Finding Text
Federal program information: Funding agency: U.S. Department of Health and Human Services Title: Head Start CFDA number: 93.600 Award number and years: 72609; July 1, 2021 through June 30, 2022 Pass-through grantor: City of Phoenix Compliance Requirements: Allowable Costs/Cost Principles Questioned Costs: $46,107 Criteria: The Uniform Guidance requires that for charges benefiting more than one function, such as finance consultants, systems and controls should be established to help ensure that only actual costs are allocated to the Head Start program. Condition: During fiscal year 2022 the organization incurred $69,980 of consultant costs relating to the outsourced CFO. Of this total, $46,107 was billed to the Head Start program based on allocations indicated on the consultant?s invoices. However, since the outsourced consultant functions similarly to an employee, costs allocated to Head Start should be supported by detailed time reports. During a financial review performed by the grantor it was also determined that Greater Phoenix Urban League did not have proper procurement documentation relating to the sole source procurement of the outsourced CFO. Cause and Effect: Greater Phoenix Urban League determined subsequent to fiscal year end that the costs should not have been charged to the Head Start program and reimbursed the grantor $46,107 in March 2023. Auditors? Recommendations: Administrative costs charged directly to the program should be specifically allowed by the grantor and supported by detailed time reports before allocating costs to the federal program.