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Audit (A-03-09-00371)

Results of Limited Scope Review at Maryland Rural Development Corporation

Executive Summary

We reviewed the financial conditions at Maryland Rural Development Corporation (Maryland Rural), 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, generally, Maryland Rural is financially viable and has the capacity to manage and account for Federal funds and is capable of operating a Head Start program in accordance with Federal regulations. However, we identified weaknesses related to fixed asset records, encumbering of Head Start assets, procurement policies and procedures, and sharing of information with the Board of Directors.

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Office of Inspector General, U.S. Department of Health and Human Services | 330 Independence Avenue, SW, Washington, DC 20201