Finding Text
Finding: 2022-010 (Significant Deficiency) 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 Federal Financial Report SF-425 three times for a twelve-month budget period, with annual reports being due ninety days after the year end of the budget period. Condition: UCCAC did not submit the annual SFR-425 for the period December 1, 2021 through November 30, 2022 within 90 days after the November 30, 2022 budget end period. Effect: UCCAC was not in compliance with its compliance reporting deadline. Cause: UCCAC lacked adequate internal controls over the preparation, review and monitoring over the SFR-425 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 timely. 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 so that reporting deadlines are met by the due date. 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.