Finding Text
Finding 2023-01 Noncompliance with Grant Reporting Requirements
Assistance Listing Numbers: 93.600 Head Start Program
Federal Agency: U.S. Department of Health and Human Services
Passthrough Agency: City of Chicago
Award Number/Year: 2023
Criteria: Uniform Guidance requires that single audits be completed, and the reporting package submitted to the Federal Audit Clearinghouse within the earlier of thirty (30) calendar days after receipt of the auditor’s report or nine (9) months after the end of the audit period.
Condition: The Center did not submit its audited financial statements and SEFA to the Federal Audit Clearinghouse website within nine (9) months of June 30, 2023. The Center also didn’t submit its audited financial statements, SEFA, CYEFR and other required information to the GATA portal within six (6) months after June 30, 2023.
Cause: This condition was due to the Center being understaffed within its accounting and finance department resulting in a significant delay in completing the recording of financial transactions, performing account reconciliations and preparing financial reports available for audit.
Effect: The effect is that noncompliance with financial reporting deadlines could cause funding sources for the Center to suspend funding until compliance is achieved.
Questioned Costs: None noted.
Recommendation: We recommend that management 1) hire personnel within its accounting and finance department so that all defined tasks can be performed in a more timely manner and/or 2) evaluate its current processes to determine how to make them more efficient so that the current personnel within the accounting and finance department are able to complete their tasks in a more timely manner.
Views of Responsible Officials and Planned Corrective Actions: See corrective action plan.