Finding Text
Federal Agency: U.S. Department of Health and Human Services Federal Program Name: Head Start, Community Services Block Grant Assistance Listing Number: 93.600, 93.569 Pass-Through Agency: State of CT Department of Social Services Pass-Through Numbers: 13DSS1501, 20DSS1501AI, 10DSS2601 Award Period: October 1, 2021 through September 30, 2022 Type of Finding: ? Significant Deficiency in Internal Control over Compliance Criteria or specific requirement: 2 CFR Part 200 Uniform Administrative Requirements, Cost Principles, and Audit Requirements for Federal Award requires compliance with the provisions of period of performance. Alliance for Community Empowerment, Inc. should have internal controls designed to ensure compliance with those provisions. Condition: Based on a detailed review of unrecorded liabilities, it was noted that several invoices for snow plowing from prior fiscal years were recorded to Federal grant programs. Due to recording of the prior year invoices in the current year, Federal programs contained expenditures outside of the period of performance. Questioned costs: Head Start $34,879; Community Services Block Grant $4,116 Context: During our testing it was noted that Alliance for Community Empowerment, Inc. was not properly considering the period in which expense was incurred when recording invoices to grants. Cause: Exception was caused due to lack of timely invoicing by contractor and inadequate review over period of performance compliance. Effect: Expenditures for the grants were overstated for prior period expenditures. Repeat Finding: No Recommendation: We recommend Alliance for Community Empowerment, Inc. design controls to ensure an adequate review process is in place to review the period of costs incurred to ensure costs are charged to grants in the proper period. Views of Responsible Officials: Management concurs with the finding. See separate corrective action plan.