Finding Text
2022-002 – Real Property Status Special Reporting – Significant Deficiency in Internal Controls over Compliance
Federal Program Information:
Funding Agency: U. S. Department of Health and Human Services
Title: Headstart Cluster
CFDA Number: 93.600
Federal Award Identification number: N/A
Pass Through Entity: N/A
Award Year: 2022
Condition: During our review of the SF-429 report, the EIN number was incorrect, there was no certifying signature, and the report was submitted after the due date.
Criteria: Per Title 2 US Code of Federal Regulations Part 200.303a, non-federal entity must establish and maintain effective internal control over the Federal award that provides reasonable assurance that the non-Federal entity is managing the Federal award in compliance with Federal statutes, regulations, and the terms and conditions of the Federal award. These internal controls should be in compliance with guidance in “Standards for Internal Control in the Federal Government” issued by the Comptroller General of the United States or the “Internal Control Integrated Framework”, issued by the Committee of Sponsoring Organizations of the Treadway Commission (COSO).
Under 45 CFR 75.319(a), Title to Federally-owned property remains vested in the Federal Government, and the non-Federal entity must submit annually an inventory listing of Federally-owned property in its custody to the HHS awarding agency. The Form SF-429 is used for this reporting.
Questioned costs: None
Effect: The Entity’s real property may not be appropriately tracked by the Entity and the Federal government without current and accurate reporting. Use of an incorrect identifying number could cause discrepancies in Federal oversight of real property held by the Entity’s Federal program.
Cause: The Entity does not have policies and procedures in place to ensure information is accurate and approved and submitted in a timely manner.