Finding 386295 (2022-002)

Criteria or Specific Requirement The New York City Division of Early Childhood Education and the U.S. Department of Health and Human Services requires that all accounts payable be liquidated within 90 Days after the end of the Head Start Program reporting period. Condition The Organization has payables which were not liquidated within 90 days after June 30, 2022. A similar condition was noted in the prior year. Cause and Effect The Organization failed to liquidate accounts payable within the prescribed liquidation period. Questioned cost None Recommendation Liquidate all obligations on a timely basis, as required by contract requirements. Views of Responsible Officials and Planned Corrective Action Management agrees with the recommendation. Refer to Page 51 for the Corrective Action Plan.