Finding Text
FINDING 2023‐004 – Reporting;
Significant Deficiency in Internal Control over Compliance
U.S. Department of Health and Human Services
U.S. Department of Agriculture
U.S. Department of Treasury
Assistance Listing Numbers: 93.600, 93.568, 21.027
Federal Program Names: Head Start Cluster, Low Income Home Energy Assistance, and Coronavirus State and Local Fiscal Recovery Funds
Award Years: 2019-23, 2021-23, 2021-2023
Criteria: In accordance with federal reporting requirements a variety of different types of reports are required for compliance relating to each of the grants, such as SF-425 reports, SF-429, special reports and performance reports are required on an annual basis. Additionally, the filing of the audit reporting package within the federal audit clearing house is required on an annual basis within nine months from year end.
Condition and context: The applicable federal financial, special, or performance reports relating to each program and audit reporting package were not submitted timely as required by the grant agreements. Additionally, the filling of the audit reporting package within the federal audit clearing house was not filed timely for each of the following:
• Head Start Cluster (ALN 93.600) – The SF-425 report was submitted after the due date. The SF-429 report was submitted after the due date. The annual Federal Financial report was submitted after the due date.
• Low-Income Home Energy Assistance (ALN 93.568) – The audit reporting package, due annually, was submitted after the due date.
• Coronavirus State and Local Fiscal Recovery Funds (ALN 21.027) – For one of the four special and performance reports selected, the report was submitted after the due date.
Questioned costs: None.
Effect: The Organization was not in compliance with reporting requirements of the grants.
Cause: Controls were not operating as designed to ensure the timely submission of the reports required were filed by the due dates.
Repeat finding: Yes.
Recommendation: We recommend the Organization implement controls to ensure timely submission of required reports, to include financial, performance, and special reports as required by grant agreements. We recommend the Organization implement a review control in the reporting process to ensure timely submission.
Views of responsible officials and planned corrective actions:
Management agrees with the assessment and will implement the auditor’s recommendations through revisions of policies and procedures. The Organization had significant turnover, which is why this finding was not corrected in the current year. The Organization will implement a review control surrounding the submission of all special reports, and performance reports within the fiscal department and work with Divisions Directors to ensure timely filing. The Organization has worked on internal controls surrounding financial reporting and will provide all audit documentation in a timely manner to ensure timely filing of the audit for the year ending June 30, 2024.