Finding Text
Federal Agency: U.S. Department of Health and Human Services
Cluster Name: Child Care and Development Fund Cluster
Program Year: 2022
Assistance Listing Number: 93.575
Compliance: Reporting
Finding Type: Material weakness in internal controls over compliance
Criteria: Management is responsible for submitting timely, accurate reporting based on the terms of the
grant agreement.
Condition: During compliance testing it was noted that final reporting was not accurate.
Context: One final report for the federal award did not match supporting documentation.
Cause of condition: Grant reporting was prepared by a new employee who was unaware of prior year
expenditure categories.
Effect of Condition: As of a resulted of this condition, the Club’s required reporting was misstated.
Recommendation: It is recommended that a more thorough review of the prepared final reports is done prior
to submission.
View of Responsible Officials and Planned Corrective Action: A new employee prepared the final grant
reporting to the grantor (State of NH) who had no knowledge or participation in the FY21 audit. In FY21
the auditors had tested the multi-year grant, and the Club did not clearly label the most up-to-date and
final audited files, and incomplete information was used for preparation of the final report. The Club has
engaged an IT consultant to improve its technology. Additionally, the finance team will also institute best
practices for digital file management.
Planned Implementation Date of Corrective Action: Ongoing
Person Responsible for Corrective Action: Kathy Woodfin, Finance Director