EIN: 580566236
UEI: ETQ8AASL4ZM3
Audited by: Smith & Howard, P.C.
Oversight agency: 93 [Department of Health and Human Services]
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Data as of August 28, 2026
Management decision deadline — for entities that funded this organization
The FAC accepted this audit on June 30, 2026. Under 2 CFR 200.521(d), a pass-through entity that provided federal funds to this organization for this audit period must issue a management decision on these findings by December 30, 2026 (123 days from today).
What is a management decision? →2025-003 – Internal Controls over Compliance and Compliance with Allowable Costs/Cost Principles and Period of Performance Federal Agency: U.S. Department of Health and Human Services Federal Program Title: Head Start/Early Head Start Assistance Listing Number: 93.600 Type of Finding: Material Weakness over Internal Control over Compliance and Compliance Criteria: Allowable costs must meet general allowability criteria and be adequately supported. The Compliance Supplement explains that costs must be allowable, reasonable/necessary, allocable, consistent, and adequately documented. Further, for period of performance, an entity may charge only allowable costs incurred during the approved budget period (unless authorized as pre-award costs). Condition and Context: We noted the Center recorded $741,113 of costs to the Head Start grant in the current year that related to prior-period activity and was not recorded as Head Start grant revenue/receivable until the current year. This amount included: 1. Costs that had been charged in the prior year to another federal program (CACFP) but were subsequently determined not to be chargeable to that program and were transferred/recorded to Head Start in the current year; and 2. Allocated personnel expenses resulting from a change in the allocation methodology in the current year, which was recalculated retrospectively to the beginning of the Head Start grant period, resulting in additional salary costs recorded in the current year that related to the prior year. As part of these adjustments, we identified $357,774 of costs charged to Head Start in the current year that were incurred prior to the Head Start grant’s charged budget period and therefore did not meet the period of performance requirement absent specific authorization. These costs are questioned costs. Questioned Costs: Known Questioned Costs: $357,774 Effect: The Center incurred noncompliance with the Head Start award requirements related to Allowable Costs/Cost Principles and Period of Performance, resulting in questioned costs of $357,774 and increasing the risk that additional unallowable costs could be charged and not detected timely. Cause: The Center did not have controls designed and/or operating effectively to ensure that: 1. Costs charged to the Head Start program were incurred within the approved budget period (or otherwise authorized), 2. Program cost transfers were supported and reviewed for allowability and period of performance prior to posting, and 3. Retrospective allocation changes were appropriately reviewed, approved, and evaluated for compliance with award terms prior to charging the program. Recommendation: We recommend the Center strengthen its grant accounting and financial reporting controls by: 1. Implementing a period of performance validation control (systematic or checklist-based) requiring verification that all costs charged to Head Start were incurred within the approved budget period (or are authorized pre-award/closeout costs) before claims are submitted or costs are recorded to the grant. 2. Requiring formal approval and documentation for cost transfers into Head Start, including: explanation of the transfer, supporting invoices/payroll reports, allowability review, and confirmation of timing within the period of performance. 3. Establishing controls over allocation methodology changes, including documented approval, support for the revised methodology, and a compliance review to confirm costs charged to Head Start are allowable, allocable, and within the period of performance. Grantee Comment: Management agrees with the finding and has prepared a corrective action plan.
