Finding Text
2024-002– Head Start Cluster Reporting Noncompliance – SF-429 Information on the Federal Program: Assistance Listing Number 93.600—Head Start Cluster, United States Department of Health and Human Services. Award Number: 04CH1171805C3/04CH0117180105. Compliance Requirements: Reporting. Type of Finding: Material Weakness. Criteria: According to the Compliance Supplement, 2 CFR Part 200, Appendix XI, published by the Office of Management and Budget (OMB) for the Head Start Cluster, report SF-429 is required for "facilities activities (purchase, construction, major renovation, subordination of a federal interest, refinancing, and disposition)". It is a Real Property Status Report form used by recipients of federal financial assistance to report on the status of real property acquired or improved with federal funds. Condition: In the current year, the Committee purchased a building using Head Start/Early Head Start funds, which falls under the criteria to complete form SF-429. The Committee did not complete this report in 2024. Cause: Form SF-429 was not filed. Effect: The report was not completed for the purchase of the building, and therefore the Committee is not in compliance with the requirement as set forth by the OMB. Recommendation: We recommend the Committee establish sufficient controls to ensure that required reports are completed and submitted in a timely manner to remain in compliance with grant requirements.