Finding Text
Finding 2022-004: Reportable Finding Considered a Material Weakness - Failure to Meet Matching Requirement Program name: Head Start Assistance Listing: 93.600 Federal awarding agency: United States Department of Health and Human Services Compliance requirement: Matching, level of effort, earmarking Criteria: The grant agreement (03CH010635-04-00 and 03CH010635-05-00) for the Head Start requires a non-federal matching of 20% unless a waiver is approved by the agency. Condition: The Organization did not meet the 20% non-federal match requirement for the year ended August 31, 2022, which includes the budget periods from August 1, 2021 through July 31, 2022 and August 1, 2022 through July 31, 2023. Context: It was determined that the matching requirement was not met due to not enough volunteer activity as a result of the COVID-19 pandemic. The Organization has requested a waiver from the agency. Cause: The Organization was not able to meet the non-federal matching contributions due to health department requirements to shut-down the Child Development Centers due to the COVID-19 pandemic. Due to the closures of the centers, there were fewer volunteer hours which the Organization uses to meet the matching requirement. Effect: The Organization is in violation of the matching requirement stipulated in the grant agreement. Repeat finding: This is a repeat finding. Questioned costs: There are no questioned costs associated with this finding. Recommendation: We recommend that the Organization ensure that the non-federal matching requirements for each federal grant be met every fiscal year or apply for a waiver as soon as it becomes apparent that the match will not be met. Management?s response and corrective action plan (unaudited): See Appendix A ? corrective action plan