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Southeastern Tidewater Opportunity Project, Inc., Head Start Program Claimed Unallowable Costs for Grant Year April 1, 2010, Through March 31, 2011

Of the $11.6 million that Southeastern Tidewater Opportunity Project, Inc. (STOP), claimed under its Head Start grant, $10.9 million was allowable. STOP recorded unallowable expenditures totaling $949,000: $808,000 for costs incurred prior to the award period, $120,161 for improperly allocated fringe benefit costs, $16,000 for costs that were not supported by source documentation, and $6,000 in duplicate costs. However, because its total recorded Head Start expenditures exceeded the amount of the Head Start grant by $223,000, only $727,000 of the unallowable expenditures was reimbursed by the Federal Government.

Because of deficiencies in financial management and financial governance, STOP exceeded its available funding for its Head Start program, became insolvent, and had to relinquish its program.

Filed under: Administration for Children and Families