Finding 555526 (2024-002)

Significant Deficiency

Requirement

Questioned Costs

Year

2024

Accepted

2025-04-21

Audit: 354056

Organization: Durham's Partnership for Children (NC)

Auditor: Cohnreznick LLP

AI Summary

Core Issue: Timely submission of SF-425 FFR reports for EHS grants is not being met.
Impacted Requirements: Compliance with 2 CFR section 200.328 regarding report submission deadlines.
Recommended Follow-Up: Implement procedures to ensure timely reporting and monitor deadlines effectively.

Finding Text

Item 2024-002 - Reporting - Significant Deficiency Name of Federal Agency: United States Department of Health and Human Services Federal Program Name: Early Head Start (EHS) Assistance Listing Number 93.600 Federal Award Identification Number and Year: 04HP000377-04-2023 04CH011372-04-2023 04HE001247-001-2023 Criteria Program regulations and contracts require timely submission of SF-425 FFR reports to the regulatory agent as specified in 2 CFR section 200.328. Condition Durham’s Partnership for Children did not submit timely SF-425 FFR reports related to ongoing 2023 EHS grants. Cause Management does not have controls in place to ensure timely data compilation and reporting. Effect or Potential Effect Management is not in compliance with the program guidelines requiring timely reporting to the regulatory agent. Questioned Costs: N/A Context During testing of the reporting compliance requirement for EHS, it was noted that there were severe delays in submission of all required reports from the current year. The delay in timing of the report filings relates to the availability of accurate financial data (Finding No. 2024-001). Identification of Repeat Finding: Not a repeat finding. Recommendation Management should implement procedures to ensure timely submission of required reports to the regulatory agent. Reporting Views of Responsible Officials The finance director has been replaced by a qualified CPA. Support from an external content specialist was secured to train the current CFO on the proper preparation of the SF-425 reports. Reporting has been brought current. Alert emails from HSES are being reviewed by leadership and the HSES website is being monitored for submission deadlines. Priority is given to ensure timely deliverables.

Corrective Action Plan

The Fiscal team lacked sufficient knowledge and understanding to properly execute accurate financial statements. During FY24 there was significant turnover in the Fiscal department, necessitating contractual services from outside fiscal parties. A total of four additional fiscal content contractors were secured to assist the Finance Director. The Finance Director has been replaced by a qualified CPA. There is currently an ongoing rebuilding of the Fiscal Department with the intent of filling positions with qualified permanent staff. Internal controls are to be reviewed, revised as necessary, and followed, by the new team to ensure accurate and timely financial reporting.

Other Findings in this Audit

555527 2024-002

Significant Deficiency
555528 2024-002

Significant Deficiency
555529 2024-002

Significant Deficiency
555530 2024-002

Significant Deficiency
1131968 2024-002

Significant Deficiency
1131969 2024-002

Significant Deficiency
1131970 2024-002

Significant Deficiency
1131971 2024-002

Significant Deficiency
1131972 2024-002

Significant Deficiency

Programs in Audit

ALN	Program Name	Expenditures
93.558	Temporary Assistance for Needy Families	$1.11M
84.425R	Emergency Assistance to Non-Public Schools Grant	$227,787
93.575	Child Care and Development Block Grant	$4,911
93.434	Every Student Succeeds Act/preschool Development Grants	$-161
93.600	Head Start	$-913