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Economic Opportunity Commission of Nassau County, Inc., Claimed Some Unallowable Head Start Costs

Economic Opportunity Commission of Nassau County, Inc. (EOC) claimed Recovery Act costs totaling $330,000 that were allowable. However, EOC claimed some regular Head Start costs that were unallowable under the terms of the grant and applicable Federal regulations. Of the $7 million in regular Head Start costs that we reviewed, EOC claimed $6.1 million in costs that were allowable. However, the remaining costs, totaling $880,000, were unallowable. Specifically, EOC claimed salary and fringe benefit costs that were not properly documented. This occurred because EOC did not update its policies and procedures for time and effort reporting when it implemented a new time and attendance system.

We recommended that the Administration for Children and Families (ACF) require EOC to refund $880,000 to the Federal Government and ensure that EOC updates its policies and procedures for time and effort reporting to ensure compliance with Federal requirements. ACF concurred with our findings.

Filed under: Administration for Children and Families