Finding 400143 (2023-001)

-
Requirement
N
Questioned Costs
-
Year
2023
Accepted
2024-06-06

AI Summary

  • Core Issue: The agency failed to provide required credit card expenditures in financial reports to the governing body and policy council.
  • Impacted Requirements: This omission led to non-compliance with Head Start grant requirements, although there were no questioned costs.
  • Recommended Follow-Up: Management will ensure that credit card expenditures are included in monthly reports starting in 2024.

Finding Text

CRITERIA: A HEAD START AGENCY MUST SHARE ACCURATE AND REGULAR INFORMATION WITH THE GOVERNING BODY AND THE POLICY COUNCIL INCLUDING MONTHLY FINANCIAL STATEMENTS, INCLUDING CREDIT CARD EXPENDITURES, MONTHLY PORGRAM INFORMATION, AND THE FINANCIAL AUDIT. CONDITION: FINANCIAL AND PROGRAM INFORMATION THAT WERE PROVIDED DID NOT INCLUDE CREDIT CARD EXPENDITURES. CAUSE: THE BOARD OF DIRECTORS AND POLICY COUNCIL RECEIVED PROGRAM INFORMATION, FINANCIAL STATEMENTS AND ENROLLMENT REPORTS BUT THEY DID NOT INCLUDE THE REQUIRED CREDIT CARD EXPENDITURES. EFFECT: THE ABSENCE OF CREDIT CARDS BEING PROVIDED TO THE BOARD OF DIRECTORS RESULTED IN HUMANKIND NOT BEING IN COMPLIANCE WITH THE SPECIAL TESTS AND PROVISIONS REQUIREMENTS OF THE HEAD START GRANT. THERE ARE NO QUESTIONED COSTS AS A RESULT OF FAILING TO MEET THIS REQUIREMENT. RECOMMENDATION: MANAGEMENT SHOULD INCLUDE CREDIT CARD EXPENDITURES WITH THE OTHER INFORMATION TO BE PROVIDED TO THE GOVERNING BODIES ON A MONTHLY BASIS AS REQUIRED BY TEH GRANT. VIEWS OF RESPONSIBLE OFFICIALS AND PLANNED CORRECTIVE ACTION: MANAGEMENT AGREES WITH TEH AUDITOR'S RECOMMENDATION AND THE FOLLOWING ACTION WAS TAKEN TO IMPROVE THE SITUATION. STARTING IN 2024, THE BOARD OF DIRECTORS RECEIVES A MONTHLY PACKET ALONG WITH THE HEAD START POLICY COUNCIL THAT CONTAINS ALL NECESSARY MONTHLY FINANCIAL AND PROGRAM REQUIREMENTS, INCLUDING CREDIT CARD EXPENDITURES.

Corrective Action Plan

MANAGEMENT AGREES WITH THE AUDITOR'S RECOMMENDATION, AND THE FOLLOWING ACTION WAS TAKEN TO IMPROVE THE SITUATION. STARTING IN 2024, THE BOARD OF DIRECTORS RECEIVES A MONTHLY PACKET ALONG WITH THE HEAD START POLICY COUNCIL THAT CONTAINS ALL NECESSARY MONTHLY FINANCIAL AND PROGRAM REQUIREMENTS, INCLUDING CREDIT CARD EXPENDITURES.

Categories

Special Tests & Provisions

Other Findings in this Audit

Programs in Audit

ALN Program Name Expenditures
21.027 Coronavirus State and Local Fiscal Recovery Funds $975,000
93.558 Temporary Assistance for Needy Families $369,742
93.505 Affordable Care Act (aca) Maternal, Infant, and Early Childhood Home Visiting Program $269,094
93.600 Head Start $57,798
14.252 Section 4 Capacity Building for Community Development and Affordable Housing $37,375
14.218 Community Development Block Grants/entitlement Grants $28,250
93.556 Promoting Safe and Stable Families $7,028