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Audit (A-09-10-01010)

Results of Limited Scope Review at Community Services Agency

Executive Summary

Based on our assessment, Community Services Agency (CSA) is financially viable, has the capacity to manage and account for Federal funds, and is capable of operating its Community Services Block Grant (CSBG) program in accordance with Federal regulations. However, we noted weaknesses related to (1) performance incentive awards, (2) subsidized wages funded by the Recovery Act, (3) Recovery Act reporting, and (4) composition of the board of directors. The CSBG program provides funds to alleviate the causes and conditions of poverty in communities. The American Recovery and Reinvestment Act of 2009 (Recovery Act) provided additional funding for the program.

We recommended that the Administration for Children and Families (ACF) consider the information presented in this report in assessing CSA's ability to operate its CSBG program in accordance with Federal regulations and in determining whether CSA is appropriately managing and accounting for Recovery Act funds. We also recommended that ACF obtain from CSA documentation supporting the allowability of $72,000 of performance incentive awards and $58,000 of subsidized wages paid.

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