Early Childhood Learning Center of Greene County

DATA COLLECTION FORM Statement of Condition: The Single Audit was not filed within 9 months after year end as required by the Federal Audit Clearing House. Criteria: 2 CFR section 200.512(a) requires the reporting package and data collection form to be submitted to the Federal Audit Clearing house the earlier of 30 calendar days after the reports are received from the auditor or 9 months after the end of the reporting period. Therefore, the June 30, 2023, reporting package deadline was March 31, 2024. Statement of Cause: The cumulative effect of operating without a Chief Financial Officer caused delays in preparing accurate financial data. The Center was only able to engage an accounting consultant intermittingly resulting in delays in providing the financial information for June 30, 2022 audit. As a result the process for the June 30, 2023 audit was delayed causing the audit process to not be able to begin until the prior year’s audit was completed which did not occur until January 2024. Statement of Effect: The Center was not in compliance with federal guidelines. Questioned Costs: None Perspective Information: As part of the audit process, compliance with federal guideline is reviewed for timely submission of the reporting package to the Federal Audit Clearing House. Identification of Repeat Finding: Yes Recommendation: The Center should continue to reconcile financial information on a monthly basis and continue to engage the assistance of the accounting consultant to review year end records to ensure accurate information is available for audit and submission of the reporting package by the deadlines described above. Views of Responsible Officials and Planned Corrective Actions: ECLC now only has 2 employees consisting of the Executive Director and fiscal specialists. ECLC’s CFO resigned in April of 2022 and ECLC has not been able to fill that position since that time. UHY consultants have been obtained Marvh 24, 2023 and they are helping with the fiscal process. ECLC has relinquished its Head Start Grant effective June 30, 2023, and is in the dissolution.

ECLC is down to 2 employees consisting of the Executive Director and fiscal specialists. ECLC CFO resigned in April of 2022 and ECLC has not been able to fill that position since that time. UHY consultants have been obtained March 24, 2023 and they are helping with the fiscal process. The effect of operating without a CFO has caused delays in preparing financials. ECLC has relinquished the Head Start Grant effective June 30, 2023, and is in the process of dissolution.

2022-003

HEAD START REPORT - FINANCIAL REPORTING Information on Federal Program: Head Start, Assistance Listing 93.600 Criteria: Compliance under Head Start: Financial Reporting Requirements under ACF-PI-HS-16-01 Submission of Federal Financial Report SF-425. Statement of Condition: Our testing over financial reporting included the review and timely submission of the semi-annual and annual reports during the Center’s fiscal year end. The semiannual reports for contracts 02HE00006801C5 and 02HE00006801C6, were missing the report submitted date therefore we were unable to verify timely submission. Statement of Cause: Semiannual reports were printed and reviewed and approved by the ECLC Director on April 17, 2023, and are typically submitted on the same date, however the submission date was not printed on the report therefore we were unable to verify submission of the report by April 30, 2023. Statement of Effect: Unable to verify the timely submission of two semiannual reports by the reporting deadline. Questioned Costs: None. Perspective Information: The Center completed eight total semiannual and annual reports during the period ending June 30, 2023, all reviewed as part of the audit procedures, it was noted that two of eight reports could not be verified for timely submission. The Center completed the semiannual reports and the ECLC Director documented her review and approval of these reports on April 17, 2023, reports are typically submitted on the same day, however the submission date was not printed on the report. The Center is unable to log into the Health and Human Services portal to reprint the report to submission date due to email and vendor information technology issues. Identification of Repeat Finding: Yes. Recommendation: We recommend management ensure the submission date is documented on the report or screen prints be retained to verify timely submission. Views of responsible officials and planned corrective actions: ECLC did request copies of the submitted financial report SF 425 from HHS and to date have not received a response. Effective immediately, the Fiscal Specialist will retain copies of the supporting submission dates in the future, if reports should need to be filed.

