Finding 571484 (2024-003)

Significant Deficiency
Requirement
N
Questioned Costs
-
Year
2024
Accepted
2025-07-16

AI Summary

  • Core Issue: The Organization failed to hold monthly board and policy council meetings, leading to a significant deficiency in internal controls over compliance.
  • Impacted Requirements: This violates Title 2 US Code of Federal Regulations Part 200.303a, which mandates effective internal controls and regular financial reporting to governing bodies.
  • Recommended Follow-Up: Ensure adherence to policies by scheduling and conducting monthly meetings to keep the board informed and compliant with federal requirements.

Finding Text

2024-003 – Special Tests and Provisions; Program Governance - Significant Deficiency in Internal Controls over Compliance Federal Program Information: Funding Agency: U. S. Department of Health and Human Services Title: Head Start CFDA Number: 93.600 Federal Award Identification number: 06CH012005 Pass Through Entity: N/A Award Year: 2024 Condition: The Organization did not conduct the monthly board and policy council meetings. Criteria: Per Title 2 US Code of Federal Regulations Part 200.303a, non-federal entities must establish and maintain effective internal control over the Federal award 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). A HSA must share accurate and regular financial information with the governing body and the policy council, including monthly financial statements, credit card expenditures, and the financial audit (42 USC 9837(d)(2)(A) and (E)). Questioned costs: None Effect: The Organization could be unaware of important events or financial updates that could affect the Organization if there is no timely discussion. Cause: The Organization is not following its policies and procedures to ensure board meetings and policy council meetings occur every month.

Categories

Special Tests & Provisions Significant Deficiency Matching / Level of Effort / Earmarking Internal Control / Segregation of Duties

Other Findings in this Audit

  • 571481 2024-002
    Material Weakness Repeat
  • 571482 2024-003
    Significant Deficiency
  • 571483 2024-002
    Material Weakness Repeat
  • 1147923 2024-002
    Material Weakness Repeat
  • 1147924 2024-003
    Significant Deficiency
  • 1147925 2024-002
    Material Weakness Repeat
  • 1147926 2024-003
    Significant Deficiency

Programs in Audit

ALN Program Name Expenditures
10.558 Child and Adult Care Food Program $327,971
93.600 Head Start $282,828
93.569 Community Services Block Grant $161,894