Finding Text
Condition: On the semi-annual SF-425 filing as of August 31, 2023, management denoted the basis of accounting as accrual. The Federal share of expenditures reported did not include $152,752 of reimbursable expenses claimed on August 28, 2023 and received August 31, 2023. The August 28, 2023 request reimbursement included accrued items that were paid subsequently after August 31, 2023 and should have been included in the total.
Criteria: All Head Start recipients are required to submit financial reports detailing the expenditures incurred for their awards. The federal expenditures reported should be reported based on the basis of accounting selected.
Cause: Management was completing the SF-425 on a cash basis.
Effect: The SF-425 filed was inaccurate.
Recommendation: The Organization should amend its SF-425 filings to correctly report financial information.
Views of Responsible Officials and Planned Corrective Actions: Community Action of East Central Indiana, Inc. ceased operations as of July 31, 2024 for any new business. Community Development Institute (CDI), as contracted by the Office of Head Start, has taken over the leadership and operations.