Finding Text
Federal Agency: U.S. Department of Health and Human Services Federal Program Name: Head Start Assistance Listing Number: 93.600 Award Period: October 1, 2021 through September 30, 2022 Type of Finding: ? Significant Deficiency in Internal Control over Compliance Criteria: 2 CFR Part 200 Uniform Administrative Requirements, Cost Principles, and Audit Requirements for Federal Award requires compliance with the provisions of allowable costs. Alliance for Community Empowerment, Inc. should have internal controls designed to ensure compliance with those provisions. Condition: During our testing of payroll expenditures, we noted Alliance for Community Empowerment, Inc. did not have adequate internal controls designed to ensure only allowable costs were charged to grants. Questioned costs: $1,853 Context: Out of 29 employees tested for payroll disbursement testing under the Head Start, we noted a single exception for an employee that was charged to the grant in error. Cause: Alliance for Community Empowerment, Inc. incorrectly coded one employee to Head Start based on previous employment and job function. The employee was rehired to a new position and department, and the coding in payroll was not updated to reflect the new role. Review over coding of new hire was not performed based on employment agreement and personnel files. Effect: Head Start payroll expenditures were overstated. Repeat Finding: No Recommendation: Alliance for Community Empowerment, Inc. should formalize review over employee coding and allocations to ensure that allocations are based on actual time and effort. Views of Responsible Officials: Management concurs with the finding. See separate corrective action plan.