Finding Text
Item 2025-001 Reporting Head Start ALN# 93.600 US Department of Health & Human Services Federal Grant/Contract Number: 04CH01239502 Grant period – 2025 Criteria – Grantees should have controls in place to ensure that grant reports are being submitted to the grantor and that those reports are being properly reviewed and approved prior to submission. 2 CFR 200.303 requires the non-Federal entity to “(a) establish, document and maintain effective internal controls over the Federal award that provides reasonable assurance that the recipient is managing the Federal award in compliance with Federal statutes, regulations, and the terms and conditions of the Federal award.” Condition – Adequate controls were not in place to ensure reports were being submitted to the grantor. One of the two Federal Financial Reports (SF-425) for the Head Start Cluster grants was not properly complete and submitted to the Payment Management System. Cause – The Agency encountered turnover within its fiscal staff during the current year which resulted in a lack of awareness of the report filing requirements and deadlines. Effect – Failure to complete and submit the proper reporting could result in a delay or loss of funding. Questioned Costs – Not applicable. Recommendation – We recommend the Agency implement controls designed to ensure that grant reporting requirements are met on a timely basis. Management’s Response – Management has reviewed and accepted the finding. See “Corrective Action Plan”.