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Audit (A-06-09-00095)

05-28-2010
Results of Limited Scope Review of Advocates for Children and Families, Inc.ís, Head Start Program

Executive Summary

We could not perform a fair assessment of Advocates for Children and Families, Inc.ís (Advocates) financial viability because its financial records were not always accurate. Advocates did not effectively manage and account for Federal funds or operate its Head Start program in accordance with Federal regulations. Specifically, Advocates (1) lacked an effective financial management system to adequately manage and account for Federal funds, (2) did not always value or account for the non-Federal matching portion of its budget in accordance with Federal regulations, and (3) had questionable arrangements with an accounting consultant and auditor. In written comments on our draft report, Advocates disagreed with our overall summary of findings. Advocates agreed with our finding that it did not have sufficient cash to meet operating obligations. Advocates disagreed with or failed to provide information that was relevant to the remaining findings. Advocates did not provide any additional information that would lead us to change our findings or recommendation.

We recommended that ACF should consider the information presented in this report when assessing Advocatesí financial condition and determining whether Advocates should be awarded additional Head Start and Recovery Act grant funding.

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