Finding Text
2023-101 – Allowable Costs/Cost Principle and Reporting (Material Weakness,
Compliance Finding) Repeat Finding
Federal program information:
Funding agency: U.S. Department of Health and Human
Services
Title: Head Start
CFDA number: 93.600
Award number and years: 72609; July 1, 2022 through June 30, 2023
Pass-through grantor: City of Phoenix
Compliance Requirements: Allowable Costs/Cost Principles
Questioned Costs: $828,835
Criteria: The Pass-through Grantor, the City of Phoenix, requires that the Organization provide a
25% match (nonfederal share) of the federal funding.
Condition: During fiscal year 2023, the total federal amounts reported for the Head Start program
related to base and carryover funding was $7,542,594, which would require a $1,885,649 match
based on 25%. Greater Phoenix Urban League was able to document a match of $1,056,814, a
shortfall of $828,835. In addition, the sum of all in-kind/match reported on the expense reports
requesting reimbursement from the City of Phoenix totaled $1,243,748 for fiscal year 2023,
whereas the total match that could be supported totaled $1,056,814.
Cause and Effect: Greater Phoenix Urban League did not adequately monitor the required match
during the year, resulting in a reported match that was less than the required amount.
Auditors’ Recommendations: Each quarterly report submitted to the granting agency should be
analyzed to determine if the organization is meeting the required match.
This finding is similar to prior year Finding 2022-101