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Audit (A-01-11-02505)

Results of Limited Scope Review at Norwalk Economic Opportunity Now, Inc.

Executive Summary

Norwalk Economic Opportunity Now, Inc., claimed costs of $406,000 that were not allowable, allocable, reasonable, and adequately documented under the terms of the Head Start and Recovery Act grants and applicable Federal regulations, including claimed costs of $383,000 in indirect expenses to Federal Head Start grants without obtaining an approved indirect cost rate and $23,000 in unallowable expenses to the Recovery Act Head Start quality improvement grant.

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.

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