Finding Text
Federal Agency: U.S. Department of Health and Human Services
Federal Program Title: Head Start
Federal Assistance Listing Number: 93.600
Award Period: June 1, 2023 to May 31, 2024, June 1, 2024 to May 31, 2025
Type of Finding:
Significant Deficiency in Internal Control over Major Federal Programs
Criteria or Specific Requirement: Timely review and approval should be maintained to ensure
accurate amounts are being drawdown and accurate reports are submitted.
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).
Condition: The Organization did not adequately follow internal controls in place to ensure required
reports are approved by the appropriate personnel before being submitted.
Questioned Costs: N/A
Context: The control in place for internal review prior to submitting financial reports to HS/EHS was not
followed for two of the five reports tested.
Cause: Management was unable to obtain the signature of the assigned individual due to their
unavailability during a break period.
Effect: Potential for inaccurate information to be reported.
Repeat Finding: No
Recommendation: Establish a backup signatory process to ensure that there is always an available
individual to provide necessary signatures, even during periods of unavailability.
Views of responsible officials and planned corrective actions: There is no disagreement with the
audit finding.