Finding 1138680 (2024-002)

2024-002 Reporting – Significant Deficiency Federal Program – Department of Health and Human Services (Project Head Start and Early Head Start, AL No. 93.600). Criteria – Head Start requirements state that by the 30th calendar day following the end of each semi-annual period, each grantee must submit a SF-425, Federal Financial Report. The requirements also state that an annual SF-425 Federal Financial Report be submitted no later than 120 calendar days after the end of the project period. Condition – The Agency did not file their semi-annual SF-425, Federal Financial Reports dated January 31, 2024 and July 31, 2024 timely. The Agency also did not file their annual SF-425, Federal Financial Report dated July 31, 2024 timely. Questioned Costs – None Context – This program requires semi-annual SF-425 reports to be submitted within 30 days after the end of the semi-annual period. This program also requires an annual SF-425 report to be submitted within 120 days after the end of the project period. We selected all three SF-425 reports to test and noted that none had been filed by the due date. Cause – The Agency does not have a system in place to ensure all reports are filed timely. Effect – The Agency is not in compliance with reporting for Head Start. Repeat Finding – This is a repeat finding. Recommendation – We recommend that internal controls over submission of the SF-425 report be implemented to ensure timely reporting. Views of Responsible Officials and Planned Corrective Actions - See corrective action plan for response.