Results of Limited Scope Review at FiveCAP, Inc., for the Period November 1, 2005, Through July 31, 2009
FiveCAPís overall financial position remains an area of concern. Based on its current financial condition, FiveCAP can not ensure the continuing viability of the organization unless it restructures its debt or receives additional funding. In addition, FiveCAP may have claimed unreasonable compensation costs from the Head Start program for its Executive Directorís vacation pay in lieu of time off.
In determining whether FiveCAP should be awarded additional Head Start and Recovery Act grant funding, we recommended that ACF consider the information presented in this report in assessing FiveCAPís financial condition. FiveCAP disagreed with most of our findings. After reviewing FiveCAPís comments, we maintain that our findings regarding its financial viability remain valid.
Filed under: Administration for Children and Families