Finding Text
Program: Head Start Cluster
Assistance Listing Number: 93.600
Federal Agency: U.S. Department of Labor
Federal Award Identification: 02HE00012301C6, 02HP000313-01, 02CH11211-03, 02CH01121101C3, 02HP000066-05, 02HP00006603C3, 02CH011112-03, 02CH011112-04, CT9250143, CT9250144
Criteria: Reporting – The organization should retain all financial records, reports, supporting documents, statistical records, and all other records pertinent to the award for a period of three years from the date of submission of expenditure/claim under 2 CFR 200.334.
Condition: During the course of our audit procedures performed on reporting, it was noted that the annual report on real property required to be filed, could not be located. In addition, for the eight financial reports that were filed, the supporting information for the amounts included could not be located.
Questioned costs: None
Context: We requested all reports required to be filed for the expenditures made during the period, which included both financial and special reports, as well as the underlying documentation to support the amounts included in the reports. The organization could not locate the annual report on real property. Additionally, supporting documentation could not be located for the eight financial reports that were filed.
Effect: Reports not filed, reviewed, or signed may cause inaccurate information at the award agency and could cause delays in payments or impact future funding.
Cause: The Settlement did not have adequate controls and procedures in place to identify reporting requirements and ensure reports were filed timely.
Repeat finding: This is a repeat finding (2021-007)
Recommendation: We recommend that the organization revise its documentation storage and retention procedures to ensure maintaining of required documentation. In addition, management should implement policies and procedures to ensure required reports are completed and filed by their respective due dates as required by the grant agreement and the Uniform Guidance.
Views of responsible officials and planned corrective actions: The Settlement agrees with the finding.
The Assistant Controller prepares the form SF-425 reports and the Controller reviews and approves them for submission. These forms and supporting documentation are saved and retained in SharePoint. SF-425 due dates reminders are posted in preparer’s calendar and adherence to the due dates is monitored by the Controller. Implementation began July 2022.