U.S. Department
of Health and Human Services
ACF
Administration for Children and Families
Information Memorandum
To: Head Start and Early Head Start Grantees and Subrecipients
Subject: 2014 Head Start Audit Compliance Supplement
i. Grantees that are commercial organizations (including for-profit hospitals) should review audit requirements found at 45 CFR §74.26(c)-(d). States, local governments, and nonprofit organizations that expend less than $500,000 from federal awards in a fiscal year are exempt from federal audit requirements for that year, except as noted in OMB Circular A-133 §__.215(a), but records must be available for review or audit by appropriate officials of the federal agency, pass-through entity, and the General Accounting Office (GAO). See OMB Circular A-133 §__.200(d).
ii. Guidance on determining if an organization is a subrecipient is provided in OMB Circular A-133 §__.210.
iii. Head Start Act §642(c)(1)(E)(iv)(VII)(cc) applies except when a financial auditor is assigned by the state under state law or is assigned under local law.
iv. Head Start Act §642(c)(1)(E)(iv)(VII)(cc)
v. Head Start Act §642(c)(1)(E)(iv)(V)(aa)
vi. Head Start Act §642(c)(1)(E)(iv)(VII)(dd)
vii. Head Start Act §642(d)(2)(E)
viii. Head Start Act §642(d)(3)