Finding 564481 (2024-003)

Material Weakness Repeat Finding
Requirement
B
Questioned Costs
-
Year
2024
Accepted
2025-06-11

AI Summary

  • Core Issue: The organization lacks a formal process to review and approve indirect cost allocations for the Head Start Cluster grants.
  • Impacted Requirements: Compliance with federal guidelines requiring oversight of indirect costs to prevent misallocation.
  • Recommended Follow-Up: Ensure the new review process for indirect costs is documented and consistently applied to avoid future errors.

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: The Organization must have a process in place to review and approve the indirect costs that are being appropriately allocated to the grant. Condition: While performing audit procedures, it was noted that for seven of the seven indirect cost allocations tested, management does not have a review and approval process related to the indirect costs that are allocated by the preparer to ensure they are being appropriately allocated. Questioned Costs: N/A Context: There were no signs of review or approval related to the indirect costs that are allocated by the preparer. Cause: The Organization has not adequately implemented a policy related to the indirect costs that are allocated by the preparer. Effect: Potential for errors in the indirect costs allocated to the grants. Repeat Finding: This is a repeat finding. Recommendation: We recommend that the Organization should review and approve the indirect costs that are allocated by the preparer and retain support of this review and approval. Views of responsible officials and planned corrective actions: There is no disagreement with the finding. WCCA has already implemented a process to ensure indirect cost allocations are reviewed and approved with proper documentation.

Categories

Allowable Costs / Cost Principles Material Weakness Internal Control / Segregation of Duties

Other Findings in this Audit

  • 564472 2024-002
    Material Weakness Repeat
  • 564473 2024-002
    Material Weakness Repeat
  • 564474 2024-002
    Material Weakness Repeat
  • 564475 2024-002
    Material Weakness Repeat
  • 564476 2024-002
    Material Weakness Repeat
  • 564477 2024-003
    Material Weakness Repeat
  • 564478 2024-003
    Material Weakness Repeat
  • 564479 2024-003
    Material Weakness Repeat
  • 564480 2024-003
    Material Weakness Repeat
  • 1140914 2024-002
    Material Weakness Repeat
  • 1140915 2024-002
    Material Weakness Repeat
  • 1140916 2024-002
    Material Weakness Repeat
  • 1140917 2024-002
    Material Weakness Repeat
  • 1140918 2024-002
    Material Weakness Repeat
  • 1140919 2024-003
    Material Weakness Repeat
  • 1140920 2024-003
    Material Weakness Repeat
  • 1140921 2024-003
    Material Weakness Repeat
  • 1140922 2024-003
    Material Weakness Repeat
  • 1140923 2024-003
    Material Weakness Repeat

Programs in Audit

ALN Program Name Expenditures
10.557 Wic Special Supplemental Nutrition Program for Women, Infants, and Children $533,566
93.600 Head Start $203,298
10.558 Child and Adult Care Food Program $166,377
93.569 Community Services Block Grant $118,240
93.044 Special Programs for the Aging, Title Iii, Part B, Grants for Supportive Services and Senior Centers $81,811
93.568 Low-Income Home Energy Assistance $52,615
93.052 National Family Caregiver Support, Title Iii, Part E $19,992
81.042 Weatherization Assistance for Low-Income Persons $5,226
14.267 Continuum of Care Program $1,167