What audit does a Head Start grantee need?

A Head Start grantee that spends $1,000,000 or more in federal awards in its fiscal year, counting Head Start and every other federal program, needs a Single Audit under the Uniform Guidance. Most grantees reach that level. Smaller programs may still have audit terms in their grant or in state child care funding agreements.

The non-federal share (match)

Head Start grantees generally must provide a non-federal share of 20% of total program costs, unless the Office of Head Start approves a waiver. Much of it is often in-kind: donated space, volunteer time and donated supplies. In-kind match is a frequent audit finding because it needs the same documentation as cash.

• Volunteer time recorded with dates, hours and a supportable rate
• Donated space valued at fair rental value with documentation
• Match counted once, not toward two grants
• Match recorded in the same period as the federal costs it supports

The 15% development and administrative cost limit

Head Start limits development and administrative costs to 15% of total program costs, including the non-federal share. Auditors test how you classify and allocate costs between program and administration, so a written, consistently applied cost allocation plan matters.

Cost allocation across funding sources

Many centers run Head Start, state pre-K, child care subsidy and private-pay classrooms in the same building with shared staff. Costs have to be allocated on a reasonable, documented basis, such as enrollment, square footage or time records, so each funder is charged only its share.

Child nutrition funding

Centers often receive federal food program reimbursements, such as the Child and Adult Care Food Program, through the state. These are federal awards too: they count toward the Single Audit threshold and come with meal count and eligibility documentation that auditors test.

How the engagement works

1. Scoping callDay 1

   A 30-minute call about your organization, who needs the report and your deadline.

2. Fixed-fee proposalWithin 1–3 business days

   Scope, report type, timeline and one fixed fee, in writing.

3. One request listWeek 1

   Everything we need, uploaded through a secure portal.

4. Fieldwork and draftSet in your proposal

   Remote testing, then a draft for your review.

5. Signed reportOn or before the agreed date

   A CPA partner signs, and we walk you or your board through the results.

Why early childhood programs choose Greywood CPA

• Fixed fee, agreed first. No hourly billing and no surprise invoices.
• Senior people on your file. Every engagement is led by a senior professional and signed off by a CPA partner. Meet the team.
• Licensed and registered. Virginia Board of Accountancy firm license #134961, AICPA member, with out-of-state registrations where required. See our credentials.

Related

Head Start and early childhood audit FAQs