Finding 1240393 (2025-001)

2025-001 – Head Start Special Reporting - Significant Deficiency in Internal Control over Compliance Department of Health and Human Services AL # 93.600 Head Start Cluster Federal Grantor/ Pass-Through Grantor Grant Number Grant Period U.S. Department of Health and Human Services 07CH011972-04 04/01/24 – 03/31/25 U.S. Department of Health and Human Services 07CH011972-05 04/01/25 – 03/31/26 Questioned Costs: None How were questioned costs computed: Not applicable Condition: Young Women’s Christian Association of Metropolitan St. Louis, Inc. did not report subaward data through the Federal Funding Accountability and Transparency Act Subaward Reporting System (FSRS) in a timely manner and reported on the monthly amount expended, instead of the contract amount awarded. The following is a summary of the results of audit testing for compliance with this requirement: Transactions Tested Subaward not reported Report not timely Subaward amount incorrect Subaward missing key elements 2 0 2 2 0 Repeat of prior year finding: Yes, repeat of prior year finding 2024-002 Criteria: The Federal Funding Accountability and Transparency Act (Pub. L. No. 109-282) (Transparency Act) that are codified in 2 CFR Part 170 requires subaward actions be reported in FSRS no later than the last day of the month following the month in which the subaward/subaward amendment obligation was made. Cause: Management was unclear on the Transparency Act reporting requirements that subaward actions be reported in FSRS no later than the last day of the month following the month in which the subaward/subaward amendment obligation was made and that the obligation is based on the contract and not the monthly expenditure. Effect: Because of the above conditions, reporting was completed late during the year and based on monthly expenditures. Recommendation: We recommend that Young Women’s Christian Association of Metropolitan St. Louis, Inc. establish procedures to ensure it reports all subaward information by the last day of the month following the month in which the subaward/subaward amendment obligation was made. View of Responsible Officials: Management agrees with the assessment and has committed to a corrective action plan.