Results of Limited Scope Review at the City of Chicago, Department of Family and Support Services, for the Period December 1, 2005, Through July 31, 2009

Generally, the City of Chicago (the City) has the capability to manage and account for Federal funds in accordance with Federal regulations. City administrative staff working on multiple activities, including the Head Start program, had their salaries and wages supported by semiannual certifications. We would encourage the City to certify administrative staff's time charged to multiple funding sources on a monthly basis, in accordance with 2 CFR part 225, Appendix B, ' 8.h.(4) and (5).

In determining whether the City should be awarded additional Head Start and Recovery Act grant funding, we recommend that the Administration for Children and Families consider the information presented in this report in assessing the City's financial condition. In written comments on our draft report, the City stated that a review and update of its policies and procedures concerning personnel costs charged to Federal awards for administrative staff was in order, but it did not agree with the finding that these costs were not in compliance with Federal requirements. After reviewing the City's comments, we acknowledge that the City follows 2 CFR part 225, Appendix B, ''8.h.(3) and utilizes certifications every 6 months in instances where employees work solely on a single cost objective.