Show full finding ▾Hide full finding ▴2025-003 – Internal Controls over Compliance and Compliance with Allowable Costs/Cost Principles and Period of Performance Federal Agency: U.S. Department of Health and Human Services Federal Program Title: Head Start/Early Head Start Assistance Listing Number: 93.600 Type of Finding: Material Weakness over Internal Control over Compliance and Compliance Criteria: Allowable costs must meet general allowability criteria and be adequately supported. The Compliance Supplement explains that costs must be allowable, reasonable/necessary, allocable, consistent, and adequately documented. Further, for period of performance, an entity may charge only allowable costs incurred during the approved budget period (unless authorized as pre-award costs). Condition and Context: We noted the Center recorded $741,113 of costs to the Head Start grant in the current year that related to prior-period activity and was not recorded as Head Start grant revenue/receivable until the current year. This amount included: 1. Costs that had been charged in the prior year to another federal program (CACFP) but were subsequently determined not to be chargeable to that program and were transferred/recorded to Head Start in the current year; and 2. Allocated personnel expenses resulting from a change in the allocation methodology in the current year, which was recalculated retrospectively to the beginning of the Head Start grant period, resulting in additional salary costs recorded in the current year that related to the prior year. As part of these adjustments, we identified $357,774 of costs charged to Head Start in the current year that were incurred prior to the Head Start grant’s charged budget period and therefore did not meet the period of performance requirement absent specific authorization. These costs are questioned costs. Questioned Costs: Known Questioned Costs: $357,774 Effect: The Center incurred noncompliance with the Head Start award requirements related to Allowable Costs/Cost Principles and Period of Performance, resulting in questioned costs of $357,774 and increasing the risk that additional unallowable costs could be charged and not detected timely. Cause: The Center did not have controls designed and/or operating effectively to ensure that: 1. Costs charged to the Head Start program were incurred within the approved budget period (or otherwise authorized), 2. Program cost transfers were supported and reviewed for allowability and period of performance prior to posting, and 3. Retrospective allocation changes were appropriately reviewed, approved, and evaluated for compliance with award terms prior to charging the program. Recommendation: We recommend the Center strengthen its grant accounting and financial reporting controls by: 1. Implementing a period of performance validation control (systematic or checklist-based) requiring verification that all costs charged to Head Start were incurred within the approved budget period (or are authorized pre-award/closeout costs) before claims are submitted or costs are recorded to the grant. 2. Requiring formal approval and documentation for cost transfers into Head Start, including: explanation of the transfer, supporting invoices/payroll reports, allowability review, and confirmation of timing within the period of performance. 3. Establishing controls over allocation methodology changes, including documented approval, support for the revised methodology, and a compliance review to confirm costs charged to Head Start are allowable, allocable, and within the period of performance. Grantee Comment: Management agrees with the finding and has prepared a corrective action plan.
Corrective Action Plan: Management concurs with the findings. Sheltering Arms has strengthened its grant accounting, financial close and reporting controls to ensure that grant revenue, receivables, expenses, refundable advances and SEFA amounts are recorded accurately and in the appropriate reporting period. During fiscal year 2025, the Finance department experienced significant personnel changes. New management performed a transaction review to determine whether transactions were properly allocated and recorded. During this review, several transactions totaling $741,113 were identified as having been allocated to the incorrect fiscal period. In addition, the $357,774 liability resulted from an adjustment made by a contractor in March 2025 that incorrectly allocated CACFP revenues and related expenses to fiscal year 2024. Responsible Party: Chief Financial Officer, with support from the Finance Team. Anticipated Completion Date: Updated processes have been implemented and are currently in operation to mitigate the risk of future findings. Monitoring Plan: Management will perform monthly reviews of grant reconciliations, cost transfers, and significant grant-related journal entries to ensure transactions are recorded accurately, supported by appropriate documentation, and recognized in the proper reporting period.
2025-004 – Internal Controls over Compliance and Compliance with Allowable Costs/Cost Principles Federal Agency: U.S. Department of Health and Human Services Federal Program Title: Head Start/Early Head Start Assistance Listing Number: 93.600 Type of Finding: Material Weakness over Internal Control over Compliance and Compliance Criteria: Allowable costs must be supported by documentation and meet general allowability standards, including being adequately documented and consistent with the award terms and cost principles. Condition and Context: Out of 42 charges to the Head Start program, we noted 8 instances where evidence of appropriate approvals was not consistently maintained for costs charged to the Head Start program. We noted 3 out of 42 charges did not have proper supporting documentation maintained by the Center to validate the allowability of the charges. Questioned Costs: Known Questioned Costs: $2,510 Effect: The deficiency increases the risk that costs charged to Head Start may not be adequately supported and could be determined unallowable upon review, and that noncompliance may not be prevented or detected and corrected on a timely basis. Cause: The Center’s policies and procedures did not consistently require, or management did not consistently evidence, documented supervisory review/approval and retention of support for allowability and allocation decisions for Head Start charges. Recommendation: We recommend the Center: 1. Implement standardized documentation and approval requirements for Head Start charges (e.g., checklists or electronic approval workflows) to evidence allowability, allocation basis, and supervisory review. 2. Conduct periodic internal monitoring of Head Start expenditures focusing on documentation sufficiency and compliance with allowability criteria. Grantee Comment: Management agrees with the finding and has prepared a corrective action plan.
