Finding 518239 (2024-004)

Assistance Listing, Federal Agency, and Program Name - 93.600 Head Start Federal Award Identification Number and Year - 238600, 248600 Pass through Entity - U.S. Department of Health and Human Services Finding Type - Material weakness Repeat Finding - No Criteria - Under 34 CFR Section 299.2(b), the School District has to ensure that funds are used in compliance with regulatory provisions and spent only for reasonable and necessary costs of the program. The School District is required to have supporting documentation and approval of grant expenditures to ensure they are an allowable and supported cost under the grant requirements. Condition - During allowability testing it was discovered the District has no formalized reviewed of expenditures charged to grant. This included expenditures related to payroll, nonpayroll and indirect costs. Questioned Costs - None Identification of How Questioned Costs Were Computed - N/A Context - Audit procedures designated testing 60 samples (payroll, nonpayroll) and there was no formalized review documented before they were charged to the grant and reimbursement was requested throughout the entire population tested. Cause and Effect - Lack of controls and review surrounding expenditures charged to the grant could lead to improper expenditures being charged and noncompliance. Recommendation - It is recommend that the District review its controls and processes in place to ensure that they are have proper controls in place over to review expenditures being charged to the grant to ensure they are allowable. Views of Responsible Officials and Corrective Action Plan - This finding was due to the District having turnover among key personnel in the grants area, as well as non adherence to policies and procedures related to grant records, grant accounting, and year end close processes. The District will perform periodic grant reconciliations throughout the fiscal year to ensure that grant records tie to the general ledger. The District will also ensure policies and procedures are updated, staff is trained, and documented evidence of appropriate and allowable expenditures is maintained.