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CSU clarifies role as pass-through agency in DCFS case

Chicago State's role was to make payments after work was verified by City of Chicago

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.