Show full finding ▾Hide full finding ▴2025-004 – Internal Controls over Compliance and Compliance with Allowable Costs/Cost Principles Federal Agency: U.S. Department of Health and Human Services Federal Program Title: Head Start/Early Head Start Assistance Listing Number: 93.600 Type of Finding: Material Weakness over Internal Control over Compliance and Compliance Criteria: Allowable costs must be supported by documentation and meet general allowability standards, including being adequately documented and consistent with the award terms and cost principles. Condition and Context: Out of 42 charges to the Head Start program, we noted 8 instances where evidence of appropriate approvals was not consistently maintained for costs charged to the Head Start program. We noted 3 out of 42 charges did not have proper supporting documentation maintained by the Center to validate the allowability of the charges. Questioned Costs: Known Questioned Costs: $2,510 Effect: The deficiency increases the risk that costs charged to Head Start may not be adequately supported and could be determined unallowable upon review, and that noncompliance may not be prevented or detected and corrected on a timely basis. Cause: The Center’s policies and procedures did not consistently require, or management did not consistently evidence, documented supervisory review/approval and retention of support for allowability and allocation decisions for Head Start charges. Recommendation: We recommend the Center: 1. Implement standardized documentation and approval requirements for Head Start charges (e.g., checklists or electronic approval workflows) to evidence allowability, allocation basis, and supervisory review. 2. Conduct periodic internal monitoring of Head Start expenditures focusing on documentation sufficiency and compliance with allowability criteria. Grantee Comment: Management agrees with the finding and has prepared a corrective action plan.
Corrective Action Plan: Management concurs with the findings. Sheltering Arms has strengthened controls to ensure that all Head Start/ Early Head Start charges are adequately documented, properly approved, and reviewed for compliance with allowable cost requirements. The Organization has implemented processes requiring documented approval for Head Start/Early Head Start charges. Required support includes invoices or payroll documentation, allocation support when applicable, evidence of allowability, and documented supervisory approval. Finance will verify that required support is complete before costs are charged to the program. Periodic internal monitoring procedures are currently being performed to review Head Start/ Early Head Start expenditures for documentation sufficiency, evidence of approval, and compliance with allowable cost principles. Any deficiencies identified will be corrected timely, and recurring issues will be addressed through staff training or process improvements. Management will review the questioned costs identified in the audit and determine the appropriate corrective action, including obtaining additional supporting documentation or reclassifying costs, as needed. Responsible Party: Chief Financial Officer, with support from the Finance Team and Head Start Program Leadership. Anticipated Completion Date: Updated processes have been implemented and are currently in operation to mitigate the risk of future findings. Monitoring Plan: Management will perform quarterly reviews of Head Start/ Early Head Start expenditures. Results will be reviewed with the CFO and Program Leadership, and any corrective actions will be documented and tracked through resolution.
FAC accepted this audit on September 19, 2025 — management decision was due March 19, 2026.
FAC accepted this audit on September 27, 2024 — management decision was due March 27, 2025.
