Finding Text
Significant Deficiency: Unallowed vacation accrual and subsequent payment was noted through a Head Start program review in December 2021. Condition: Unallowed vacation accrual and subsequent payment was noted through a Head Start program review in December 2021. The Interim Executive Director was awarded vacation pay over the allowable agency maximum, due to her inability to take vacation due to the COVID-19 pandemic. The exception was authorized through a board approval of the payment. However, due to the Organization not revising the general personnel policies to reflect the change in vacation accrual policies for special circumstances, the payment of $31,232.80 was deemed an unallowable expenditure. Criteria: Allowability of costs to be charge to the Head Start Program. Cause: The exception was authorized through a board approval of the payment. However, due to the Organization not revising the general personnel policies to reflect the change in vacation accrual policies for special circumstances, the payment was deemed an unallowable expenditure. Effect: The payment of the vacation pay over the amount allowed through the personnel policies was deemed unallowable to the program. Context: The Organization underwent a Head Start Program Review and the payment for the extra vacation pay was questioned by the Head Start Reviewer. Although the Board of Trustees had approved the special payment in excess of the normally allowed accrued vacation pay, the Organization did not consult an outside expert to facilitate the amendment of the personnel policies to allow the vacation hours to be accrued and paid. Recommendation: The Organization should consult outside experts when unusual circumstances occur to verify whether a cost is allowable under the circumstances and what if any documentation is required to support the expenditure.