Finding Text
Section III - Federal Award Findings and Questioned Costs Finding 2025-002 – Reporting – Significant Deficiency Name of 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 and Year: 02CH01292101: Budget Period – December 1, 2024 – November 30, 2025 Criteria In accordance with the Head Start Policy and Regulations, Program Instructions for Federal Reporting of Standard Forms 425 and 428, Federal Financial Report SF-425, with a budget period that begins on December 1 is required to be submitted semi-annually by June 30. Condition During our testing of the reporting requirements, we noted that the semi-annual report for the budget period December 1, 2024 to November 30, 2025 was submitted untimely on July 2, 2025. Cause There was no process in place to track the due dates of the Federal Financial Reports. Effect or Potential Effect This condition resulted in the untimely filing of one of the semi-annual Federal Financial Reports. Questioned Costs None Context One exception from the two semi-annual Federal Financial Reports filed. Identification as a Repeat Finding This finding is not a repeat finding. Recommendation We recommend that management put in place a tracking mechanism as part of its policies and procedures that identifies the due dates of all Federal Financial Reports, and the dates by which they should be finalized and presented for review to ensure filings are done by the pertinent due dates. Views of Responsible Officials To ensure timely submission of these forms, the Organization has designated a finance staff member to handle all Head Start required financial reporting forms. Additionally, under the organization’s new enterprise resources planning (ERP) system, specific milestones will be set around these submission requirements and due dates, to further enforce deadline compliance.