Finding Text
2022-001: General Disbursements Federal Agency: Department of Health and Human Services Federal Program: Head Start Cluster Assistance Listing Number: 93.600 Federal Award Identification Numbers: 05CH100926, 05CH011547, 05CH011114, 05CH011731, 05CH000290 Award Period: Various terms beginning and ending between 6/1/20 and 5/31/23 Type of Finding: Significant Deficiency in Internal Control over Compliance and Other Matters Criteria or Specific Requirement: Costs are to be recorded into the correct reporting period. Condition: Through testing of allowable costs, determined that an expense for July 2022 was recorded in the general ledger as an expense for the fiscal year ended June 30, 2022. Questioned costs: None Context: For one of 14 disbursements selected for testing, the disbursement was incurred in July 2022; however, it was recorded as an expense of $423 in June 2022. Cause: Unknown Effect: General disbursements that are not monitored for cut-off around the end of a reporting period could result in the expense being recorded into the incorrect reporting period. Repeat finding: This finding is not a repeat finding. Recommendation: We recommend the Agency review its policies and procedures surrounding cut-off around the end of reporting periods to ensure disbursements are recorded in the correct reporting period. Views of Responsible Official: There is no disagreement with this finding.