Finding 521107 (2024-002)

Significant Deficiency
Requirement
A
Questioned Costs
-
Year
2024
Accepted
2025-02-03
Audit: 341036
Organization: Ravalli Head Start, Inc. (UT)

AI Summary

  • Core Issue: 3 out of 44 transactions lacked proper approval documentation.
  • Impacted Requirements: Expenditures must be approved by a responsible official to meet grant compliance.
  • Recommended Follow-Up: Create a comprehensive system for reviewing and approving all transactions.

Finding Text

Criteria: Expenditures should be approved by a responsible official of the Organization who is aware of the various compliance requirements under the respective grant, this approval should be documented. Condition: During our testing, we tested 44 transactions and found that 3 of these transactions did not contain documentation of approval. Cause: Undetermined. Effect: The Organization did not follow their policy for approval of transactions, which allows for the possibility of having purchased items that don’t conform with the various grant requirements. Recommendation: We recommend that the Organization develops a more comprehensive system to ensure that all transactions are properly reviewed and approved.

Corrective Action Plan

Regarding 2024-002 Expense Approval Documentation, the senior team, including Jill Hansen and I, have reviewed the Procurement Policies in our Accounting and Financial Policies and Procedure Manual and we will continue to require multiple levels of approval as explained in the existing policy. The proposed corrective action is first, to perform an internal audit to confirm that every expenditure in the current fiscal year has the appropriate written approvals. Second, the senior team will evaluate the reasonableness of the exact approvals in the current policy, with the goal of reducing the administrative burden on employees if possible and taking into consideration budget responsibility and materiality thresholds. I will be the point person regarding these corrective actions and these changes to our Accounting and Financial Policies and Procedure Manual, which will be effective 3/1/25, pending Policy Council and Board approval. We have updated all Senior and Fiscal Staff. Project Management Staff will be updated on 1/28/25,

Categories

Procurement, Suspension & Debarment

Other Findings in this Audit

  • 521106 2024-001
    Material Weakness
  • 1097548 2024-001
    Material Weakness
  • 1097549 2024-002
    Significant Deficiency

Programs in Audit

ALN Program Name Expenditures
10.558 Child and Adult Care Food Program $107,968
93.600 Head Start $50,580