Finding Text
Finding Number: Finding 2025-004 Program Name: Head Start and Early Head Start Pass Through Agency: N/A Type of Finding: Other matters, compliance a. Criteria: Failure to comply with the grant agreement’s terms and applicable regulations: The Organization did not comply with grant compliance requirements such as timeliness of submitting reports to funding agencies and meeting matching requirements. b. Condition: The Organization had inconsistent performance on the submission of periodic grant reports in a timely matter. This submission pattern conflicts with grant timelines outlined in the Notice of Awards. Specifically, it was noted for one of Organization’s major programs, Head Start and Early Head Start, that reports were submitted outside of defined due dates. The Form SF-429 was not filed for the 2025 fiscal year. Further, Head Start and Early Head Start experienced 2 delayed reports. Management informed us that the delays in reporting were attributable to submission issues on the federal reporting platform, which temporarily prevented timely filling despite management’s attempts to complete the report. Once access to submission was granted, management promptly submitted the required report. Sonoma Community Action Network Schedule of Findings and Questioned Costs Year Ended February 28, 2025 35 Additionally, JGD noted that the grants under Head Start and Early Head Start program require that the Organization provide matching contributions of service hours. These contributions were not made to target during the 2025 fiscal year because management believes they will be granted a waiver for this requirement. Management was successful in obtaining this waiver in the past due to COVID-19 and government shutdowns. However, we note that if they are not granted a waiver, they will not be in compliance with the grant requirement for the 2025 fiscal year. c. Context: Recipients of Federal grants are required to comply with all terms and applicable regulations of grant agreements. d. Questioned Costs: None identified e. Cause: Change in personnel and staff turnover in a failure of controls over compliance. The federal reporting platform did not grant management the option to submit their report. In terms of matching, the Organization was unable to obtain the required service hours for the grant due to the COVID-19 impact. f. Effect: The delayed reporting if uncorrected, might result in delays in the review and approval process on claim reimbursement and ability to make informed decisions about the future requirements on grant funding. Considered to be an other matter related to internal control over compliance. g. Repeat: No h. Recommendation: Management should take steps to ensure that all grant reports are submitted in a timely manner going forward. This includes adherence to system implemented to track grant report due dates and establish internal deadlines for the preparation of reports that provide adequate time for review and submission. Management should take steps to communicate with Office of Head Start to ensure they are in compliance with this requirement. Going forward, they should manage to provide enough volunteer work.