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Results of Limited Scope Review at Childcare Learning Centers, Inc.

Childcare Learning Centers, Inc. (CLC), claimed $563,000 in indirect costs that were unallowable because CLC did not obtain approved indirect cost rates during the 3-year period under review. CLC also deposited its operating funds, which included Federal Head Start grant funds, into an uninsured bank account. These deficiencies occurred because CLC did not establish policies and procedures related to (1) obtaining approved indirect cost rates and (2) adequately safeguarding and maintaining Federal funds in insured bank accounts.

Under the American Recovery and Reinvestment Act of 2009 (Recovery Act), P.L. No. 111-5, enacted February 17, 2009, the Administration for Children and Families received $1 billion for Head Start, including nearly $354 million to help improve staff compensation and training, upgrade Head Start centers and classrooms, increase hours of operation, and enhance transportation services.