Finding Text
Federal Program: Head Start Cluster Assistance Listing Number: 93.600 Federal Award Number: 04CH011976 Grant period: 04/01/2024 – 03/31/2025 Federal Agency: U.S. Department of Health and Human Services Questioned Costs: None. Condition: Middle Kentucky Community Action Partnership, Inc. did not report subaward data through the Federal Funding Accountability and Transparency Act Subaward Reporting System (FSRS) in a timely manner. Additionally, the subaward amount was reported incorrectly. The following is a summary of the results of audit testing for compliance with this requirement: Cause: Management completed the Federal Funding Accountability and Transparency Act (Transparency Act) reporting requirement past the deadline and reported an amount that differed from the obligated amount. Effect: Middle Kentucky Community Action Partnership, Inc. was not in compliance with this compliance requirement and a significant deficiency in internal control over compliance exists. Criteria: The Transparency Act (Pub. L. No. 109-282) that is codified in 2 CFR Part 170 requires subaward actions be reported in FSRS no later than the last day of the month following the month in which the subaward/subaward amendment obligation was made. Recommendation: We recommend that Middle Kentucky Community Action Partnership, Inc. establish procedures to ensure that required reports are filed in a timely manner with the correct subaward amounts. Response: Management agrees with the finding and has committed to a corrective action plan. Middle Kentucky has the use of a scheduling calendar in which required dates of reports and other key events are now placed. Middle Kentucky CFO has added the dates of reports including the FSRS report and its due date. From this calendar an alert can and will e sent to the CFO and a designated second person to alert them as to the upcoming required date that this and other reports are to be submitted. The calendar both electronic and in written form is now in use and no further instances of this occurrence should occur within the fiscal department in the future.