Finding 398979 (2022-001)

Significant Deficiency Repeat Finding

Requirement

Questioned Costs

Year

2022

Accepted

2024-05-30

Audit: 307579

Organization: The Sheltering Arms, Inc. and Subsidiary (GA)

Auditor: Smith & Howard

AI Summary

Core Issue: SF-425 reports for the Head Start grant were submitted late, violating grant requirements.
Impacted Requirements: Quarterly financial reports must be filed within 90 days after year-end to maintain compliance.
Recommended Follow-Up: The Center should closely monitor reporting timelines and ensure timely submission of all required documents.

Finding Text

Funding Agency: U.S. Department of Health and Human Services Grant: Head Start/Early Head Start CFDA Number: 93.600 Grant Number: 04CH011659/21/22 Criteria: The grant awards associated with Head Start program require the quarterly SF-425 reports to be filed with 90 days after year end. Condition: For awards with budget periods ending in 2022, the financial reporting forms SF-425s were later than prescribed due dates. Questioned costs: None Context: The annual SF-425 Federal Financial Reports were not filed by the stated due date. Effect: Lack of compliance with grant requirements could result in a reduction in grant funding. Cause: The absence of meeting the applicable reporting requirements is largely due to key employee turnover with the financial positions. Auditor’s Recommendations: We recommend that the Center monitors its contract reporting timeline and due date. The production and submission of reports should follow the timeline specified on the grants. Grantee Comment: Refer to Corrective Action Plan

Corrective Action Plan

Delayed Head Start reconciliations and department turnover contribted to the late submission of requred quarterly SF-425 reports. Moving forward, the report will be completed by the Chief Financial Officer. Filing Due dates will be included in our accounting calendar within Microsoft Outlook to coincide with our monthly close out procedures. The department will now file the report on time each quarter, then edit the report, if necessary, to ensure timely submission at all times.

Other Findings in this Audit

975421 2022-001

Significant Deficiency Repeat

Programs in Audit

ALN	Program Name	Expenditures
93.600	Head Start	$11.73M
10.558	Child and Adult Care Food Program	$1.26M