Finding Text
Federal Program: Head Start Cluster (CFDA #93.600) Federal Agency: U.S. Department of Health and Human Services Federal Award Number(s): 08CH012021-02-01 Compliance Requirement: Reporting Questioned Costs: None noted Condition – During testing of reporting requirements for the Head Start program we noted that SF-429-B was not submitted prior to purchasing land during the budget period and SF-429-A for the budget period July 1, 2022 through June 30, 2023 was also not submitted. Criteria – 45 CFR §1303.44 – 1303.47 requires grantees to obtain prior approval from the Office of Head Start (OHS) before purchasing real property and to record a federal interest. SF-429-B must be submitted and approved prior to the acquisition and SF-429-A must be submitted annually for each property in which the federal government retains an interest. Cause – Due to staffing changes not all staff responsible for grant administration were fully aware of the SF-429 reporting obligations associated with real property acquisition under the Head Start program. Effect – Lack of required reporting increases the risk that real property may be acquired, used, or disposed of without proper federal oversight, which may result in administrative action or potential disallowance of costs. Recommendation – We recommend that the government establishes procedures to ensure that SF-429-A is submitted annually for all properties with a federal interest. As well as provide training to program staff on Head Start real property requirements under 45 CFR Part 1303. Client Response – We worked with those in charge of the Head Start grant closely through the process regarding the federal interest. We no longer own the property and have no plans to do so in the future. Status of Finding – This is not a repeat finding from the prior year.