For awards with budget periods ending in 2023, the financial reporting forms SF-425s were later than prescribed due dates. Questioned costs: None Context: The annual SF-425 Federal Financial Reports were not filed by the stated due date. Effect: Lack of compliance with grant requirements could result in a reduction in grant funding. Cause: The absence of meeting the applicable reporting requirements is largely due to key employee turnover with the financial positions. Auditor’s Recommendations: We recommend that the Center monitors its contract reporting timeline and due date. The production and submission of reports should follow the timeline specified on the grants. Grantee Comment: Refer to Corrective Action Plan
Show full finding ▾Hide full finding ▴Funding Agency: U.S. Department of Health and Human Services Grant: Head Start/Early Head Start CFDA Number: 93.600 Grant Number: 04CH011659/23 Criteria: The grant awards associated with Head Start program require the quarterly SF-425 reports to be filed with 90 days after year end. Condition: For awards with budget periods ending in 2023, the financial reporting forms SF-425s were later than prescribed due dates. Questioned costs: None Context: The annual SF-425 Federal Financial Reports were not filed by the stated due date. Effect: Lack of compliance with grant requirements could result in a reduction in grant funding. Cause: The absence of meeting the applicable reporting requirements is largely due to key employee turnover with the financial positions. Auditor’s Recommendations: We recommend that the Center monitors its contract reporting timeline and due date. The production and submission of reports should follow the timeline specified on the grants. Grantee Comment: Refer to Corrective Action Plan
Delayed Head Start reconciliations and department turnover contribted to the late submission of requred quarterly SF-425 reports. Moving forward, the report will be completed by the Chief Financial Officer. Filing Due dates will be included in our accounting calendar within Microsoft Outlook to coincide with our monthly close out procedures. The department will now file the report on time each quarter, then edit the report, if necessary, to ensure timely submission at all times.
2022-001
FAC accepted this audit on May 30, 2024 — management decision was due November 30, 2024.
For awards with budget periods ending in 2022, the financial reporting forms SF-425s were later than prescribed due dates. Questioned costs: None Context: The annual SF-425 Federal Financial Reports were not filed by the stated due date. Effect: Lack of compliance with grant requirements could result in a reduction in grant funding. Cause: The absence of meeting the applicable reporting requirements is largely due to key employee turnover with the financial positions. Auditor’s Recommendations: We recommend that the Center monitors its contract reporting timeline and due date. The production and submission of reports should follow the timeline specified on the grants. Grantee Comment: Refer to Corrective Action Plan
Show full finding ▾Hide full finding ▴Funding Agency: U.S. Department of Health and Human Services Grant: Head Start/Early Head Start CFDA Number: 93.600 Grant Number: 04CH011659/21/22 Criteria: The grant awards associated with Head Start program require the quarterly SF-425 reports to be filed with 90 days after year end. Condition: For awards with budget periods ending in 2022, the financial reporting forms SF-425s were later than prescribed due dates. Questioned costs: None Context: The annual SF-425 Federal Financial Reports were not filed by the stated due date. Effect: Lack of compliance with grant requirements could result in a reduction in grant funding. Cause: The absence of meeting the applicable reporting requirements is largely due to key employee turnover with the financial positions. Auditor’s Recommendations: We recommend that the Center monitors its contract reporting timeline and due date. The production and submission of reports should follow the timeline specified on the grants. Grantee Comment: Refer to Corrective Action Plan
Delayed Head Start reconciliations and department turnover contribted to the late submission of requred quarterly SF-425 reports. Moving forward, the report will be completed by the Chief Financial Officer. Filing Due dates will be included in our accounting calendar within Microsoft Outlook to coincide with our monthly close out procedures. The department will now file the report on time each quarter, then edit the report, if necessary, to ensure timely submission at all times.
2021-001
FAC accepted this audit on May 30, 2024 — management decision was due November 30, 2024.
