Finding 1093746 (2024-002)

Finding 2023-003: Head Start CFDA No. 93.600 U.S. Department of Health and Human Services Compliance Requirement: Reporting Grant No.: 08CH011429-03-00 Type of finding: Internal Control (material weakness) and compliance (material noncompliance) Criteria: The receipt of federal funding requires timely submission of semi-annual and annual financial reports which accurately reflect expenditures charged to the federal program as well as receipts received and the recipient share of expenditures. Condition: Total Head Start grant expenditures, receipts, and recipient share of expenditures reported on the semiannual federal financial report (SF-425) were not reported timely. Cause: The Organization does not have a process to ensure the timely submission of semi-annual and annual financial reports prior to the grantor prior to the reporting deadline. Questioned Costs: $0 Effect: The Organization did not timely report Head Start grant expenditures, receipts, and recipient share of expenditures on the semi-annual SF-425. Recommendation: The Organization should develop a system of internal control over compliance including a review process to ensure compliance with reporting requirements. Repeat Finding: Yes Management Response: The Organization will review the financial close process to determine if additional controls can be implemented in the process.