Finding Text
Criteria
As a condition of receiving Federal awards, non-federal entities agree to comply with laws, regulations and the provisions of grant agreements and contracts, and to maintain internal control to provide reasonable assurance of compliance with these requirements. The U.S. Department of Health and Human Services has established reporting compliance requirements applicable to the Head Start Cluster which stipulate that recipients submit financial reporting forms of programs revenues and expenditures (SF-425) and real property (SF-429) subject to the terms and conditions of the contract.
Condition
The Agency was delinquent in submitting its semi-annual, annual, and its Real Property Status Report (SF-429) to the granting Agency for Head Start during fiscal year 2024.
Cause
The Agency’s internal control over compliance with the reporting requirement for the Head Start program is inadequate to ensure timely submission of the required financial information.
Effect or Potential Effect
As a result of the deficiency in internal control over compliance over reporting, the Agency is not in compliance with the financial reporting due dates of the Housing Voucher Cluster program.
Recommendation
We recommend that Agency’s management evaluate and improve its controls over the reporting requirements of the Head Start program to help ensure compliance with the requirements.
Views of Responsible Officials and Planned Corrective Action Plan
See corrective action plan.