Finding 496362 (2021-102)

Material Weakness Repeat Finding
Requirement
L
Questioned Costs
-
Year
2021
Accepted
2024-09-10

AI Summary

  • Core Issue: ITCN filed key reports late, including the final amended report for grant no. 90CI010041-01 and the annual single audit package.
  • Impacted Requirements: Failure to meet deadlines for quarterly reports and Form SF-429(A) violates 2 CFR §200.327, which mandates timely financial reporting.
  • Recommended Follow-Up: ITCN should allocate resources for financial reporting and implement a monitoring system, with regular reviews by the executive director to ensure compliance.

Finding Text

Condition and Context: ITCN filed the final amended report for grant no. 90CI010041-01 outside the required timeframe under the Head Start grant. ITCN also did not file Form SF-429(A), required by the Head Start program. Also, ITCN’s single audit reporting package for the fiscal year ended September 30, 2021, was not submitted to the Federal Audit Clearinghouse within nine months after ITCN’s year-end. Criteria: According to 2 CFR §200.327, Financial Reporting, information must be collected with the frequency required by the terms and conditions of the Federal award. The grants require the filing of quarterly reports within 30 days after the quarter-end. Cause and Effect: The cause is the lack of resources and turnover in personnel at ITCN. The effect is the late filing of the quarterly reports and the annual single audit reporting package, and, for Head Start, not reporting the real property status on the Form SF-429(A). Recommendation: We recommend that ITCN devote the necessary resources to the financial reporting process and establish a system of monitoring for the filing of all required reporting and that the executive director review the monitoring list on a regular basis consistent with the timing of report filings. Management’s Response: ITCN’s responsible officials’ views and planned corrective action are in its corrective action plan at the end of the report.

Corrective Action Plan

We agree with the finding and acknowledge that this issue has been previously identified in past audits. The repeat occurrence was primarily due to understaffing and turnover followed by additional staffing challenges during and post COVID 19 pandemic of 2020. In addition to the Corrective Action Planned related to Finding 2021-102, with respect to the Head Start grant reporting compliance for 90CI010041-01, the Finance Director has developed a grant tracking document to ensure timely completion and submission of all grant reports. The Grant Tracker has been reviewed by finance staff and is updated and referenced weekly. The Executive Director and Finance Director have regularly scheduled meetings each month and will coordinate improved reporting processes and monitoring systems with existing fiscal contractors to ensure the timeliness and training on the required filing and reporting requirements of all federal and state funds. The Executive Director has met with the Head Start and other ITCN Program Directors following review of the prior repeat audit findings. We have been implementing collaboration between program directors and fiscal staff to improve overall compliance for grant funds, including budgeting, reporting, policies and procedures and processes. Program directors are now required to collaborate and actively participate in all administrative and fiscal requirements of the grant funds, including attendance of administrative/fiscal training opportunity by funding agency, and review and understanding of grant compliance and internal controls. The Executive Director will continue to meet with the Finance Director on Corrective Action Planned, including oversight of and review of the monitoring list consistent with the timing of reporting filings. Anticipated Completion Date: On-going –The Final FY 2021 Financial Statements, including the Corrective Action Planned will be presented to the executive board and program directors for overview. The Executive Director will be responsible for ongoing communication and engagement to improve internal controls, and regularly scheduling meetings for status updates on the Corrective Action Planned and review quarterly reports.

Categories

Subrecipient Monitoring Reporting Equipment & Real Property Management

Other Findings in this Audit

  • 496357 2021-101
    Material Weakness Repeat
  • 496358 2021-101
    Material Weakness Repeat
  • 496359 2021-101
    Material Weakness
  • 496360 2021-101
    Material Weakness Repeat
  • 496361 2021-101
    Material Weakness
  • 496363 2021-102
    Material Weakness Repeat
  • 496364 2021-102
    Material Weakness
  • 496365 2021-102
    Material Weakness Repeat
  • 496366 2021-102
    Material Weakness
  • 496367 2021-103
    Material Weakness
  • 496368 2021-103
    Material Weakness Repeat
  • 496369 2021-103
    Material Weakness
  • 496370 2021-104
    Significant Deficiency
  • 1072799 2021-101
    Material Weakness Repeat
  • 1072800 2021-101
    Material Weakness Repeat
  • 1072801 2021-101
    Material Weakness
  • 1072802 2021-101
    Material Weakness Repeat
  • 1072803 2021-101
    Material Weakness
  • 1072804 2021-102
    Material Weakness Repeat
  • 1072805 2021-102
    Material Weakness Repeat
  • 1072806 2021-102
    Material Weakness
  • 1072807 2021-102
    Material Weakness Repeat
  • 1072808 2021-102
    Material Weakness
  • 1072809 2021-103
    Material Weakness
  • 1072810 2021-103
    Material Weakness Repeat
  • 1072811 2021-103
    Material Weakness
  • 1072812 2021-104
    Significant Deficiency

Programs in Audit

ALN Program Name Expenditures
93.575 Child Care and Development Block Grant $3.29M
93.600 Head Start $2.51M
10.557 Special Supplemental Nutrition Program for Women, Infants, and Children $1.22M
93.671 Family Violence Prevention and Services/domestic Violence Shelter and Supportive Services $869,167
93.596 Child Care Mandatory and Matching Funds of the Child Care and Development Fund $686,599
93.047 Special Programs for the Aging_title Vi, Part A, Grants to Indian Tribes_part B, Grants to Native Hawaiians $443,670
17.265 Native American Employment and Training $263,467
93.391 Activities to Support State, Tribal, Local and Territorial (stlt) Health Department Response to Public Health Or Healthcare Crises $123,944
66.926 Indian Environmental General Assistance Program (gap) $122,079
16.841 Voca Tribal Victim Services Set-Aside Program $112,340
16.587 Violence Against Women Discretionary Grants for Indian Tribal Governments $101,417
10.558 Child and Adult Care Food Program $60,811
93.054 National Family Caregiver Support, Title Vi, Part C, Grants to Indian Tribes and Native Hawaiians $45,525
15.029 Tribal Courts $43,280
93.044 Special Programs for the Aging_title Iii, Part B_grants for Supportive Services and Senior Centers $30,726
93.071 Medicare Enrollment Assistance Program $829