For awards with budget periods ending in 2021, the financial reporting forms SF-425s were later than prescribed due dates. Questioned costs: None Context: The annual SF-425 Federal Financial Reports were not filed by the stated due date. Effect: Lack of compliance with grant requirements could result in a reduction in grant funding. Cause: The absence of meeting the applicable reporting requirements is largely due to key employee turnover with the financial positions. Auditor’s Recommendations: We recommend that the Center monitors its contract reporting timeline and due date. The production and submission of reports should follow the timeline specified on the grants. Grantee Comment: Refer to Corrective Action Plan
Show full finding ▾Hide full finding ▴Funding Agency: U.S. Department of Health and Human Services Grant: Head Start/Early Head Start CFDA Number: 93.600 Grant Number: 04CH011659/21/22 Criteria: The grant awards associated with Head Start program require the quarterly SF-425 reports to be filed with 90 days after year end. Condition: For awards with budget periods ending in 2021, the financial reporting forms SF-425s were later than prescribed due dates. Questioned costs: None Context: The annual SF-425 Federal Financial Reports were not filed by the stated due date. Effect: Lack of compliance with grant requirements could result in a reduction in grant funding. Cause: The absence of meeting the applicable reporting requirements is largely due to key employee turnover with the financial positions. Auditor’s Recommendations: We recommend that the Center monitors its contract reporting timeline and due date. The production and submission of reports should follow the timeline specified on the grants. Grantee Comment: Refer to Corrective Action Plan
Delayed Head Start reconciliations and department turnover contribted to the late submission of requred quarterly SF-425 reports. Moving forward, the report will be completed by the Chief Financial Officer. Filing Due dates will be included in our accounting calendar within Microsoft Outlook to coincide with our monthly close out procedures. The department will now file the report on time each quarter, then edit the report, if necessary, to ensure timely submission at all times.
2020-003
FAC accepted this audit on June 20, 2022 — management decision was due December 20, 2022.
For awards with budget periods ending in 2020, the financial reporting forms SF-425s were later than prescribed due dates. Questioned costs: None Context: The annual SF-425 Federal Financial Reports were not filed by the stated due date. Effect: Lack of compliance with grant requirements could result in a reduction in grant funding. Cause: The absence of meeting the applicable reporting requirements is largely due to key employee turnover with the financial positions. Auditor?s Recommendations: We recommend that the Center monitors its contract reporting timeline and due date. The production and submission of reports should follow the timeline specified on the grants. Grantee Comment: Refer to Corrective Action Plan
Show full finding ▾Hide full finding ▴Funding Agency: U.S. Department of Health and Human Services Grant: Head Start/Early Head Start CFDA Number: 93.600 Grant Number: 04CH4773/20 and 04CH01165901/21 Criteria: The grant awards associated with Head Start program require the quarterly SF-425 reports to be filed with 90 days after year end. Condition: For awards with budget periods ending in 2020, the financial reporting forms SF-425s were later than prescribed due dates. Questioned costs: None Context: The annual SF-425 Federal Financial Reports were not filed by the stated due date. Effect: Lack of compliance with grant requirements could result in a reduction in grant funding. Cause: The absence of meeting the applicable reporting requirements is largely due to key employee turnover with the financial positions. Auditor?s Recommendations: We recommend that the Center monitors its contract reporting timeline and due date. The production and submission of reports should follow the timeline specified on the grants. Grantee Comment: Refer to Corrective Action Plan
2020-003 ? Reporting The disruption caused by the pandemic and the shortage of dedicated staff led to the failure to timely report the quarterly SF-425. The timely reporting has been assigned to the Controller and the associated filing dates will be included in an accounting calendar within Microsoft Outlook which is reviewed by the Chief Financial Officer and signed off prior to submittal in the Head Start Enterprise System.
