Finding 953808 (2023-004)

Significant Deficiency
Requirement
B
Questioned Costs
-
Year
2023
Accepted
2024-03-14

AI Summary

  • Core Issue: Lack of a review and approval process for indirect costs automatically allocated to grants.
  • Impacted Requirements: The Organization must ensure appropriate allocation of indirect costs as per federal guidelines.
  • Recommended Follow-Up: Implement a policy for reviewing and approving indirect costs, and maintain documentation of this process.

Finding Text

Federal Agency: U.S. Department of Health and Human Services Federal Program Title: Head Start Federal Assistance Listing Number: 93.600 Award Period: June 1, 2022 to May 31, 2023; June 1, 2023 to May 31, 2024; August 1, 2022 to July 31, 2023; April 1, 2021 to March 31, 2023; and August 1, 2023 to July 31, 2024 Type of Finding: • Significant Deficiency in Internal Control over Major Federal Programs Criteria or Specific Requirement: The Organization must have a process in place to review and approve the indirect costs that are automatically allocated to the grant are being appropriately allocated. Condition: While performing audit procedures, it was noted that two of the three indirect cost allocation tested management does not have a review and approval process related to the indirect costs that are automatically allocated by the system to ensure they are being appropriately allocated. Questioned Costs: N/A Context: There were no signs of review or approval related to the indirect costs that are automatically allocated by the system. Cause: The Organization has not adopted a policy related to the indirect costs that are automatically allocated by the system. Effect: Potential for errors in the indirect costs allocated to the grants. Repeat Finding: No Recommendation: The Organization should review and approve the related to the indirect costs that are automatically allocated by the system and retain support of this review and approval. Views of responsible officials and planned corrective actions: There is no disagreement with the audit finding.

Categories

Allowable Costs / Cost Principles Significant Deficiency Internal Control / Segregation of Duties

Other Findings in this Audit

  • 377356 2023-003
    Significant Deficiency Repeat
  • 377357 2023-003
    Significant Deficiency Repeat
  • 377358 2023-003
    Significant Deficiency Repeat
  • 377359 2023-003
    Significant Deficiency Repeat
  • 377360 2023-003
    Significant Deficiency Repeat
  • 377361 2023-003
    Significant Deficiency Repeat
  • 377362 2023-004
    Significant Deficiency
  • 377363 2023-004
    Significant Deficiency
  • 377364 2023-004
    Significant Deficiency
  • 377365 2023-004
    Significant Deficiency
  • 377366 2023-004
    Significant Deficiency
  • 377367 2023-004
    Significant Deficiency
  • 953798 2023-003
    Significant Deficiency Repeat
  • 953799 2023-003
    Significant Deficiency Repeat
  • 953800 2023-003
    Significant Deficiency Repeat
  • 953801 2023-003
    Significant Deficiency Repeat
  • 953802 2023-003
    Significant Deficiency Repeat
  • 953803 2023-003
    Significant Deficiency Repeat
  • 953804 2023-004
    Significant Deficiency
  • 953805 2023-004
    Significant Deficiency
  • 953806 2023-004
    Significant Deficiency
  • 953807 2023-004
    Significant Deficiency
  • 953809 2023-004
    Significant Deficiency

Programs in Audit

ALN Program Name Expenditures
93.600 Head Start $1.73M
10.558 Child and Adult Care Food Program $217,204
81.042 Weatherization Assistance for Low-Income Persons $53,515
93.568 Low-Income Home Energy Assistance $30,391
10.580 Supplemental Nutrition Assistance Program, Process and Technology Improvement Grants $18,615
93.569 Community Services Block Grant $12,696