Department of Health and Human Services

Office of Inspector General -- AUDIT

"Review of Compensation Practices for Executives and Teachers, Council for Economic Opportunities in Greater Cleveland,"  (A-05-04-00023)

January 24, 2005


Complete Text of Report is available in PDF format (188 kb). Copies can also be obtained by contacting the Office of Public Affairs at 202-619-1343.


EXECUTIVE SUMMARY:

The objective of our review was to determine whether the Council for Economic Opportunities in Greater Cleveland’s (CEOGC) compensation practices for key executives and teachers were reasonable and consistent with Federal requirements and guidelines.  CEOGC’s compensation practices for top executives did not meet Federal requirements and guidelines.  While wages paid to teachers were comparable to teachers’ wages in surrounding areas, compensation for CEOGC’s key executives appeared unreasonable compared to the top-level executive compensation at other Head Start programs.  The total compensation to CEOGC’s Executive Director, Chief Financial Officer, and Head Start Director exceeded the compensation for the same positions of a comparable agency by around $86,000, $70,000, and $22,000, respectively.  We recommended that CEOGC ensure that executive compensation is reasonable and that future wage comparability studies meet the requirements of 653 of the Head Start Act and any future clarification, guidance, or requirements set out by ACF.  CEOGC officials agreed with our audit recommendations.  However, they expressed concerns as to our comparisons of CEOGC executive compensation to other Head Start agencies.