Finding Text
Finding 2022-001: Head Start/Early Head Start Cluster ALN #93.600 Condition/Cause: Child Inc. had $511,690 at April 30, 2022 of Head Start/Early Head Start funds that were drawndown from the federal government but allowable expenses had not been incurred during the fiscal year. Criteria: Child Inc. should have procedures that ensure that the time lapse between the transfer of funds from the federal government and the disbursement of those funds are minimized. Context: The $511,690 in federal drawdowns were not associated with allowable expenses incurred during the fiscal year. These funds are recorded as unearned revenue at April 30, 2022. Effect: Child Inc. was not in compliance with federal requirements to minimize the time between transfers of federal funds and disbursements of those funds for allowable expenses. Recommendation: Child Inc. should implement procedures to ensure that the Organization has allowable expenses prior to or at the time of the drawdown for federal programs.