Finding Text
Reporting Federal Agency: U.S. Department of Health and Human Services Federal Program Name: Head Start Cluster Assistance Listing Number: 93.600 Federal Award Identification Number: 05CH011421 Award Periods: March 1, 2024 – February 28, 2025 Type of Finding: Significant Deficiency in Internal Control over Compliance and Other Matters Criteria: 2 CFR Part 200 Uniform Administrative Requirements, Cost Principles, and Audit Requirements for Federal Award requires compliance with the provisions of reporting. The Organization should have internal controls designed to ensure compliance with those provisions. Condition: During our testing, it was noted the organization did not file one of the required SF-425 reports prior to the applicable due date. Questioned Costs: None Context: The required reporting was not filed. Cause: The Organization has not fully complied with reporting requirements due to turnover in the chief financial officer role. Effect: By not completing the required SF-425 reporting, the Organization is not incompliance with the terms of the award. However, this did not result in any disallowed costs as it replated to reporting requirements only. There was no misuse or improper expenditures identified in connection with this level of noncompliance. Repeat Finding: This is not a repeat finding. Recommendation: We recommend the Organization put a process in place to ensure the required reporting is completed in the timeline allowed by the granting agency and to complete any missed or late reporting as required. We also recommend a careful review of all terms and conditions of grant awards to ensure compliance with the grant award. Views of Responsible Officials: There is no disagreement with this audit finding.