Finding Text
Head Start Financial and Special Reporting Grant No(s): 06HE000754-01, 06CH011990-04, 06CH011990-03, 06CH011990-05 06HP000184-05, 06HP000522-01 Criteria: DHHS regulations and grant awards set the criteria for DHHS Financial Reports. These reports are due quarterly, semi-annually, and annually from Head Start grantees. Financial Reports must be submitted and reviewed within a certain timeframe based upon the end of the budget period. DHHS regulations and grant awards set the criteria for DHHS Annual Special Reports (OMB No. 4040-0016). This report is due annually from Head Start grantees. Annual Special Reports must be submitted and reviewed within a certain timeframe based upon the end of the budget period. Reports should be supported by applicable accounting and performance records. Condition: Of the reports selected for testing: • One SF-425 Annual Financial Reports had a submission deadline of February 28, 2025 and was submitted on June 13, 2025. • One SF-429 Real Property Status Report and SF-429A General Reporting report was due May 31, 2025 and was submitted on January 21, 2026. Universe/Population: The universe/population for Financial Reporting is one SF-425 Semi-Annual Financial Report, one SF-425 Annual Financial Report, and one SF-425 Final Reports. EA selected one of the two SF-425 Semi-Annual Financial Reports, one of the three SF-425 Annual Financial Reports, and the only SF-425 Final Report for testing of reporting compliance requirements applicable to the program. The universe/population for Special Reporting is three annual SF-429 Real Property Status Reports and SF-429A General Reporting (OMB No. 4040-0016). EA selected one of the annual Special Reports for testing of reporting compliance requirements. Cause: Jefferson Parish lacks an established control monitoring timely submission of Financial and Special Reports. Effect: Failure to comply with the reporting requirements may result in sanctions, including: temporary withholding of cash payments, whole or partial suspension of the Federal award, suspension, debarment or limited denial of participation in Department of Health and Human Services programs pursuant to 45 CFR 75.971. Questioned Costs: None determined. Identification of a repeat finding: This is a repeat finding from the previous audit, 2024-005. Recommendation: Jefferson Parish should establish a formalized control to monitor timely submission of Financial and Special Reports. View of Responsible Officials: Management acknowledges this repeat finding and the importance of full compliance with federal reporting requirements. While progress has been made, additional monitoring is still necessary to fully remediate this issue. As part of these efforts, Jefferson Parish has established a process to monitor the timely submission of reports in compliance with federal requirements. While this is a repeat finding, the prior finding was identified midway through the 2025 fiscal year, so we expect that this finding to be resolved for the fiscal year 2026. Management considers the corrective action to be substantially implemented. Ongoing review has been put into place to confirm continued compliance. Chief Administrative Assistant Nicole Thompson will continue to monitor the submission of timely reports in compliance with federal requirements.