Finding 5689 (2023-001)

Significant Deficiency

Requirement

Questioned Costs

Year

2023

Accepted

2023-12-20

Audit: 7643

Organization: Ravalli Head Start, Inc. (UT)

Auditor: Carver Florek & James Cpa's

AI Summary

Answer: The Organization overcharged a federal grant by $8,094 due to inadequate reconciliation procedures for unemployment insurance.
Trend: This issue highlights a recurring problem with ensuring that costs charged to federal programs are allowable.
List: Improve reconciliation processes before grant billings to prevent unallowable costs in the future.

Finding Text

Internal Control over Allowable Costs Criteria: Control procedures should be adequate to ensure charges to federal program are allowable. Condition: During our testing, we found that in the Organization's process of attempting to reconcile unemployment insurance the grant was overcharged by $8,094. Cause: The Organization's procedure to reconcile unemployment insurance did not sufficiently focus on the associated liability recorded. Effect: Federal program was charged for unallowable cost. Recommendation: We recommend that the Organization develops a more comprehensive process to ensure accounts are properly reconciled prior to preparing grant billings.

Corrective Action Plan

RE: Audit Finding 2023-00 I Internal Control over Allowable Costs The Chief Fiscal Officer, Executive Director, and Finance Committee Chair of the Governing Board have reviewed and agree with the auditor's comments on 2023-00 I. A corrective action plan has been put in pla e by the Fiscal Officer, Melodee Giacomino, immediately regarding the reconciliation of payroll liabilities. Any future adjustments will be posted and checked to ensure an unallowable cost is not inadvertently recorded. Only adjustments deemed necessary will be performed. Prior to submitting final financials to be audited, another check will be run on the Balance Sheet to ensure such adjustments have not been made. All staff in the fiscal office have been notified to date.

Other Findings in this Audit

582131 2023-001

Significant Deficiency

Programs in Audit

ALN	Program Name	Expenditures
93.600	Head Start	$3.90M
10.558	Child and Adult Care Food Program	$91,593