CHICAGO, Oct. 18, 2011 — Chicago State University would like to clarify its role in
the management of Head Start funds.
Chicago State did not award any funds. The university functioned as a fiscal officer
who dispersed funds after the City of Chicago verified work had actually been completed.
In fact, pass-through entities serve as a fiscal check and balance to grant administration.
Rather than giving grant monies directly to community-based agencies, a pass-through
entity holds the money and makes payouts when they have been approved by governing
agencies that actually perform the function of program monitor.
In this case, the agency charged with making sure Dr. George Smith's state-funded
programs were real and functioning was the City of Chicago. Chicago State has largely
discontinued the fiscal administration of these types of grants.