EIN: 930687438
UEI: NK67L8XQ81G3
Audited by: SingerLewak LLP
Oversight agency: 93 [Department of Health and Human Services]
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Data as of August 31, 2026
Management decision deadline — for entities that funded this organization
The FAC accepted this audit on August 28, 2025. Under 2 CFR 200.521(d), a pass-through entity that provided federal funds to this organization for this audit period must issue a management decision on these findings by February 28, 2026 (185 days ago).
What is a management decision? →FAC accepted this audit on June 3, 2024 — management decision was due December 3, 2024.
FAC accepted this audit on August 10, 2023 — management decision was due February 10, 2024.
FAC accepted this audit on June 27, 2022 — management decision was due December 27, 2022.
FAC accepted this audit on June 29, 2021 — management decision was due December 29, 2021.
FAC accepted this audit on September 10, 2020 — management decision was due March 10, 2021.
Drawdown was made in January 2020 for reimbursement on 2019 program expenses when no grant funds were remaining per grant award. Funds were returned timely and were used for 2020 expenses. Context: Kidco drew down funds for reimbursement from Headstart instead of from the intended State funding source. This resulted in funds being drawn down prior to eligible costs having been incurred. Rather than returning funds once error was identified, Kidco received reimbursement from State for same expenses and then covered Federal expenses from State source overtime until repaid. Cause: The Executive Director reviewed the drawdown request but the individual responsible for making the draw took the funds from the incorrect funding source. Effect: By not returning the funds, Kidco received an advanced drawdown for FY 2020 activity to cover expenses that have not yet being incurred not following the reimbursement nature of grant program. This will be considered a material weakness in controls over compliance. Questioned Costs: $190,015 Recommendation: Controls should be implemented that require management review drawdown support after it has taken place to ensure funds were drawn down from proper source of funding. In addition, if funds are drawn down in error, they should be timely returned. Response: The executive director did indeed review the finalized drawdown support, which is when the drawdown request error was recognized. The error occurred in not knowing that the money should have been returned, instead of paying FY 2020 already incurred expenses entirely from the state and not having the FY 2020 Head Start grant charged for these expenses. In essence the grantee reimbursed the feds internally by not requesting funds for already incurred (allocable and allowable) FY 2020 expenses. Corrective action was immediate at that time and all drawdowns following that were requested from the correct funders.
Show full finding ▾Hide full finding ▴2019-005 CFDA 93.600 Head Start ? Cash Management Criteria: For cost-reimbursement contracts under the Federal Acquisition Regulation (FAR), reimbursement payment is the predominant method of funding. The FAR clause at 48 CFR section 52.216-7 applies to reimbursement payment. Paragraph (b)(1) of that clause requires that the non-Federal entity request reimbursement for (a) only allocable, allowable, and reasonable contract costs that have already been paid, or (b) if the non-Federal entity is not delinquent in paying costs of contract performance in the ordinary course of business, costs incurred, but not necessarily paid Condition: Drawdown was made in January 2020 for reimbursement on 2019 program expenses when no grant funds were remaining per grant award. Funds were returned timely and were used for 2020 expenses. Context: Kidco drew down funds for reimbursement from Headstart instead of from the intended State funding source. This resulted in funds being drawn down prior to eligible costs having been incurred. Rather than returning funds once error was identified, Kidco received reimbursement from State for same expenses and then covered Federal expenses from State source overtime until repaid. Cause: The Executive Director reviewed the drawdown request but the individual responsible for making the draw took the funds from the incorrect funding source. Effect: By not returning the funds, Kidco received an advanced drawdown for FY 2020 activity to cover expenses that have not yet being incurred not following the reimbursement nature of grant program. This will be considered a material weakness in controls over compliance. Questioned Costs: $190,015 Recommendation: Controls should be implemented that require management review drawdown support after it has taken place to ensure funds were drawn down from proper source of funding. In addition, if funds are drawn down in error, they should be timely returned. Response: The executive director did indeed review the finalized drawdown support, which is when the drawdown request error was recognized. The error occurred in not knowing that the money should have been returned, instead of paying FY 2020 already incurred expenses entirely from the state and not having the FY 2020 Head Start grant charged for these expenses. In essence the grantee reimbursed the feds internally by not requesting funds for already incurred (allocable and allowable) FY 2020 expenses. Corrective action was immediate at that time and all drawdowns following that were requested from the correct funders.
Response: In the ending months of FY 2019, the executive director was off due to medial leave. Upon her return to work, she noted that costs had not been appropriately allocated across all funders and therefore, had not been requested at the appropriate amount from the state. At that point, it was noted that the state was to pay a majority of remaining costs through the end of FY 2019, to ensure appropriate allocation of costs for the year was occurring and that with the new FY, allocations could be resumed per normal. With the new year, the payroll request occurred in what was perceived as the new FY (January 7), and was requested per the routine allocated way (federal funder again) instead of requesting this payroll entirely from the state (since it was the last payroll in FY 19) as it should have been. Upon reviewing the documentation of the finalized drawdown request/support, the executive director realized the payroll drawdown occurred from the wrong funder. State funds were then requested to cover this drawdown and were used to pay FY 20 expenses that would have then been requested from the federal funder, but were not requested in order to cover the amount incorrectly drawn earlier. All funds from the drawdown (and subsequent state reimbursement) were used to pay FY 20 expenses incurred. Action Taken: The executive director did indeed review the finalized drawdown support, which is when the drawdown request error was recognized. The error occurred in not knowing that the money should have been returned, instead of paying FY 2020 already incurred expenses entirely from the state and not having the FY 2020 Head Start grant charged for these expenses. In essence the grantee reimbursed the feds internally by not requesting funds for already incurred (allocable and allowable) FY 2020 expenses. Corrective action was immediate at that time and all drawdowns following that were requested from the correct funders.
FAC accepted this audit on September 25, 2019 — management decision was due March 25, 2020.
GSA_MIGRATION
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GSA_MIGRATION
GSA_MIGRATION
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Show full finding ▾Hide full finding ▴FAC accepted this audit on September 12, 2018 — management decision was due March 12, 2019.
FAC accepted this audit on September 29, 2017 — management decision was due March 29, 2018.
GSA_MIGRATION
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GSA_MIGRATION
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