PRE-AUDIT ASSESSMENT FOR HEAD START PROGRAM COMPLIANCE Below is a list of things the auditor will determine during the course of his audit examination. . A. THE CHILDREN 1. That student enrollment records support compliance with eligibility requirements. 2. That the recruitment process is geared to seeking out children from the most disadvantaged homes. a. That the target area has been identified. b. That recruitment and selection process is adequately documented. B. THE PARENTS 1. That planned program exists that: a. Involves parents in decision making program planning and operations b. Allows parents to participate in classroom and other program activities. c. Provides activities for parents which they have helped to develop. d. Allows parents to work with their own children in cooperation with Head Start staff . 2. The above items should be supported by written minutes of meetings, progress reports, memos etc. C. THE STAFF 1. That the staffing pattern is in conformity with OCD requirements. 2. That a written training plan exists for pre-service and in-service training, and is being followed. 3. That written policies exist which cover sick and annual leave, insurance and other fringe benefits and a written compensation system. D. THE COMMUNITY 1. That evidence exists which shows community involvement in the Head Start program. a. That the director has coordinated the activities of the Head Start program with the activities of other organizations in the community. b. This activity should be supported by written minutes of meetings, reports and memo D. THE COMMUNITY (Cont'd) 2. That the Head Start program increases and supplements existing non-Federal programs. a. That resources formerly directed to existing anti-poverty activities are not being diverted to the Head Start program in order to meet the non-Federal share matching requirement. b. That effort has been made by grantee to obtain help and services from other Federal, state and local agencies to supplement the funds provided by HEW. 1. That an overall written education plan exists. a. That it is updated at least annually. b. That it reflects the actual activities designed to meet the individual needs of children, the special needs of handicapped children and the education priorities of the local community. 2. That the Head Start program has a social service program which links the center, the family, and related community services and resources. 3. That the grantee has established a nutritional program for each center, and that a nutritionist or home economist is responsible for the program. a. That food purchases are made in an economical manner. b. That weekly menus are posted and provided for the serving of hot meals at least once each day. c. That the grantee has posted the required licensing and inspection certificates in conformity to local-state standards regarding storage, preparation and service of food. F. SAFETY & FACILITIES That the grantee and delegate agencies are in compliance with State and local licensing requirements for fire and safety of the Head Start centers. PRE-AUDIT CHECKLIST Prior to your annual audit, the following procedures should be followed: Performed By 1. Prepare a trial balance from the general ledger as of the balance sheet date. 2. Obtain trial balance from any affiliate or delegate agency as of the same date. 3. Ascertain that offsetting account balances of the affiliates or delegate agencies are in agreement with your records. Reconcile any differences. 4. Reconcile all bank accounts as of the balance sheet date. 5. Ascertain that monthly totals in Cash Receipt Journal agree with postings in the General Ledger. Reconcile any differences 6. Ascertain that monthly totals in Cash Disbursements Journal agree with postings in the General Ledger Reconcile any differences. 7. Confirm all cash funds (eg. petty cash) by counting them. . 8. Review authorization and approval procedures for receipts and disbursements and ascertain that they are being followed. 9. Prepare a list of any notes receivable as of the balance sheet date. Be sure accrued interest has been recorded. 10. Prepare a summary of accounts receivable as of balance sheet date. 11. Ascertain that detail receivable ledger totals agree with 'general ledger control balance. 12. Prepare a detailed list of receivables due from employees, officers, and directors, as of balance sheet date. 13. Prepare an insurance schedule of all insurance carried as of the balance sheet date showing the amount of unexpired insurance premiums. Be sure expired portion has been recorded as expense 14. Prepare a detailed schedule of all prepaid interest with references to the notes payable to which the interest belongs (as of the balance sheet date). 15. Prepare a detailed schedule of prepaid or accrued taxes as of balance sheet date. 16. Ascertain that detailed property records contain information as to description, cost, source of funds, and grant number and property I D number. 17. Reconcile the detailed property records to the general ledger as of the balance sheet date. 18. Have available the detailed property inventory list as of last physical count. 19. Prepare a list of all deposits as of the balance sheet date showing depository and the purpose of the deposit. 20. Prepare a detailed listing of all notes payable as of the balance sheet date showing name of note holder, date, principal, interest and rate. . 21. Prepare a detailed listing of all accounts payable as of the balance sheet date showing name of o payee, date, amount and account number. 22. Accrue all current liabilities as of the balance sheet date (record in the General Journal and post to the General Ledger). 23. Prepare a schedule of all long-term debt as of the balance sheet date. 24. Review payroll procedures and ascertain that they are being followed. 25. Ascertain that totals in the payroll journal agree with general ledger account balances. 26. Review travel procedures and ascertain that they are being followed by spot checking some travel expense reports. 27. Ascertain that personnel files contain the required documents (e.g. employment application and disposition thereof, W-4 forms, other deduction authorization forms, personnel action form, time sheets and leave '-' records. 28. Review procedures for hiring consultants and other contract services and ascertain that procedures are being followed. 29. Ascertain that non-Federal share has been recorded in, the books in the required ratio. 30. Be sure that individual non-Federal receipt vouchers total to the general ledger account balance for non-Federal share.