Finding 41553 (2022-002)

Significant Deficiency
Requirement
L
Questioned Costs
-
Year
2022
Accepted
2023-01-09
Audit: 46367
Organization: Community Action Marin (CA)
Auditor: Wipfli LLP

AI Summary

  • Core Issue: Community Action Marin failed to submit financial reports for Head Start grants on time, indicating a significant deficiency in internal controls.
  • Impacted Requirements: Non-compliance with financial reporting deadlines as outlined in 45 CFR Part 75 and ACF-PI-HS-04.
  • Recommended Follow-Up: Implement additional controls and provide staff training on reporting deadlines to ensure compliance.

Finding Text

Department of Health and Human Services - AL #93.600 Head Start Cluster Grant Funding Source Grant Period Head Start #09CH011669-01 Department of Health and Human Services 07/01/2020 - 06/30/2021 Head Start #09CH011669-02 Department of Health and Human Services 07/01/2021 - 06/30/2022 Questioned costs: None How the questioned costs were computed: N/A Condition: During the audit, Wipfli LLP observed that the SF429A for the 09CH011669-01 grant was due on July 30, 2021 and was not filed until August 4, 2021. In addition, the related SF-429A for the 09CH011669-02 grant was submitted on October 31, 2022, when it was due July 30, 2022. Criteria: Section 75.341 Financial Reporting of 45 CFR Part 75 states that financial reports must be submitted with the frequency required by the terms and conditions of the Federal Award. Head Start Program Instruction ACF-PI-HS-04 indicates the due dates for each budget period and what is required to be included in Box 12 ? Remarks on the final Federal Financial Report. Cause: Community Action Marin did not file the required financial reports for the above grants in a timely manner in part due to transitions in the fiscal department. Effect: As a result of the matters noted above, Community Action Marin was not in compliance with the reporting standard due to a significant deficiency in internal controls. Recommendation: We recommend Community Action Marin implement additional controls over reporting including, but not limited to, training staff on the Head Start reporting deadlines, to be in compliance with reporting requirements and deadlines. View of responsible officials: Management agrees with the assessment and has committed to a corrective action plan.

Corrective Action Plan

Corrective Action: All grant and contract agreements and their associated reporting requirements and filing deadlines will be centralized, maintained, and properly reviewed to esure that periodic reporting requirements and filing deadlines are always met in a timely manner. Person Responsible: Chief Financial Officer Timing for Implementation: Immediate

Categories

Reporting Significant Deficiency

Other Findings in this Audit

  • 617995 2022-002
    Significant Deficiency

Programs in Audit

ALN Program Name Expenditures
93.600 Head Start $5.90M
93.575 Child Care and Development Block Grant $938,123
93.596 Child Care Mandatory and Matching Funds of the Child Care and Development Fund $540,679
93.600 Covid-19 Head Start $408,951
10.558 Child and Adult Care Food Program $348,704
93.569 Community Services Block Grant $330,879
93.568 Low-Income Home Energy Assistance $268,198
93.569 Covid-19 Community Services Block Grant $111,657