Results of Limited Scope Review at ACTION, Inc. of Delaware and Grant Counties

Based on our assessment, ACTION, Inc. of Delaware and Grant Counties (the Grantee), located in Muncie, Indiana, has shown signs of financial distress. If it makes progress in implementing certain financial and programmatic improvement recommendations, it will have the capacity to manage and account for Federal funds and to operate its Community Service Block Grant program (CSBG) in accordance with Federal regulations. During our review, we noted weaknesses related to: financial viability, safeguarding of Federal funds, the whistleblower process, and inventory of property.

In determining whether the Grantee is appropriately managing and accounting for the Recovery Act grant funding, we recommended that the Administration for Children and Families consider the information presented in this report in assessing the Grantee's ability to operate a CSBG program in accordance with Federal regulations and work with the State to address noted weaknesses.