Finding Text
Department of Health and Human Services (passed through Ocean Community Economic Action Now, Inc.) Finding 2022-001 ? Failure to Meet Matching Requirement (Material Noncompliance) (Repeat Finding) Head Start Program - CFDA No. 93.600; Award No. 02CH011916-01-02; Grant Period - Year Ended December 31, 2022 and Early Head Start Program ? CFDA No. 93.600; Award No. 02CH011319-02-03; Grant Period - Year Ended December 31, 2022 Statement of Condition: The subrecipient grant document requires that the subrecipient agency provide a non-federal match of 20% of the total costs of the Head Start program, which was calculated at $315,614. The actual match amount provided for the year ended December 31, 2022 was $218,506, which was significantly less than the required match. This is a repeat of a finding in the December 31, 2021 audit, which was reported as Finding 2021-001. The non-federal match requirement for the Early Head Start program was $105,261. The actual match provided for the year ended December 31, 2022 was $13,472. Criteria: The Head Start and Early Head Start programs require recipients to provide a 20% non-federal match of program expenses. Cause: The Organization did not receive sufficient in-kind support to meet the match requirement. The Organization also was unable to generate other sources of revenue to apply to the match requirement. Effect: Failure to meet the non-federal share may result in reduced funding. Recommendation: A waiver or a reduction in the required non-federal match can be requested from the Administration for Children and Families if one of five criteria are met. We recommend that the criteria be reviewed and a waiver requested if one or more of the criteria are applicable. In addition, the Organization should discuss the repercussions of failure to meet the non-federal share with the grantor and come up with a plan to ensure the non-federal match is met in future years. Views of Responsible Officials and Planned Corrective Actions: As of January 1, 2023, LEAP, Inc. is no longer operating the Head Start and Early Head Start Programs.