ECLC did request copies of the submitted financial report SF 425 from HHS and to date have not received a response. Effective immediately, the Fiscal Specialist will retain copies of the supporting submission dates in the future, if reports should need to be filed.

2022-004

DATA COLLECTION FORM Statement of Condition: The Single Audit was not filed within 9 months after year end as required by the Federal Audit Clearing House. Criteria: 2 CFR section 200.512(a) requires the reporting package and data collection form to be submitted to the Federal Audit Clearing house the earlier of 30 calendar days after the reports are received from the auditor or 9 months after the end of the reporting period. Therefore, the June 30, 2022, reporting package deadline was March 31, 2023. Statement of Cause: The cumulative effect of operating without a Chief Financial Officer caused delays in preparing accurate financial data. The Center was only able to engage an accounting consultant intermittingly resulting in delays in providing the financial information for audit. Statement of Effect: The Center was not in compliance with federal guidelines. Questioned Costs: None Perspective Informative: As part of the audit process, compliance with federal guideline is reviewed for timely submission of the reporting package to the Federal Audit Clearing House. Identification of Repeat Finding: No Recommendation: The Center should continue to reconcile financial information on a monthly basis and continue to engage the assistance of the accounting consultant to review year end records to ensure accurate information is available for audit and submission of the reporting package by the deadlines described above. Views of Responsible Officials and Planned Corrective Actions: ECLC now only has 2 employees consisting of the Executive Director and fiscal specialists. ECLC’s CFO resigned in April of 2022 and ECLC has not been able to fill that position since that time. UHY consultants have been obtained and they are helping with the fiscal process. ECLC continues to struggle and has relinquished its Head Start Grant effective June 30, 2023, and is in the dissolution.

As of June 30, 2023 ECLC now only has 3 employees consisting of the Executive Director, Kathleen Federico, fiscal specialist, Tricia Imbesi and as needed maintenance man, Sean Collins. ECLC’s CFO, Dave Phillips resigned in April of 2022 and ECLC has not been able to fill that position since that time. On March 24, 2023 ECLC went into contract with UHY consultant, Daniel Pendergast, to help with the fiscal process. ECLC continues to struggle and has relinquished its Head Start Grant effective June 30, 2023, and is in the dissolution.

HEAD START REPORT – FINANCIAL REPORTING Information on Federal Program: Head Start, Assistance Listing 93.600 Criteria: Compliance under Head Start: Financial Reporting Requirements under ACF-PI-HS-16-01 Submission of Federal Financial Report SF-425. Statement of Condition: Our testing over financial reporting included the review and timely submission of the semi-annual and annual reports during the Center’s fiscal year end. The annual report for contract 02CH01096003 due July 31, 2022, was not filed until October 18, 2022, contract 02HE00006801C5 due July 31, 2022, was not filed until October 3, 2022, and contract 02HE00006801C6 due July 31, 2022, was not filed until October 3, 2022. Statement of Cause: The Center was operating without a Chief Financial Officer for an extended period of time, during this period other members of management assumed this responsibility and additional time was needed to compile and report accurate information. Statement of Effect: Annual reports noted above were not filed within the required reporting deadline. Questioned Costs: None. Perspective Information: The Center was operating without a Chief Financial Officer from late April 2022 through date of issuance of this report. The center was able to engage an accounting consultant to aid in reconciling accounts through March 31, 2022, which assisted the Center in completing and filing of the reports. Identification of Repeat Finding: No. Recommendation: We recommend management develop a policy and checklist for year end reports and engage accounting consultant services if needed, to reconcile accounts required for timely filing of reports. Views of responsible officials and planned corrective actions: ECLC did submit an extension request to Regional Office regarding submitting financial report SF 425 later than 7/31/22. See attached request submitted to HSES. The extension was requested due to the loss of the CFO in late April, 2022. All SF 425 have been submitted timely since then.

