Audit 414826

Program Name – Head Start Federal Assistance Listing Number – 93.600 Pass-through Entity – N/A Finding Type – Significant Deficiency and Noncompliance Criteria – As per DHHS Grant Policy, the Agency must submit the semiannual and annual SF 425 reports within the specific time period as stated in the grant agreement. Condition – During our audit, we noted that the semiannual and annual SF 425 report were submitted after the due date. Cause/Effect – The Agency is not in compliance with the reporting requirements. Questioned Costs – Unknown Identification of a Repeat Finding- This is a repeat finding and was identified in the previous year’s report as finding # 2023-003. Recommendation – We recommend the Agency strengthen internal controls over reporting compliance to adhere to applicable reporting requirements.

Program Name – Head Start Federal Assistance Listing Number – 93.600 Pass-through Entity – N/A Finding Type - Noncompliance Criteria - 2 CFR section 200.512(a) requires the auditee to submit the data collection form and reporting package to the Federal Audit Clearinghouse within the earlier of 30 calendar days after receipt of the auditor's report or nine months after the end of the audit period, unless a longer period is authorized by federal requirements. Condition and Description – The Agency did not submit its Single Audit data collection form and reporting package to the Federal Audit Clearinghouse within the required nine-month period following the end of its November 30, 2024, fiscal year. The reporting package was therefore not submitted by the required August 31, 2025, deadline. Cause and Effect – Turnover within the Agency's fiscal department, together with delays in completing year-end account reconciliations, correcting the accounting records, assembling supporting documentation, and completing the annual audit, prevented the Agency from completing and submitting its Single Audit reporting package within the required timeframe. As a result, the Agency did not comply with the reporting requirements of 2 CFR Section 200.512(a). Questioned Costs – None. Identification of a Repeat Finding – A similar condition related to the untimely completion and submission of the Single Audit reporting package was included in prior-year Finding 2023-001. Recommendation – We recommend that the Agency establish and monitor a formal year-end financial reporting and Single Audit completion timeline designed to ensure that the annual audit and required reporting package are completed and submitted to the Federal Audit Clearinghouse within the timeframe prescribed by the Uniform Guidance. The process should include clearly assigned responsibilities, interim completion dates, periodic monitoring by management and those charged with governance, and timely corrective action when delays are identified.