Finding Text
2024-001 Timely Submission of SF-425 Reports
Federal Program: U.S. Department of Health and Human Services Head Start Cluster, Assistance Listing Number 93.600
Criteria: Under Head Start reporting requirement, the Agency is required to submit SF-425 reports within certain time frames.
Condition: The population of reports due during the fiscal year included include 1 semi-annual reports, 1 annual report, and 1 final report. The semi-annual report and the annual reports for the period ended December 31, 2023 were due by April 30, 2024. Both reports were submitted in May 2024. The final report was submitted by the due date.
Statistically Valid Sample: N/A
Cause: The Agency did not have adequate internal controls in place to ensure that the SF-425 reports were submitted timely.
Effect: The Agency is non-compliant with Head Start reporting requirements.
Questioned Costs: None
Recommendation: We recommend that the Agency implement procedures to ensure all federal reports are submitted by the required deadlines.
Views of Responsible Officials: During the fiscal year ended June 30, 2024, the Agency was required to submit a semi-annual and an annual Federal Financial Report (FFR) Standard Form 425 for the reporting period ended December 31, 2023 for its Head Start program. These reports were both due April 30, 2024. During April 2024, there was an appointment of a new Chief Financial Officer responsible for this reporting. There was a delay in gaining approval for and difficulty in gaining access to the reporting system, resulting in the reports being submitted after the due date. The semi-annual and annual reports were subsequently submitted on May 7th and 17th, 2024, respectively. The Agency acknowledges the importance of adhering to reporting deadlines and has taken steps to mitigate the risk of late reporting in the future by enabling report reminders in the reporting system to notify us when critical financial reports are due.