The grantee did not maintain an efficient and

The grantee did not maintain an efficient and effective reporting system to generate
official reports for Federal authorities, as required by applicable law. The grantee did
not file IRS 1099-Misc. forms for 2008 for any individuals paid at least $600 for Head
Start services. A review of Payment History documents found one contractor was paid
$1,920 in 2008, and another was paid $4,995 from Head Start funds for janitorial
services. The Fiscal Officer stated as of the date of review, no IRS 1099-Misc. forms
were issued to any vendors paid from Head Start funds in 2008.
The grantee did not ensure it filed IRS 1099-Misc. forms for independent contractors
paid over $600 from Head Start funds; therefore, it was not in compliance with the
regulation.
Follow-Up Corrected
The grantee implemented an efficient and effective reporting system to generate official
reports for Federal authorities as required by applicable law. The agency implemented
changes to its reporting system to enable it to generate official reports for Federal,
State, and local authorities. The procedural changes ensured all new
vendors/contractors added during the year had the appropriate IRS-990 box marked in
their vendor files, as well as a required KWK-9 Request for Taxpayer Identification
Number and Certification form. The agency also reviewed all vendor payments at year
end to ensure IRS-1099 Miscellaneous Income forms were processed for
vendors/contractors paid in excess of $600.
Part 1304 – Program Performance Standards for Operation of Head Start Programs
By Grantees and Delegate Agencies
1304.52 Human Resources Management.
(j) Staff performance appraisals. Grantee and delegate agencies must, at a minimum,
perform annual performance reviews of each Early Head Start and Head Start staff
member and use the results of these reviews to identify staff training and professional
development needs, modify staff performance agreements, as necessary, and assist
each staff member in improving his or her skis and professional competencies.
The grantee did not ensure all Head Start staff had annual performance reviews. A
review of five bus drivers’ personnel files found four did not contain written evaluations
for the 2008-2009 school year. In an interview, the Transportation/Recruitment
Coordinator stated both parts of the annual evaluations were completed for all bus

drivers; however, during additional interviews, the Head Start Director and
Transportation/Recruitment Coordinator stated annual performance reviews were never
completed for the four drivers.
Follow-Up - Corrected
A review of personnel files for the grantee's five bus drivers found all five received
written two-part evaluations for the 2008-09 and 2009-10 school years.
Head Start Act
Sec.644. [42 U.S.C. 9839]
(a)
(2) Each Head Start agency shall make available to the public a report published at
least once in each fiscal year that disclosed the following information from the most
recently concluded fiscal year, except that reporting such information shall not reveal
personally identifiable information about an individual about an individual child or
parent:
(D) The results of the most recent review by the Secretary and the financial audit.