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): 05CH010838-2023, 05CH010838-2024
Award Period: March, 1 2023 to February 29, 2024; and March 1, 2024 to February 28, 2025
Type of Finding: Material Weakness in Internal Control over Major Federal Programs
Criteria or Specific Requirement: Under 2 CFR section 200.303, a nonfederal entity must establish and maintain effective internal controls over the federal awards that provides reasonable assurance that the nonfederal 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).
Timely review and approval should be maintained to ensure accurate reports are submitted.
Condition: The Organization does not have adequate internal controls in place to ensure required reports are approved by the appropriate personnel before being submitted.
Questioned Costs: N/A
Context: The two financial status reports selected for testing both did not contain a formal documented review and approval.
Cause: While management does have a separate individual assigned to review the required reports prepared by the Fiscal Director, that review is not formally documented.
Effect: Potential for inaccurate information reported.
Repeat Finding: This is a repeat finding.
Recommendation: We recommend that the assigned individual to review formally documents their review and approval of the reports with a signature before the required date to be submitted.
Views of responsible officials and planned corrective actions: There is no disagreement with the finding. WCCA has already implemented a process to ensure all reports are reviewed and approved with documentation before submission.