Finding 620594 (2022-101)

Significant Deficiency Repeat Finding
Requirement
B
Questioned Costs
-
Year
2022
Accepted
2023-06-14

AI Summary

  • Core Issue: The final billing to the City of Phoenix was incorrectly prepared on an accrual basis instead of the modified cash basis.
  • Impacted Requirements: This discrepancy led to a significant deficiency in compliance with federal funding guidelines.
  • Recommended Follow-Up: Management needs to align billing procedures with the modified cash basis of accounting to prevent future issues.

Finding Text

2022-101 ? Reporting (Significant Deficiency, Compliance Finding, Repeat Finding) Federal Funding Agency: U.S. Department of Health and Human Services Pass Through Agency: City of Phoenix Title: Head Start Assistance #: 93.600 Award Year: July 1, 2021 through June 30, 2022 Questioned Costs: N/A Criteria: Billings to the City of Phoenix were prepared throughout the fiscal year based on a modified cash basis of accounting. Condition: The Organizations final year end billing to the City of Phoenix was prepared on an accrual basis of accounting. Cause and Effect: Change in the final method of billing resulted in $21,181 in additional accrual related expenditures, that would not have been billed using the modified cash basis at fiscal year end. Auditors? Recommendations: Management should ensure that current billing procedures to the City of Phoenix are consistent and in line with its current method of accounting.

Categories

Reporting Significant Deficiency

Other Findings in this Audit

  • 44148 2022-101
    Significant Deficiency Repeat
  • 44149 2022-102
    Significant Deficiency
  • 44150 2022-101
    Significant Deficiency Repeat
  • 44151 2022-102
    Significant Deficiency
  • 44152 2022-101
    Significant Deficiency Repeat
  • 44153 2022-102
    Significant Deficiency
  • 44154 2022-101
    Significant Deficiency Repeat
  • 44155 2022-102
    Significant Deficiency
  • 620590 2022-101
    Significant Deficiency Repeat
  • 620591 2022-102
    Significant Deficiency
  • 620592 2022-101
    Significant Deficiency Repeat
  • 620593 2022-102
    Significant Deficiency
  • 620595 2022-102
    Significant Deficiency
  • 620596 2022-101
    Significant Deficiency Repeat
  • 620597 2022-102
    Significant Deficiency

Programs in Audit

ALN Program Name Expenditures
93.600 Head Start $7,412