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Cenla Community Action Committee's Financial Management Practices and Systems Did Not Always Meet Federal Requirements

Cenla Community Action Committee, Inc. (Cenla), a nonprofit agency that operates Head Start and Early Head Start programs at locations in Rapides Parish, Louisiana, did not always meet Federal requirements in its financial management practices and systems. Specifically, Cenla claimed consultant costs without an adequate contractual agreement, did not ensure that joint costs were allocated properly among various programs administered by Cenla, had not tagged equipment for identification and inventory purposes, did not accurately record equipment in the inventory log, did not conduct physical inventories every 2 years and completed inventories without adequate segregation of duties, did not follow written procurement procedures, claimed unallowable and excessive volunteer services as non-Federal share, secured loans using Head Start-purchased real property as collateral without proper approval, did not comply with its credit card policy, and did not adequately safeguard and manage checks.

The American Recovery and Reinvestment Act of 2009 (Recovery Act), P.L. No. 111-5, provided an additional $2.1 billion for the Head Start program during FYs 2009 and 2010. These funds were intended for activities such as expanding enrollment, funding cost-of-living wage increases for grantees, upgrading centers and classrooms, and bolstering training and technical assistance.

Filed under: Administration for Children and Families