Finding Text
Funding agency: Department of Health and Human Services. Title: Head Start. CFDA number: 93.600. Award year and number: 2025 – 10CH012508/10WH000053. Criteria: In the process of performing our audit, we noted that both reports tested were not submitted timely. Condition: According to Head Start’s listed policies and regulations, SF-425 reports are due at set periods depending on the version of the report (30 days after the period end date for the semi-annual report and 90 days for the annual report) and the beginning date of the budget period. Questioned Costs: None. Cause: Based on our review and interviews with key personnel, it appears that due to the turnover in Agency staff, uncertainty of federal stipulations for the program, and shuffling of federal staff, the reports were submitted after the due dates. Effect: The federal agency could have withheld, reduced, or ended funding to the Agency for the program, disrupting the Agency’s operations. Auditor’s Recommendations: Staff responsibilities for reporting should be clearly identified and communicated. The Agency should strengthen internal controls over the required reporting to ensure reports are submitted and approved prior to the due dates. Management’s Response: While the reports were not provided timely, the agency immediately communicated the issue, and the federal agency accepted the report, approved the costs, and renewed the grant. No additional oversight conditions were imposed. In addition, we have strengthened the reporting procedures following this incident by clarifying reporting assignments and implementing additional internal deadline reminders to ensure all required federal reports are completed and submitted within the required timeframes.