Finding Text
2023-003 Reporting – Significant Deficiency
Federal Program – Department of Health and Human Services (Project Head Start and Early
Head Start, AL No. 93.600).
Criteria – Head Start requirements state that by the 30th calendar day following the end of each
semi-annual period, each grantee must submit a SF-425, Federal Financial Report. The
requirements also state that an annual SF-425 Federal Financial Report be submitted no later
than 120 calendar days after the end of the project period.
Condition – The Agency did not file their semi-annual SF-425, Federal Financial Reports dated
January 31, 2023 and July 31, 2023 timely. The Agency also did not file their annual SF-425,
Federal Financial Report dated July 31, 2023 timely.
Questioned Costs – None
Context – This program requires semi-annual SF-425 reports to be submitted within 30 days after
the end of the semi-annual period. This program also requires an annual SF-425 report to be
submitted within 120 days after the end of the project period. We selected all three SF-425 reports
to test and noted that none had been filed by the due date.
Cause – The Agency does not have a system in place to ensure all reports are filed timely.
Effect – The Agency is not in compliance with reporting for Head Start.
Repeat Finding – This is not a repeat finding.
Recommendation – We recommend that internal controls over submission of the SF-425 report
be implemented to ensure timely reporting.
Views of Responsible Officials and Planned Corrective Actions - See corrective action plan for
response.