Finding 601157 (2022-002)

Item 2022-002 Reporting (Repeat 2021-001) Head Start and Early Head Start Assistance Listing #93.600 Head Start Grant No. 04CH01121-03-00 U.S. Department of Health and Human Services Federal Award Year - 2022 Condition ? The grantee failed to comply with the terms of the grant award related to the SF-429 ? Real Property Status Report and SF-429-A General Reporting (OMC No. 4040-0016) reports. Controls were not in place to ensure timely review and approval of grant reports. Criteria ? The Uniform Guidance requires that the Agency file forms SF-429 ? Real Property Status Report and SF-429-A General Reporting (OMB No. 4040-0016) annually based upon the end of the budget period. 2 CFR.200.303a requires the Agency to 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. Cause - Management did not have controls in place to ensure the timely submission of the report. Questioned Costs ? Not applicable. Effect ? Failure to submit the SF-429 ? Real Property Status Report and SF-429-A General Reporting (OMB No. 4040-0016) reports timely results in noncompliance with the federal statute. Recommendation ? We recommend the Agency implement internal controls which will ensure the timely filing of the reports listed under Special Reporting in the Uniform Guidance. Management and the board of directors should continually be aware of the compliance requirements and related changes in the applicable compliance requirements associated with its federal awards programs. Management?s Response ?Management concurs with the finding. The Agency encountered technical difficulties when attempting to submit the report and is currently seeking the assistance of their representative at Region IV to assist with completing the filing requirement. The grants manager has become aware of the due date for the SF429 and where it is to be submitted and will take full responsibility for the completion and the uploading of this report.