Recommendation: We recommend the Organization emphasize compliance with their established policies and procedures related to maintaining appropriate up-to-date supporting documentation for cash disbursements. Views of Responsible Officials: There is no disagreement with this audit finding.