Our objective was to review the financial practices and transactions relative to the Head Start grant awarded to Juniata County Child Care and Development Services, Inc. (Juniata) for the period February 1, 2004, through January 31, 2005. Of $889,733 recorded costs for the Head Start program, we did not accept and recommend for adjustment $108,905 comprising of $90,000 used improperly to pay off a line of credit bank debt established during the previous grant year and $18,905 of unallowable and unsupported costs. We also set aside $44,307 for Administration for Children and Families (ACF) adjudication because Juniata did not provide adequate documentation to support this amount. Since Juniata relinquished its grant, we recommended that ACF: (i) require Juniata to refund $90,000 of 2005 grant funds used to improperly pay off a line of credit bank debt established during the prior year; (ii) require Juniata to refund $18,905 of unsupported and/or unallowable costs; and (iii) make a determination on the acceptance of $44,307 for set-aside costs that did not have sufficient supporting records for us to determine allowability. More>>