Central City Economic Opportunity CorporationNon-Profit

Audit Finding Reference Number 2023 – 001 – Late Submission of Audit Report Federal Program and Specific Federal Award Identification CFDA Title and Number 93.600 Head Start Program Federal Award Year December 31, 2023 Federal Agency U.S. Department of Health and Human Services Pass-Through Entity Not Applicable Criteria Pursuant to the requirement of Louisiana Status R.S. 24:513 A. (5)(a)(i), annual financial reports shall be completed within six (6) months of the close of an entity’s fiscal year. Conditions and Contexts The December 31, 2023 audit report was not submitted within the prescribed time frame as required by federal regulations. The audit report was outstanding beyond the six (6) months pursual to the Louisiana state requirements. Cause Management failed to ensure the audit report was issued within the prescribed time frame. Questioned Costs For purposes of this condition, I have no questioned cost. Effect CCEOC has not complied with the audit requirement of Louisiana Status R.S. 24:513 A. 95)(a)(i).   Repeat Finding Yes. See 2022-001. Recommendation I recommend that management of CCEOC take steps to ensure that the Single Audit is submitted within the prescribed deadlines. Management’s Response CCEOC lost its full-time accountant due to budget cuts and has hired an accounting clerk. Voluminous amounts of documents were required for the 2023 audit, creating a number of challenges with timely collection and review. CCEOC is working to streamline accounting systems and processes.

INTERNAL CONTROL OVER COMPLIANCE AND COMPLIANCE Audit Finding Reference Number 2022 – 001 – Late Submission of Audit Report Federal Program and Specific Federal Award Identification CFDA Title and Number 93.600 Head Start Program Federal Award Year December 31, 2022 Federal Agency U.S. Department of Health and Human Services Pass-Through Entity Not Applicable Criteria Pursuant to the requirement of Uniform Guidance 2 CFR Part 200.512(a), Single audits are required to be completed and the data collection form and reporting package submitted within the earlier of thirty (30) days after receipt of the auditor’s report, or nine (9) months after the end of the audit period. If the due date falls on a Saturday, Sunday, or federal Holiday, the reporting package is due the next business day. In addition, pursuant to the requirement of Louisiana Status R.S. 24:513 A. (5)(a)(i), annual financial reports shall be completed within six (6) months of the close of an entity’s fiscal year. Conditions and Contexts The December 31, 2022 audit report was not submitted within the prescribed time frame. Required by federal regulations. The audit report was outstanding beyond the nine (9) months after the entity’s fiscal year pursuant to the federal requirements and beyond the six (6) months pursual to the Louisiana state requirements. Cause Management failed to ensure the audit report was issued within the prescribed time frame. Questioned Costs For purposes of this condition, I have no questioned cost. Effect CCEOC has not complied with the audit requirement of Uniform Guidance 2 CFR Part 200.512(a) and Louisiana Status R.S. 24:513 A. 95)(a)(i). Repeat Finding No. Recommendation I recommend that management of CCEOC take steps to ensure that the Single Audit is submitted within the prescribed deadlines. Management’s Response CCEOC advertised for audit services in January 2023 and did not receive a response. After consulting with our Board, recommendations were made to directly solicit capable firms. CCEOC was able to engage a new firm in April 2023. Due the unfamiliarity with the organization, voluminous amounts of information were required, creating a number of challenges to our part-time accounting staff.

INTERNAL CONTROL OVER COMPLIANCE AND COMPLIANCE, CONTINUED Audit Finding Reference Number 2022 – 002 – Minimum Average Daily Attendance Rate Federal Program and Specific Federal Award Identification CFDA Title and Number 93.600 Head Start Program Federal Award Year December 31, 2022 Federal Agency U.S. Department of Health and Human Services Pass-Through Entity Not Applicable Criteria Section III of the Cooperative Endeavor Agreement (CEA) between Total Community Action, Inc. (TCA) and CCEOC states in part “The Delegate shall maintain successful recruitment and full enrollment at its funded enrollment as stated in Section I, “Services to be Rendered” above, of eligible children and appropriate average daily attendance rate. A minimum average daily attendance of 85% of the enrolled children is required”. Conditions and Context The CEA between CCEOC and TCA (grantor) for the year ended December 31, 2022, required the maintenance of a 85% attendance level for its enrolled students in its Head Start Program. During the year, the attendance level was below the required 85% in part to the impact of the COVID-19 pandemic from which resulted in a mandated stay home order from the Governor for the State of Louisiana and the Mayor for the City of New Orleans to include various transitional issues For the year ended December 31,2022, CCEOC is still recovering from the COVID-19 low attendance impact and have not been able to increase attendance. Cause Various external factors include primarily the inability to recover from the COVID-19 pandemic which impacted enrolled student attendance. Questioned Cost For purposes of this condition, I have no questioned cost. Effect Noncompliance with its student attendance level. Repeat Finding Yes. See 2021-002. Recommendation It is our understanding through discussions with management that during the year ended December 31, 2022, certain waivers discussed to be put in place to accommodate the low attendance; however, the waivers were not implemented. Management should continue its outreach efforts toward activities to facilitate enrolled student attendance as well as obtaining approval for the attendance waiver. Management’s Response COVID has adversely impacted attendance, enrollment and staffing patterns for the past three years. Such occurrences have been commonplace throughout the Head Start childcare network. CCEOC continues to encourage student attendance via parent meetings and conferences.