Finding Text
2025-001 — Reporting Federal program information: Funding Agency: U.S. Department of Health and Human Services Title: Head Start Assistance Listing Number : 93.600 Award Year: July 1, 2024 – July 31, 2025 Criteria: The program is required to submit a semi-annual and an annual SF-425 report during the award period. Condition: The semiannual SF-425 report selected for testing was not prepared or submitted to the granting agency. Context: One of one semi-annual SF-425 report tested. Questioned Costs: None. Cause: Internal controls have not been implemented to ensure that the semiannual SF-425 report is submitted in a timely manner. Effect: SNMCAC is not in compliance with reporting requirements for the Head Start program. Auditor’s Recommendations: SNMCAC should develop internal controls to ensure that financial reports are properly completed and submitted to the granting agency by the required due dates. Documentation substantiating compliance with reporting requirements should be maintained. Such documentation should include reconciliations of amounts in the financial reporting forms to SNMCAC’s accounting records. Management’s Response: SNMCAC acknowledges the finding related to the semi-annual SF-425 reporting requirement. SNMCAC prepared and submitted the SF-425 report within the required timeframe. However, the report was not accepted by the Office of Head Start due to the pending approval of a waiver of non-federal matching. During this period, the Office of Head Start was affected by a federal shutdown and a reorganization of their regional offices that included the closure of the regional office overseeing the grant. This contributed to delays in communication and timely resolution.