Finding 44370 (2022-002)

Significant Deficiency

Requirement

Questioned Costs

Year

2022

Accepted

2023-02-19

Audit: 46894

Organization: New River Community Action Inc. (VA)

Auditor: Warren and Koss PC

AI Summary

Core Issue: Four out of thirteen new property items were not recorded in the inventory, indicating a systematic problem.
Impacted Requirements: The agency failed to comply with grant requirements for equipment and real property management.
Recommended Follow-up: Implement measures to ensure all new property and equipment are added to the inventory promptly.

Finding Text

U. S. Department of Health and Human Services - Head Start Program Cluster - Assistance Listing #93.600 - Finding 2022-002 Equipment and Real Property Management Criteria: Property additions purchased with grant funds are recorded timely to the property inventory. Condition: During 2022, (4) of (13) instances of newly acquired property and equipment, that we tested, were not added to the physical inventory and is part of a systematic condition. Cause: The Agency had new employees in positions that were responsible for the property management system and the controls were not implemented properly. Effect: The Agency was not in compliance with the grant's equipment and real property management requirement and property not controlled by the property inventory may not be properly safeguarded. Recommendation: The Agency should take steps to ensure that additions to property and equipment are properly included in the property inventory. Views of responsible official: The Agency agrees with the finding and will take necessary steps to maintain a complete property inventory. Contact person: Michelle Cox, Chief Financial Officer. Corrective Action Plan: See Client's Corrective Action Plan.

Corrective Action Plan

U. S. Department of Health and Human Services - Head Start Program - Assistance Listing #93.600 - Finding 2022-002 Equipment and Real Property Management Criteria: Property additions purchased with grant funds are recorded timely to the property inventory. Condition: During 2022, (4) of (13) instances of newly acquired property and equipment, that was tested, were not added to the physical inventory. Corrective Action Plan: Due to new staff and all training not yet being completed, these items were not identified and added to inventory at time of purchase. Moving forward, the agency will ensure that new staff do not take over these duties until fully trained in this area. The agency will also develop a plan of review to make sure all items are recorded on inventory in a timely manner. Person Responsible: Michelle cox, Chief Financial Officer Timing of Implementation: Immediately

Other Findings in this Audit

44369 2022-001

Significant Deficiency
44371 2022-002

Significant Deficiency
44372 2022-003

-
620811 2022-001

Significant Deficiency
620812 2022-002

Significant Deficiency
620813 2022-002

Significant Deficiency
620814 2022-003

-

Programs in Audit

ALN	Program Name	Expenditures
10.766	Community Facilities Loans and Grants	$194,658
10.558	Child and Adult Care Food Program	$172,799
93.558	Temporary Assistance for Needy Families	$166,666
14.267	Continuum of Care Program	$156,722
93.569	Community Services Block Grant	$147,636
59.008	Disaster Assistance Loans	$111,576
93.600	Head Start	$96,009
14.169	Housing Counseling Assistance Program	$45,000
14.231	Emergency Solutions Grant Program	$45,000
14.218	Community Development Block Grants/entitlement Grants	$35,522
21.009	Volunteer Income Tax Assistance (vita) Matching Grant Program	$25,000
93.870	Maternal, Infant and Early Childhood Home Visiting Grant	$13,461
93.575	Child Care and Development Block Grant	$12,456
93.556	Promoting Safe and Stable Families	$11,937
97.024	Emergency Food and Shelter National Board Program	$9,653