Finding 1168642 (2025-003)

Material Weakness Repeat Finding
Requirement
L
Questioned Costs
-
Year
2025
Accepted
2026-01-09

AI Summary

  • Core Issue: Reports were submitted late, violating Head Start compliance requirements.
  • Impacted Requirements: Timely submission of SF-429A and SF-425 reports is mandatory for Head Start funding recipients.
  • Recommended Follow-Up: Management should enhance internal controls to ensure reports are submitted on time.

Finding Text

Federal Agency: Department of Health and Human Services Federal Program Name: Head Start Assistance Listing Number: 93.600 Federal Award Identification Number and Year: 01HP000635 Award Period: 9/1/2024 – 8/31/2025 Type of Finding: Significant Deficiency in Internal Control over Compliance Criteria or specific requirement: Head Start requires recipients to submit SF-429A (Real Property Status Report) and the SF-425 by the specified deadline to ensure compliance. Condition: During our reporting compliance testing, CLA identified two instances where the report was submitted subsequent to the required due date. Questioned costs: N/A Context: The SF-425 report and SF-429A report is a mandatory submission for organizations who receive Head Start funding. Cause: The organization did not consistently enforce its internal controls over reporting requirements. Effect: Failure to submit the SF-429A report and SF-425 report timely. Repeat Finding: N/A Recommendation: CLA recommends that management review and update internal controls over reporting requirements to prevent untimely submissions. Views of responsible officials: There is no disagreement with the audit finding.

Corrective Action Plan

Recommendation: Management should review and update internal controls over reporting requirements to prevent untimely submissions. Explanation of disagreement with audit finding: There is no disagreement with the audit finding. Action taken in response to finding: Management reviews reporting deadlines to ensure timely submissions. Name(s) of the contact person(s) responsible for corrective action: Judy Thomas, CFO Planned completion date for corrective action plan: June 2025

Categories

Reporting

Other Findings in this Audit

  • 1168641 2025-002
    Material Weakness Repeat

Programs in Audit

ALN Program Name Expenditures
93.600 HEAD START $3.68M
84.126 REHABILITATION SERVICES VOCATIONAL REHABILITATION GRANTS TO STATES $179,000
10.555 NATIONAL SCHOOL LUNCH PROGRAM $9,716
84.181 SPECIAL EDUCATION-GRANTS FOR INFANTS AND FAMILIES $9,691
10.558 CHILD AND ADULT CARE FOOD PROGRAM $141