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The Child Development Council of Acadiana, Inc.'s, Financial Management Practices and Systems Did Not Always Meet Federal Requirements

The Child Development Council of Acadiana, Inc. (CDCAI), a nonprofit agency, operates a Head Start program in Opelousas, Louisiana, and surrounding cities. CDCAI did not always meet Federal requirements in its financial management practices and systems. Specifically, CDCAI claimed $1.2 million in unallowable expenditures for the construction of a new central office building without the Administration for Children and Families' (ACF) approval and did not accurately account for these expenditures; failed to file a Notice of Federal Interest with ACF for its central office building; improperly used the new central office building as collateral on two loans and failed to disclose in its 2009 and 2010 financial statements that the building was pledged as security for the first loan; claimed $853,000 in unallowable goods, services, and donations as non-Federal share; overvalued and improperly documented in-kind non-Federal share; and claimed $18,000 in unallowable expenditures that were not reasonable, allocable, and necessary to the overall operation of the Head Start program. During CDCAI's FY 2011 (February 1, 2010, through January 31, 2011), OHS provided Head Start grant funds to CDCAI totaling $7.4 million, which included $823,000 in Recovery Act funds.

Filed under: Administration for Children and Families