HYANNIS – The federal government has completed their audit of Cape Cod Child Development and have determined that the program did not meet its head start non-federal share obligations.
According to the Administration for Children and Families (ACF) within the Department of Health and Human Services (HHS), Cape Cod Child Development received nearly $9.7 million in Federal Head Start funds from July 1, 2016 to June 30, 2019.
The organization was obligated to contribute $2.4 million but the government said they fell short, instead spending or receiving almost $1.2 million in Federal Head Start funding to which it was not entitled.
Auditors determined that Cape Cod Child Development management did not understand the Head Start non-federal share requirements and did not have written policies and procedures for ensuring that it met its requirements and contributions.
The federal government recommended that ACF take steps through the bankruptcy process to recover the nearly $1.2 million in Federal Head Start funds, based on the organization’s $1.5 million non-federal share shortfall.
The original audit objective was to determine whether Cape Cod Child Development appropriately allocated and claimed $17.3 million in costs in federal and state pass-through grants.
But because the organization ceased operations in August 2019 and filed for bankruptcy in October, auditors adjusted their objective to cover only the $1.5 million in Head Start non-federal share for which Cape Cod Child Development provided documentation.
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