Finding 1236713 (2024-006)

Material Weakness Repeat Finding
Requirement
L
Questioned Costs
-
Year
2024
Accepted
2026-09-25

AI Summary

  • Core Issue: The grantee did not submit required SF-429 reports on time, leading to significant compliance failures.
  • Impacted Requirements: The Uniform Guidance mandates timely and accurate filing of SF-429 reports, which was not met.
  • Recommended Follow-Up: Implement stronger internal controls to ensure timely reporting and keep management informed about compliance requirements.

Finding Text

Item 2024-006 Reporting (Significant Deficiency in Internal Control) Assistance Listing Number 93.600 Head Start Cluster Head Start Grant No. 04CH010931-0501 U.S. Department of Health and Human Services Federal Award Year - 2024 Condition – The grantee failed to comply with the terms of the grant award related to the SF-429 – Real Property Status Report and SF-429-A General Reporting (OMC No. 4040-0016) reports. Adequate controls were not in place to ensure reports were being filed accurately and timely. Criteria – The Uniform Guidance requires that the Agency file forms SF-429 – Real Property Status Report and SF-429-A General Reporting (OMB No. 4040-0016) annually based upon the end of the budget period. 2 CFR.200.303a requires the Agency to establish and maintain effective internal control over the Federal award that provides reasonable assurance that the non-Federal entity is managing the Federal award in compliance with Federal statutes, regulations and the terms and conditions of the Federal award. Cause - Management did not have adequate controls in place to ensure the accurate and timely submission of the SF 429 report. Questioned Costs – Not applicable. Effect – Failure to submit the SF-429 – Real Property Status Report and SF-429-A General Reporting (OMB No. 4040-0016) reports accurately and timely results in noncompliance with the federal statute. The report was submitted 14 months late and $18,000 of land was not included in the report. Recommendation – We recommend the Agency implement internal controls, which will ensure the accurate and timely filing of the reports listed under Special Reporting in the Uniform Guidance. Management and the board of directors should continually be aware of the compliance requirements and related changes in the applicable compliance requirements associated with its federal awards programs. Management’s Response – Management has reviewed and accepted the finding. See “Corrective Action Plan”.

Corrective Action Plan

Item 2024‐006 Reporting - Special Failure to submit the SF‐429 – Real Property Status Report and SF‐429‐A General Reporting reports accurately and timely results in noncompliance with the federal statute. To correct this, the agency will implement a formalized reporting procedure that outlines required documentation, preparer and reviewer duties, and verification steps. A compliance calendar with automated reminders will be established, and dual-review sign-offs will be required for all submissions to ensure accuracy and completeness. To prevent recurrence, the agency will assign clear accountability for report preparation, review, and submission, supported by targeted staff training on federal real property reporting requirements. A centralized digital repository will be created for all real property documentation, ensuring consistent access and retention. The Finance Director will conduct quarterly compliance checks and report status updates to leadership, reinforcing oversight and ensuring sustained adherence to federal reporting standards. 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

Categories

Reporting Significant Deficiency Equipment & Real Property Management Matching / Level of Effort / Earmarking Internal Control / Segregation of Duties

Other Findings in this Audit

  • 1236710 2024-003
    Material Weakness Repeat
  • 1236711 2024-004
    Material Weakness Repeat
  • 1236712 2024-005
    Material Weakness Repeat

Programs in Audit

ALN Program Name Expenditures
93.600 HEAD START $3.28M
10.555 NATIONAL SCHOOL LUNCH PROGRAM $394,040
10.558 CHILD AND ADULT CARE FOOD PROGRAM $15,092