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Audit (A-03-09-00368)

10-04-2010
Results of Limited Scope Review at Philadelphia Parent Child Center, Inc. (A-03-09-00368)

Executive Summary

We reviewed the financial conditions at Philadelphia Parent Child Center, Inc. (the Center), Head Start program, as requested by the Administration for Children and Families (ACF), Office of Head Start, for use in its overall assessment of Head Start grantees that have applied for additional funding under the American Recovery and Reinvestment Act of 2009 (Recovery Act).

Based on our assessment, we believe that the Center currently is not financially viable, has limited ability to account for Federal funds, and is not capable of operating a Head Start program in accordance with Federal requirements. Our review identified weaknesses relating to the Center's financial viability, fiscal staff, accounting system certification, in-kind valuation and reporting, and the reasonableness of employee compensation.

We recommended that ACF, in determining whether the Center should be awarded additional Head Start and Recovery Act grant funding, consider the information presented in the report in assessing the Center's ability to account for and manage Federal funds and to operate a Head Start program. In written comments on our draft report, the Center neither agreed nor disagreed with our findings. However, the Center provided information as to action it had taken since our review, as well as additional information related to some of our findings.

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