Finding Text
Finding 2022-001:Head Start CFDA No. 93.600 U.S. Department of Health and Human Services Compliance Requirement: Reporting Grant No.: 08CH011429-02-02 Type of finding: Internal Control (material weakness) and compliance (material noncompliance) Condition: Total Head Start grant expenditures, receipts, and recipient share of expenditures reported on the semi-annual federal financial report (SF-425) were not reported accurately or timely. Cause: The Organization does not have a process to review semi-annual and annual financial reports prior to submitting before the required reporting date. Criteria: The receipt of federal funding requires timely submission of semi-annual and annual financial reports which accurately reflect expenditures charged to the federal program as well as receipts received and the recipient share of expenditures. Questioned Costs: $0 Effect: The Organization understated Head Start grant expenditures, receipts, and recipient share of expenditures on the semi-annual SF-425. Recommendation: The Organization should develop a system of internal control over compliance including a review process to ensure compliance with reporting requirements. Grantee's Response: See corrective action plan.