Finding 24716 (2022-003)

Significant Deficiency
Requirement
L
Questioned Costs
-
Year
2022
Accepted
2023-06-28

AI Summary

  • Core Issue: Grant reports for Head Start were submitted without proper review and approval, risking inaccuracies.
  • Impacted Requirements: 2 CFR 200.303 mandates effective internal controls for managing federal awards.
  • Recommended Follow-Up: Implement controls to ensure all grant reports are reviewed and approved before submission to the grantor.

Finding Text

Item 2022-003 Reporting Head Start and Early Head Start Assistance Listing #93.600 Head Start Grant No. 04HE001128-01-C5 U.S. Department of Health and Human Services Federal Award Year - 2022 Condition ? Adequate controls were not in place to review and approve grant reports prior to their submission to the grantor. The Federal Financial Reports (SF-425) for the Head Start Cluster grants were not reviewed and approved prior to submission to the Payment Management System. Criteria ? Grantees should have controls in place to ensure that grant reports are being reviewed and approved by management prior to being submitted to the grantor. 2 CFR 200.303 requires the non-Federal entity to ?(a) establish and maintain effective internal controls over the Federal award that provides reasonable assurance that the non-Federal entity is managing the Federal statutes, regulations, and the terms and conditions of the Federal award.? Cause - Lack of sufficient controls over the review and approval of grant reports to ensure the accuracy and completeness of the report being submitted to the grantor. Questioned Costs ? Not applicable. Effect ? Lack of proper review and approval could result in improper reporting which could lead to disallowed costs. However, our audit disclosed no instances of unallowable costs. Recommendation ? We recommend the implementation of controls to ensure there is evidence of review and approval of the quarterly grant reports prior to submission to the grantor. Management?s Response ? The Agency will implement controls to ensure proper review and approval is obtained on required grant reports prior to submission to the grantor.

Corrective Action Plan

Item 2022-003 Reporting ? Management?s Response ? The Agency will implement controls to ensure proper review and approval is obtained on required grant reports prior to submission to the grantor. Anticipated Completion: September 30, 2023 Responsible Party: Belinda Mitchell, Executive Director

Categories

Reporting Allowable Costs / Cost Principles

Other Findings in this Audit

  • 24715 2022-002
    Material Weakness Repeat
  • 601157 2022-002
    Material Weakness Repeat
  • 601158 2022-003
    Significant Deficiency

Programs in Audit

ALN Program Name Expenditures
93.600 Head Start $649,902
93.556 Promoting Safe and Stable Families $281,462
10.561 State Administrative Matching Grants for the Supplemental Nutrition Assistance Program $85,139
93.575 Child Care and Development Block Grant $71,973
10.558 Child and Adult Care Food Program $45,569
93.600 Covid-19 Head Start $43,513
93.558 Temporary Assistance for Needy Families $25,000
14.218 Covid-19 Community Development Block Grants/entitlement Grants $23,121
14.218 Community Development Block Grants/entitlement Grants $4,912