Finding 32600 (2022-002)

Significant Deficiency

Requirement

Questioned Costs

Year

2022

Accepted

2023-04-20

Audit: 28234

Organization: Tri-County Community Action Partnership, Inc. (MN)

Auditor: Cliftonlarsonallen LLP

AI Summary

Core Issue: The Organization has not conducted a physical inventory count since 2019, violating federal requirements.
Impacted Requirements: Internal controls must ensure compliance with federal statutes, including taking inventory every two years as per 2CFR section 200.303.
Recommended Follow-Up: Conduct a physical inventory count and reconcile it with records at least every two years to avoid potential property issues.

Finding Text

2022 ? 002 Federal Agency: U.S. Department of Health and Human Services Federal Program Title: Head Start Federal Assistance Listing Number: 93.600 Award Period: June 1, 2021 to June 30, 2022, June 1, 2022 May 31, 2023, August 1, 2021 to July 31, 2023, and April 1, 2021 to March 31, 2023 Type of Finding: ? Significant Deficiency in Internal Control over Major Federal Programs and Other Matters Criteria or Specific Requirement: A physical inventory of the property must be taken and the results reconciled with the property records at least once every two years Under 2CFR section 200.303 A nonfederal entity must establish and maintain effective internal controls over the federal awards that provides reasonable assurance that the nonfederal entity is managing the federal award in compliance with federal statutes, regulations, and the terms and conditions of the federal award. These internal controls should be in compliance with guidance in ?Standards for Internal Control in the Federal Government? issued by the Comptroller General of the United States or the ?Internal Control Integrated Framework?, issued by the Committee of Sponsoring Organizations of the Treadway Commission (COSO). Condition: During our testing we noted the Organization's last documented inventory count was taken in 2019. Questioned Costs: N/A Context: The last physical inventory count was taken in 2019. Cause: The Organization did not take a physical inventory count within the past two years and reconcile to the accounting records; however, they do have procedures in place to monitor the inventory in other ways. The organizations inventory that is building related (renovations, upkeep, equipment), they are constantly discussing with their facilities person regarding buildings, fencing, turfing and playground inventory that required repairs and maintenance. Office inventory is within their site at either of their locations where they are at least several times a year to view and inventory what is there. Management meets throughout the year regarding inventory and budgeted items needed. Effect: Potential for missing, old, or out of use property Repeat Finding: No Recommendation: The Organization should ensure a physical inventory count is taken and reconciled to their records at least once every two years. Views of responsible officials and planned corrective actions: There is no disagreement with the audit finding.

Corrective Action Plan

U.S. Department of Health and Human Services 2022-002 Head Start - AL #93.6000 Recommendation: The Organization should ensure a physical inventory count is performed, documented, and reconciled to their property recorders at least every two years. Explanation of disagreement with audit finding: There is no disagreement with the audit finding. Action taken in response to finding: A physical inventory will be performed by the end of the fiscal year 2023, set for the months of May, June and July, 2023. Going forward, every two years after fiscal year 2023, a physical inventory will be performed by the end of the fiscal year in the months of June and July when Head Start Operations are slower, to allow classroom staff to participate in the process when the Fiscal staff visit the sites. Name(s) of the contact person(s) responsible for corrective action: Penny Paul Planned completion date for corrective action plan: September 30, 2023 If the Department of Health and Human Services have questions regarding this plan, please call Rita Zilka at 320-632-3691 ext. 0570.

Other Findings in this Audit

32601 2022-002

Significant Deficiency
32602 2022-002

Significant Deficiency
32603 2022-002

Significant Deficiency
32604 2022-002

Significant Deficiency
32605 2022-002

Significant Deficiency
32606 2022-002

Significant Deficiency
609042 2022-002

Significant Deficiency
609043 2022-002

Significant Deficiency
609044 2022-002

Significant Deficiency
609045 2022-002

Significant Deficiency
609046 2022-002

Significant Deficiency
609047 2022-002

Significant Deficiency
609048 2022-002

Significant Deficiency

Programs in Audit

ALN	Program Name	Expenditures
93.600	Head Start	$1.38M
93.568	Low-Income Home Energy Assistance	$1.32M
81.042	Weatherization Assistance for Low-Income Persons	$565,935
10.558	Child and Adult Care Food Program	$159,891
93.569	Community Services Block Grant	$147,025
10.580	Supplemental Nutrition Assistance Program, Process and Technology Improvement Grants	$16,591