Finding 2024-004: Financial Reporting The club did not maintain proper documentation in support of financial reporting requirements for the two SF-425 reports that were tested. Corrective Action Plan The program will implement immediate corrective measures to strengthen federal financial reporting and ensure full compliance with SF-425 documentation requirements. Within the first 30 days, supporting documentation for the SF-425 reports tested will be recreated and retained to the extent possible, and a standardized SF-425 Documentation Packet will be established to include all required backup materials. A designated staff member will be assigned responsibility for preparing and retaining all SF-425 support documentation, and finance staff will receive refresher training on federal reporting requirements and documentation standards. Between 30 and 60 days, the program will implement a Financial Reporting Documentation Policy requiring supporting schedules for each SF-425 line item, retention of all source documentation, and clear identification of preparers and reviewers. SF-425 preparation and documentation tasks will be integrated into the monthly and quarterly fiscal compliance calendar, and dual review and sign-off will be required for each submission to ensure accuracy and completeness. From 60 to 90 days, the program will strengthen reporting processes by implementing a SF-425 Preparation Checklist, establishing a centralized digital folder structure with restricted access and audit-ready program, cross-training additional staff to ensure continuity, and updating fiscal policies to reflect strengthened documentation and review procedures. Long-term oversight will include quarterly reporting compliance updates from the Finance Officer to the Head Start Director, Policy Council, and Executive Board; annual internal monitoring of SF-425 documentation packets; and maintenance of all federal reporting documentation for the required retention period under Uniform Guidance. Financial reporting procedures will be reviewed and updated annually. Full implementation will occur within 90 days, quarterly monitoring will remain ongoing, and annual policy review will occur each fiscal year. Evidence of completion will include completed SF-425 documentation packets, signed preparation and review checklists, updated fiscal policies and procedures, and quarterly compliance reports submitted to the Policy Council and Executive Board. Responsible Personnel: Cynthia Cooper – Chief Finance Officer: Oversight, review, and compliance monitoring Sharon Jordan - Head Start Director: Accountability and reporting Estimated Date of Completion: December 2026