Audit 405602

Finding 2025-001 – Reporting Federal Agency: U.S. Department of Health and Human Services Federal Program: Head Start Cluster AL Number: 93.600 Pass-through: Not applicable Award Number: 05CH012552-01 & 05CH012552-02 Award Year: 2024/2025 & 2025/2026 Type of Finding: Significant Deficiency and Noncompliance Criteria: 2 CFR 200.328(c) requires a recipient of a Federal award to submit financial reports as required by the Federal award. Reports submitted annually by the recipient must be due no later than 90 calendar days after the reporting period. Reports submitted semiannually must be due no later than 30 calendar days after the reporting period. As a recipient of Federal funding, the Association is responsible for ensuring financial reports are complete, accurate, and submitted timely in accordance with these requirements. Management is also responsible for establishing and maintaining internal controls to ensure compliance with applicable laws and regulations. Condition: During the audit period, one annual and one semiannual financial report were due as required under the Federal awards referenced above. Neither reports were submitted within the required time period as stated in the Criteria. Cause: The Association lacked adequate internal controls over the preparation, review, and submission of the Federal financial reports, resulting in untimely submissions. Effect: Failure to adhere to the reporting requirements could result in disciplinary action from the Federal agency. Questioned costs: None Identification of how questioned costs were computed: Not applicable Repeat finding: Not applicable Recommendation: We recommend the Association establish, implement, and consistently follow an internal control policy to ensure financial reports are submitted timely and accurately. Views of responsible officials: See Corrective Action Plan.