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
Criteria or Specific Requirement: The Organization must have a process in place to review and approve the indirect costs that are being appropriately allocated to the grant.
Condition: While performing audit procedures, it was noted that for seven of the seven indirect cost allocations tested, management does not have a review and approval process related to the indirect costs that are allocated by the preparer to ensure they are being appropriately allocated.
Questioned Costs: N/A
Context: There were no signs of review or approval related to the indirect costs that are allocated by the preparer.
Cause: The Organization has not adequately implemented a policy related to the indirect costs that are allocated by the preparer.
Effect: Potential for errors in the indirect costs allocated to the grants.
Repeat Finding: This is not a repeat finding.
Recommendation: We recommend that the Organization should review and approve the indirect costs that are allocated by the preparer and retain support of this review and approval.
Views of responsible officials and planned corrective actions: There is no disagreement with the finding. WCCA will implement a policy to ensure a documented review and approval of indirect cost allocations.