Finding Text
2022 ? 002 Federal Agency: U.S. Department of Health and Human Services Federal Program Title: Head Start Federal Assistance Listing Number: 93.600 Award Period: June 1, 2021 to June 30, 2022, June 1, 2022 May 31, 2023, August 1, 2021 to July 31, 2023, and April 1, 2021 to March 31, 2023 Type of Finding: ? Significant Deficiency in Internal Control over Major Federal Programs and Other Matters Criteria or Specific Requirement: A physical inventory of the property must be taken and the results reconciled with the property records at least once every two years Under 2CFR section 200.303 A nonfederal entity must establish and maintain effective internal controls over the federal awards that provides reasonable assurance that the nonfederal entity is managing the federal award in compliance with federal statutes, regulations, and the terms and conditions of the federal award. These internal controls should be in compliance with guidance in ?Standards for Internal Control in the Federal Government? issued by the Comptroller General of the United States or the ?Internal Control Integrated Framework?, issued by the Committee of Sponsoring Organizations of the Treadway Commission (COSO). Condition: During our testing we noted the Organization's last documented inventory count was taken in 2019. Questioned Costs: N/A Context: The last physical inventory count was taken in 2019. Cause: The Organization did not take a physical inventory count within the past two years and reconcile to the accounting records; however, they do have procedures in place to monitor the inventory in other ways. The organizations inventory that is building related (renovations, upkeep, equipment), they are constantly discussing with their facilities person regarding buildings, fencing, turfing and playground inventory that required repairs and maintenance. Office inventory is within their site at either of their locations where they are at least several times a year to view and inventory what is there. Management meets throughout the year regarding inventory and budgeted items needed. Effect: Potential for missing, old, or out of use property Repeat Finding: No Recommendation: The Organization should ensure a physical inventory count is taken and reconciled to their records at least once every two years. Views of responsible officials and planned corrective actions: There is no disagreement with the audit finding.