Finding Text
Federal Agency: U.S. Department of Health and Human Services (HHS)
Pass-through Agency: N/A
Federal Programs Title: Head Start 02CH01050104, 02CH01050105, 02CH01050106
CFDA Number: 93.600
Compliance Requirement: Reporting
Type of Finding: Material Noncompliance and Material Weakness
Responsible Official: Executive Director
Criteria Section 342 reporting program performance
Federal regulations require award recipients’ to submit performance reports at
the interval required by the HHS awarding agency or pass-through entity to best
inform improvements in program outcomes and productivity and provide
accurate, current, and complete disclosure of the financial results of each
Federal award (45 CFR § 75.342). The award recipients were required to
adequately document costs and submit financial reports to the payment system
within the timeframes.
Condition
The Center did not submit timely Federal Financial Report (FFR).
Cause
The program of the Center did not submitted Federal Financial Report FFR
Semi-annual and Final after the limited date, that is 30 days for Semi-annual
and 90 days after the end of each reporting period. The program must report the
Federal Financial Report from March 1, 2022, to August 31, 2022, the last date
of the reporting period.
Effect:
The Centro de Servicios a la Juventud, Inc. did not comply with the
submission date required for the Financial Federal Reports to the US
Department of Health & Human Services Head Start program; this could
affect the continuance and new approvals of federal program funds.
Questioned cost:
Not determined
Identification of a repeated finding:
None repeating finding were found.
Recommendations:
We recommend the Center to maintain adequate accounting records related to
the federal funds in order to properly prepare the financial statements accurate
and in a timely manner. In addition, the Center need to implement adequate
internal controls procedures in order to assure that the supporting
documentation is available on a timely manner. Also, proper training in the
accounting system should be obtained by the personnel in charge of preparing
the bank reconciliations and Financial Reports required by Head Start.
Management Response:
The Center will strengthen our financial management practices through a
multifaceted corrective action plan. As mentioned, to maintain adequate
accounting records, we will implement enhanced record-keeping practices,
assigning the Administrative Accountant to ensure accurate documentation of
all transactions related to federal funds. This initiative aligns with industry best
practices and compliance standards. Simultaneously, we will conduct
comprehensive internal controls review to identify and address procedural
weaknesses. Internal control protocols will be documented to uphold the
accuracy and completeness of financial data, with a particular emphasis on
supporting documentation. Recognizing the importance of expertise, personnel
responsible for bank reconciliations and financial reports will undergo
specialized training tailored to address specific needs identified during the
review. Furthermore, we commit to regular monitoring and review processes,
including periodic internal audits, to track the effectiveness of implemented
corrective actions and identify areas for continuous improvement. Additionally,
we will explore the possibility of engaging external experts or consultants with
expertise in federal fund accounting to provide valuable insights and
recommendations, augmenting our internal efforts for sustained financial
excellence.