Finding 584045 (2022-003)

2022-003) Financial and Special Reporting United States Department of Health and Human Services – 93.600 Head Start Grant No(s): 06HE000754-01, 06CH011990-01, 06CH011990-02, 06HP000184-03, 06HP000184-04 Criteria: DHHS regulations and grant awards set the criteria for DHHS Financial Reports. These reports are due quarterly, semi-annually, and annually from Head Start grantees. Financial Reports must be submitted and reviewed within a certain timeframe based upon the end of the budget period. DHHS regulations and grant awards set the criteria for DHHS Annual Special Reports (OMB No. 4040-0016). This report is due annually from Head Start grantees. Annual Special Reports must be submitted and reviewed within a certain timeframe based upon the end of the budget period. Reports should be supported by applicable accounting and performance records. Universe/Population: The universe/population for Financial Reporting is four SF-425 Semi-Annual Financial Reports and four SF-425 Annual Financial Reports. P&N selected two out of the four SF-425 Semi-Annual Financial Reports and two out of the four SF-425 Annual Financial Reports for testing of reporting compliance requirements applicable to the program. The universe/population for Special Reporting is two annual SF-429 Real Property Status Reports and SF-429A General Reporting (OMB No. 4040-0016). P&N selected one out of the two Annual Special Reports for testing of reporting compliance requirements applicable to the program. Condition: Of the reports selected for testing, Jefferson Parish did not submit one of the two SF-425 Annual Financial Reports by the grantee submission deadlines. The SF-425 Annual Financial Report had a submission deadline of July 30, 2022 and was submitted on February 24, 2023. Jefferson Parish also did not submit the one Annual Special Report by the grantee submission deadline. The SF-429 Real Property Status Report and SF-429A General Reporting had a submission deadline of July 30, 2022 and was submitted on March 15, 2023. In addition, some amounts in both of the SF-425 Semi-Annual Financial Reports selected for testing did not agree to applicable accounting and performance records. Cause: Jefferson Parish lacks an established control monitoring timely submission of Financial and Special Reports. Effect: Failure to comply with the reporting requirements may result in sanctions, including: temporary withholding of cash payments, whole or partial suspension of the Federal award, suspension, debarment or limited denial of participation in Department of Health and Human Services programs pursuant to 45 CFR 75.971. Questioned Costs: None determined. Identification of a repeat finding: This is a repeat finding from the previous audit, 2021-002. Recommendation: Jefferson Parish should establish a formalized control to monitor timely submission of Financial and Special Reports. Management Response: In response to the sole December 31, 2022 Audit finding related to JeffCAP, the finding was corrected for Head Start Birth to Five Program Year 2022- 2023. The department requested and obtained extensive training and professional development from the Office of Head Start related to reporting. Policies and procedures were reviewed and updated to include developing a timeline for submitting all reports and supporting documentation. Additionally, training with the Parish Accounting Department and Information Technology Department to obtain fiscal data and documentation to prepare necessary reports. The department has solicited services from a third-party entity to assist with all fiscal matters and support compliance related to reporting. JeffCAP Head Start Governing Board and Policy Council reviewed and approved all policies and procedures related to Fiscal Reporting and Account Set Up and Emergency Preparedness: Fiscal Reporting, Reimbursement, and Receipt Verification. The Head Start Fiscal Policy and Procedure was written per Head Start Performance Standards 1302.102(d)l23 and local, state, and federal (45CPR 75.400 and 2 CPR, Part 200) standards and compliance regulations. In addition, Head Start Emergency Preparedness Policy and Procedure was written following US Department of Agriculture (USDA) 7CFR Part 226, Food & Nutrition Service (FNS) 796-2, LA Department of Education- CACFP Training Module 7, and local, state and federal (45CFR, Part 74 and 2 CPR, Part 200) standards and compliance regulations.