Finding Text
Assistance Listing Numbers: 93.356, 93.600 – Head Start Cluster
U.S. Department of Health and Human Services
Type of Finding: Material Weakness in Internal Control over Compliance and Noncompliance
Compliance Requirement: Reporting
Criteria
As a condition of receiving Federal awards, non-Federal entities agree to comply with laws, regulations
and the provisions of grant agreements and contracts, and to maintain internal control to provide
reasonable assurance of compliance with these requirements.
The U.S. Department of Health and Human Services has established “reporting” compliance requirements
applicable to the Head Start Cluster which stipulate that recipients submit financial reporting forms of
program revenues and expenditures (SF-425) and real property (SF-429) subject to the terms and
conditions of the contract.Condition
The Agency was delinquent in submitting its semi-annual, annual, and final Federal Financial Reports (SF-
425) and its Real Property Status Report (SF-429) to the granting agency for Head Start during fiscal year
2023 due to the need for strengthened written procedures and staff training.
Cause
The Agency’s internal control over compliance for the reporting requirement of the Head Start program
is inadequate to ensure timely submission of the required information.
Effect or Potential Effect
As a result of the deficiency in internal control over compliance over reporting, the Agency is not in
compliance with the financial reporting due dates of the Head Start program.
Recommendation
We recommend that Agency’s management evaluate and improve its controls over the reporting
requirements of the Head Start program to help ensure compliance with the requirements.