ECLC did submit an extension request to Regional Office regarding submiting financial report SF 425 later than 7/31/22. See atached request submited to HSES. The extension was requested due to the loss of the CFO, Dave Phillips, in late April 2022. All SF 425 have been submited timely since then. June 9,2022 Grant 02CH010960 Early Childhood Learning Center of Greene County Request for Extension on the annual & final FFR Dear Nekeya The Early Childhood Learning Center is requesting a 90-day extension on submission of the annual and final FFR for grant #: 02CH010960 and grant #:02HE000068. This request is due to the sudden loss of our chief financial officer position. The CFO resigned effective 4/27/22 with a two-day notice, to date ECLC has not found a replacement. ECLC is advertising and searching for a CFO to oversee the Agency fiscal office. In the interim we have contacted 3 Financial groups that offer CFO for hire services. One company will not have anyone available until mid-July, another company cannot commit at this date to when they can provide someone and the other company that was referred to us by another Head Start, we are waiting a response to our inquiry. Due to the concern of when the CFO can actually begin CFO services, we are requesting a 90-day extension on the annual for grant 02HE000068 due June 29, 2022 and the final FFR for grant 02CH010960. Our projected date of submission for this request is September 2022. We appreciate your consideration in this matter. Kathleen Federico ECLC Director

2020-001 Head Start ? Financial Reporting Information on Federal Program: Head Start, CFDA No. 93.600 Criteria: Compliance under Head Start: Financial Reporting Requirements under ACF-PI-HS-16-01 Submission of Federal Financial Report SF-425. Compliance under Head Start: Special Reporting Requirements under ACF-IM-HS-17-01 Submission of Real Property Status Reports SF-429 and General Reporting SF-429-A. Condition: Our testing over financial reporting included the review and timely submission of the five quarterly reports filed during the Center?s fiscal yearend. The annual final report due July 30, 2020 was not filed until October 28, 2020. Our testing over annual reporting included the review and timely submission of the real property status report and the general report filed during the Center?s fiscal yearend. Report due July 30, 2020 was not filed until August 24, 2020. Questioned Cost: None. Context: Due to the COVID-19 pandemic the Center was operating at reduced staffing levels for the period of mid-March through end-June 2020, during this period accounting personnel had limited access to financial information and were unable to complete the report. Effect: One quarterly Federal Financial Report SF-425 was not filed by the required deadline. Real Property Status Report SF429 and General Reporting SF429-A was not filed by the required deadline. Cause: The Center was operating at a reduced capacity during the pandemic with limited access to financial information, upon re-opening the Center prepared the reports and filed them after the deadline. Perspective Information: There were no issues with the financial information in the report submitted and it agreed to internal revenue and expenditure reports. Repeat Finding: No Recommendation: We recommend that remote access be granted to those individuals responsible for the completion and submission of reports. This will allow for the timely completion and submission of the required reports. Views of the Responsible Officials and Planned Corrective Actions: Management agrees with the finding. During the COVID-19 Pandemic closures, ECLC was operating at a reduced capacity with limited access to financial information. The inability to work remotely was a major set back for the agency. To avoid future fiscal operation limits, ECLC has entered into a project with the information technology consultant to address the ability to access work computers remotely. Work has been completed and remote access is now available to the Executive Director, CFO and the Fiscal Manager. To avoid any future late filings the Executive Director will meet with the fiscal department 1 week prior to the date of the reports are due to review the reports. CFO will then file the report and submit a proof of submission confirmation, effective immediately.

Corrective Action Plan During the COVID 19 Pandemic closures, ECLC was operating at a reduced capacity with limited access to financial information. The inability to work remotely was a major setback for the agency. To avoid future fiscal operation limits, ECLC has entered into a 9-step project with YAMA Industrials to address ability to access work computers remotely. Work has been completed and remote access is now available to the Executive Director, CFO, and the Fiscal Manager. To avoid any future late filings the Executive Director will meet with the fiscal department 1 week prior to the date the reports are due to review the reports. CFO will then file the report and submit a proof of submission confirmation. This corrective action plan is effective immediately