Finding 5543 (2023-001)

Significant Deficiency
Requirement
L
Questioned Costs
-
Year
2023
Accepted
2023-12-19
Audit: 7376
Organization: Educare of Washington, Dc (DC)

AI Summary

  • Core Issue: Educare failed to submit the Tangible Personal Property Report (SF-428) on time as required by HHS grant agreements.
  • Impacted Requirements: Compliance with reporting schedules outlined in grant agreements is essential for documenting program performance.
  • Recommended Follow-Up: Enhance internal controls to ensure all required reports are identified and submitted on time.

Finding Text

Finding 2023-001: Reporting Federal Programs: U.S. Department of Health and Human Services (HHS) ALN 93.600 Criteria: HHS requires that Educare submit certain programmatic and other reports in accordance with the schedules indicated in its grant agreements. The reports support the recipient's performance under the grant and document achievement of program goals and objectives (2 CFR §200.301(a)). Condition: During our audit, we noted that the Tangible Personal Property Report (SF-428) was not submitted within the deadlines outlined in the grant agreement. Cause: Educare has internal controls in place to identify reports and file them timely in accordance with the terms and conditions of its grant agreements. However, in relation to the SF-428 report, the internal controls were not operating effectively. Effect or Potential Effect: A required report was not identified and timely filed. Questioned Costs: None. Context: One report out of the sample of four reports tested was not identified and submitted on a timely basis. Identification as a Repeat Finding: Not applicable. Recommendation: We recommend Educare enhance internal controls to ensure the identification and timely submission of all required reports.

Corrective Action Plan

Views of Responsible Officials: Management agrees with the finding and the following action will be taken to improve the situation. Management will review and update the reporting tracker monthly to ensure all reports are submitted on time. To ensure additional controls, the reviewer of the tracker will be independent of the report preparer. Name and Title of Responsible Official: Barbara Ledyard, Vice President of Finance and Administration Anticipated Completion Date: December 29, 2023

Categories

Reporting Internal Control / Segregation of Duties

Other Findings in this Audit

  • 5544 2023-001
    Significant Deficiency
  • 5545 2023-001
    Significant Deficiency
  • 5546 2023-002
    Significant Deficiency
  • 5547 2023-002
    Significant Deficiency
  • 5548 2023-002
    Significant Deficiency
  • 581985 2023-001
    Significant Deficiency
  • 581986 2023-001
    Significant Deficiency
  • 581987 2023-001
    Significant Deficiency
  • 581988 2023-002
    Significant Deficiency
  • 581989 2023-002
    Significant Deficiency
  • 581990 2023-002
    Significant Deficiency

Programs in Audit

ALN Program Name Expenditures
93.575 Child Care and Development Block Grant $380,018
93.600 Head Start $242,529
10.558 Child and Adult Care Food Program $211,884