Finding 38756 (2022-001)

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Requirement
L
Questioned Costs
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Year
2022
Accepted
2023-01-26
Audit: 37794
Organization: Steps, Inc. (VA)

AI Summary

  • Core Issue: STEPS failed to submit required financial reports (SF-425 and SF-429) on time due to personnel changes.
  • Impacted Requirements: Non-compliance with federal reporting requirements for the Head Start grant, specifically for the year ending July 31, 2022.
  • Recommended Follow-Up: Management should ensure timely recording of financial activities and report submissions, and collaborate with the funding source to resolve any issues.

Finding Text

Section III- Federal Award Findings and Questioned Costs 2022-00 I Head Start Program CFDA No. 93.600; Grant No. 03CH0 12094; Grant period: year ended July 31, 2022 Criteria: Grant recipients must submit financial in formation during the year using the SF-425, Federal Financial Report. The SF-429, Real Property Swt11s Report must be filed annually based on the end of the budget period. The annual SF-429 is required for all grantees and should indicate whether the grantee has reportable real property. If they do, a separate SF-429A must be completed for each parcel of real property reported on the SF-429. STEPS has not fully complied with this requirement. Condition: The SF-425 was filed for the first half of the year. There was no SF-42 5 filed for the second half of the year. The annual SF-429 was not filed for the current year. Cause: During the year, the Vice President of Finance, who was previously responsible for filing these reports, was terminated. Responsibilities were transferred to other STEPS personnel in collaboration with external consultants. In an effort to make the reports as accurate as possible, the reports were not filed while the new personnel reviewed the financial activity. Effect: The absence of timely report filing resulted in STEPS not being in compliance with reporting requirements of the Head Start grant. There are no questioned costs as a result of failing to meet this requirement. Recommendation: Management should record and review financial activity in a timely manner to allow for the reports to be filed in an accurate and timely fashion. Views of Responsible Officials and Planned Corrective Action: Management agrees with the auditor's recommendation, and the following action will be taken to improve the situation. In the future, we will ensure that financial activity is recorded and reports are completed in a timely manner. Additionally, we will work with the funding source to rectify the system award issue and file the referenced reports as soon as possible.

Corrective Action Plan

Section IV - Corrective Action Plan Finding 2022-001 Reporting Views of Responsible Officials and Corrective Action: Management agrees with the auditor's recommendation, and the following action will be taken to improve the situation. In the future, we will ensure that financial activity is recorded and reports are completed in a timely manner. Additionally, we will work with the funding source to rectify the system award issue and file the referenced reports as soon as possible. Name of Responsible Person / Contact: Sharon Harrup, President & CEO Projected Implementation Date: As soon as possible

Categories

Reporting

Other Findings in this Audit

Programs in Audit

ALN Program Name Expenditures
14.231 Emergency Solutions Grant Program $588,071
17.259 Wia Youth Activities $281,584
93.569 Community Services Block Grant $277,319
17.235 Senior Community Service Employment Program $221,647
93.558 Temporary Assistance for Needy Families $166,666
10.558 Child and Adult Care Food Program $151,922
93.600 Head Start $67,819