Finding 1224644 (2025-002)

FINDING 2025-002 Assistance Listing Number 93.600 Head Start Federal Agency U.S. Department of Health and Human Services Pass-through Agency Not applicable Award Numbers / Years 05CH012050, 2025 05HP000439, 2025 05HP000514, 2024 City Department Chicago Department of Family and Support Services (DFSS) Criteria: Under the requirements of the Federal Funding Accountability and Transparency Act (FFATA) (Pub L. No. 109-282), hereafter referred as the "Transparency Act" that are codified in 2 CFR Parts 25 and 170, recipients (i.e., direct recipients) of grants or cooperative agreements are required to report first-tier subawards of $30,000 or more to the System for Award Management (SAM.gov). The subaward data reported must accurately represent the key data elements supported by the source documentation. These key data elements include the following: Subawardee Name, Subawardee UEI#, Amount of Subaward, Subaward Obligation/Action Date, Date of Report Submission, Subaward Number, Subaward Project Description, Subaward Names and Compensation of Highly Compensated Officers if thresholds are met. Reporting submission must be no later than the last day of the month following the month in which the subaward/subaward amendment obligation was made or the subcontract award/subcontract modification was made. Condition/Context: Out of 30 subawards selected, nine subawards were found to be submitted beyond the due date. In addition, the subawardee’s UEI was not included in the data reported. Our sample was not statistically valid. See below for the errors noted: Assistance Listing Number 93.600 Transactions tested / Dollar amount 9 transactions $15,529,562 Subawards not reported / Dollar amount N/A Reports not timely / Dollar amount 9 reports $15,529,562 Subawards amount incorrect/ Dollar amount N/A Subawards missing key elements / Dollar amount 9 subawards $15,529,562 Effect: DFSS is not in compliance with the reporting guidelines required by FFATA for the Head Start program. Questioned Costs: None noted. Cause: DFSS did not have a process in place to ensure FFATA reporting was done timely during times of department turnover and transition. Recommendation: We recommend the Chicago Department of Family and Support Services (DFSS) ensure that reporting under FFATA is completed for all relevant subawards by the required due date with the correct key data elements maintained in each subaward and is reviewed for accuracy and completeness compared to the subawards' source documentation. Views of Responsible Officials: See Corrective Action Plan.