Finding Text
2023-002 Finding – Federal Award
Type:
Special Reporting – Real Property Status Report SF-429 – Non-Compliance and Significant Deficiency in
Internal Control Over Compliance
Identification of Federal Program:
AL Number: 93.600 Head Start Cluster
Criteria / Requirement:
Annual reporting of Real Property is required for all grantees through the Real Property Status Report form
SF-429, regardless of whether or not they hold reportable property that was paid for using federal funds
under AL number 93.600. For non-federal entities with a budget period beginning July 1st, the SF-429 report
is due July 30th following the end of the year.
Condition / Context:
The Organization filed the SF-429, however the report was filed after the required date. Additionally, the
report was not reviewed prior to submission, though the information contained in the SF-429 was accurate.
Cause:
Procedures were not in place to ensure that the Organization filed the report timely, and there were no
procedures in place to ensure the report submitted was accurate.
Effect:
Failure to maintain sufficient internal controls over special reporting may result in non-compliance and or
inaccurate reporting.
Questioned Costs:
None.
Recommendation:
The Organization should establish written policies and procedures regarding special reporting such as Real
Property Status Reporting form SF-429 as well as establish organizational controls to ensure that such
policies and procedures are being followed.
Management’s Response:
We have identified gaps in our reporting processes and worked to implement changes to ensure compliance
with special reporting requirements. Policies and procedures will be updated regarding special reporting
requirements and ensure controls are in place for additional review of such reports prior to filing. Tracking
procedures will be implemented to ensure reports are filed timely. The above identified corrective action
was implemented in July 2024. Stacey Wilson, Fiscal Director, has implemented a tracking system for Real
Property Reporting form SF-429.