Finding Text
Finding: 2022-011 (Material Weakness) Agency: US Department of Health and Human Services ALN # and Title: 93.600 Head Start Federal Award Identification # and Year: 02CH010735/04 Criteria: Per 2 CFR 200, Appendix XI, the auditee must submit the Real Property Status Report SF-429 annually in alignment with the first due date for the Federla Financial Report SF-425 in a budget period. Condition: UCCAC did not submit the annual SFR-429 Real Property Status Report for the period December 1, 2021 through November 30, 2022. Effect: UCCAC was not in compliance with its compliance reporting deadlines. Cause: UCCAC lacked adequate internal controls over the preparation, review and monitoring over the SFR-429 reporting. UCCAC did not maintain a formal policy for monitoring the reporting requirements under the federal award nor were there procedures in place to ensure reports were submitted. Recommendation: We recommend that UCCAC implement a formal process to ensure that the reporting requirements under the Head Start grants are understood and followed in accordance with the compliance requirements. Management’s Corrective Action Plan: Management has indicated that they have put certain procedures into place as detailed in the Corrective Action Plan located in Appendix A.