Finding Text
ALN 93.600 / 93.356 Head Start Category of Finding: Federal Awards – Compliance Compliance Requirement: Reporting Type of Finding: Significant Deficiency in Internal Control over Compliance Federal Agency / Pass-through Entity: U.S. Department of Health and Human Services (DHHS), Administration for Children and Families (ACF) Criteria: In accordance with 2 CFR 200.327 and the terms and conditions of the grant agreement, recipients are required to submit Federal Financial Reports (SF-425) by the established due dates. Timely submission of these reports is essential to ensure compliance with federal requirements and to allow the awarding agency to properly monitor the program. Condition: Christian Military Academy, Inc. did not comply with the required reporting deadline for one financial report. Specifically, the SF-425 report for the period ending December 31, 2024, had a due date of January 30, 2025, but was submitted on February 7, 2025. Cause: The delay was primarily caused by technical difficulties with the Payment Management System (PMS), which prevented the entity from uploading and verifying the data needed to complete the report on time. Additionally, the entity did not receive the automated PMS notification confirming creation of the report. Effect: Untimely submission of required financial reports represents noncompliance with grant requirements and could delay the awarding agency’s ability to review financial information, potentially impacting federal program oversight. Questioned Costs: None. Repeat Finding: This is not a repeat finding from the prior year. Views of Responsible Officials: Management acknowledges the finding. As explained in correspondence to the awarding agency, the delay was due to malfunctions in the PMS system and the lack of a notification email. The entity has no physical evidence of the technical issue but communicated the situation to DHHS/ACF. Christian Military Academy, Inc. has established enhanced monitoring of PMS submissions and internal controls to ensure timely submission of future reports.