2019-003
During the course of the auditing procedures we noted that the Center did not have proper controls in place to ensure that drawdowns match the expenditures incurred and that the related receivable was recorded in the proper period. Questioned costs: None Context: The Center could not provide supporting expenditures details to the associated draw from the federal?s payment management system. Effect: Due to the cause noted above, a significant adjustment was required in the financial statements. Cause: Management did not reconcile the revenue and related expenses in the general ledger with the Federal cash draws. Recommendation: Management should reconcile the revenue and related expenses to the federal draws to ensure that cash management compliance requirement is met as required by Uniform Guidance. Grantee Comment: Refer to Corrective Action Plan
Show full finding ▾Hide full finding ▴Funding Agency: U.S. Department of Health and Human Services Grant: Head Start/Early Head Start CFDA Number: 93.600 Grant Number: 04CH4773/20 and 04CH01165901/21 Criteria: Management is responsible to ensure that the Federal Awarding agency?s funds are drawn for expenses that were incurred by the Center or that the funds were utilized within three days of drawing down the funds. Supporting documentations should show that the costs for which reimbursement was requested or drawn are matched with associated expenses. Condition: During the course of the auditing procedures we noted that the Center did not have proper controls in place to ensure that drawdowns match the expenditures incurred and that the related receivable was recorded in the proper period. Questioned costs: None Context: The Center could not provide supporting expenditures details to the associated draw from the federal?s payment management system. Effect: Due to the cause noted above, a significant adjustment was required in the financial statements. Cause: Management did not reconcile the revenue and related expenses in the general ledger with the Federal cash draws. Recommendation: Management should reconcile the revenue and related expenses to the federal draws to ensure that cash management compliance requirement is met as required by Uniform Guidance. Grantee Comment: Refer to Corrective Action Plan
2020-004 - Cash Management We now have a permanent Chief Financial Officer who has evaluated the current method by which we apportion annual grant revenue evenly over twelve months, and he has concluded we have the proper controls in place to ensure that drawdowns match the expenditures, but the timing and reconciliation of the true up needs to addressed at the structural level related to our annual cost allocation review. The Chief Financial Officer, Controller and Accounting Manager will meet monthly to compare Head Start draw down amounts to expenditures to ensure revenue is recorded upon, and matched to, past expenditures incurred by centers or utilized within three days of such draw downs. The Finance department is also upgrading its financial management system to a cloud based version which will provide better reporting and data analysis tools to correct this finding. Quarterly adjustments will still be necessary.
2019-004
During the course of the auditing procedures we noted that the Center had two charges to the grant which did not follow Cost Principles. One cost was for a three year subscription agreement charged in entirety to the grant in the current year. The other cost was for grant writing services for which there was no support detailing the services were for the above referenced grant. Questioned costs: $4,600 Context: Of forty four expenditure samples, totaling $53,573, selected from a population of $1,229,009 we noted two which did not follow Cost Principles. Effect: The costs could be deemed to be unallowable and have to be returned to the grantor. Cause: Due to an ineffective review process of the charged costs compared to what is allowed under Cost Principles. Recommendation: Management should ensure all costs charged to the grant follow Cost Principles. Grantee Comment: Refer to Corrective Action Plan
Show full finding ▾Hide full finding ▴Funding Agency: U.S. Department of Health and Human Services Grant: Head Start/Early Head Start CFDA Number: 93.600 Grant Number: 04CH4773/20 and 04CH01165901/21 Criteria: Funds spent under the grant must be allowed under Title 2 U.S. Code of Federal Regulations Part 200 Subpart E, Cost Principles (?Cost Principles?). Condition: During the course of the auditing procedures we noted that the Center had two charges to the grant which did not follow Cost Principles. One cost was for a three year subscription agreement charged in entirety to the grant in the current year. The other cost was for grant writing services for which there was no support detailing the services were for the above referenced grant. Questioned costs: $4,600 Context: Of forty four expenditure samples, totaling $53,573, selected from a population of $1,229,009 we noted two which did not follow Cost Principles. Effect: The costs could be deemed to be unallowable and have to be returned to the grantor. Cause: Due to an ineffective review process of the charged costs compared to what is allowed under Cost Principles. Recommendation: Management should ensure all costs charged to the grant follow Cost Principles. Grantee Comment: Refer to Corrective Action Plan
2020-005 ? Allowable Cost/ Activities Allowed Sheltering Arms The two charges to the Head Start grant that may not have followed cost principles will be addressed by the Accounting Manager notifying the Chief Financial Officer of any multi-year subscriptions that need to paid over multiple year instead of charged in its entirety in the current year. Grant consultant invoices will be monitored by accounts payable staff to ensure correct coding to prevent potential unallowable costs and or activities.
FAC accepted this audit on April 25, 2021 — management decision was due October 25, 2021.
