Finding 9320 (2022-001)

Material Weakness
Requirement
F
Questioned Costs
-
Year
2022
Accepted
2024-01-22

AI Summary

  • Core Issue: The Entity failed to conduct a required physical inventory of equipment for two consecutive years.
  • Impacted Requirements: This violates federal regulations requiring effective internal controls and physical inventory checks every two years.
  • Recommended Follow-Up: Establish and implement policies to ensure regular physical inventories are conducted and documented as per federal guidelines.

Finding Text

2022-001 – Equipment and Real Property Management – Material Weakness in Internal Controls over Compliance Federal Program Information: Funding Agency: U. S. Department of Health and Human Services Title: Headstart Cluster CFDA Number: 93.600 Federal Award Identification number: N/A Pass Through Entity: N/A Award Year: 2022 Condition: The Entity did not conduct a physical inventory in current year or prior year. Criteria: Per Title 2 US Code of Federal Regulations Part 200.303a, non-federal entity must establish and maintain effective internal control over the Federal award that provides reasonable assurance that the non-Federal 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). Per 2 CFR 200.313(d)(2), a physical inventory of program property must be taken and the results reconciled with the property records at least once every 2 years. Questioned costs: None Effect: The Entity could dispose of or lose federally funded equipment without following federal guidelines. Cause: The Entity does not have policies and procedures to ensure that the Entity is performing a physical inventory at a minimum of every two years.

Corrective Action Plan

Auditor's Recommendation: We recommend the Entity enhance the design of its control activities and policies and procedures should be developed to ensure physical inventories are taken at least once every two years. Action Taken: The Organization understands the importance of regular physical inventories and will implement this control activity for the June 30, 2023 fiscal year end. Responsible Person: John Clemons, Chief Financial Officer Timeline for Implementation: July 31, 2023

Categories

Equipment & Real Property Management

Other Findings in this Audit

  • 9321 2022-002
    Significant Deficiency
  • 9322 2022-003
    Significant Deficiency
  • 9323 2022-001
    Material Weakness
  • 9324 2022-002
    Significant Deficiency
  • 9325 2022-003
    Significant Deficiency
  • 585762 2022-001
    Material Weakness
  • 585763 2022-002
    Significant Deficiency
  • 585764 2022-003
    Significant Deficiency
  • 585765 2022-001
    Material Weakness
  • 585766 2022-002
    Significant Deficiency
  • 585767 2022-003
    Significant Deficiency

Programs in Audit

ALN Program Name Expenditures
93.600 Head Start $3.88M
10.558 Child and Adult Care Food Program $429,020
93.569 Community Service Block Grant $209,733
10.558 Covid-19: Child and Adult Care Food Program $37,866
93.569 Covid-19: Community Service Block Grant - Cares Act $29,512
93.600 Covid-19: Early Head Start/ Head Start $3,247