Finding Text
2025-003 – Noncompliance with Reporting Requirements – Significant Deficiency Federal Assistance Listing Number (“FALN”): 93.600 Name of Program or Cluster: Head Start Cluster Federal Agencies: Department of Health and Human Services (“HHS”) Compliance Requirement: Reporting Condition The Settlement did not submit required semi-annual SF-425 Federal Financial Reports (“FFR’s”), which are due 30 days after the end of the reporting period Condition (continued) Additionally, the Settlement did not submit required annual SF-429 Real Property Status Report within the required deadlines which is due 90 days after the reporting period per HHS requirements and terms of the award. Criteria In accordance with 2 CFR §200.328 and the applicable award terms and conditions, the Settlement is required to submit the SF-425, Federal Financial Report, and SF-429, Real Property Status Report, within the timeframes established by the federal awarding agency. Cause The condition appears to be due to insufficient internal controls over the monitoring of reporting deadlines and extensions, and the review process to ensure timely submission. Effect This condition resulted in the Settlement not being in compliance with federal reporting requirements. Untimely reporting may limit the federal agency’s ability to effectively monitor program performance and financial activity. Questioned Costs None Context No questioned costs were identified. The finding relates to the untimely submission of required reports and does not impact the allowability of program expenditures; however, timely reporting is necessary to support effective federal oversight. Recommendation We recommend that the Settlement enhance its internal control procedures over the reporting process by implementing a mechanism to track reporting deadlines and ensuring timely preparation, review, and submission of required reports. Views of Responsible Officials See Corrective Action Plan in Appendix 1.