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Results of Limited Scope Review at San Luis Valley Community Action Agency

We reviewed the financial condition of San Luis Valley Community Action Agency (SLVCAA) as part of a nationwide series of reviews of Community Action Agencies that have received funding under the American Recovery and Reinvestment Act of 2009. Based on our assessment, we believe that SLVCAA is not financially viable and does not have the capacity to manage and account for Federal funds and to operate its Community Services Block Grant (CSBG) program in accordance with Federal regulations. Specifically, SLVCAA did not have an independent organizational structure and was not capable of managing its CSBG program. Moreover, SLVCAA's use of a sub-recipient local government body to manage SLVCAA's CSBG program created a conflict of interest.

We recommended that the Administration for Children and Families consider the information presented in this report in assessing SLVCAA's ability to operate the CSBG program in accordance with Federal regulations. In written comments on our draft report, SLVCAA agreed with our findings and described corrective actions that it had implemented or planned to implement. We did not verify the corrective actions.

Filed under: Center for Medicare and Medicaid Services