Finding Text
Federal Agency: U.S. Department of Health and Human Services
Federal Program Name: Head Start Cluster
Federal Assistance Listing Number: 93.600
Federal Award Identification Number(s) and Year(s): 05CH010838-2022, 05HE001017-2021, 05CH010838-2023
Award Period: March 1, 2022 to February 28, 2023; April 1, 2021 to March 31, 2023; and March 1, 2023 to February 29, 2024
Type of Finding: Material Weakness in Internal Control over Major Federal Programs and Other Matters
Criteria or Specific Requirement: Under 2 CFR section 200.303, a non-federal entity must establish and maintain effective internal controls over the federal awards that provides reasonable assurance that the non-federal entity is managing the federal award in compliance with federal statutes, regulations, and the terms and conditions of the federal award. These internal controls should be in compliance with guidance in “Standards for Internal Control in the Federal Government” issued by the Comptroller General of the United States or the “Internal Control Integrated Framework”, issued by the Committee of Sponsoring Organizations of the Treadway Commission (COSO).
Timely review and approval should be maintained to ensure accurate reports are submitted and that reports are also being submitted on time.
Condition: The Organization does not have adequate internal controls in place to ensure required reports are approved by the appropriate personnel before being submitted and that reports are being timely submitted.
Questioned Costs: N/A
Context: For the three financial status reports and one special report selected for testing, all did not contain a formal documented review and approval. Also, the one special report selected for testing did not have timely submission.
Cause: While management does have a separate individual assigned to review the required reports prepared by the Fiscal Director, that review is not formally documented.
Effect: Potential for inaccurate information reported and untimely submission.
Repeat Finding: This is not a repeat finding.
Recommendation: We recommend that the assigned individual to review formally documents their review and approval of the reports with a signature before the required date to be submitted. We recommend implementing a process to ensure timely submission of all reports.
Views of responsible officials and planned corrective actions: There is no disagreement with the finding. WCCA will implement a control policy for a documented review and approval of reports prior to submission as well as ensuring reports are filed timely.