Bankrupt Newark Head Start Agency May Owe Feds $10M

NEWARK, NJ — Federal authorities are claiming that Newark Preschool Council Inc., a defunct nonprofit formerly responsible for administrating Head Start programs throughout the city, may have to return $10 million in funding.

A recent U.S. Office of the Inspector General (OIG) report alleges that the Newark agency didn’t maintain its funded enrollment level over a 17-month period in 2013 and 2014, although it received an excess of nearly $8 million in Head Start funds. In addition, the agency allegedly used Head Start funds for “unallocable general and administrative costs” that came to $1.5 million, “unauthorized purposes” worth $450,000 and $46,000-worth of salary paid to its former executive director that “did not comply with Newark’s policies.”

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