Finding 1166329 (2025-001)

Material Weakness Repeat Finding
Requirement
L
Questioned Costs
-
Year
2025
Accepted
2025-12-23

AI Summary

  • Core Issue: The Agency failed to submit required SF-425 reports for the Head Start program on time, resulting in non-compliance.
  • Impacted Requirements: Reports due were a semi-annual report by July 30, 2024, and an annual report by March 31, 2025, both submitted late.
  • Recommended Follow-Up: Implement a centralized reporting calendar with automated reminders to ensure all federal reports are submitted by deadlines.

Finding Text

Federal Program: U.S. Department of Health and Human Services Head Start Cluster, Assistance Listing Number 93.600, 06CH011572 Criteria: Under Head Start reporting requirement, the Agency is required to submit SF-425 reports within certain time frames. Condition: The population of reports due during the fiscal year included 1 semi-annual reports, and 1 annual report. The semi-annual report and the annual reports for the period ended December 31, 2024 were due by July 30, 2024 and March 31, 2025, respectively. The semi-annual and annual reports were submitted February 13, 2025 and April 1, 2025, respectively. Statistically Valid Sample: N/A Cause: The Agency did not have adequate internal controls in place to ensure that the SF-425 reports were submitted timely. Effect: The Agency is non-compliant with Head Start reporting requirements. Questioned Costs: None Repeat Finding: Yes – 2024-001 Recommendation: We recommend that the Agency implement procedures to ensure all federal reports are submitted by the required deadlines, The Agency should consider implementing a centralized reporting calendar with automated reminders to ensure timely submission of all required reports. Views of Responsible Officials: During the fiscal year ended June 30, 2025, the Agency was required to submit a semi-annual and an annual Federal Financial Report (FFR) Standard Form 425 for the reporting period ended December 31, 2024 for its Head Start program. These reports were due July 30, 2024 for the semi-annual report and March 31, 2025 for the annual reports. The semi-annual and annual reports were subsequently submitted on February 13th and April 1st, 2025, respectively. The Agency acknowledges the importance of adhering to reporting deadlines and has taken steps to mitigate the risk of late reporting in the future by enabling report reminders in the reporting system to notify us when critical financial reports are due.

Corrective Action Plan

The agency acknowledges the necessity of timely, accurate reporting to funders and stakeholders. The agency plans to implement electronic calendars and checklists which will be used to monitor and manage these deadlines to ensure they are met. We anticipate completion within the fiscal year, 2026.

Categories

Reporting

Programs in Audit

ALN Program Name Expenditures
93.600 HEAD START $7.24M
93.566 REFUGEE AND ENTRANT ASSISTANCE STATE/REPLACEMENT DESIGNEE ADMINISTERED PROGRAMS $1.68M
93.667 SOCIAL SERVICES BLOCK GRANT $615,445
84.002 ADULT EDUCATION - BASIC GRANTS TO STATES $564,098
94.011 AMERICORPS SENIORS FOSTER GRANDPARENT PROGRAM (FGP) 94.011 $288,742
10.558 CHILD AND ADULT CARE FOOD PROGRAM $231,286
14.267 CONTINUUM OF CARE PROGRAM $207,004
19.510 U.S. REFUGEE ADMISSIONS PROGRAM $173,707
21.027 CORONAVIRUS STATE AND LOCAL FISCAL RECOVERY FUNDS $154,792
93.558 TEMPORARY ASSISTANCE FOR NEEDY FAMILIES $118,361
16.575 CRIME VICTIM ASSISTANCE $81,119
97.010 CITIZENSHIP EDUCATION AND TRAINING $64,345
93.576 REFUGEE AND ENTRANT ASSISTANCE DISCRETIONARY GRANTS $28,266
10.555 NATIONAL SCHOOL LUNCH PROGRAM $21,319