Finding 1228511 (2023-004)

Material Weakness Repeat Finding
Requirement
L
Questioned Costs
-
Year
2023
Accepted
2026-08-31

AI Summary

  • Core Issue: Required reports for the Head Start program were submitted late, violating federal deadlines.
  • Impacted Requirements: Quarterly and Annual Federal Financial Reports (SF-425) and the single audit package were not submitted on time.
  • Recommended Follow-Up: Establish formal reporting controls, including a reporting calendar and supervisory reviews, to ensure timely submissions.

Finding Text

2023-004 Head Start Reporting Federal Program Information: Funding agency: Department of Health and Human Services Title: Head Start Cluster AL number: 93.600 Questioned Costs: None Criteria – Recipients are required to submit Quarterly and Annual Federal Financial Reports (SF-425) and Real Property Status Reports (SF-429), when applicable, by the deadlines established by the grant agreement and federal reporting requirements. In addition, the single audit package was due to the Federal Audit Clearinghouse within 9 months of fiscal year end, or by March 31, 2024. Condition – During our testing of reporting requirements, we noted that certain required reports and the audit package were not submitted by the required due dates. Cause – Management had not established adequate controls, including monitoring and review procedures, to ensure all required reports were prepared and submitted by their applicable deadlines. Effect – Noncompliance with federal reporting requirements occurred. Specifically: -The fourth-quarter SF-425, due November 30, 2022, was submitted on April 24, 2023. -The SF-429, due November 30, 2023, was submitted on December 18, 2023. - The single audit package was submitted after the due date of March 31, 2024. Recommendation – We recommend management implement and monitor formal reporting controls, including maintaining a reporting calendar, assigning responsibility for report preparation and submission, and performing supervisory review of filing deadlines to ensure all required reports are submitted timely. Views of Responsible Officials – Management agrees with the finding and has developed a corrective action plan.

Corrective Action Plan

Finding 2023-004 Head Start Reporting Contact person responsible for corrective action: Bryana Marsicano, Chief Executive Officer Anticipated completion date: October 31, 2026 Corrective Action: Management agrees with the finding and will implement the following reporting controls: • Maintain a federal reporting calendar listing each required report, including the quarterly and annual SF-425, the SF-429 where applicable, and the annual single audit reporting package, together with the reporting period covered, the due date, the assigned preparer, and the assigned reviewer. • Assign a primary and a backup preparer for each report so that submissions are not dependent on a single individual. • Require documented supervisory review and approval of each report before submission. • Retain the submission confirmation for every report filed through the Payment Management System, the Head Start Enterprise System, and the Federal Audit Clearinghouse. • Review the reporting calendar monthly to confirm that upcoming filings are assigned and that completed filings were submitted by their due dates. • Submit the reporting package for the year ended June 30, 2023 to the Federal Audit Clearinghouse promptly upon issuance of the audit report.

Categories

Reporting

Other Findings in this Audit

  • 1228507 2023-003
    Material Weakness Repeat
  • 1228508 2023-004
    Material Weakness Repeat
  • 1228509 2023-005
    Material Weakness Repeat
  • 1228510 2023-003
    Material Weakness Repeat
  • 1228512 2023-005
    Material Weakness Repeat

Programs in Audit

ALN Program Name Expenditures
93.778 MEDICAL ASSISTANCE PROGRAM $642,122
93.600 HEAD START $112,311
10.558 CHILD AND ADULT CARE FOOD PROGRAM $56,062
93.590 COMMUNITY-BASED CHILD ABUSE PREVENTION GRANTS $37,329
93.556 MARYLEE ALLEN PROMOTING SAFE AND STABLE FAMILIES PROGRAM $33,514
84.181 SPECIAL EDUCATION-GRANTS FOR INFANTS AND FAMILIES $17,349