Finding 44148 (2022-101)

Significant Deficiency Repeat Finding
Requirement
B
Questioned Costs
-
Year
2022
Accepted
2023-06-14

AI Summary

  • Core Issue: The final billing to the City of Phoenix was incorrectly prepared on an accrual basis instead of the modified cash basis.
  • Impacted Requirements: This discrepancy led to a significant deficiency in compliance with federal funding guidelines.
  • Recommended Follow-Up: Management needs to align billing procedures with the modified cash basis of accounting to prevent future issues.

Finding Text

2022-101 ? Reporting (Significant Deficiency, Compliance Finding, Repeat Finding) Federal Funding Agency: U.S. Department of Health and Human Services Pass Through Agency: City of Phoenix Title: Head Start Assistance #: 93.600 Award Year: July 1, 2021 through June 30, 2022 Questioned Costs: N/A Criteria: Billings to the City of Phoenix were prepared throughout the fiscal year based on a modified cash basis of accounting. Condition: The Organizations final year end billing to the City of Phoenix was prepared on an accrual basis of accounting. Cause and Effect: Change in the final method of billing resulted in $21,181 in additional accrual related expenditures, that would not have been billed using the modified cash basis at fiscal year end. Auditors? Recommendations: Management should ensure that current billing procedures to the City of Phoenix are consistent and in line with its current method of accounting.

Corrective Action Plan

Federal Funding Agency: U.S. Department of Health and Human Services Pass Through Agency: City of Phoenix Title: Head Start Assistance #: 93.600 Award Year: July 1, 2021 through June 30, 2022 Questioned Costs: N/A Person Responsible: Yukon Tomisato Estimated Completion Date: June 30, 2023 Criteria: Billings to the City of Phoenix were prepared throughout the fiscal year based on a modified cash basis of accounting. Condition: The Organizations final year end billing to the City of Phoenix was prepared on an accrual basis of accounting. Cause and Effect: Change in the final method of billing resulted in $21,181 in additional accrual related expenditures, that would not have been billed using the modified cash basis at fiscal year end. Planned Corrective Action: The Organization will not post the final billings as an accrual it will stay on the modified cash basis.

Categories

Reporting Significant Deficiency

Other Findings in this Audit

  • 44149 2022-102
    Significant Deficiency
  • 44150 2022-101
    Significant Deficiency Repeat
  • 44151 2022-102
    Significant Deficiency
  • 44152 2022-101
    Significant Deficiency Repeat
  • 44153 2022-102
    Significant Deficiency
  • 44154 2022-101
    Significant Deficiency Repeat
  • 44155 2022-102
    Significant Deficiency
  • 620590 2022-101
    Significant Deficiency Repeat
  • 620591 2022-102
    Significant Deficiency
  • 620592 2022-101
    Significant Deficiency Repeat
  • 620593 2022-102
    Significant Deficiency
  • 620594 2022-101
    Significant Deficiency Repeat
  • 620595 2022-102
    Significant Deficiency
  • 620596 2022-101
    Significant Deficiency Repeat
  • 620597 2022-102
    Significant Deficiency

Programs in Audit

ALN Program Name Expenditures
93.600 Head Start $7,412