Finding 9645 (2023-001)

Significant Deficiency
Requirement
L
Questioned Costs
-
Year
2023
Accepted
2024-01-24
Audit: 13328
Organization: Schuyler Head Start, Inc. (NY)

AI Summary

  • Core Issue: Annual and final SF-425 reports lacked proper approval from the Executive Director.
  • Impacted Requirements: Potential misstatements in the annual SF-425 report due to non-compliance with documented policies.
  • Recommended Follow-Up: Ensure adherence to established policies for submitting SF-425 reports, as outlined in the management's corrective action plan.

Finding Text

Condition and Criteria: The Organization's annual and final SF-425 reports were not properly approved by the Executive Director. Effects: The annual SF-425 report could potentially be misstated. Cause: The Organization did not follow their documented policies and procedures regarding report submission. Context: Review of the annual SF-425 provided by Organization uncovered the internal control deficiency. Auditor's Recommendation: The Organization should review and follow their already established policies and procedures over the submission of annual SF-425 reports. Views of Responsible Officials and Planned Corrective Action: The Organization's management has reviewed the disclosed audit finding. See attached management's response letter submitted by the Organization detailing their corrective action plan for the audit year ended August 31, 2023.

Corrective Action Plan

The Organization will review and follow their established policies and procedures over the submission of annual SF-425 reports. The submission was completed without the proper signature due to an abbreviated due date. Keith Chin ( our financial representative with Federal Head Start) had changed the due date from 01/31/2024 to 12/12/2023. The CFO submitted the report without the Executive Director's signature in order to meet the Federal deadline. The CFO did have approval from the Executive Director over the phone to submit the report, but did not note this on the SF 425. After speaking with Chris Mott from Sciarabba Walker and Keith Chin from Federal Head Start, it was determined that Schuyler Head Start could submit the SF 425 on 01/31/2024, and therefore this report will be resubmitted by following the correct policies and procedures. In the future, no report will be submitted without the proper signatures and all reports submittted by Schuyler Head Start will be completed by following the published policies and procedures.

Categories

Internal Control / Segregation of Duties Reporting

Other Findings in this Audit

  • 9646 2023-001
    Significant Deficiency
  • 9647 2023-001
    Significant Deficiency
  • 586087 2023-001
    Significant Deficiency
  • 586088 2023-001
    Significant Deficiency
  • 586089 2023-001
    Significant Deficiency

Programs in Audit

ALN Program Name Expenditures
93.575 Child Care and Development Block Grant $60,692
10.558 Child and Adult Care Food Program $48,190
93.600 Head Start $30,604