Finding 395407 (2022-002)

Finding 2022-002 Internal Controls over Major Programs (Significant Deficiency) Information on the Federal Program: Assistance Listing Number 93.600 – Head Start Cluster, United States Department of Health & Human Services. Pass-Through Entity: N/A. Award Number: 10CH011432. Compliance Requirements: Reporting. Criteria: The entity should have a system of internal controls in place to ensure submission of applicable reports on a timely basis. Condition: During our compliance testing, we noted the SF-429 report was not submitted as required. Cause: We believe accounting staff turnover and inexperienced replacements during the year under audit were led to the lack of and/or failure in internal controls. Effect: The required report was not submitted to the agency. Identification of Repeat Finding: This is a not repeat finding. Recommendation: Staff turnover appears to have stabilized with the new finance director and the changes she implemented related to procedures and staffing. CSC may consider obtaining part-time or temporary assistance to help with fiscal year clean-up/close out to avoid similar problems with the accounting records in the current fiscal year due to a lack of time for current staff to prepare the accounting records while also performing their normal duties.