Finding Text
Finding 2023-001: Reportable Finding - Failure to Meet Matching Requirement
Program name: Head Start (Cluster) Assistance Listing: 93.600
Federal awarding agency: United States Department of Health and Human Services
Compliance requirement: Matching, level of effort, earmarking
Criteria: The grant agreement (03CH010635-05-00 and 03CH012317-01-00) for Head Start requires a non-federal matching of 20% unless a waiver is approved by the agency.
Condition: As previously reported at 2022-04, the Organization did not meet the 20% non-federal match requirement for the year ended August 31, 2023, which includes the budget periods from August 1, 2022 through July 31, 2023 and August 1, 2023 through July 31, 2024.
Context: It was determined that the matching requirement was not met due to not enough volunteer activity as a result of the COVID-19 pandemic. The Organization has requested a waiver from the agency.
Cause: The Organization was not able to meet the non-federal matching contributions due to health department requirements to shut-down the Child Development Centers due to the COVID-19 pandemic. Due to the closures of the centers, there were fewer volunteer hours which the Organization uses to meet the matching requirement.
Effect: The Organization is in violation of the matching requirement stipulated in the award agreement.
Repeat finding: This is a repeat finding.
Questioned costs: There are no questioned costs associated with this finding.
Recommendation: We recommend that the Organization ensure that the non-federal matching requirements for each federal award be met every fiscal year or obtain a waiver.
Management’s response and corrective action plan (unaudited): See corrective action plan.