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.