Audit 414236

Finding #2026-001 Type: Immaterial Noncompliance Assisting Listing Number: 93.600 Federal Agency: U.S. Department of Health and Human Services Name of Federal Program: Head Start Condition: One SF-425 Federal Financial Report selected for testing, for the reporting period ended November 30, 2025, was submitted after the required 30-day reporting deadline. The report related to a one-time capital award with a reporting period that differed from the Organization’s regular February through January federal program cycle. The award was fully expended, with no remaining federal balance. Context: The late submission appears to be an isolated issue. Cause: The reporting deadline was not identified timely because the one-time capital award had a reporting period that differed from the Organization’s regular federal program reporting cycle, which contributed to confusion regarding the applicable due date. Effect: The late submission resulted in immaterial noncompliance with federal reporting requirements. No questioned costs were identified, and the award was fully expended with no remaining federal balance. Questioned Costs: None. Recommendation: We recommend the Organization continue to maintain procedures for identifying and monitoring reporting deadlines for federal awards, including non-recurring awards or awards with reporting periods that differ from the Organization’s standard grant cycle. Management Response: Management concurs with the finding. The late submission related to a one-time capital award with a reporting period that differed from the Organization’s regular federal program cycle. Management has clarified the reporting deadline requirements going forward and will continue to monitor federal reporting deadlines to ensure timely submission of required reports.