For awards with budget periods ending in 2019, the financial reporting forms SF- 425s were later than prescribed due dates. Questioned costs: None Context: The annual SF-425 Federal Financial Reports were not filed by the stated due date. Effect: Lack of compliance with grant requirements could result in a reduction in grant funding. Cause: The absence of meeting the applicable reporting requirements is largely due to key employee turnover with the financial positions. Auditor?s Recommendations: We recommend that the Center monitors its contract reporting timeline and due date. The production and submission of reports should follow the timeline specified on the grants. Grantee Comment: Refer to Corrective Action Plan
Show full finding ▾Hide full finding ▴2019-003 Finding: Reporting Funding Agency: U.S. Department of Health and Human Services Grant: Head Start/Early Head Start CFDA Number: 93.600 Grant Number: 04CH4773/19 Criteria: The grant awards associated with Head Start program require the quarterly SF- 425 reports to be filed with 90 days after year end. Condition: For awards with budget periods ending in 2019, the financial reporting forms SF- 425s were later than prescribed due dates. Questioned costs: None Context: The annual SF-425 Federal Financial Reports were not filed by the stated due date. Effect: Lack of compliance with grant requirements could result in a reduction in grant funding. Cause: The absence of meeting the applicable reporting requirements is largely due to key employee turnover with the financial positions. Auditor?s Recommendations: We recommend that the Center monitors its contract reporting timeline and due date. The production and submission of reports should follow the timeline specified on the grants. Grantee Comment: Refer to Corrective Action Plan
2019-003 Finding: Reporting The disruption caused by the pandemic and the shortage of staff lead to the failure to timely report the quarterly SF-425. The timely reporting has been assigned to a specific team member and filing dates are included in the accounting calendar which is reviewed weekly.
During the course of the auditing procedures we noted that the Center did not have proper controls in place to ensure that drawdowns match the expenditures incurred and that the related receivable was recorded in the proper period. Questioned costs: None Context: The Center could not provide supporting expenditures details to the associated draw from the federal?s payment management system. Effect: Due to the cause noted above, a significant adjustment was required in the financial statements. Cause: Management did not reconcile the revenue and related expenses in the general ledger with the Federal cash draws. Recommendation: Management should reconcile the revenue and related expenses to the federal draws to ensure that cash management compliance requirement is met as required by Uniform Guidance. Grantee Comment: Refer to Corrective Action Plan
Show full finding ▾Hide full finding ▴Funding Agency: U.S. Department of Health and Human Services Grant: Head Start/Early Head Start CFDA Number: 93.600 Grant Number: 04CH4773/19 and 20 Criteria: Management is responsible to ensure that the Federal Awarding agency?s funds are drawn for expenses that were incurred by the Center or that the funds were utilized within three days of drawing down the funds. Supporting documentations should show that the costs for which reimbursement was requested or drawn are matched with associated expenses. Condition: During the course of the auditing procedures we noted that the Center did not have proper controls in place to ensure that drawdowns match the expenditures incurred and that the related receivable was recorded in the proper period. Questioned costs: None Context: The Center could not provide supporting expenditures details to the associated draw from the federal?s payment management system. Effect: Due to the cause noted above, a significant adjustment was required in the financial statements. Cause: Management did not reconcile the revenue and related expenses in the general ledger with the Federal cash draws. Recommendation: Management should reconcile the revenue and related expenses to the federal draws to ensure that cash management compliance requirement is met as required by Uniform Guidance. Grantee Comment: Refer to Corrective Action Plan
Our Interim VP Finance, pending the appointment of a permanent VP, recorded the HS/EHS revenue by apportioning the annual grant evenly over the twelve months, since the operation of the grant was performed equally over the twelve months. It was not as a consequence of not having proper controls in place to ensure that drawdowns match the expenditure. Such controls over coding and recording are in place. However, we now agree that the revenue should be recorded upon, and matched to, past expenditures: a year-end adjustment was made. Likewise, procedures have been put in place to reconcile expenditures against federal draws to ensure that we comply with the requirements of the grant.
FAC accepted this audit on February 2, 2020 — management decision was due August 2, 2020.
GSA_MIGRATION
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GSA_MIGRATION
FAC accepted this audit on July 22, 2018 — management decision was due January 22, 2019.
FAC accepted this audit on July 10, 2017 — management decision was due January 10, 2018.
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