Finding Text
2022-003 ? DEFICIENCY ? FEDERAL COMPLIANCE (50000) Federal Programs: SJCOE Head Start Cluster (AL#93.600) ? collectively referred to herein as ?Head Start?. Criteria: Per the Uniform Guidance Compliance Supplement, established in accordance with 2 CFR Part 200, Subpart F: Sections A. Activities Allowed or Unallowed, and B. Allowable Costs require that costs charged be supported by appropriate documentation, and correctly charged as to account, amount and period. Condition: The District was unable to provide supporting documentation for payroll for one employee charged to the Head Start program. The Uniform Guidance compliance also require internal control procedures to be in place and followed in order to demonstrate compliance with the requirements. As a result, the District did not have appropriate internal control procedures in place, nor was the expenditure compliant with Uniform Guidance requirements. Effect: The District did not comply with the necessary requirements for maintaining supporting documentation for payroll expenditures charged to the program, therefore resulting in risk of loss of funding for amounts paid. Cause: The District did not follow necessary internal controls for ensuring compliance with the specific program requirements of the Head Start grants it received and expended during the year ended June 30, 2022. Questioned Cost: Known questioned costs are $12,614 and likely questioned costs are $15,623, totaling $28,237. Recommendation: The District?s management team should implement necessary internal controls to ensure compliance with all Federal program requirements. The internal controls should include (1) a procedure identifying which attributes apply to each Federal program operated by the District, and (2) steps to ensure compliance with each attribute identified as applicable. Views of Responsible Officials and Planned Corrective Action: Management concurs with findings. District management will continue to provide staff members internal control procedure training specifically in the areas of federal procurement. This will ensure adherence to Federal program requirements.