Head Start Recipient Capability Audit of Pinellas Opportunity Council, Inc.

Our review found that Pinellas Opportunity Council, Inc. (POC), was financially viable. However, we identified certain issues concerning Pinellas Opportunity Council's capacity to manage and account for Federal funds and to operate its Head Start program in accordance with Federal regulations. The issues pertained to loans to related parties and improper use of Head Start funds, direct versus indirect costs, personal expenses, and conflicts of interest and family favoritism. We conducted this review because the American Recovery and Reinvestment Act of 2009 awarded additional funds to the Head Start program.