Finding Text
Criteria: All Head Start recipients are required to submit financial reports detailing the expenditures incurred for their awards. The federal expenditures reported should be reported based on the basis of accounting selected.
Condition: On the semi-annual SF-425 filing as of March 31, 2024, management denoted the basis of accounting as accrual. The Federal share of expenditures reported did not include all applicable accruals and did not reconcile to the general ledger. Cause: Due to the turnover in the CFO position, the SF-425 was not completed accurately and was not reviewed.
Effect: The semi-annual SF-425 filed was inaccurate.
Recommendation: The Organization should amend its SF-425 filings to correctly report financial information.
Management’s Response: The Agency acknowledges this error and agrees with the recommendations. The Agency provides the additional context that this issue was related to a vacancy in the CFO’s position in early 2023. In response to this finding, the Agency will communicate with the Office of Head Start to determine if a revised report should be submitted.