Head Start financial report reviewed; staff discloses recent unannounced federal audit visit

District Head Start staff presented the fiscal year 2025 financial statement and credit card expenditures for October 2024 through March 2025 and told trustees the program recently hosted an unannounced federal audit team.

"We did have an unannounced audit last week," a Head Start staff member told the committee, describing a team of seven auditors who reviewed program areas including education and finances and who conducted classroom observations. Staff said the auditors work on a five‑year grant cycle and that formal findings will not be issued until mid‑summer, but that early feedback highlighted areas the program must address and improve.

Staff also described large variances in the "other purchase services" account caused in part by covering classroom vacancies with substitutes and by moving some maintenance expenses for West Ashley Head Start into related accounts. The presenter said they will bring more frequent financial reports to the governing board and will adjust reporting cadence in response to audit feedback.

Trustees asked for clarification about fringe benefits, and staff answered that fringe benefits include retirement and medical costs tied to salaries. The committee accepted the monthly financial report for Head Start and had no objection to staff returning with more frequent program and financial updates this summer once the auditors issue final results.

Next steps: staff said they will continue monthly financial reporting and will present an adjusted reporting cadence and two report types to the board in the summer: (1) the routine monthly financial statement and (2) a program‑focused report with more operational detail.