Southwestern Community Action Council, Inc. Huntington, West Virginia

EXECUTIVE SUMMARY:

This audit report presents the results of an Office of Inspector General (OIG) limited scope review of Southwestern Community Action Council, Inc. (SCAC) in Huntington, West Virginia.   The Region III U.S. Department of Health and Human Services (HHS), Administration for Children and Families (ACF) requested this review after program deficiencies were noted in the triennial Head Start and Early Head Start On-Site Performance Review Instrument (OSPRI) performed in May 1999.  We found that SCAC overspent the Head Start budget by $145,680, did not reserve sufficient funds for employees' accrued leave, did not properly allocate employee time to appropriate programs and did not prepare and manage realistic budgets.  We recommended that SCAC refund $145,680 for inappropriately claimed funds.  We also made several procedural recommendations to strengthen internal controls.