Audit of Head Start Costs for Fiscal Year Ending June 30, 2005 for Arlington Community Action Program, Inc.

The Department of Health and Human Services, Administration of Children and Families (ACF), Office of the Inspector General (OIG) conducted this audit of the Arlington Community Action Program, Inc. (ACAP), Head Start grant to determine if costs claimed by ACAP were allowed under federal regulations. The audit team reviewed expenses for the period of July 1, 2004 through June 30, 2005.

ACF awarded ACAP a grant totaling $2,062,097 to operate the Head Start program during the grant period. Of the amount awarded, ACAP claimed $2,045,109 in costs related to the Head Start program. The OIG determined that $1,525,073 of the $2,045,109 claimed was allowed. Of the remaining $520,036, the OIG did not accept $342,004 and recommend that it be refunded to ACF and set aside $178,032 that ACF will further review for approval.

The OIG recommended that ACAP should refund $342,004 to ACF for costs that were either unallowed or unsupported. The OIG also recommended that ACF make a determination on the acceptance of $178,032 of set aside costs that did not have sufficient supporting records for the OIG to determine allowance.