Finding 48217 (2022-002)

Significant Deficiency
Requirement
L
Questioned Costs
-
Year
2022
Accepted
2023-09-28

AI Summary

  • Core Issue: RCCAA's reporting process lacks adequate internal controls, leading to discrepancies between reported amounts and supporting documentation.
  • Impacted Requirements: Non-compliance with 2 CFR 200.303 and 29 CFR 97.20(b)(2) regarding effective internal controls and record-keeping for federal awards.
  • Recommended Follow-Up: Implement a documented review and approval process by an independent individual to ensure accuracy and maintain supporting documentation for all reported amounts.

Finding Text

2022-002 REPORTING Federal Program Information: U.S. Department of Health and Human Services - Head Start Cluster 93.600 Criteria: 2 CFR 200.303 requires that the non-federal entity must ?(a) establish and maintain effective internal control over the Federal award that provides reasonable assurance that the non-Federal entity is managing the Federal award in compliance with Federal statutes, regulations and the terms and conditions of the Federal award. These internal controls should be in compliance with guidance in ?Standards for Internal Control in the Federal Government? issued by the comptroller General of the United States and the ?Internal Control Integrated Framework?, issued by the Committee of Sponsoring Organizations of the Treadway Commission (COSO).? Per 29 CFR section 97.20(b)(2), ?Grantees and subgrantees must maintain records which adequately identify the source and application of funds provided for financially-assisted activities. These records must contain information pertaining to grant or subgrant awards and authorizations, obligations, unobligated balances, assets, liabilities, outlays or expenditures, and income.? Condition: Certain amounts reported on the SF-425 quarterly, semi-annual, and annual reports did not agree to the supporting documentation provided. While management reconciles the SF-425 reports to RCCAA?s accounting records as part of the reporting process, there is not a documented review and approval of the reports by someone independent of the preparer prior to submission of the reports. Questioned Costs: Unknown Context: Total federal disbursements for the Head Start Cluster were $3,986,581 for the year ended December 31, 2022. Cause: The internal controls in place over the reporting process are not adequate to prevent errors in the reports. Effect: RCCAA is not in compliance with the federal rules and regulations regarding reporting. Reports could be filed with errors or lack of supporting documentation and not be identified by management. Recommendation: We recommend that RCCAA revisit controls over the report submission process. At a minimum, such controls should include a documented review and approval process that ensures reported amounts agree with supporting documentation. We recommend that the review be performed by an individual independent of the data entry process. Additionally, management should maintain supporting documentation for the amounts reported in the reports. Views of Responsible Officials: We agree with the findings and will take the necessary corrective actions as noted in the corrective action plan attached.

Categories

Reporting Matching / Level of Effort / Earmarking

Other Findings in this Audit

  • 48214 2022-002
    Significant Deficiency
  • 48215 2022-002
    Significant Deficiency
  • 48216 2022-002
    Significant Deficiency
  • 48218 2022-002
    Significant Deficiency
  • 624656 2022-002
    Significant Deficiency
  • 624657 2022-002
    Significant Deficiency
  • 624658 2022-002
    Significant Deficiency
  • 624659 2022-002
    Significant Deficiency
  • 624660 2022-002
    Significant Deficiency

Programs in Audit

ALN Program Name Expenditures
93.600 Head Start $2.82M
93.600 Early Head Start - Thru 7/31/22 $528,018
93.600 Early Head Start - Thru 8/1/22 $426,121
93.600 Head Start American Recovery Program $209,601
93.569 Community Services Block Grant $167,807
93.569 Community Services Block Grant - Cares $152,114
14.267 Continuum of Care - Rapid Rehousing $150,934
14.267 Continuum of Care - Leasing $106,316
14.231 Emergency Solutions Covid Grant Program $98,844
14.267 Continuum of Care - Supportive Housing $81,635
10.558 Child and Adult Care Food Program $69,690
14.231 Emergency Solutions Grant Program $59,583
93.150 Projects for Assistance in Transition From Homelessness (path) $30,800
14.267 Continuum of Care - Youth Homelessness Demonstrative Project $8,879
93.600 Head Start Covid $7,471
93.569 Community Services Training Block Grant $3,069