Finding Text
2022?001 Federal Agency: U.S. Department of Health and Human Services Federal Program: Head Start Cluster Assistance Listing Numbers: 93.600 Federal Award Identification Number and Year: 90CM9858-01 and 2021 Pass-Through Agency: N/A Pass-Through Number(s): N/A Award Period: December 1, 2020 ? November 30, 2021 Type of Finding: ? Significant Deficiency in Internal Control Over Special Reporting Criteria or Specific Requirement: Under ?200.330, a non-federal entity must submit reports at least annually on the status of the real property in which the granting agency retains an interest. Reports submitted are required to be filed for each parcel of real property reported, contain key line items, and accurate information. Condition: During our testing of special reports, we noted one SF-429 tested included a SF-429A that had incorrect dollar value of real property included on the parcel of land. This resulted in the SF-429 being re-submitted since there was an entry error on the report. Questioned Costs: None Context: The reports are due in January, which is prior to Inspire reconciling fixed assets for the fiscal year, which usually occurs in September. When the report is prepared, the purchasing manager ensures the information is accurate based on the financial statements at that point in time and the CFO reviews and approves. There is no process to review the fixed asset information reported on the SF-429 after the fixed assets are reconciled to the system until the following January. Cause: The finding identified stemmed from the timing of reconciling of fixed assets and the completion of the report. Effect: Error in reporting due to fixed assets being reconciled annually. Repeat Finding: No Recommendation: CLA recommends that Inspire reconcile fixed assets semi-annually to ensure fixed assets reported on SF-429 are accurate. Views of responsible officials: There is no disagreement with the audit finding.