Finding Text
Federal Agency: U.S. Department of Health and Human Services (HHS)
Pass-through Agency: N/A
Federal Programs Title: Head Start
CFDA Number: 93.600
Compliance Requirement: Reporting
Type of Finding: Material Noncompliance and Material Weakness
Responsible Official: Executive Director
Criteria
CFR part 75.512, the Uniform Guidance established the audit must be
completed nine months after the end of audit period and the Single Audit
Reporting package and Data Collection Form (SF-SAC) Federal Audit
Clearing House, must be submitted within the earlier 30 calendar days after
receipts of the auditor’s report, or nine months after the end audit period,
whichever comes first.
Condition
Financial report and programs financial information were not available on time
to prepare the Single Audit Reporting package.
Questioned Cost
Not determined.
Cause
Finance personnel do not establish control procedures to provide Single Audit
information on time, most checks registers of Federal programs were provided
after the audit from financial department.
Effect
The Center does not comply with the grant programs conditions. The Federal
Awards are at risk of being cancelled, not to be renewed or open competition.
Identification of repeated findings:
Repeating findings were found.
Recommendation:
To prepare a calendar responsibilities of Federal funds due dates financial
statements to be prepared on time. Adequate training must be provided to
finance personnel. The governing body must create an Audit and Finance
Committee to revise monthly financial statements.
Management Response:
On the other hand, a “Administrative Accountant” was hired who will perform
the accounting at the Center, review the entries in the mechanized accounting
system and submit a financial statement to the Executive Director that will be
discussed to the Board of Directors and any Another component that requires it.