Recipient Capability Audit of Galveston County Community Action Council, Inc.

Our review found that Galveston County Community Action Council, Inc. (the Council), generally was financially viable and had the capacity to manage and account for Federal funds and to operate a Head Start program in accordance with Federal requirements. However, we identified noncompliance issues pertaining to fixed-fee contracts for consultants, property records, physical inventories, procurement procedures, vendor payments, matching contributions, and information security. As a result, the Council claimed $34,700 in unallowable costs for payments to consultants and $67,100 in unallowable in-kind contributions. We conducted this review because the American Recovery and Reinvestment Act of 2009 awarded additional funds to the Head Start program.