HEAD START OF NORTHEASTERN NEVADANon-Profit

2021-003 U.S. Department of Health and Human Services Head Start Program, CFDA 93.600 Activities Allowed or Unallowed and Allowable Costs/Cost Principles Material Weakness in Internal Controls over Compliance Criteria: The OMB Compliance Supplement provided that funds may be expended for costs that meet general criteria for allowability, including being necessary and reasonable for the performance of the Head Start federal award, allowable thereto and adequately documented in accordance with 45 CFR section 75,403 through 75,405. Condition: During the perform of our procedures, it was noted that out of sixty payroll transaction tested, one timesheet was missing the signature of the supervisor and one timesheet was missing both the employee?s and the supervisor?s signatures. Cause: HSNN did not have adequate internal controls to ensure that transactions are allowable under the Head Start federal award. Effect: Unallowable cost could be reimbursed by the grantor. Questioned Costs: None reported. Context/Sampling: We tested sixty out of six thousand two hundred fifty-three payroll transactions. We noted that out of the sixty payroll transactions tested, two time sheets did not have the two required approval signatures. One timesheet was missing the supervisor?s signature and one timesheet was missing both the supervisor?s and the employee?s signature. Repeat Finding from Prior Year: No. Recommendation: We recommend that management enhance internal controls to ensure that payroll transactions are supported by properly approved timesheets. View of Responsible Officials: Management agrees with this finding.

2020-002 U.S. Department of Health and Human Services Head Start Program, CFDA 93.600 Reporting Material Weakness in Internal Controls over Compliance and Material Noncompliance Criteria: The OMB Compliance Supplement provided that required reports for federal awards include all activity of the reporting period and are supported by applicable accounting records. Condition: Support for activity reported on two of four SF-425 Federal Financial Reports could not be provided. Cause: Head Start of Northeastern Nevada did not have adequate internal controls to ensure that the activity reported on the SF-425 reports were supported by applicable accounting records. Effect: Activity reported on two of four SF-425 Federal Financial Reports were not supported by applicable accounting records. Questioned Costs: None reported. Context/Sampling: We tested four out of the four SF-425 reports required to be submitted. We noted that two of the four reports were not supported by applicable accounting records. Support for how the amount of Cash Disbursements reported on line 10b could not be provided and the amount of Federal Share of Expenditures reported on line 10e was not included on the Semi-Annual Federal Financial Report signed on May 12, 2020. Support for how the amount of Cash Disbursements reported on line 10b and Share of Federal Expenditures reported on line 10e could not be provided for the Annual Federal Financial Report signed on October 29, 2020. Repeat Finding from Prior Year: No. Recommendation: We recommend that management enhance internal controls to ensure that reports are supported by applicable accounting records for the reporting period. View of Responsible Officials: Management agrees with this finding.

2019-003 U.S. Department of Health and Human Services Head Start Program, CFDA 93.600 Allowable Costs/Cost Principles Material Weakness in Internal Controls over Compliance Criteria: The OMB Compliance Supplement provided that funds may be expended for costs that meet general criteria for allowability, including being necessary and reasonable for the performance of the Head Start federal award, allowable thereto and adequately documented in accordance with 45 CFR section 75.403 through 75.405. Condition: In certain instances, the Children?s Cabinet grant postage expenses were incorrectly charged as a Head Start grant expense for a total of $21. Cause: Head Start of Northeastern Nevada did not have adequate internal controls to ensure that only Head Start grant expenses were coded as such. Effect: Unallowable cost was charged to the federal program. Questioned Costs: None reported. Context/Sampling: We selected a nonstatistical sample of 68 grant expenditures, out of 1,035. We noted three instances where a portion of postage expenses were related to a different federal award and not related to the Head Start federal award program for a total of $21. We projected the error to the total population of postage for the Head Start federal program to be $83. Repeat Finding from Prior Year: No Recommendation: We recommend that management enhance internal controls to ensure that expenses are properly coded and only allowable costs are recorded to the Head Start federal award. View of Responsible Officials: Management agrees with this finding.

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