Review of Head Start Board of Directors, Inc., for the Period September 1, 2006, Through October 23, 2007

EXECUTIVE SUMMARY:

For the period September 1, 2006, through October 23, 2007, Head Start Board of Directors, Inc. (HSBD), a Head Start grantee, did not fully comply with Federal and State requirements regarding the safety of children in its care and the management of and accounting for Federal funds.  HSBD provides educational and daycare services to children in Rhode Island's Greater Providence and Blackstone Valley areas.  The Administration for Children and Families (ACF), which administers the Head Start program, requested that we audit HSBD.

We found that HSBD jeopardized the safety of children in its care by not fully complying with requirements for fire inspections and preemployment background checks.  In addition, HSBD's financial management systems did not meet Federal requirements for disclosing the results of each federally sponsored program and effectively accounting for Federal funds and assets.  Based on our preliminary audit findings, ACF suspended HSBD's funding in October 2007, and the Departmental Appeals Board upheld the suspension in January 2008. Because ACF has suspended HSBD's funding indefinitely, we are not making any recommendations to HSBD. Instead, we are providing this report to ACF for use in overseeing the Head Start grant that serves children in the Greater Providence and Blackstone Valley areas.

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