Finding Text
HEAD START REPORT – FINANCIAL REPORTING
Information on Federal Program: Head Start, Assistance Listing 93.600
Criteria: Compliance under Head Start: Financial Reporting Requirements under ACF-PI-HS-16-01 Submission of Federal Financial Report SF-425.
Statement of Condition: Our testing over financial reporting included the review and timely submission of the semi-annual and annual reports during the Center’s fiscal year end. The annual report for contract 02CH01096003 due July 31, 2022, was not filed until October 18, 2022, contract 02HE00006801C5 due July 31, 2022, was not filed until October 3, 2022, and contract 02HE00006801C6 due July 31, 2022, was not filed until October 3, 2022. Statement of Cause: The Center was operating without a Chief Financial Officer for an extended period of time, during this period other members of management assumed this responsibility and additional time was needed to compile and report accurate information.
Statement of Effect: Annual reports noted above were not filed within the required reporting deadline.
Questioned Costs: None.
Perspective Information: The Center was operating without a Chief Financial Officer from late April 2022 through date of issuance of this report. The center was able to engage an accounting consultant to aid in reconciling accounts through March 31, 2022, which assisted the Center in completing and filing of the reports.
Identification of Repeat Finding: No.
Recommendation: We recommend management develop a policy and checklist for year end reports and engage accounting consultant services if needed, to reconcile accounts required for timely filing of reports.
Views of responsible officials and planned corrective actions: ECLC did submit an
extension request to Regional Office regarding submitting financial report SF 425 later
than 7/31/22. See attached request submitted to HSES. The extension was requested due
to the loss of the CFO in late April, 2022. All SF 425 have been submitted timely since
then.